Restaurant Sales & Marketing


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Would you apply principles of FMCG marketing to restaurants ?
Would you want to blow your precious money on mass media ?
Would you settle for a below par ROI on your sales & marketing expenditure?

Published in: Business, Career

Restaurant Sales & Marketing

  1. 1. An average person, makes 200 food-related choices in a day.
  2. 2. Restaurant MarketingKey Marketing ObjectivesSatisfaction & LoyaltyGenerating TrafficPositioning & Brand BuildingWay Forward with Master Sun
  3. 3. Key MarketingObjectives1. Enhancing customer satisfaction and loyalty2. Generating traffic• New customer acquisition is 7-10 times more expensive thanbuilding Restaurant sales through repeat1. Building a strong brand
  4. 4. Restaurant MarketingKey Marketing ObjectivesSatisfaction & LoyaltyGenerating TrafficPositioning & Brand BuildingWay Forward with Master Sun
  5. 5. Satisfaction & Loyalty• Marketing Strategy : Develop a strong promotionalprogramme that systematically incentivizes regularcustomers• To come more often• Instead of once a month, say once a fortnight• To increase their check value• To come with more people• To recommend to new customers• To feel ‘special’ and ‘recognized’
  6. 6. Satisfaction & LoyaltyKey Questions• Before we embark on building satisfaction and loyalty thekey questions to answer are :• How well do you know your customers?• Purchasing patterns, satisfaction with merchandising, pricing,service issues, and competitive patronage• Percentage of sales from residential, corporate, shopping, andother generators• What percentage of your business is new vs. repeat?• How often do regular customers return? Motivations forreturn?• What is the profile/s of typical repeat customer ?• How do our regular customers evaluate us vis-à-viscompetition?
  7. 7. Satisfaction & Loyalty• To come with more people by being linked to occasionscalling for a group celebration (B’day, anniversary,promotion etc.)• Sample Idea : Solid birthday programme.• A birthday program can be executed through an email• Plug in the birthday and e-mail address of your members, and asecure and nicely designed e-mail is sent to them at a time youdetermine in advance.• For an email programme one can tracks view rates for reporting thatallows you to know how well your program is working.• The e-mail campaign includes a redemption code that offersthe birthday boy a sizable discount on booking in advance• The redemption code will allow you to track what percentage of thee-mails are bringing in guests and calculate a return on investment.• Recent research has shown that retention based e-mail marketing is300 to 400 % higher than traditional vehicles such as direct mail• Complimentary cake or any other
  8. 8. Satisfaction & Loyalty• To come more often by giving them something to redeemin the next visit• Promotion Idea : "The Secret Envelope”• Heres how it works.• You give your guests a sealed enveloped with a prize inside.They cant open the envelope themselves (and if they do, theyforfeit the prize).• They have to bring it back to Restaurant on a lean day (sayMon/Tues/Wednesday) and have your staff open it.• The prizes that you create for this contest can as small as a freemock-tail to something quite large like a Rs. 1000 or even a Rs.2,000 gift certificate.• Obviously, there is going to be few big prizes and a wholebunch of smaller ones• Could be done in the month preceding a lean month
  9. 9. Satisfaction & Loyalty• To come more often by giving an innovative price-offwithout discounting• Sample Idea : Flip for Food Day/Lunch• Guests will have a 50 % chance of getting their food bill paid byBN.• Can be done during lean month, lean day or lean hour• Attracts more attention much more than a ‘buy one get onefree’• Guests are also more likely to have higher check averages thannormal because there is a chance they wont have to pay.• To come more often by bouncing guests from peak timesto off-peak times
  10. 10. Satisfaction & Loyalty• To come more often by rewarding customer for everyrupee spent.• Reward cards create an opportunity to communicate withthe customer.• The process of asking customers for their reward card and lettingthem know how many points they have accumulated contributes totheir total dining experience.• Easily track when guests collect their rewards and which rewardthey choose, which allows operators to monitor which items havethe highest response rates• Telling a customer that they can accumulate enough pointsto receive a free cocktail on their next visit during this visitmay be all the incentive they need• Identifying infrequent visitors and issuing a reward toencourage them to return sooner.
  11. 11. Satisfaction & Loyalty• To come with more people by using a ‘refer-a-friend tactics• Sample Idea : Refer-a-friend Promotion• A regular customer is sent an SMS coupon which allows him to send an introductorydiscount coupon to his friend and family• When your coupon is sent to a customers cell phone that information along with yourbusiness phone number and address is stored on the phone and can be forwarded to thecustomers friends and family.• For every customer who receives a coupon directly from you may forward that message toat least 10 additional people creating new customers for your business at no additionalcost.• To recommend and bring new customers by being remarkable• Create promotions/cuisines/stories that give your guests a snippet, a story aboutRestaurant ... something that they can remark about to their friends• Idea :‘Pay-What-You-Want’ Lunch or Hour• Customers get a bill that covers their beverages, and then they write down what they thinkthe meal is worth and go up front to pay• Could be used as lunch option for the off-peak day or could be used regularly for aspecific off peak hour
  12. 12. Satisfaction & Loyalty• To increase their check value by incentivizing beverage sales• Incentivize beverage sales by having a ‘happy hour’• Caveat : Relevant only for specific locations with significantcorporate presence. If the location is not convenient for a happyhour crowd, don’t throw away money trying to build one• To increase the check value through effective internalmerchandizing of beverages• Merchandizing should carry a specific campaign/theme• Table tents should be inviting and encourage interest.• Used to promote special cocktails or mock-tails not your regular beer• Bathroom Signs• You have more of the customers undivided attention here thananywhere.• Posters - Should always highlight the campaign and match menu.Look to highlight what beverages you want to order people toorder or your most eye-catching items.
  13. 13. Satisfaction & Loyalty• To increase the check value through suggestive sellingprograms• All servers should become sales people because that isreally their job• When a guest asks what is good, you have to be specific —they are opening the door for you to sell them what youwould like to sell them — so go for it.• Servers should be incentivized to support campaigns, sellbeverages etc.• By switching your incentives around from one incentives idea tothe next, you will develop new selling techniques and work onbetter service standards.
  14. 14. Satisfaction & Loyalty• To feel special and recognized by manager playing the“host” whenever possible• Welcoming each guest individually and making a personalconnection to customers is one of the best ways to createloyalty• Simple things like saying ‘hello’ or having a manager make therounds and check on guests are great ways to establish aconnection• For regular guests, greeting them by name & asking about theirfamilies
  15. 15. Satisfaction & Loyalty• To feel special and recognized by encouraging the use ofreward cards• Reward cards create an opportunity to communicate with thecustomer.• The process of asking customers for their reward card and lettingthem know how many points they have accumulated contributes totheir total dining experience.• Telling a customer that they can accumulate enough points toreceive a free dessert on their next visit by purchasing an extradrink during this visit may be all the incentive they need.• They can easily track when guests collect their rewards and whichreward they choose, which allows operators to monitor which itemshave the highest response rates• Some POS systems are even capable of identifying infrequentvisitors and issuing a reward to encourage them to return sooner.
  16. 16. Restaurant MarketingKey Marketing ObjectivesSatisfaction & LoyaltyGenerating TrafficPositioning & Brand BuildingWay Forward with Master Sun
  17. 17. Generating Traffic• Generating traffic from core segment by targetingbusiness associations and business leaders• Sample Idea 1: Target business socials like a RotaryLeadership team meeting• Selecting the right group to partner with can leverage theirresources to promote Restaurant, and you can also target yourcore audience.• Arrange photo opportunities that include your displays in thebackground and submit to local media.• Sample Idea 2: Giving Rs. 1000 vouchers to businessleaders in the community.• Some of these would come in and bring six people and spendRs. 1000 on top of their voucher.• A good rule of thumb is to make the value of your voucheraround 75 per cent of your average spend to cover for yourfood cost
  18. 18. Generating Traffic• Generating traffic by using mass media• Most mass media usage for restaurant marketing is oftenmore about feeding ego than generating sustainable traffic• Conscious decision not to use mass media to generate traffic• Signage : Largest, clearest and most clever sign• Generating traffic by managers doing the networking• Idea 1: Join Local BNI Chapter• BNI is a business referral organization, largest in its type• Creates visibility for the restaurant and generates contacts inlocal community• Managers can actively ask to be referred to business leaders,business associations, social associations etc.
  19. 19. Generating Traffic• Generating Traffic by tie-up up with other retail andconsumer organizations targeting a similar segment• Finding the right partner to be the provider of the “gift” iscrucial and will increase the take-up rate of your offer• What car do they drive? What watch do they wear? Which Gymdo they go to ?• Approach the businesses you think are complementary to yourcustomer base.• Generating traffic through sponsoring family linkedgroups of consumers who live /work within 6 kms ofRestaurant.• Sample Idea: Targeting families through sponsorships ofevents of a local school.
  20. 20. Restaurant MarketingKey Marketing ObjectivesSatisfaction & LoyaltyGenerating TrafficPositioning & Brand BuildingWay Forward with Master Sun
  21. 21. Building a Strong Brand• Strong Positioning : Point of differentiation that thecompetition either cannot or does not claim• The best positioning ideas are so simple and obvious, thatpeople overlook them.• What is the niche that we own?• Fine tune your concept to help guests (and yourself) reallyunderstand who you are (in your guests perception notyours) and what it is you need to offer (versus what youwant)• Brand-building is closing the gap between what youpromise and what you deliver.• A strong brand is one that has alignment between thepromise and execution.
  22. 22. Building a BrandKey Questions• What is the strength of customer franchise?• What is the core constituency of the brand?• What type of customers that do not come to us?• What role does the brand play in the customer’s life. How relevantis it?• What is the positioning of the brand ?• Does our core segment value the positioning?• Does positioning exclude competitive offerings?• Is the positioning credible?• Can we sustain the position for long?• Does it fit long term organization’s objectives• Is the Brand image strong and engaging?• How well articulated are the colours, logos & symbols associatedwith the brand?• Is the brand effectively displayed at all touch points?• Is the brand an involved citizen of the community?
  23. 23. Differentiation fromCompetition• Establish Differentiation from competition byemphasizing on developing an engaging brand image• Need to understand the imagery/personality that the brandcarries in the customer’s mind and need to focus/define itsharply and tweak/modify it to have a wider appeal• Logo, merchandising & other communication materialneeds to carry the tribal/outdoor/nomad look/feel in itsidentity• Establish Differentiation from competition by educatingcustomers on the Cuisine concept• Sponsorship of a Cuisine dinner or tie-ups with outdoorevents and corporate offsite esp. targeting seniormanagement & rich• Booklet on Cuisine recipes and cuisine
  24. 24. Differentiation fromCompetition• Establish Differentiation from the competition by creatingand publicizing newsworthy stories that emphasize theuniqueness of Restaurant• Worthwhile to spend 15% percent of your marketing budgeton a solid public relations program.• Need to hire a PR firm that has creativity and excitementabout Restaurant.• Need to associate with some positive philanthropic andservice activities, which will help people regard your brandmore favorably.
  25. 25. Differentiation fromCompetition• Establish differentiation from competition by recreating Restaurantonline and facilitating community development• Quality of website is indeed an indicator of the level of service they canexpect to receive when dining there• Some diners find this an easy way to get directions and dial your phonenumber• Showcase Restaurant.• Flash viewers are now ubiquitous with almost 90% of browsers containing theplug-in.• Need to watch what your competitors are doing online• Need to have web-tracking software• Visitors numbers, town, region or country, what pages they tend to look at orrarely visit• Need to actively look at interactive online marketing• Active community building using blogging, facebook, youtube, linkedin• Active Content Development and Search Engine Marketing owning the‘Cuisine’ space• Burger King’s popular Subservient Chicken site was one of the first Webcampaigns to prove that interactive marketing can be successful forrestaurants.
  26. 26. Alignment BetweenPromise & Execution• Build a strong brand by providing excellent customerservice EVERY meal• Training & Processes to focus on critical aspects ofcustomer experience• Phone answering and reservations• How to handle mistakes• People take service personally. When something goes wrongservice-wise, the situation is upsetting on an emotional level• One mistake not handled well, can destroy the brand promise• Sales & Marketing component in training program so that you havea staff of ambassadors to help your sales-building efforts• Create an environment and systems where employees feelvalued and appreciated.• Incentive programs should allow the extraordinary efforts by anindividual to be rewarded, as well as team goals• Most valuable incentives are non-monetary
  27. 27. Alignment BetweenPromise & Execution• Building a strong brand by ensuring consistency in foodtaste (esp. Cuisine) across locations• Need to ensure that the ‘specials’ and the top liked itemsare standardized across restaurants• To keep your menu fresh, relevant, and profitable, you willneed to know specifically how each item on your menu isperforming and also how it stacks up next to your topcompetition.• Think of each item on your menu as a tenant leasing spaceand it has to earn its right to the space you’ve granted it.
  28. 28. Restaurant MarketingKey Marketing ObjectivesSatisfaction & LoyaltyGenerating TrafficPositioning & Brand BuildingWay Forward with Master Sun
  29. 29. Outsourced Senior Sales& Marketing Team• As the name suggests, we manage the marketing.• Charged with improving the performance of the restaurantmarketing in every way and primarily focus on the top lineof the restaurant within defined parameters• We will represent the directors on most issues pertaining tomarketing• We will be effectively working with CEO, Regional Managers, Restaurant Managers and staff of Restaurant
  30. 30. Contact UsSarvajeet Chandra•+91 9920803060••sarvajeetchandra@gmail.comVisit Us at www.mastersungroup.com05/17/13