Monday, October 15, 2007

How big do your guest database have to be?

Restaurant & Institution Magazine reports that Morton's of Chicago have 250.000 guests in their database. That may seem a like a lot of guests data.

But if you consider Morton's have 7o restaurants in their their chain the number for each restaurant is like 3570 guests per restaurant.

Knowing this, all the independent have to do is have not less than 100 guests data per seat in their restaurants and they will have the competitive edge needed in today's razor sharp competition with the dinner chains who are trying to look like an independent.
Lets take a 100 seat restaurant with 100 guests data per seat = 10.000 guest data.
Most dinner restaurant is frequented by couples, so the 10.000 guests is actually double when it comes to sending out a birthday invitation.

Then all you have to do is mail 20.000 birthday invitation to celebrate with a party of four or more on a weekday night over a year and figure this...

Many smaller restaurants where the owners are known to the guests will
get a minimum of 10 % redemption's.

Restaurant Start Up & Growth Magazine in the October issue had a story of a small independent small restaurant , Cucina di Amore in Liverpool, NY owned by Karla Pavese, that got EIGHTY ONE PERCENT of those who were sent a birthday card redeemed. WOW!

But, let's stay with our number of 10 % of 20.000 invitations = 2000 guests x party of four x national check average by ZAGAT of 32.60 and you will have an additional incremental annual gross income of $ 260.800,00

Not to mention the good will and loyalty created by remembering your guests on their birthday, and the additional new guests celebrating with your 'invited' regular patrons who will now become part of your extended family of friends and loyal patrons in your database.

It is then up to you to make this a memorable evening and don't let your guest leave without some sort of gift in their hand. Like if you had an Italian restaurant you may give a mason jar (with you label & phone # on it )with you grandmothers secret recipe marinara sauce.

I bet you, that years later when these people talk about that special evening, no one remember
what they had to eat or the name of your restaurant, but they will all remember the $ 2.00 insignificant gift you so gracefully gave them...

Amazing, but that is all it takes to be remembered for years to come.

With a large database of guests won the Independents in America will be in charge of their own destiny

Wednesday, October 10, 2007

Ten Golden Rules for a Successful Restaurant Opening

Here are Ten Golden Rules for a successful launch for a new restaurant.

1. Hold a Grand Opening Event (this is not optional!)
Studies have shown that restaurants that open without a grand opening event have significantly less sales success in their first two years than restaurants that do hold an opening. The event should take place three to four weeks after the store is operational to allow new staff to be trained and management to work out the kinks. It can take place on one night or over a whole weekend or week, if possible try to tie into local special events or calendar opportunities.

2. Invite local celebrities, dignitaries and relevant associations
Send a classy invitation to local celebrities and dignitaries including local politicians, local school principals, the police chief and fire chief. These people will add a local flair to the grand opening event and they are good friends to have in the future. Additionally these people are often popular networkers and they can spread valuable word-of-mouth. If you have an Italian restaurant invite the local Italian club, if you have a Jewish Restaurant invite the Boards of Directors of your local Synagogues.

3. Announce the Restaurant and Grand Opening Event with a press release
Prepare a list of local media and send the media release by mail or email well in advance of the event. Select all local and regional newspapers, local radio stations and websites. Call important media personally to invite them out and ensure all of your staff knows to get you immediately if the media shows up. TREAT THE MEDIA AS GODS AND GODDESSES, they expect it and they can make or break you. Give them a tour of your restaurant, introduce them to dignitaries at the launch event and follow up with a professional thank you letter immediately after the event.

4. Offer a Grand Opening Prize
At the Grand Opening Event and throughout Grand Opening Week offer a significant prize draw. This is a critical to build your mail and email list and your list is critical to ongoing marketing efforts.

5. Don’t forget your neighbors.
It is always beneficial to build good relations with neighboring stores, restaurants and hotels. Invite them to the Grand Opening Event, A concierge or hostess might recommend you to some tourists; another merchant might mention you in a media interview. Being a good neighbor can pay big dividends.

6. Make the Opening Grand.
Balloons are mandatory, a banner a bonus. It is old fashioned but critical to making the event and ‘Event’. Make it worthwhile for people who took the time to join you, feature your signature dishes and if appropriate host a simple bar. If the public will be in attendance you may be able to have a VIP area for invited guests and media. Hire a magician or other relevant mascot to hand out treats or just to add spectacle. If your budget allows for paid media, newspaper ads and radio ads are great, and a live radio remote with pre-promotion adds to the event. Hand out coupons for attendees to come back to the restaurant or for them to pass to friends and family.

7. Thank friends, family and everyone who helped you get started.
Invite everyone who was involved in making the store happen, your banker, your contractor, friends and family. Start a list today and make sure you thank everyone at the event.

8. Involve your team in the event
Give your staff assignments to help prepare for the event. Someone can help you put a media list together; another staff member can plan the menu. Involve them all along the way and make sure they feel like it is their Opening Night (or weekend or week), give them ownership, responsibility and make them feel special and appreciated at the event.

9. Get post event publicity.
Hire a professional photographer for the event and send out the photos to attendees and the media immediately after the event. If you have a photo shaking hands with a local media member or the local police chief or mayor it should make local papers. Consider making a donation to a local charitable cause; perhaps donate a percentage of sales on opening day. This donation will get additional post-event media coverage and will be well received by the community.

10. Make a keepsake
Prepare a collage of photos, invitations and media clippings and have it professionally framed, hang it in the store to commemorate your great start!

Tuesday, October 9, 2007

$20 on the Floor

I worked in a classy steak house chain when I was going to college. One day our new manager stapled a $20 bill to bottom of a coaster and left the coaster in a hallway all of the waiters and buspeople passed by while going to and from the kitchen and bar area.

After several minutes a senior waiter picked up the coaster. Of course the waiter proceeded to tell a number of the other employees and that story has stayed with me for over twenty years. Now I never pass a piece of garbage in any work place without stopping to pick it up!

There are many ways to teach and reinforce the core messages we want our staff to learn. Maybe it is worth $20 to connect with some of your team?