“Little Hinges Swing Big Restaurant Doors” 34 Rules on how to get your customers coming back again & again ……….. guaranteed “Make more money in less time & have more fun” 1 34 Rules for Restaurant Owners & Managers 1. One transaction Vs repeat guest 2. The Story of 2 restaurants for sale 3. Don’t spend another penny on Restaurant advertising unless you….. 4. It’s not the customer’s job……. 5. So, do your customers ever complain? 6. Is getting more local customers part of your business plan 7. Seriously….. how committed to customer service are you? 8. How to have a culture of customer retention in your restaurant 9. Has everything been ok for you this evening? 10. Biggest spending Vs most frequent visiting customer 11. Is a customer special occasion really a special occasion? 12. The power of tracking customer lifetime spend 13. Multiple reasons to return Vs a single reason to never come back 14. We want you back…….. 15. No one ever complained when wished a happy birthday 16. An expensive mistake to avoid 17. The importance of a great welcome 18. Develop a system to reward customers for making referrals 19. The myth “There’s nothing we can do to change our quietest times 20. The secret of consistency & value! 21. Excuse me “what’s soup of the day?” 22. Do you celebrate birthdays? 23. Make the main thing the main thing……. 2 24.
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Customers buy when they are…….. Revenue without the cost of acquisition Strike whilst the iron is hot The restaurant “director” system Don’t play blind archery We recruit our own mistakes Restaurant newsletter top tips You’re not in the restaurant business The first 10 minutes can win or lose them Discover the 10 hidden profit areas in your restaurants Always be prepared to experiment ❃
About Neil Murphy 3 Neil Murphy is widely known as an energetic, competitive and successful entrepreneur, specialising in the sales arena. Neil has a major focus on delivering customer service excellence, team retention and follow-‐up marketing. Most recently, Neil has worked with many restaurants and food pubs as well as salons and beauty spas to help develop customer VIP systems generating extra profits through customers visiting again and again……… proving the power of repeat customer business. Neil is an accomplished public speaker and big believer in "niche marketing" and the power of focus to achieve in all that we set out to achieve. In this new economy, Neil has proven the most important person in any business is the customer. Neil has successfully shared this when speaking and presenting to managers, business owners and entrepreneurs at many events, including the Institute of Customer Service meetings, Institute of Directors Hampshire (Mentor Magic winner) and, also, the Lloyds Commercial Banking Charter Event in Andover. Some of the leading strategies Neil is committed to are “customers buy when they are ready to buy, not when the salesman is ready to 4 sell” and “look very closely for the hidden business within your business”! Neil was the author and founder of Armchair and their monthly newsletter, which has proven to be extremely well received, won new client sales and helped generate referrals, as well as an extremely successful strategy to boost customer retention -‐ one of the fastest ways to gain market share! ❃
5 Introduction What?! Okay, you a probably thinking what is this title all about. But just think about it – how small are the hinges against the size of those massive doors they swing? But what does this have to do with restaurants? – Well in the serious and competitive world of restaurants, it’s the little things that count and a lot of little things can make a big difference. Make no mistake; we are living in the most challenging times for restaurant owners and managers that we have experienced in our lifetimes and only the fit will survive, the race is on and you are in it! The 3 harsh realities are that there will be lots of changes in the restaurant industry ahead – probably more than ever before – secondly there will be more competition in your business than ever before, and third there will be more opportunity in your business than ever before. I believe you must move quickly to take advantage and implement some of the “rules” in this e-‐book quickly – “it is now a fact that it’s not the big that take over the small but the fast that take over the slow” These rules are what I have studied, researched, experienced and helped me achieve 2 separate major achievements in building and developing 2 businesses to break through the £1 million per year and those businesses are still thriving today! The 34 Rules also include some hard won-‐lessons over the last years that may seem trivial but require serious focus and rest assured that you will never find a top successful business that does not use them. Any successful restaurant knows that it is the little things that count – 6 they know that little hinges swing those big restaurant doors. That is why they are what they are ……….a success. ❃
7 Rule #1 One transaction versus repeat guest In today’s economy too many restaurants are still “one transaction” style, meaning they consistently provide great food, service, attention to detail, resulting in a delighted customer who leaves a generous tip, shakes hands & just as leaving they even use promising words “thank you so much we’ve really enjoyed it and promise we will come back!” The ultimate result is that they often don’t come back even though it was said with every intention & total honesty because the truth is they are open to so many restaurant offers and deals from your competitors & rivals that they are totally distracted and become bored if you aren’t following up, keeping in touch & showing you appreciate them in a special way and as a special VIP customer! ❃
8 Rule #2 The story of 2 restaurants for sale The story (I’ve tried to keep short) is about 2 restaurants – next door to each other with different owners but both being seriously considered for purchase because of such a great location! The confident restaurant purchaser greeted the prospective seller of restaurant no1 with the question……”what can you tell me about your restaurant?” The (normal & boring) response was……well, this is the kitchen & here is the dining area and I guess you want to see the company accounts” – after 4 minutes the buyer said “thank – you I’ll be back in touch” When he visited the restaurant next door and asked the owner the exact same question the owner replied we only want to sell to somebody who is seriously committed to customer service and who will understand & fully appreciate the exceptional levels of consistent customer excellence, growth & cutting edge marketing that has successfully been implemented in our restaurant. The steady stream of good quality customers is the secret to our super successful restaurant” This loyalty culture helps generate repeat visitors, word of mouth referrals, more customer celebrations & ultimately more spend which is all tracked and can be accessed instantly & from anywhere in the world 365 days a year – It will even work for multiple restaurants – after all it’s the knowledge of results that improves results. What made the difference? 9 While one restaurant owner was just working as a “one transaction business” restaurant No 2 was intent on – not ignoring his customers and clearly knew that his rival way of running his restaurant were seriously outdated He also knew that the organisaton and automation of a VIP scheme is absolutely a skill of the future! After all, if you can’t keep score and you don’t know where you’re going – any bus will take you there! The power of a simple unified system is what was the little difference – although it was a little difference – it was very important. The owner of restaurant 2 said “I may not be in an actual contest, but you better believe I’m checking to see if the car in his driveway is faster, shinier or more expensive than my own. The owner replied “we only want to sell to somebody who is seriously committed to customer service and who will understand and fully appreciate the exceptional levels of consistent customer excellence, growth, and cutting edge marketing that has successfully been implemented in our restaurant. The steady stream of good quality customers is the “secret” to our super successful restaurant. This loyalty culture helps generate repeat visitors, word of mouth referrals, more customer celebrations and ultimately more spend which is all tracked and can be assessed instantly and from anywhere in the world 365 days a year – it will even work for multiple restaurants – after all “it’s the knowledge of results that improves results” The other areas we also track and monitor progress include 10 Number of VIP members for your restaurant Number of new members in last 24 hours, this week / month / all time Total customer spend this month /all time Top spending customers Most frequent visiting customers Total customer birthdays, this month /next month Total customer anniversaries this month /next month Total revenue from VIP customers Customer lifetime spend by customer by all customersAverage customer spend Customer satisfaction survey analysis Customer communication history Automated customer communications clicked Automated customer communications redeemed Snapshot overall restaurant results “THE KNOWLEDGE OF RESULTS IMPROVES THE RESULTS” The end result was that restaurant No2 was successful in achieving their goal and exciting wit a sale price of an extra 30% over and above the restaurant was worth next door! What made the difference? 11 This is a great example of life’s many score sheets and restaurant rivalry – the rule here is to “build a saleable consistent restaurant marketing system. ❃
12 Rule #3 “Don’t Spend a penny on restaurant advertising unless you can instantly track results” Too many businesses wait until the end of the year to find out what sort of year they’ve had! Whilst this is far too long it’s also dangerous especially if spending money on a campaign that is losing money & isn’t being tested or measured. With the automated VIP system the instant tracking and analysis is essential and positions you way ahead of your rivals and the local competition no matter how big a business they may be part of. The magic and power of knowing that no customer is ever ignored gives you massive “peace of mind” and puts you in control – that special knowledge of tracking instantly and accurately your biggest spending customer, the most frequent visiting, every birthday and anniversary. Customers receiving a best wishes communication with a personalised special offer to come into your restaurant and celebrate with their loved ones, friends, other family and colleagues really positions you to start winning and tracking your Return on Investment. ❃
13 Rule #4 “It’s not the customers job to remember to come back……it’s the restaurants job to remind them to come back !!!” It’s a brutal home truth that customers enjoy attention and in fact…..the old saying is so true “attention is what babies cry for and what old men die for” is a truism for the restaurant industry – the main reasons customers don’t come back are simply Move away, change jobs Poor service or bad experience Become bored They just “forget” and therefore need to be reminded especially for family occasions such as birthdays, anniversaries, Easter, mother’s day, father’s day, we will get further in depth on this on Rule no 22 Essentially customers are bombarded with so many offers, voucher deals, increased competition and of course the dine at home offers from supermarkets & nationwide stores. It’s now crucial to have a systemised way to help get to know your customers better, stay in touch with them, getting both new customers and also keeping them – the good news is this is easy to do and produces great results ! ❃
14 Rule #5 So…….Do your customers ever complain? I’ve actually lost count of the number of times I’ve asked this question – even when I’ve met with the board of directors – the usual response is…..”no we don’t get complaints” I normally respond by saying “do you know why? It’s because people very often don’t complain but just never come back!” This is true even after asking the customer in the restaurant in a genuine caring way – showing that you really care – even they still won’t tell you. The solution to this problem is an automated customer satisfaction survey (takes 2 minutes) which rewards them if they do respond having received it by email to their computer, ipad or even iphone and blackberry. This is pure gold and free and the best feedback or even consultancy you can ever get in your restaurant. These responses can be replied to instantly and it’s best to ask customers to respond to a positive, a negative and any suggestions and also give a rating from A being the best to F being the worst and meaning a fail and on: 1.
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Overall experience Food quality Service Value 15 The skill & restaurant rule is to reply quickly to show you care and value the customer – after all a complaint dealt with properly can mean a customer for life. It gets even better because it’s a powerful management tool which can identify which team member actually served the customer – if the customer is delighted then the team member must be recognised and praised – even rewarded. Of course if the feedback is not good you can quickly deal with this in the appropriate way! It’s worth mentioning here that it’s often multiple positive things in your restaurant that get customers to come back again & again but only one single thing that isn’t good that will mean they won’t ever come back to your restaurant ! The last tip on this important rule 5 is that the feedback can be used for testimonials – it’s best to get the customers permission and even a photograph – then use it on your website and adopt for your marketing. ❃
16 Rule #6 Is getting more local customers part of your success plan? My experience of working with so many restaurants is that they have consistently said that the No 1 marketing frustration is developing more local customers from within the community. One of the most powerful strategies for this is to develop a “newsletter” for your restaurant (see www.freshrestaurantmarketing.com (for 17 tips on writing newsletters for restaurants) where you can update and communicate to customers by email and deliver a hard copy through the doors of both local businesses and houses to promote awareness, special offers even at your quietest time of the week, lunchtime or evening. This direct response type campaign to local targets can be highly profitable and rewarding with consistent follow-‐up and messages with What else we do Special events Live music Steak or Fish and Chip nights Customer testimonials Customer celebrations Special drink promotions Bank Holiday events 17 Recipe tips & ideas Customers love to get non salesy newsletters information which keeps them informed so when the time is right they will choose your restaurant and not one of your competitors or rivals. The Newsletter for your restaurant is a strategy that the majority of restaurants and businesses will ignore and yet it’s the No 1 business tool that will ring fence and help retain your customers, spread the word of mouth to generate new customers and increase referrals, don’t ignore this exciting yet demanding opportunity to package what’s going on and what’s in it for your customer and get your head and shoulders above these rivals, even the national chains in your local community ❃ 18 Rule #7 Just how committed to customer service are you? Too many restaurants are not focussed on being dedicated to giving a real VIP experience. The bottom line here is if you are not fully committed to “customer satisfaction and delighting them, they will go somewhere else” Just imagine the word of mouth strong recommendations and referrals saying to friends, family and colleagues that they must visit your restaurant because of your consistent and brilliant treatment of customers and making them feel so special! It’s seriously worth considering engaging mystery shoppers just to have that “peace of mind” that everything is working, especially on those little things that make a big difference. If you’re creating memorable dining experiences and are constantly improving and listening to your customers, you will Create Raving Fans. This will stand you head and shoulders above your local community rivals. A total commitment to always giving a “wow” experience and “100% Customer Delight” must come from the top – yes and should be included in the team training, so that your customers are totally away from the hassles and challenges of their daily lives – they should be made to feel so special and have a unique personal connection. 19 This is such a big opportunity especially in a world that is becoming non-‐trusting, impersonal and where a serious commitment to customer service stands out a mile! ❃
20 Rule #8 How to have a culture of “customer retention” in your restaurant!!! We call this the restaurant leaky bucket – it’s is short term loss making concept and ultimately any holes in your restaurant bucket must be plugged. Even after allowing for natural wastage of people moving away, changing jobs, divorce, any holes must be filled. The rules of retentions are all about being brilliant on the basics and include never forgetting to send a birthday wish and personalised invitation to eat in your restaurant. In fact it all starts with a genuine heart warming welcome the moment a customer walks through the door. VIP customers will often travel miles and miles to come and eat at your restaurant – they are your best advertising strategy so make sure it’s a great welcome. 21 After all the way you welcome a customer is as important as how they enjoy their meal. ❃ 22 Rule #9 “Has everything been OK for you this evening?” It’s a known fact that customers are often too polite to complain when asked was everything OK with their meal! Customers are more demanding and yet may not complain, they will moan to friends, family, work colleagues…… even to a complete stranger they meet in a shot queue or in a coffee shop! Some people actually believe it’s a total waste of time to complain but will never return yet smart restaurants see it as a golden opportunity – almost a gift to get the chance to correct an issue or customer dissatisfaction! This needs to be done with a real speed – let’s say you send an automated simple survey or feedback questions by email and the response is negative ….. it could be the waitress was abrupt or not enough vegetables with the main course – the speed of response and how you resolve – maybe invite them back in for a free meal or even half price – this is an opportunity to keep the customer for life. This is an area where being average or mediocre is just not good enough …….. serious focus and ownership of the standards in your restaurant are essential. ❃ 23 Rule #10 Biggest spenders vs most frequent visiting guests. The biggest spending customers are so often assumed to be the most frequent visitors yet our research analysis has actually proven this isn’t true! When you have the availability of comprehensive and accurate analysis about your restaurant customers’ you can analyse and segregate your biggest spending customers from the lowest. Actually having this breakdown of customer habits within your restaurant allows you to analyse and even profile your biggest spending customers – after all, when you know this information, you can focus on getting more of the same. ❃ 24 Rule #11 Is a special customer occasion really a special occasion? The rule here is to play “the restaurant multiplication game”, but you have to do the upfront hard intelligent work to get the payback. Let’s say for example you have a VIP customer list of 500 customers giving you an average of 40 birthdays a month and 25 anniversaries and you have 25% of these booked in to your restaurant with an average of 6 people per booking – that’s approximately 90 bonus guests to also sign up and add to your list! But hold on a minute, as it gets even better as this is every month and if they also come back to celebrate it’s serious growth time. I know it’s obvious, but sometimes the obvious needs to be stated. Ø 90 bonus guests to sign up Ø More word of mouth referrals Ø They will come back with new guests / family Ø Customers spend more when celebrating Ø No one ever complained to a restaurant when wished “Happy Birthday” Ø This is how to become known as the No. 1 restaurant choice to celebrate a special occasion. 25 Ultimately, it’s you job to make it a real “SPECIAL OCCASION” that they will always remember, tell their friends and family and feel guilty for even just thinking about going somewhere else to eat out!!! ❃
26 Rule #12 “The power of tracking customer lifetime spend” It’s a powerful yet little understood concept by many restaurant owners, managers, and staff – even those who have years and years of experience in the industry! The diagram below explains the strategy and you can put in your own numbers as these are fairly conservative yet serve as a model to showcase the way it works! Lifetime Value of ONE VIP Customer 1.
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Average spend per person No. of visit per year Revenue per customer year Average no. customers per table = 3 No. of referrals per customer Total revenue per year Total revenue / sales = 4 years Total sales for referrals Total value of a delighted customer £20 8 £160 £480 1 £480 £1,440 £1,440 £2,880 So your 1 Delighted VIP customer is worth £2,880.00 over the next 4 years. The profits in your Restaurant are from repeat customer visits and not normally from one-‐off transactions. 27 It’s about growing and developing the Goldmine in Your Business – the strength of the long-‐term relationship with your customers. In the above example the total value of a delighted customer is £2,880.00 – that is how they should be treated – and don’t forget that is also the cost of a lost or unhappy customer who goes elsewhere and tells all their friends, family and colleagues! ❃ 28 29 Rule #13 Multiple reasons to return vs a single reason to never come back!!! Those winning successful and profitable restaurants fully understand the harsh reality is that it only takes one small thing to stop a customer ever coming back for life – what’s even more concerning is that they will tell other people about the experience and how they perceived it! The reasons to guarantee they will come back need to be multiple, such as the treatment, service and attention levels, quality of food and wine, timing of food to the table, the restaurant welcome and even the goodnight at the end of the evening. ❃ 30 Rule #14 We want you back …………… The very survival of any restaurant is dependent upon replacing lost customers and the following is a harsh reality. “What you don’t lose, your most aggressive competitors will try and steal” So many of your customer base will move away to another area or disappear within the next 12 months. That’s right. Many will move away ….. some will become unemployed, divorced, evicted, infirmed or even suffer a serious financial set back! Regardless of the reason they will VANISH from your radar scope. This makes the case that we must continually replace and follow-‐up our missing or lost customers! The automated tracking of customers who haven’t been in to your restaurant for say, 30 or even 60 days is very important in any economy and so must be contacted with an offer to tempt them in – simply saying “we miss you”. The offer can be a Free Dessert, Bottle of Wine with the Evening Meal, Champagne Cocktails – Your lost customers want special treatment and attention. 31 This can generate extra profits that are normally lost forever! Without this fight to get customers back in,.……… expansion of your restaurant business will be seriously challenged. 32 ❃
33 Rule #15 No one ever complained when wished a Happy Birthday. This is one of the smartest strategies to implement and get you on “the road to restaurant riches” The diagram below serves a great model to justify implementation of birthday marketing. “Why Ignore A Customer At Any Time – Especially On Their Birthday!”
500 Customers in Restaurant Database with Dates of Birth
Approx. 40 Birthdays per month
Normally 5% eat in if uninvited or unrecognised/ignored
With Fresh Birthday Marketing…
15% Celebrate in your restaurant
= 12 x Average 4 People/Sitting
= 44 Diners
x £25.00 per head
= £1100.00 Total Revenue Per Month
Yes, customers spend more when celebrating a Birthday!!!
34 Rule #16 An expensive mistake to avoid One sad truth about the restaurant business is that you never finish with the same people you started with, partners, friends, key employees, and others will fall by the wayside for one reason or another! You will outgrow some; others will become jealous and resentful of you. I can assure you that at some point you will have to make a decision that will be very unpopular with everybody around you! So often people procrastinate – even for years over the need to get rid of a sour employee – I know of a case where constant bad attitude was tolerated and this is an expensive mistake to avoid at all costs! It’s a mistake to think this normally long serving employee becomes indispensable in our minds and can become very costly – take the action that’s needed and ultimately you get power by deciding to have power. In the restaurant business the staff problems and bad attitude that we tolerate is what we get more of!! ❃ 35 Rule #17 The importance of a great welcome to your restaurant. The saying “we don’t get a second chance to make a first impression” is so true when considering how we welcome a customer into your restaurant! It’s the little things that often make the big difference and a few common restaurant mistakes that lose it instantly upon entering a restaurant. Don’t do these Ø Customer looking around to be made welcome and seated Ø Not met with a convincing smile Ø A sloppy handshake that would be better if it just didn’t happen Ø Don’t show the customer to their seat and say – just sit anywhere you want! This is such a crucial area and yet so often ignored, I’ve included out top 10 tips, I strongly suggest that you study and implement this as soon as possible. 1. A serious and genuinely heart-‐warming welcome the moment the customer walks through the door 2. If appropriate, give the ladies a welcome kiss/peck on the 36 cheek – if an existing customer brings a female for the first time and the strength of the relationship is good, then by all means give the visitor a special message 3. A good welcome handshake makes all the difference! The offer of a good confident handshake can display trust and genuine interest in your customer – Remember, no “Death Grip’s” or “Limp Fishes”, and a smile will help your customers feel like a VIP guest. 4. Remember and use your customers’ first names – this again shows real interest – it’s the sweetest sounding word in the world to your customers’ ears. Also, it’s warming and customers always appreciate it. 5. Its no great deal, but it’s a rarity to offer to take your customers coat – if you want them to come back again and again and tell their friends, family and work colleagues. It has to be special and really stand out from the competition. Make them feel as they are the only customers. 6. VIP customers will and often travel miles and miles to come and eat at your restaurant. They are also your best advertising strategy, so make sure it’s a great welcome – After all, the way you welcome a special customer is as important as how they enjoy their meal. 7. The dress, the behaviour, the attitude of the staff, but also the cleanliness of the premises are going to be important elements to successfully achieving 10 out of 10 on customer welcome. 8. The old adage – “You don’t get a second chance to make a first impression” is so true in your restaurant So Ø Open the door Ø Walk towards them 37 Ø Look them in the eye (good eye contact is essential) Ø Tell them they are welcome to your restaurant! 9. I appreciate you may be thinking that some of this is obvious, but sometimes the obvious has to be said. ·∙ Whenever possible, offer the customer a choice of tables ·∙ Always accompany them to their table ·∙ Help the ladies first to sit down and then the men ·∙ Keep taking care of the customers ·∙ If a customer leaves the table to go to the toilet, always fold their napkin neatly for them 10. Getting the first 10 minutes right for a customers will eliminate any possible “No-‐Shows” in the future. It’s really simple and all of this will generate loyalty back from your customers in abundance. ❃
38 Rule #18 Develop a system to reward customers for making referrals. Your typical customer may conservatively know twenty people or even more. The most effective yet underused referral strategy that I know is to …. simply ask for them! Many restaurant owners and managers have mental hang-‐ups about asking for referrals which are invalid – after all “those that ask get” Your typical customer may know conservatively 20 people that number tells you every customer who eats in your restaurant know about another 20 people but research indicates that the average satisfied customer only tells three other people about that satisfactory experience in your restaurant! Moving that person from telling three to telling 20 does require some definite action on your part. That action needs to focus on the giving of recognition and appreciation. 39 Whenever a satisfied customer sends someone to eat at your restaurant the sender should immediately receive some recognition and appreciation. Possibly a quick email or SMS message to say thank you as quick as possible! A gift or reward is usually appropriate and very effective! The positive results from this action are well worth it for this marketing strategy. You’d also be surprised at the negative results of not doing this. The customer who refers once and fails to get recognition and appreciation will probably never say anything to you but to himself or a friend will say “can you believe it – I sent that restaurant a brand new customer and never got as much as a thank you” and then never refers again. 40 ❃ 41 Rule #19 Changing the myth – there’s nothing we can do about our quietest times of the week! My experience of speaking with and working with restaurant owners who say they must accept that Monday evenings are just really dead and that’s how it is! This is an opportunity to stop being an advertising victim and start to become known as the best place to go on a Monday evening! It starts with having a specific answer to the question below: Why should I choose to eat in your restaurant on a Monday evening versus every other option available to me? If you answer this question in a way that is benefit oriented to your VIP customers, you will have a very powerful marketing message. With an automated system you can email or SMS your customers (maybe segregate the locals) with a message that says “Don’t cook – just come in tonight for our special Monday night steak night -‐ £7.99 and a free glass of wine” 42 This is a very simplified example but already puts you head and shoulders above the rest of your local competition and rivals. ❃ 43 Rule #20 The secret power of consistency and value. In today’s economy your customers expect and demand maximum value! Many customers are using loyalty programmes to achieve this but they really want to be sure that they can rely on consistency having a great experience and also have “total confidence” in recommending friends, family and work colleagues to your restaurant. They really want to feel safe that they won’t be disappointed especially if they are eating out less now than previously – they don’t want to take the risk of going somewhere new or different and finding they don’t like the food or wine! In times of uncertainty customers want certainty!! ❃ 44 Rule #21 Excuse me – What’s the soup of the day? This is such a frequently asked question and yet the answer is so often embarrassingly – “I’m not sure – just let me go and check for you.” The bottom line is that this just isn’t good enough as it leaves the customer thinking – are you really interested and what else aren’t you sure about? In the restaurant industry, the best trained staff are in the restaurants that are winning by a long mile! This is just the tip of the iceberg in simple restaurant and communication to customers! For example a simple question when phoning the restaurant such as “I’m lost can you please give me directions” which can’t be solved is enough to disgruntle a potentially valued customer before they even arrive. Of course the reverse is very true if the person giving directions is courteous, patient and just gets it right and spot-‐on! These are very obvious but sometimes the obvious needs to be stated. A little hinge that really swings a big restaurant door is for the chef to come out in to the restaurant and yes I appreciate they are very busy 45 with so much to do, but when the chef takes the time – actually invests his time in speaking and listening in a genuine way to customers it’s a very impressive touch! ❃ 46 Rule #22 Do you celebrate birthdays? No one ever complained when wished a
“Happy Birthday”
In today’s fast paced, competitive and impersonal world, there are few things left that leave a lasting impression on someone. Restaurant customers of every age, circumstance, and food preference want to celebrate their birthday with their closest friends, family, colleagues, neighbours, long time school friends, and of course, loved ones. Where Shall I Go To Eat On My Birthday? So often the question is asked “Where shall I go to eat-‐it’s my birthday and who shall I invite along” – This presents your restaurant with a golden opportunity to increase bookings, build a strong customer relationship and rapport. Yet this is one of the most overlooked and underestimated marketing and sales channels, which could be a serious revenue and profit booster – even the difference between maybe not just surviving, but guaranteeing your restaurant is the exception and “thrives” in spite of the unpredictable economy. The truth is, very few people in the world go out to eat on their own when celebrating their birthday. In fact, the average birthday booking is 4 people, but of course it’s not unusual to see parties of 10 for a celebration in restaurants. No customer should ever be ignored – especially on their birthday – the no.1 most important thing in your restaurant is the customer list – even if the product is average. A restaurant with a “Hot, up-‐to-‐date 47 restaurant database” could potentially be worth up to an extra 30% in value at sale or exit (if a restaurant operator was considering this option). We’ve had successful restaurant operators who have told us that if their restaurant burnt down, as big a disaster as it would be, they would be back up and running very quickly because of the list. By contacting and communicating with their customers through email, SMS, or even direct mail and phone calls to tell them the restaurant plans, their restaurant business can survive – even if temporarily until the restaurant is back to normal operating conditions. They always remember….. Imagine the word-‐of-‐mouth business you could benefit from when your customers are constantly telling all their friends, family and colleagues that -‐ “They always remember my birthday and make it such a special occasion!! And it gets even better when they finish off by saying “I wouldn’t go anywhere else to eat on my birthday – you should go and try it out” You see, although it’s true that customers never complain when they are having a great time and really enjoying themselves – the real secret is in remembering to invite them to your restaurant, resulting in you standing out from the competition! “The Top 10 Reasons to Use Birthday Marketing” 48 1. Customers are in a celebratory mood and it’s your chance to recognise their special occasion. 2. When they are celebrating they spend more money. 3. They celebrate with lots of other people – this is more business for you and your restaurant 4. If it’s a birthday party of 8 people – you can add all the party to your customer appreciation programme 5. It is great for your restaurant when it is known for giving customers such a memorable time on a special occasion – this will boost referrals and repeat business 6. It provides a steady stream of repeat visiting customers (mostly group bookings) as birthdays are spread out across the year 7. It’s great for your restaurant brand and reputation – after all, whenever we decide to take someone special out for their birthday, it’s so important to know the restaurant will give you so much attention, special treatment and take the time to actually remember. 8. When a customer gets an SMS text and email birthday message, they will refer and recommend your restaurant because you stand out so much from all your rivals. It’s such a welcome surprise, and as a result, they always remember your restaurant. 9. When your customer’s partner gets a reminder 10 days ahead of his or her birthday to invite them on their birthday night – so often it has a big impact as it helps make the decision to where they will eat on their loved ones birthday. 10. Do you remember your last birthday? Do you remember what made it special? That’s easy – It’s the fact that other people remembered and recognised the occasion. When your restaurant 49 employs this powerful birthday marketing strategy, you will win new customers and enjoy repeat party bookings. At Fresh, we believe it’s always worth investing a little extra time and effort to follow-‐up and implement our customer appreciation system with “Birthday Marketing”. This will help forge a relationship with your new and existing customers, fill your tables and keep them coming back again and again. Lastly, most restaurants who do send birthday cards engender so much good will from that simple thought that it would be almost criminal not to keep doing it – also the small effort required to send a physical birthday card to a valued customer is so rewarding that it’s worth creating a special message. (Here’s a few words to help get you started….) I wanted to send you a birthday card because it’s such a celebratory occasion as well as time for a few personal thoughts that I would take a moment to sit down and write you a little note. I just want you to know that we appreciate you as a customer and we really do wish you a fantastic birthday. And if, on your birthday, you would like to celebrate in our restaurant, we would welcome you and any of your friends, family or colleagues. Once again, we wish you a very Happy Birthday and a super year ahead! 50 If you take these tips and strategies seriously and apply them to your restaurant, then you will be delighted with the heart warming conversations you’ll have with the “Birthday People”, and you’ll also be amazed with the customer retention and improved profits in your restaurant!! ❃
51 Rule #23 “Make the main thing the main thing; just make sure you decide what is the main thing?” With the 34 Rules in making your restaurant super successful it’s important to know what is the “main thing” My absolute best advice and belief is that building your customer list is the most crucial thing that must happen in your restaurant – I have no hesitation in suggesting no customer should leave without an attempt to collect the customers’ information – name, email, mobile telephone number and birthdays including children’s birthdays. With say 250 VIP customers in your list, it’s realistic to have 600-‐700 birthdays – all opportunities to retain, grow and expand your restaurant business. Once you have the customer information take full advantage of it and communicate with them. This can be a straight forward offer type of promotion, thanking them for visiting and of course inviting them to come back again. The quicker you can get them to come back in and enjoy the offer the stronger their loyalty will be. ❃ 52 Rule #24 Customers go out to eat when they are ready to eat – not when the restaurant is just ready to serve them!!! Well, Rule 24 is really a biggy and the only way we can be there is through professional low-‐key “follow-‐up” and of course being ever present in the customers’ minds! Your restaurant newsletter will help keep you in touch but more is needed yet this will put you ahead of the game and separate you from your rivals and competitors – even the big restaurant chains. It’s timely and relevant communications that really count along with special offers that encourage repeat visits. It’s a well known fact that the number one reason customers don’t go back is because they feel neglected by the restaurant they already recommend and frequent. It’s when a customer says…. Thanks ever-‐so-‐much for sending us the special offer, it was perfect timing, you then know your follow-‐up is really working. ❃
53 Rule #25 “More revenue without the cost of acquisition” The acquisition costs of getting new customers into your restaurant are enormous when you don’t capture that customer into your automated system, because you have to keep on the hamster wheel of the “one transaction restaurant”. When you have your customers coming back again and again because your “system” does all the follow up and reminds them to come in and you accurately track the spend and visits, you are successfully getting more revenue without all the expensive costs of acquisition. For example, if Monday evening is the quietest time of the week and you have your customer list built and in place – you can send out a straightforward email to say “don’t cook tonight – its Fish & Chip night here at the restaurant” … and just add the £price along with the opening times! This is great opportunity to get a serious “pay off” as-‐well-‐as leverage and success and your customers will love you for it! ❃ 54 Rule #26 Strike whilst the iron is hot. “Its all in the words” The words we use at exactly the right time will play a major part in the conversion numbers of those who dine in your restaurant to the ones who will happily pass or even sign up to your VIP Scheme, Newsletter or both. Ultimately it comes down to WIIFM….”whats in it for me” from the customers perspective – after all if you want to seriously build your restaurant list give them something for free and they will tell their friends, sign up to your VIP loyalty scheme and stick like glue to your restaurant! In the best moment to collect the customer information the words that are used are essential – here’s a suggestion to help. “When you fill out this form we will add you to the VIP list and then you will receive our newsletter and special offers that other people will not receive. We will also enter you in this month’s special draw to win a great prize. And, if you sign up today we will give you a free desert or 10% off your bill.” “Don’t ask – don’t get” ❃ 55 Rule #27 The restaurant “director” system! Rule 27 is to automate your marketing follow-‐up and customer communications including customer feedback and rewards! The availability of accurate and comprehensive information is lacking in most restaurants when it comes to marketing. It’s actually worse than that because too many people don’t really understand the difference between sales and marketing when it’s so simple. Marketing Vs Sales Marketing is what it takes to get customers to drive to you and sales is what happens when you get them there! It’s no secret that it’s automated systems that create real success and not chaos or multiple systems that only create mayhem and confusion! It’s the system that does the work and reverses a trend in restaurants that is happening right now! This trend is that restaurant owners working more hours for less money and a marketing automated system will mean less hours for more money. 56 It also gives more control, freedom, business satisfaction, holidays and more time to spend with the people you value and want to be with! Here’s a list of tracking and analysis that mean it’s just like having your very own “restaurant director” Welcome Birthday Extra Birthdays for Family Members Wedding Anniversary Lost/Lazy Customers (30/60/90 days) Point Rewards Certificates Membership Anniversary Monthly e-‐Newsletters Follow-‐up Reminders Customer Satisfaction Surveys Friend Referrals Special Events The Profit in Your Restaurant comes from Repeat Customer Visits ❃ 57 Rule #28 Don’t play blind archery It’s staggering how many businesses advertise in magazines, yellow pages, church magazines, brochures, newspapers, radio and even if they do get results from their investment they never know or track the return on investment!! This is called blind archery and is just hoping it’s going to work when a huge part of marketing is testing. We should begin with a small test and measure the response – maybe from an email campaign, or hits on the website, calls to a specific telephone number – as long as we can test small there is no failure in the marketing only a result – even try Facebook advertising! It makes a lot of great sense to test small and minimise the risk to your business. I guess the big question many customers ask themselves is….. where shall I go to eat tonight and why should I go to that particular restaurant? This question needs to be answered in your marketing and advertising and if possible needs to position you away from your rivals and competitors. When you know the rules of marketing it becomes much easier. Here are 4 key points in respect of advertising. 58 • NEVER do anything that you can’t directly track the results • NEVER run an Ad a second time that didn’t work the first time • NEVER fall in love with your Ad • ALWAYS include a call to action Remember your Ad has one responsibility and one responsibility only ……..TO GET MORE CUSTOMERS! ❃ 59 Rule #29 We recruit our own mistakes! No one knows when the market will take a turn for the better, but one thing is for sure, restaurants that have the right people in place will have a massive advantage when it does. Employing the right people of course comes down to good interview technique – and that’s the problem. Few people have formal training in carrying out interviews and most of us do it only rarely. It’s often an interruption to an already busy week for most people – something that has to be done rather than an opportunity to find a great new member of staff to drive up profits and make life better. So an interview – in theory a great opportunity for both the company and the potential employee – becomes instead a bit of a chore in which one person who feels nervous and uncomfortable is asked questions by another person who feels just as uncomfortable. It’s all because most interviewers have little or no idea what they are doing. Employees are promoted to a management role and are expected to hire people without any training, guidance, or support. It’s not surprising that they run into problems. Here are a few of them: Ø They can’t find great people Ø They waste time with the wrong people Ø They don’t know what to ask in the interview Ø Candidates lie to them 60 Ø They make hiring mistakes Ø They spend too much money without getting results Sound familiar? It’s because the interviewer has not done his or her homework and does not have a detailed profile of what a successful candidate would look like. It is the ‘success profile’ that plays such a vital part of the hiring process. ❃
61 Rule #30 Restaurant Newsletters Top Tips “17 Tips on the Power of Restaurant Newsletters” The newsletter is the glue that holds business communication together and supports everything else you do with your customers. Many businesses get lazy after sending out a good initial newsletter…they tire of it and delegate too much, letting the quality decline. So whether you are already sending out a monthly or bi-‐monthly newsletter, or are thinking of launching your very first issue – we’ve put together 17 tips and reasons for winning customers and keeping them with a monthly newsletter. 1. On-‐going conversation with your restaurant customers – almost like writing a personal letter each month 2. Opportunities to promote your offers and promotions 3. Opportunities to promote other offers and promotions 4. Getting what you send actually read 5. Effective means of giving recognition to your customers 6. Continuous documentation of your customers’ successes 62 7. Convenient way of updating/upgrading information previously provided 8. Less resistance to your messages and seen as information – not the usual sales message 9. Builds credibility with customers and reminds them of the value and experience you deliver 10. Helps to win & convert new business prospects – it can often take 6 months to win new business 11. The people who are receiving your newsletter really want to receive it 12. You get their undivided attention 13. It’s more personal 14. They can be forwarded (and perhaps are more likely to be) onto their friends and colleagues, generating extra referrals 15. Readers feel like they’re getting first-‐hand information directly from the “horse’s mouth” (your restaurant) 16. If your customers have been waiting on the fence for the right timing to act of your offer, you stand a good chance of capturing their business when they’re re ready to act – it’s like “Keep in Touch” marketing 63 17. You can disseminate your information to particular market segments – by simply sending newsletters with different front pages to different market sectors – niche marketing NOW IS THE TIME to get as serious and as smart as possible about marketing to the financially strong, affluent customers for your restaurant. So that your customers are actually waiting with great interest to read the next newsletter. ❃ 64 Rule #31 You’re not in the restaurant business Let’s just cut straight to the chase here – you’re really in the marketing business although most restaurant owners and managers believe they are in the food industry! The secret to any business that really works is the “marketing” – this is the main difference between 2 restaurants -‐ where one is clearly full and the other empty most evenings of the week! Every restaurant is concerned about sales – imagine what your sales would be like if you could just get your existing customers to visit or order from your restaurant just one more time each month (the average restaurant customer visits / purchases twice per month). In a nutshell the true secret to higher sales in your restaurant is knowing who your customers are (by collecting their information) and communicating on a regular basis about things that matter to them. This is proof and evidence that we are all in the marketing business! ❃
65 Rule #32 The first 10 minutes can win them or lose them. One of the biggest sins committed by restaurant staff is to allow customers new or VIP to walk in to their restaurant and have to wait around to be welcomed. Here’s 10 tips to help your team: 1. A serious and genuinely heart-‐warming welcome the moment the customer walks through the door. 2. If appropriate, give the ladies a welcome kiss/peck on the cheek – if an existing customer brings a female for the first time and the strength of the relationship is good, then by all means give the visitor a special welcome. 3. A good welcome handshake makes all the difference! The offer of a good confident handshake can display trust and genuine interest in your customer – Remember, no “Death Grip’s” or “Limp Fishes”, and a smile will help your customers feel like a VIP guest. 4. Remember and use your customers’ first names – this again shows real interest – it’s the sweetest sounding word in the world to your customers’ ears. Also, it’s warming and customers always appreciate it. 5. Its no great deal, but it’s a rarity to offer to take your customers’ coat – if you want them to come back again and again and tell their friends, family and work colleagues. It has to be special and really stand out from the competition. Make them feel as they are the only customers. 66 6. VIP customers will and often travel miles and miles to come and eat at your restaurant. They are also your best advertising strategy, so make sure it’s a great welcome – After all, the way you welcome a special customer is as important as how they enjoy their meal. 7. The dress, the behaviour, the attitude of the staff, but also the cleanliness of the premises are going to be important elements to successfully achieving 10 out of 10 on customer welcome. 8. The old adage – “You don’t get a second chance to make a first impression” is so true in your restaurant. So Open the door Walk towards them Look them in the eye -‐good eye contact is essential Tell them they are welcome to your restaurant! 9. I appreciate you may be thinking that some of this is obvious, but sometimes the obvious has to be said. Whenever possible, offer the customer a choice of tables Always accompany them to their table
Help the ladies first to sit down and then the men
Keep taking care of the customers If a customer leaves the table to go to the toilet, always fold their napkin neatly for them 10. Getting the first 10 minutes right for a customers will eliminate any possible “No-‐Shows” in the future. It’s really simple and all of this will generate loyalty back from your customers in abundance. ❃
67 Rule #33 Discover the 10 hidden profit areas in your restaurants. The hidden profits in your business are not based around providing a good quality meal and expecting your customers to beat a path to your door! However, it is very true that you can’t earn £100,000 per year doing a £10.00 an hour job – finding hidden profits in your restaurant is all about the marketing of your restaurant. When you realise the enormous and most valuable use of your time and the one that will generate the highest rate of return you will instantly gain an enormous advantage over all the other restaurants in your area! The key to finding hidden profits is to have your marketing on an automated system and to include the following areas: Birthday best wishes Anniversary best wishes Welcome to the restaurant VIP scheme Tracking and analysing biggest spending customers Lost/missing customer message if not visited restaurant for 60 days Publishing a customer newsletter (in fact send to everyone) Building and developing a customer list Referral marketing Customer feedback survey / satisfaction results 68 Analysing most frequent visiting customers (automated reports) This is all about “keeping the score” and growing in multiple areas through marketing and customer communication. ❃ 69 Rule #34 Always be prepared to experiment! In the restaurant business we cannot just rely on our own judgement – we must test, test, test and then test again. After all we are not our own customer and therefore experimenting is essential whether it involves operational things inside the restaurant or on the marketing of the restaurant! It’s a mistake to wait until the marketing isn’t working, you must test continually and be ready for the next “thing even before you need it. When it comes to marketing, remember not to become emotionally attached – always measure and test because when you do, you’ll improve your chances of success and advancing your results and pushing your profits to even higher levels. The strategy here must be to test small and at minimum cost – in fact it’s ok to take baby-‐steps until you have a working and successful model. Best of all, once you find that successful formula you will probably be able to use it to get consistent profitable results for years. When working on an email marketing campaign a split-‐test of your data often will improve the results – this is an exciting way to experiment; and after all, how do you test a yellow pages ad for example? 70 When split testing on direct mail or email, it makes sense to just do the comparisons and keep measuring the score to improve it! It is also worth considering a customer survey as an experiment – we know it will often be low numbers that respond but the feedback can be real gold for your restaurant! ❃ 71 Conclusion So, if you’ve actually read all the 34 rules in this e-‐book, I believe you are now really positioned for success. My advice is to have a plan for the next 30 days and implement all the rules that you believe apply to you and your business. Be very disciplined and remember the success of your restaurant business depends hugely on the number of loyal and faithful customers’ who repeatedly visit your restaurant – so make it your best endeavour to keep your community of customers and guests always growing by using some of these strategies to often save you money and out manoeuvre your local rivals and competitors ❃ 72