Customer loyalty | KRG Hospitality

Exterior of Ocean Casino Resort at sunset

May 15, 2023by David Klemt David Klemt No Comments

Ocean’s Summertime Celebrations

Ocean Casino Resort Summertime Celebrations

by David Klemt

Ocean Casino Resort is celebrating an impressive milestone all summer long through creative local business partnerships.

This summer, the resort will reach its fifth anniversary. The festivities will begin May 26, a month before Ocean’s “birthday.”

However, rather than focus solely on the resort and casino, Ocean is choosing to celebrate the community it serves as well. These fifth birthday activations and initiatives are an excellent lesson for operators across all hospitality business categories.

I’m sure operators—all hospitality professionals, really—will agree that restaurants and bars are integral elements of any community’s bedrock. Increasingly, the same can be said of hotels. In fact, large hotel groups are investing in the development of smaller imprints that are tasked with the mission of serving locals and local businesses.

When a restaurant, bar, hotel, or nightclub reaches annual milestones, it’s largely due to community support. Sure, businesses in destination cities benefit greatly from tourist visits. However, for most markets, longevity is anything but assured without local backing and buy-in.

It’s clear that the importance of local support isn’t lost on Ocean. This summer’s celebrations include several local partnerships and community initiatives to pay that support back.

Local Partnerships

Last year, the Ocean leveraged the demise of the Choco Taco. So far in 2023, Ocean has supported Philly and KC during the Big Game, and gotten creative with cocktails that raised funds for the Girl Scout Troops of Southern and Central New Jersey.

Local partnerships are key to Ocean’s five-year celebration:

The Seed: Created Seeds of the Ocean for Ocean’s five-year anniversary.
Tennessee Avenue Beer Hall: Seeds of the Ocean lager will also be available at this local beer hall.
Rhythm & Spirits: Joining forces with Little Water Distillery to feature their gin in the Oceans 5 cocktail.
Little Water Distillery: Their Rusted Revolver Indigenous Gin is the star of the Oceans 5 cocktail, mentioned above. The distillery has also created the Chocolate Cake Martini, featuring Bar 32 chocolate shavings.
Hank Sauce: For those who prefer their celebrations spicy, Ocean and Hank Sauce have collaborated on Across the Boards. This hot sauce will accompany food items at restaurants inside Ocean.
Tony Boloney’s: They’ve created the High 5 pizza to celebrate Ocean’s birthday. This is another collaboration within a collaboration, as it features Seed of the Ocean lager and Across the Boards hot sauce.
Bar 32: What celebration is complete without something sweet? Bar 32 (a bean-to-bar chocolatier) and Ocean will be offering three commemorative chocolate bars: the Berry Pretzel Bar, Party Pretzel Bar, and Salty Peanut Butter Bar.
Mudgirl Studios: Ocean has commissioned several handmade, one-of-one pieces from this non-profit that will be featured not just in common areas on the property but also in some of the guest rooms.
Atlantic City Arts Foundation: To help celebrate its fifth birthday, Ocean has collaborated with the ACAF for a three-panel mural that will have a home at Tennessee Avenue Beer Hall.

Creative & Compelling

What I find most notable about these local partnerships is how several of them intertwine.

Not only did Ocean commission an exclusive beer, a local restaurant chain is using it for a pizza. That same restaurant chain is also using a hot sauce Ocean had created to celebrate their milestone. There are other collaborations that bring Rhythm & Spirits, Little Water Distillery, and Bar 32 together.

However, Ocean is doing more than just supporting a select group of local businesses. Mudgirl Studios employs and empowers at-risk, homeless and formerly incarcerated women. The ACAF, as one would imagine, inspires and empowers people to pursue the arts. Both support and strengthen communities throughout Atlantic City, and Ocean is giving back by supporting them.

In addition to all of that, the celebrations kick off on Memorial Day Weekend with a $300,000 sweepstakes. All in, there will be more than $5 million in promotions and giveaways in play over the course of this summer. From June 24 to July 4, Ocean is putting up one million dollars for a second sweepstakes.

Then there are Tesla giveaways, birthday fireworks, the Birthday Bar Pop-up Experience at 1927 Lounge inside Ocean Resort Casino, and Ocean’s sponsorship of the Atlantic City Beer and Music Festival.

Nola's Bar & Lounge inside Ocean Casino Resort

Look for Ocean’s birthday drinks at property bars like Nola’s Bar & Lounge

Again, it would be easy for Ocean to have simply planned a celebratory weekend, week, or month, focusing solely on themselves. Instead, they’re involving several small businesses and community organizations.

Takeaways

Do I expect restaurant and bar operators to somehow offer $5 million in giveaways to celebrate a milestone? Or even $300,000? Perhaps a Tesla?

No, of course not.

However, I do think operators should really put thought into celebrating their annual milestones. Surviving the first 12 months is a huge achievement. Making it through the first 18 months and hitting the two-year anniversary is just as challenging.

So, operators should take four to six months to plan their celebrations. Additionally, they should view these events as a way to thank the community for supporting them. And, of course, that includes being grateful for beneficial business relationships.

When considering marking these achievements, it’s wise to include local businesses. Craft brewers and distillers, local farmers and vintners, non-profit organizations… All the better if the selected partners can collaborate with one another to make the celebration and partnerships that much more impactful.

Operators should take a page out of Ocean’s celebration handbook and look for creative, thoughtful collaborations. Doing so lifts up others and pays local support forward, in turn making the entire community stronger.

It’s perfectly acceptable for an operator to be proud and celebrate milestones. But it’s even better for operators to celebrate those who help them thrive.

Images courtesy of Ocean Casino Resort

May 10, 2023by David Klemt David Klemt No Comments

Ovation Reveals 5 Secrets for Growth

Ovation Reveals 5 Secrets for Growth

by David Klemt

Restaurant guest feedback platform Ovation CEO Zack Oates reveals five secrets to what he calls the “digital table touch.”

The company touts itself as the number-one guest feedback platform. Ease of use is one reason the Ovation is viewed so favorably. Guests receive a two-question survey via SMS. Operators receive honest feedback they can use to improve guest retention and loyalty.

Those curious in learning more about the platform can check out several case studies on the Ovation website. Odds are, one of these studies matches closely with an operator’s own business.

For the purposes of this article, I’m going to focus on Oates’ 2023 Bar & Restaurant Expo education session. Getting even more granular, I’m going to drill down to Oates’ digital table touch approach to guest feedback and retention.

If Oates’ startling claim about first-time guests is true, guest retention is even more difficult than many operators would think. According to Oates, 70 percent of first-time guests don’t return to a restaurant. That number is, simply put, too damn high. Fifty percent is too high.

Feedback Reality

Let’s be honest about in-person feedback. While there are some honest guests out there, for some reason people tend to leave without being honest during their visits. In the moment, most of us will say “great” or “very good” when asked by a server or manager about our restaurant experience.

This is a compelling phenomenon. Per Oates, 15 percent of dine-in orders have issues. And yet most guests won’t say about an issue during their visit. That rate doubles to 30 percent for delivery orders, by the way.

Being totally transparent, Oates says he behaves the same in restaurants. He’s the CEO of a restaurant feedback platform and he’ll still say everything is fine during a visit even when it isn’t. So, while physical table touches are important, they’re likely not giving an operator an accurate picture of what’s going on in their dining room.

In fact, Oates says rather bluntly that “table touches are out of touch.” Further, they’re not scalable, off-premises, honest, or capable of fixing root issues, in his opinion.

Likewise, long-form surveys. According to Oates, long feedback surveys have an abysmal take rate: 0.01 percent. At that point, the rate may as well be zero. Online reviews, as may operators likely know, don’t really represent most guests.

The best solution to secure honest, actionable feedback appears to be Ovation’s SMS-based process.

Secret #1: Make Measurement Frictionless

Hot take: The easier a thing is to do, the more people will participate.

So, operators who want collect valuable guest feedback need to make it simple. If a guest orders delivery, operators should stuff carryout bags and top boxes with a call to action. For in-person dining, they should add a feedback CTA to table toppers. QR codes can make the process very easy. CTAs need to be visible and simple to complete.

The winning formula seems to be a two-question survey and collecting guest data. So, operators should consider enrolling guests who participate and leave feedback in a $100 gift card draw (or something similar).

Secret #2: Drive 5-star Reviews

Oates says that operators should push guests to rate their experiences on review sites. Doing so not only results in collecting valuable feedback, it can boost reviews and increase a restaurant’s visibility. The more discoverable a restaurant is, the more traffic it can potentially see.

Also, a note on actual five-star reviews: that’s not the best score. People tend to distrust perfect scores and one-star reviews. Per Oates, the best score is 4.7 stars, and operators should aim for at least a 4.0.

Secret #3: Respond to Feedback

This means good and bad feedback, and in a timely manner. Per Oates, one bad review reaches 30 potential guests. So, it’s best to address the situation as quickly as possible—if an operator can do so without losing their cool.

To ensure that emotions don’t prevail over rational responses, follow the Three Cs of Bad Review Recovery:

Collected.
Compassionate.
Call to action.

Remember, people want to feel important. When they leave a bad review the underlying feeling driving the review is likely a sense that they’ve been disrespected. Operators attempting to recover from a bad review need to make the reviewer feel acknowledged and important.

Secret #4: Discover and Act on Trends

A business term that has been making the rounds for years now is “kaizen.” This is the concept of everyone in an organization working toward making incremental improvements to the business.

Savvy operators will set aside their egos, find trends within the feedback they receive, and work to improve on any shortcomings.

Secret #5: Text Guests to Bring Them Back

As I’ve said before, if you really want to meet guests where they are, reach them on the phones in their pockets. However, Oates has more advice than simply, “Text them surveys.”

To boost participation, tempt guests with an offer. Oates says to make the offer a good one. So, operators should consider the following:

Come up with an offer and put it first.
Make it a good offer: “The first X amount of people to complete this survey will receive 15 percent off their next visit.”
Track participation via a link.

While operators can leverage each of the above secrets on their own, Ovation’s digital table touch process is seamless and easy to implement. Either way, collecting honest guest feedback and acting on it is one of the most effective methods for improving guest retention.

Image: Jon Tyson on Unsplash

May 8, 2023by David Klemt David Klemt No Comments

3 Ways to Build Revenue on Mother’s Day

3 Ways Restaurants Can Build Revenue This Mother’s Day

by Austen Asadorian

With Mother’s Day quickly approaching, there’s no doubt that operators across the country are preparing for the celebratory—yet extremely busy—day.

During their preparations, it’s important that operators find and incorporate new tools and innovative marketing tactics. Doing so will not only fill seats, it will ensure they capitalize on a key opportunity to drive incredible revenue.

Below are three simple but powerful ways operators can generate revenue and loyalty on—and beyond—this Mother’s Day.

Encourage Reservations & Offer Upgrades

An easy way to make this busy day seamless for guests—and, ultimately, staff—is to encourage and allow guests to make a reservation before they arrive. Reservations give operators insight into who will be dining with them, help optimize seatings and covers, and provide a idea of how much to order to eliminate food waste if a special menu is being offered.

Using a reservation system also provides operators with the opportunity to offer diners upgrades during the booking process, even including prepayment should they want to go that route. This not only allows operators to earn additional revenue before a guest even visits, but also a convenient way to offer guests peace of mind knowing they’ve handled that “something special” for Mom way before the big day.

These upgrades don’t have to be anything crazy or extreme (although that’s always an option). In fact, according to the National Restaurant Association, consumers want special touches and discounts over everything else. So, an upgrade can be something as simple as a beautiful flower arrangement waiting on the table to a special off-menu dessert brought out at the end of the meal.

Use Email & Social Media to Your Advantage

Properly promoting Mother’s Day offerings to guests is extremely important because if no one knows about it, who will come?

Operators should utilize tools like email marketing to send personalized communications to their guest database promoting the venue’s Mother’s Day reservation availability or special offerings. Better yet, these tools can be used to offer loyal guests reservations before they open to the general public, further creating a special experience for those faithful diners.

In the same vein, operators should harness the power of social media, too. Operators can target paid marketing efforts on social channels like Facebook and Instagram to drive even more awareness and revenue for their restaurant by creating an event, including the details of the activities, specials, or Mother’s Day promotions, and exporting the names of top guests and email data.

Surprise Them with a Second Visit

While Mother’s Day is the focus right now, it doesn’t stop there for operators. To drive the revenue they need, it’s important to turn these celebratory diners into repeat guests.

To do so, operators should consider offering Mother’s Day diners complimentary gift cards or discounts (even via email post-visit) to bring them back. This could be for an upcoming graduation, Father’s Day (so Dad can also get the love), or even for a future birthday.

This “surprise and delight” factor is one of the easiest strategies to capitalize on holiday traffic and get diners to return to a restaurant once again as a loyal guests.

Here’s to You, Mom

Moms should be celebrated every day, but especially on Mother’s Day, and it’s important to make sure they have the best experience when dining out.

By incorporating simple tactics like offering reservations and custom upgrades or even a special surprise at the end of the meal, operators not only succeed in making the day memorable, but create a guest who will return over and over again.

About Austen Asadorian

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: grumpymonstergroup via Vecteezy.com

McDonald's French fries close up in package

November 5, 2021by David Klemt David Klemt No Comments

Extend Your Reach with a Loyalty Program

Extend Your Reach with a Loyalty Program

by David Klemt

It’s increasingly important to stay top of mind with your guests. Now more than ever, that means finding yourself on their screens.

For likely the one-billionth time, allow me to point out something we should all know by now: We’re all on our phones and tablets all the time.

From texts and emails to app notifications and social scrolling, there’s always a reason to check screens.

So, how can operators invade people’s devices? By collecting guest data via a loyalty program.

Fluctuating Support

Not so long ago, industry experts bristled against the mention of rewards and discounts.

Guests, the thought was, had zero interest in signing up for loyalty programs. People would soon frantically seek out “unsubscribe” links after receiving one too many marketing emails.

However, people are quickly thawing, warming to the idea of loyalty programs. Once thought of as too invasive, now marketing experts believe “too intrusive” doesn’t exist.

After all, businesses need to ensure they’re highly visible. Operators must meet guests where they are. Where are they? Their devices.

Rewarding Loyalty

Your staff aren’t the only people engaging with the incentive economy.

Today, it appears that a guest liking your brand isn’t good enough to ensure their loyalty. They want rewards beyond experience, consistency, and delicious food and beverage.

With so many brands competing for your guests’ dollars, you have to stand out to keep them coming back.

Now, there are still industry experts and operators who will tell you to avoid discounting at all costs. Offering a discount, they argue, starts you down the road of devaluing your brand.

Well, the great news is that when creating your own loyalty program, you can offer whatever you see fit. If you fall into the Never Discount camp, none of your rewards have to be discounts.

Free is Better than a Discount

So, let’s remain in the Never Discount realm. What else will encourage guests to sign up for your loyalty program—and actually engage with it?

We can use the loyalty program launched in July by a global fast-food juggernaut as a great example.

Over the summer, McDonald’s launched MyMcDonald’s Rewards. How successful was the launch? More than 12 million people opted into the program.

In exchange for signing up, agreeing to receive alerts, and handing over their data, guests received a free medium French fry.

McDonald’s selected 66 loyalty program members to receive one million MyMcDonald’s Rewards points. One lucky member also received free French fries for life.

Create Your Program

“But David,” I hear some of you arguing, “isn’t free even worse than a discount?”

The short answer is no. A discount can devalue a brand because guests get used to paying less for select items or entire visits. Over time, they perceive the lower price as the standard price. Soon, they’ll wonder when the next discount is coming. You’ll have to either further discount your food and beverage or work harder to re-engage your guests some other way.

If a rewards program is structured correctly, members will have paid for any free item they earn several times over. Most commonly, guests receive points in exchange for dollars spent. They can then exchange those points for a free menu item. This doesn’t devalue the brand, it incentivizes program members to become loyal, repeat guests.

Operators not quite ready to build their own apps can utilize text messages and emails. Of course, the former is the most intrusive (in a good way). Texts can inform members of promotions and encourage them to visit or place an order online. Emails can let members know their current balance and what incentive their close to earning.

Additionally, be generous. Don’t exclude your guests’ favorite items from the program. Why would a loyalty program member remain loyal if they can’t exchange their points for “the good stuff”?

Structure your program correctly and you’ll increase visits per guest and spends per visit. Couple your guest data collection with a platform like SevenRooms and you’ll truly supercharge your revenue.

Image: Brett Jordan on Unsplash

October 27, 2021by David Klemt David Klemt No Comments

Sales Jump Shows Guests Will Pay More

Chipotle Sales Jump Shows Guests Will Pay More

by David Klemt

Chipotle’s latest earnings report may show that guests are willing to pay more at their favorite restaurants.

In Q3, the fast-casual giant’s net sales grew by nearly 22 percent. Per reports, same-store sales rose by just over 15 percent.

Is it possible that Chipotle’s earnings—which exceeded Wall Street estimates—indicate that guests will tolerate price hikes?

Rising Costs

No, it’s not a “hot take” to state the obvious: Everything is more expensive.

All operators and managers are aware that costs are rising across the board. Beef, chicken wings, cooking oils… Prices are increasing and the trend is expected to continue.

Not that any of us need a real-world example, but Chef Brian Duffy shared on episode 53 of the Bar Hacks episode that he now has to price a pound of chicken wings at $13.

One reason that Chipotle made the choice to raise prices comes down to rising beef prices. Another is increased freight costs.

As every armchair economist knows, when a business’ costs rise that increase falls on its customers.

The reason is fairly simple: If prices remain the same while costs rise, the situation becomes untenable, the business doesn’t generate enough revenue, and doors close.

So, Chipotle’s decision was simple. The fast-casual chain announced in June that menu prices would increase by about four percent to defray rising costs.

Rising Wages

Chipotle’s June announcement followed one the company made in May.

Six months ago, Chipotle announced the hourly wage for their restaurant workers would increase to $15 by June.

How did the company afford to raise hourly wages, offset ingredient costs, and deal with rising freight rates? The aforementioned menu price hike.

Now, Wall Street didn’t seem to anticipate backlash toward Chipotle for increasing their prices. However, plenty of other people have said—and still say—that customers won’t support restaurants or bars that raise prices.

It appears that a significant percentage of brand-loyal customers will remain loyal and continue to support the businesses they like even through price hikes.

Is This the Way?

I’ll address a crucial detail: Chipotle is a fast-casual brand valued at close to $52 billion.

They’ve got incredible brand recognition and tremendous purchasing power. Reportedly, there are 2,857 Chipotle locations in the United States. In fact, the company announced in February of this year that it planned to open 200 more locations this year.

So, no, there’s not a direct comparison to be made between Chipotle and an independent restaurant or bar.

However, that doesn’t mean there’s no lesson to be learned here.

Chipotle was transparent about the reasons for their price hikes. The Great Resignation has shined a spotlight on wages, and Chipotle addressed that concern.

The pandemic has also unleashed havoc on supply chains. Again, Chipotle was forthcoming about the challenges the company was facing.

Moving forward, it may be wise for restaurant and bar owners to address menu price increases. There does seem to be some level of understanding among the more rational guests out there that if they support increased wages for hospitality workers; understand supply chain challenges; and know costs are up for everything, they’re going to see price hikes.

You very likely need to raise at least some of your prices. When you do so, consider telling your guests why. You may be surprised by the support you receive.

Image: fancycrave1 from Pixabay