Quick Win 1: Bring ‘Them Back Restaurant Coupons
Give all first-time restaurant customers a voucher with a straightforward offer redeemable in their next trip (possibly a free aperitif, dessert or after dinner drink). The deal should have no requirements and needs to be redeemable over the next 6 weeks. Tell the client to make the restaurant coupon and be sure you ask for information which you can add to your database. Quantify the results, modify the deal if necessary, and if it brings you more business, make this part of your marketing system.
Quick Win 2: Cut Restaurant Prices
Though you’re busy, it actually pays to take some opportunity to review your restaurant prices every 6 months. A simple way to maximize your bottom line is to reduce prices. When did you last renegotiate your credit card fees? Are you getting the best deal out of your own wine retailer? Review your menu and check your profit margins – that are the dishes that provide you the best margins? Create a unique menu with these dishes to market more. Remove your 3 worst-selling dishes and those with the worst margins. You’ll be surprised by how this normal housekeeping can impact your bottom line.
Quick Grow 3: Increasing Restaurant Costs
“If your rates are 10% too low you’ve got to do 3x the job to produce the exact same profit. If your rates are 10% too high you can lose 43 percent of your business and still keep the same profit.” – Larry Steinmetz
One of the fastest ways to raise your restaurant profits would be to increase costs. Only a couple bucks on many well-selling items will provide you exponential growth instantly. That may seem like a frightening concept, but take a good look at the psychology of pricing and purchasing behavior and you’ll understand why 80 percent of restaurant businesses undercharge for their products and services.
Except in certain particular circumstances, most individuals don’t make buying decisions on price alone. Do not believe me? Just have a look around in the sunglasses individuals have on around you. I bet you find a good deal of Ray Bans and Dolce Gabbana sunglasses. This just shows there are different criteria for buying behavior than cost.
So whatever you do, do not ever reduce costs, and certainly, do not begin a price war. You don’t need it to be your competitive edge because anyone and everyone can undercut you. To the contrary, seriously consider raising your prices. Do not let the fear of competition or lack of assurance prevent you. In case you’ve got true differentiation, you’ve targeted your audience right and they see that perceived value in your product they are prepared to pay for, then you are able to charge premium rates. In fact, they will expect premium service and will feel privileged, and you might end up selling even more.
In many cases, you’ll see that dropping prices to market more really loses you money, while increasing prices, even in the event you sell less, raises your margin.
Even though it appears to be a challenging thing to do, test different higher price points for a variety of offerings. Tomorrow increase your prices by 10%. You may observe not only the way the price rise affects your business (you may either shed business, profit business or remain the same), but you can then look at your profit margins and adjust accordingly.
Lots of the restaurant owners who we work with have experienced the following pleasing phenomena: they increased prices and discovered that not only did they have more clients (the restaurant is perceived as higher quality), but they had a more dependable and less difficult clientele who also spent more money and had greater overall tickets.
Quick Win 4: Celebrate Birthdays in your Restaurant
Birthdays, by their own personal character, are an ideal time to send out a very personalized offer. Of all events, this is the most successful so far as restaurant marketing campaigns proceed. Be certain that you collect birthday and get information in your exit surveys and begin a birthday campaign. Send an email or snail mail with a restaurant coupon for a free dessert, drink or meal at the end of the month preceding the person’s birthday month. Let them use the restaurant coupon for the whole month of their birthday.
It is also possible to propose additional birthday solutions. Consider ways that would make your customers’ life easier – providing the cake at a particular price, providing a special group rate, or including party favors.
A unique surprise such as a free slice of cake with a candle and the client’s name and birthday wishes written on it’s guaranteed to appeal to the child within any client. You would be amazed at the invaluable favorable word of mouth a simple gesture like that can create.
You can also use a birthday effort as a means to recruit new clients by purchasing lists with birthdays and postal codes and sending out your special birthday offer for a means to present your restaurant.
Birthdays are extremely personal, and as we’ll learn, business is personal. Do not pass up this wonderful opportunity to reach out to your customers and make them happy.
Quick Win 5: Referral Restaurant Gift Certificates
Try this action now for an immediate increase in your restaurant client numbers. At the end of a meal, give happy clients 3 different gift certificates with a specific amount off to their next meal in the restaurant (or another offer that you feel is persuasive ). Then give them two more of those dining certificates and ask them to discuss the certificates with their buddies. The offer needs to be compelling and doesn’t have any conditions apart from a time limit. Give the receiver time to redeem the certificate. Perhaps produce the certification good for 6 months, or for particular down times that you’re trying to fill.
Use the principles that apply for all offers (stating the value, making the deal traceable, capturing name, birthday and email information on the card that has to be filled out to redeem, measuring success and refining the deal, etc.).
These are a few easy-to-implement and efficient restaurant marketing tips that will help grow any restaurant’s profits and business.