Food Trucks – What to Consider

Attendees at the NRA show had an opportunity to learn a little bit more about the intricacies of owning and operating a successful food truck. Ross Resnick, founder of the food-truck-locating website www.roaminghunger.com, offered a variety of tips to succeed in this growing foodservice segment.

Since 2009, the number of trucks listed on the Roaming Hunger website has grown 710 percent, to more than 2,300, Resnick said. Food truck growth is anticipated to grow another 260 percent by 2014.

According to Resnick, food truck success depends on many factors, but mostly dependent upon brand differentiation, reasonably sized menu, sales locations, strong media presence and patience when it comes to growth.

He also warns that owning a food truck is not a get-rich-quick type of business. Food trucks are no longer a novelty and must be built as sustainable businesses where customers want to eat frequently.

Customer Loyalty Programs Really Do Increase Business

Does your restaurant have a loyalty program? If it does not, you may want to consider implementing a program soon. According to recent data from the National Restaurant Association, approximately 30% of restaurant operators are offering frequent-diner programs to their customers in order to increase patronage and loyalty. The research found that 57% of all adults said they would be more likely to patronize a restaurant that offered a customer-loyalty and/or rewards program.

By offering a customer loyalty program, or a rewards program of some kind, you can give consumers the feeling of increased value. This is especially important in the mind of today’s consumer who wants to dine out, but may need a little more incentive to do so. A customer loyalty program is a terrific way for operators to thank their guests, as well as continue to build on their customer base going forward.

Spread the Word

According to the National Restaurant Association, word of mouth is the most effective way to spread the message of a restaurant’s popularity.

According to a recent survey, 93% of all adults questioned said they likely would choose a restaurant based on recommendations from family and friends. Word of mouth has also moved beyond face-to-face and telephone conversations. Restaurants must also consider how their establishment is being talked about online, based on the increasing number of people that post to Facebook and Twitter.

Takeout Proves to be Strong Source of Revenue

Providing your consumers with the option for takeout could bring increased sales to your restaurant. A recent Technomic survey indicates that 57% of consumers recently surveyed say they purchase takeout once a week or more. Of those consumers who purchased takeout, 60% said that if they had not done so on that occasion they would most likely have made food at home and not purchased from a foodservice operator.

Takeout provides an effortless dining option for consumers focused primarily on convenience.

What's Your Opinion on Displaying Calorie Content

Two researchers from the City University of New York School of Public Health at Hunter College are surveying the perceptions of restaurant owners and managers. The scientists are studying the consequences of the new menu labeling law that requires establishments owning 20 or more locations to list calorie content for standard menu items on their restaurant menus, menu boards and drive-thru menu displays.

With growing emphasis on health and obesity in America, researchers are investigating how increased food legislation is affecting the restaurant industry. The online survey takes about 10 minutes to complete. Take the survey now at: http://www.formstack.com/forms/?1093287-rjK3bxNSem

The Cost of Starting Up a Restaurant

Did you know that it can coast anywhere from $450,000 to $525,000 to start-up a restaurant?

John Kunkel has worked in the restaurant industry since he was a teenager. He learned the ropes of the service industry from the front-of-the-house. By the time he was 29, he was ready to go out on his own. His first venture was to open a bakery in South Beach Miami, FL. The bakery was slow to take off, but eventually found a successful footing.

However, a year after opening the bakery, John decided it was time to move on. He saw a need for a value-driven place that South Beach residents could return to on a daily basis. That’s when he opened Lime, a healthy Mexican eatery that had lines out the door from its first day in business – and has remained popular ever since.

Check out John’s article featured on www.inc.com. John gives an overview of what he has learned about start-up costs for a restaurant, in the years he scraped together funds for his first place to working with a franchise heavyweight.

Good News for Your Bottom Line

The new limits to swipe fees associated with debit cards could potentially be a big benefit to the restaurant industry. Earlier this month, the Senate voted to put a cap on the up to 2 percent fee that stores and restaurants currently pay financial institutions when a customer uses their debit card. Restaurants, on average, conduct about 35 percent of their transactions with debit cards. The cap on these fees will take effect in July, and economists speculate that the entire retail industry should see some benefit from the changes.

If, like Anita Campbell of Small Business Trends, you’ve got a case of “bad economic news fatigue,” she’s got a treatment: optimism.  Specifically, she recommends checking out a biography of the fantastically successful entrepreneur and perpetual optimist, Andrew Carnegie.

To top off your new reading material, I’d like to offer a couple of reasons to be optimistic.  First, people have NOT stopped dining out.  Instead, consumers are looking for more value in their dining dollars.  An article at Forbes.com has several good suggestions for restaurateurs looking to keep their regulars while attracting new clientele.  My favorite idea: “Modest offerings--delivered in real time by a charming and professional wait staff (as opposed to a promotional coupon)--drive home the value.”  When dining out seems like an indulgence, it really needs to feel like a treat—and that doesn’t necessarily mean freebees or big discounts so much as good service and attention to detail.  Appropriately, the last suggestion of the article is to “keep your spirits up.”  (I think Ms. Campbell would approve.)

Second, besides getting great prices on all kinds of restaurant equipment and supplies everyday, joining Serv-U’s email list is FREE and can save your restaurant extra money.  Each email we send you includes special email-only deals.  And if you do make a purchase, you’ll get an extra $5.00 off your next purchase of $75.00 or more when you write a product review.  That lines up perfectly with Forbes’s tip #6: teaming up with vendors to cut costs.  Let Serv-U help you save on your next bar or restaurant supply purchase!