The Magic Money Maker Volume 1 Issue 1


Published on

This is my newsletter, "The Magic Money Maker" that restaurants and bars would find interesting. It talks about various topics from marketing to sustainability.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

The Magic Money Maker Volume 1 Issue 1

  1. 1. December 21, 2010 $ Volume 1, Issue 1 The Magic Money Maker Tips for Restaurants Making Money in the and Bars Restaurant and Bar Business Magical Strolling RegEnergy Saving Tips for Sustainability One way to make restaurants more that make easy sense first. Fixing asustainable is to save on energy costs. dripping faucet can save a restaurantUtility costs have hit the restaurant about 1,200 dollars a year.” Tomindustry pretty hard in the past. One continues, “The key is to createsolution to this problem is to put an awareness and show team members howenergy saving program into place. In using energy affects the bottom line ofthe article “Culver’s Tackles Rising the restaurants and ultimately how thatUtility Costs by Cutting Energy Use” affects them. Once you createfrom the National Restaurant awareness and ask your team to makeAssociation’s website, Tom Williams the changes, they will.”director of building services for Culver’s restaurant put into placeCulver’s restaurant stated, “We started processes such as having employees turnlooking at how we could take a dime off cooking hoods off at night, fryers offhere, five cents there.” Tom William’s when not needed and staggering startadvice when it comes to putting an times for kitchen equipment. Someenergy program in place: “do things other ideas to cut energy costs is to put timers on inside and outside lights, (continued on page 2)Employee Theft Harms the Bottom LineEmployee theft takes many forms. It can come by giving 3) Consequences for theft are minimal.away food or drinks to customers, outright stealing ofcash, theft of time, theft of food or alcohol, overcharging 4) Employee feels underpaid or underappreciated.customers and then pocketing the cash and stealingcustomers credit or debit card information. A majority of 5) Restaurant or bar does not have a written policytheft goes undetected by management. In some cases, concerning employee is involved in employee theft. Opportunityremains the leading cause of employee theft. A good way 6) No system in place to trace employee prevent employee theft is to limit opportunity. Rarelydoes an employee steal because of need. Some reasons Some ways for owners and managers to prevent theft:why employees do steal: 1) Low morale at the workplace. 1) Get to know your employees, don’t trust but get to know your employees and treat them 2) Employee feels the business mistreated them. well. If you don’t treat employees well, they
  2. 2. Front Page Articles Continued The Magic Money Maker Magical Strolling Reg Energy Saving Tips for Sustainability (cont.) replace neon signs with LED lights and Another idea is to install recycling install compact fluorescent bulbs. centers at the restaurant. A restaurant Switching to low energy LED exit signs could teach or encourage their guests to cost $1,000 less to run than typical exit separate recyclables. This certainly signs. enhances sustainability. Reusing left Culver’s also recommends using 6 inch over cooking oil to heat water is another rather than 4 inch insulation; having idea to save on energy and fuel costs. awnings over windows and installed new Refrigerators are cooled by ejecting heat cooking hood systems. These energy through the coils on the top or bottom of efficient hoods make a significant the unit. Do not push reach-ins into difference by keeping the kitchens tight spaces where the heat will build up, cooler. A restaurant which gets low-flow forcing the refrigerator unit to work spray valves can pay for themselves in a harder and use more energy. Pulling year and save an estimated 123,000 frozen food for defrosting at scheduled gallons of water a year per restaurant. time intervals helps save energy costs. Employee Theft Harms the Bottom Line (cont.) will be less likely to turn in a thief once otherwise the establishment opens itself they become aware of a thief. up to legal liability. Employees who are not treated well 6) Change out cash drawers in mid-shift which become aware of a thief, may feel and limit access to cash drawers and “In addition, in the establishment “deserves it” and not safes. turn in the thief. Employees who are many cases, it treated well are more likely to turn in In cases where a restaurant or bar takes about $200 thieves. owner catches a thief or a thief is turned in by other employees, some ownersin sales to make up 2) Track all food and drink sales through recommend prosecution with restitution. a POS system which helps to decrease for a $20 theft.” freebies. The reasoning for this is because a restaurant owner does not want the 3) Track food inventories. Stealing food word to get around that his or her can be as simple as eating a forbidden establishment is the place that is easy to piece of dessert while on break or taking steal from. Other reasons is by not cases of food right off the delivery truck. prosecuting a thief, that thief can just Inventorying at the end of each shift and get hired somewhere else, commit the having it written down is a good idea. same crimes and become another restaurant owner’s problem. Prosecution 4) Keep all alcohol under lock and key. with restitution also sends the message Only the owner, manager or bartender to other employees that there are real should have access to supply. Keep a consequences for stealing. A failure to running inventory of alcohol and if there prosecute a thief who has been turned in are no sales to account for alcohol use, sends the wrong message that there are your employees might be helping no real consequences for theft. themselves. In addition, in many cases, it takes about 5) Install security cameras in your $200 in sales just to make up for a $20 establishment and make them difficult to theft. Employee theft can harm the see (maybe use camouflaging). Move profitability of a restaurant. Theft should the cameras around from time to time always be treated seriously by a but exercise good common sense when business. moving the cameras to new locations
  3. 3. Blog Articles The Magic Money Maker Magical Strolling RegGetting New Customers Into a Bar (from my Blog: Marketing for Restaurants and Bars)A bar needs to be seen as the favorite dates in an evening. Two people talk oneplace to be. If the bar is just opening on one for a couple of minutes and thenthen some ideas to get more customers move on to the next person. Maybe ain the door is to invite business leaders, bar could get mentioned on a datinglocal celebrities, beautiful people and website.anyone else the local demographicsrelates to. Having a memorable invitation 5) Bartending contests- Get somealso helps. Consider printing invites on bartenders from the area into your bar,pint glasses or on a coaster. Another choose a theme, like funniest barkeep oridea to consider is to invite people from best mixologist.the local luxury car enthusiast club(along with their luxurious cars). Having 6) Anniversary, birthday party for yourcool rides outside the doors can set a hip bar- Have an anniversary for the openingtone for a bar. of your bar party or birthday party for your bar.Word of mouth is the best way to getnew customers through the door. 7) Menu changes- Adding ethnic dishesPromotions and specials are the second or cocktails. These new dishes couldbest way. Promotions have a theme or bring in new customers.event that goes on for a set period oftime: a night, a week or maybe a month. 8) Customer contests- Come up creativeHere are some ideas for promotions: contests for your customers. “Word of mouth is1) Trivia nights- competition in a trivia Offering food and drink specials cangame, some of which could use hand bring more people into your bar. the best way to getheld electronic devices. However its a good idea to consider who new customers2) Karaoke nights- People get up in front it brings into your bar and how they willof everybody and lip sync to a chosen behave after they sit down and fill up on through the door.”song. cheap liquor. If a bars drinks are too cheap, it could encourage over3) Open mike nights- The bar owner can consumption and intoxication whichchoose the genre: singing, telling jokes, could bring more trouble when it comestalent, etc. to liability. So, its important to consider the consequence before offering drink4) Speed dating- This allows single men specials.and women to meet several potentialYour Product as a Marketing Tool (from my Blog: Marketing for Restaurants and Bars)A restaurant produces food (which is The package to your product is All that hard work means nothing ifyour product) from ingredients (which is different. It includes your restaurants nobody shows up because youthe raw materials) and sells it to a diner. exterior, your lobby, your staffs dress or haven’t created a good brand forYoure competing with a lot of other attire, the dining atmosphere, the smell your restaurant and because therestaurants for that same customer; so coming from your kitchen, the packaging of your restaurant has ayou have to do it better than the friendliness of your staff, your silverware few problems.other restaurants or you wont be in and glassware. All of these things arebusiness for long. Youre product is part the package for your product. What you put on your menu is theof the 5 Ps of marketing: price, product, product and your product should Your package determines the costs ofpromotion, placement and people. be able to fit into the package: the doing business and your diner’s decision theme and atmosphere you have to come in and whether to come back.However, your product is not packaged chosen for your restaurant as a Opening and running a restaurant is hardin a nice looking box that could sit on a restaurant owner. Your menu work.department store shelf. should match your restaurant’s theme and atmosphere.
  4. 4. Your Product as a Marketing Tool (cont.) Any items that do not should be A restaurant needs to develop a tossed off your menu. Everything marketing strategy and plan based revolves around your menu. on what’s special, exceptional, The ingredients that are ordered, unique and different about your the design of the kitchen, the restaurant. It could be the food, equipment that is purchased, how ambience, price or value. Study staff is organized and trained, who your competition and watch what the chef is, what is on the wine list, they do well and not so well. A Magical even the name of the restaurant restaurant owner needs to know (and the name needs to appeal to his or her target market. What Strolling Reg your target market). Flexibility kind of diner are you targeting? should be a consideration in making After you get a customer in your 1702 Shelburne Rd. Suite choices for the menu. The diners seat, how do you plan to keep him 356 South Burlington, VT make the final decisions about what or her there (repeat customer)? 05403 USA is on your menu based on their To be successful in any business purchases of some items and you have to take care of your Phone: (802) 264-2741 avoidance of others. This is all very business today, tomorrow and important for your marketing years down the road. E-Mail: strategy when considering magicalstrollingreg@gmail.c "product" under the 5 Ps of om marketing. You have to think about how to draw customers into your restaurant way before you open the Check out our blog at: doors and every day after the doorsmarketingforrestaurants have been About My Organization… We’re on the Web! My name is William Davenport better gain more repeat customers. I also See us at: known as the “Magical Strolling Reg.” I perform strolling close up magic for perform stroll around magic and private specialize in programs to help formarking restaurants, bars and clubs market themselves, generate more business and