Over the past couple of years, we have collectively seen the ‘bar & grill’ segment on a continuous decline. Nearly every market across Canada and the US is over-saturated with the traditional bar & grill concept and most have become complacent in their own operations; offering similar menus and guest experiences while not adapting to industry changes.
Furthermore, this segment has been losing to other fast casuals and specialty eateries (plus food halls); ones that specifically target millennial demographics. The bar & grill however, has an opportunity to regain customer share in this cut-throat industry.
When targeting the millennial demographic, it’s imperative to plan around the fact that this group will pay more to go to a venue that offers premium food, high-quality beer & cocktails, and that cater to social engagements (ie unique experiences).
Here are 4 quick ways (#BarHacks) that the traditional ‘bar & grill’ can win back customers, starting today!
Innovation
Traditional burgers, wings, nachos, and beer can no longer be the norm to ‘attract’ guests to a bar & grill. Concepts that are driving innovation within both the kitchen and the bar, are the ones currently leading this segment. Fresh ingredients, hand-crafted drinks, cocktail pairings, unique plating, and innovative (or at least) new takes on traditional bar-fare, need to be considered during your next engineered menu.
Trend Management
Trends come and go, but bar owners must adapt to local market changes and demands. This is not only in food & beverage offerings, but overall guest experiences. What trends are driving guest energy, guest spending, and guest duration? Find the need in your hyper-local area and simply adapt it to your concept!
Back-Bar Strategies
When is the last time you took a careful look behind your bar? Realizing the necessary return on your alcohol investment is also partially a question of cost control. Create a niche in your bar & grill by re-focusing and minimizing the beverage menu offerings to develop signature, fun, social, and targeted drink menus your guests will want; ultimately reducing the dust on your bottles and wasted overhead.
Off-Premise
The bar & grill segment most definitely survives off of alcohol consumption, but many bar owners have been left behind and have not adapted to the off-premise dining option that many demographics are now seeking, leading to a loss in revenue opportunity. With the right menu mix, margins, promotions, and even online ordering methods, a bar & grill can attract and take part in this revenue generating platform without necessarily reducing overall on-premise revenue.
The adage ‘innovate or die trying’ is evident in today’s bar & grill. What will you do to stand out and remain relevent? Start here with these ‘bar hacks’.
Originally Posted on FoodableTV – By Doug Radkey 07/22/2017
Unless you’re a part of a very small percentage of restaurants that are always busy with customers, there is going to be some downtime throughout the day and in between services.
In many restaurants and bars, this time is often filled with staff gossiping and texting on their phones, or in summary, being unproductive.
Each position within the operations should have very clear job expectations from day one, including what to work on each day during quiet moments.
This is important to keep the restaurant running at a consistent high level. Owners, operators, and managers need to also lead by example during these times and maximize each moment of opportunity.
Outside of scheduling employee breaks, here are nine ways to make the most it:
1.Scheduling
The key is to keep energy levels high at all times. You don’t want to allow staff to become bored while at work. Reduce the amount of staff required during these times and have a daily, weekly, and monthly schedule of tasks required, to keep the ship sailing.
Prepare easy to follow checklists and don’t be afraid to delegate tasks. Use this opportunity to get everyone involved and working towards a set of common goals.
2.Service Preparation
Likely the most obvious task is preparing for the next rush of customers. Food preparation, stocking of beverages, preparing garnishes, filling salt & pepper shakers, rolling flat-wares, and checking other condiments should be a priority during these “downtimes.” A checklist listing each item will ensure nothing is overlooked and that service runs smoothly.
3.Cleaning Tasks
The next item to consider is cleaning. The old adage of “if you have time to lean, you have time to clean” should be ingrained into each staff member. Prepping thorough cleaning schedules that also promote accountability is essential as there is zero excuse for a dirty restaurant. Everyone must be on-board and understand the consequences.
4.Inventory/Ordering
Ordering and inventory control should not be two separate processes – they should work as one cohesive unit. There is now an array of apps, programs, and point-of-sale add-ons available to assist staff.
The secret to ordering and inventory control, still lies within you – the owner, operator, chef, or manager to ensure it is completed and accurate – so use this time wisely.
5. Review Marketing & Advertising
Assuming there is a monthly and quarterly marketing & advertising plan in place, use this time, at least once per week, to review the budget and the programs. Which areas are showing results, which need further investment, or which ones need to be discontinued?
Take this time to also review the hyper-local competition and do an in-depth analysis of social media accounts. Summarize the past weeks online and offline guest comments and/or secret diner results and then prepare a full summary report to discuss with your staff.
6. Review Cash-flow
Set aside a moment each day to review current point-of-sale reports, invoices, and other accounting statements which will assist the entire team to analyze guest counts, revenue, food & beverage costs, and labor costs which should be reviewed against week-over-week, month-over-month, and year-over-year reports.
This summarization will then assist in predicting future revenue, scheduling needs, food & beverage preparation, and other operational trends allowing you to more effectively ‘live in the moment’.
7. Ongoing Training Schedule
To run a smooth restaurant, it is imperative everyone continues to learn while working towards both team and personal goals. Use quiet moments to learn new food and drink options, refresh the team on ingredients, complete taste testings, and review service sequences.
This is also a great opportunity to role play different guest and service interactions based on recent scenarios that may have occured – practice makes perfect!
8. Preventative Maintenance
A thorough walk-through of the property, both inside and out, should be scheduled at least once per week before opening or during these noted quiet times. What needs to be fixed or replaced? What filters (water, grease, hood) need to be cleaned? What equipment could use a check-up or some fine-tuning?
Stay on top of it now to prevent surprises during peak periods. Also, it’s ideal and encouraged to turn off equipment not needed during these quiet moments to save on energy and costs.
9. Hold Meetings
Lastly, use this time to effectively communicate. Hold team meetings to discuss the upcoming service, marketing & advertising plan, recent guest comments, and current financials of the restaurant. One can also use this time to conduct one-on-one interviews with staff as a time to set and review personal goals within the operations.
An old friend used to say, “less chitter-chatter, more pitter-patter.”
If restaurateurs continuously look for ways to keep productivity at its highest peak and for ways to fill this quiet time with paying customers, restaurants will see immediate results, day in and day out.
Originally Posted on FoodableTV – By Doug Radkey 07/05/2017
There are arguably four key ingredients to a successful restaurant – the right marketing plan, flawless operating systems, memorable customer experiences, and finally, what I like to call ‘living in the moment’.
In the blink of an eye, a moment of opportunity is simply gone. You’re not going to get the past day, past hour, or past minute – back again.
With that in mind, ask yourself this right now– have you taken full advantage of cost control and revenue generation during the past day, past hour, and past minute?
A successful restaurateur understands they must maximize every day, every hour, every seat, every phone call, and every online order. Empty seats and minimal productivity is simply not good for business in this cut-throat industry where costs must be controlled and where revenue must be generated on an evolving basis.
Customer duration, kitchen productivity, average check, and Revenue Per Minute (RPM) or Revenue Per Available Seat Hour (RevPASH,) must be closely monitored by today’s operators and managers.
So, how can a restaurateur maximize profits, improve customer turnover rates, control operating costs, and effectively live in the moment?
Here are some tips everyone can use, starting today!
Tip #1: Do an Operations Audit
Review all day-to-day processes and understand the overall work-flow of the restaurant.
Some good questions to answer:
What back-of-house systems and front-of-house systems are being utilized?
How are they affecting productivity, customer service, and customer turnover?
Review each checklist, each training program, each communication method, and each piece of equipment to determine how it is either hurting or improving the restaurant– in both the short term and long term.
Tip #2: Integrate Technology
Without completely replacing person-to-person interaction, how can new restaurant technology improve how a restaurant lives in the moment?
New technology can develop better and quicker communication amongst the entire team (for example, table-side POS systems.) It can also enhance and create more profitable take-out & delivery programs (for example, online ordering).
Technology can also improve inventory methods and cooking time methods, which will both reduce waste and help to control hourly operating costs. It may be time to complete a technology audit for your property.
Tip #3: Maximize Space
Table management, floor layouts, take-out counter design, and kitchen space optimization will in fact, play a large role in productivity, customer experiences, and customer turnover per day and per hour.
For example, a restaurant’s table configuration will greatly affect duration and average revenue per customer, based on the spacing between tables and whether it is a booth configuration or an anchored or non-anchored table setting.
Make sure you’re maximizing every square inch to its full capacity based on the concept and average party size without diminishing customer experiences.
Tip #4: Improve Menu Engineering
It’s no secret– the menu is where the money is made. The size of menu also plays a large role in productivity/ work-flow, potential waste levels, time of visit, and customer turnover rates.
For example, to fill seats during traditional non-peak hours, restaurateurs need to consider menus that target a variety of day-parts while understanding their ideal customer profile.
This takes a full team effort, from the owners, managers, chefs, and front-of-house staff with the assistance of point-of-sale reports, customer feedback, and other market research.
Tip #5: Update your Marketing Plan Regularly
The moment a restaurant stops marketing, is the moment it starts failing.
Once a restaurateur truly understands their locations slow periods and peak periods, in addition to target market and guest spending habits, a strategic plan can be developed and executed to maximize each moment of each day.
Ensure your restaurant has a monthly and quarterly marketing plan created with SMART goals.
Tip #6: Consistently Monitor Guest Experience
Outside of food, drink, and customer service – music (tempo & style), lighting (brightness), seating and/or counter configuration, and overall interior design also play a large role in contributing to a guest’s duration, their amount of spending, and if they will return again.
These consumer touch points must be monitored and measured on an ongoing basis, preferably with the help of secret diners.
Tip #7: Restaurant Revenue Management
Taking all of the above strategies and aligning it with an in-house Restaurant Revenue Management program (RRM), will accurately maximize revenue, time, and capacity while controlling your operating costs.
RRM can be defined as simply selling the right seat (or take-out meal), to the right customer, at the right price, at the right time, and for the right duration of time.
It is possible that a restaurant could run at 75% capacity or more, and still not be profitable. This is why combining what’s called Revenue per Available Seat Hour (RevPASH) or Revenue per Minute (RPM) reports with seat duration, average check, food costs, and operating costs including labor cost reports is extremely important to maximize each and every moment.
Some key takeaway questions to ask yourself now:
What is the dollar value of each seat and each take-out order; every hour, day, month, and year for your restaurant?
What is the cost of each operating hour?
Are you living each moment to its fullest?
What areas and what times of day can you improve on?
Only you know these answers and can leverage them to develop an action plan that will make your restaurant more profitable.
Originally Posted on Typsy – By Doug Radkey 06/28/2017
Starting a restaurant is not a cheap endeavour. There are a variety of cost factors to consider when developing a restaurant concept and it is imperative that an aspiring restaurateur measures the cost difference between purchasing an existing restaurant, taking over a vacant restaurant space, starting a restaurant from scratch, or buying into a franchise model.
The riskiest scenario, which will require additional planning and, in all likelihood, additional funding, involves starting a restaurant from scratch.
Using this start-up model as an example, we can break down the different cost categories that many will overlook.
The average start-up restaurant, in US dollars, can range from $295,000 to $660,000+ depending on a variety of factors, including of course size of establishment. In terms of square feet, the total project can range from $150 to $200+ USD per square foot, depending on the scale of design and chosen materials.
The largest cost factor is going to be the construction and renovation period, which can range from 35 to 65% of the total start-up costs.
These are key budget scenarios to consider when one is trying to decide on a location and size of an establishment. A restaurateur will want to keep 24 to 28% of the space for kitchen production and allow for approximately (and ideally) 15 to 25 square feet, per seat.
This again all depends on choice of concept. It is difficult to pin-point precise costs for you as every concept is different, but we can outline the variety of cost categories to consider for your start-up budgets.
Leasehold Assets
Construction and design In addition to the above notes, a restaurateur will want to keep in mind engineering costs, interior designer costs, millwork costs, artist renderings, and permit costs.
Restaurant furniture Consider the style of tables, table stands, and chairs that one would need for the restaurant, based on concept and size. This can range from $300 to $700+ per set of table and chairs.
Kitchen & bar equipment and supplies When developing a concept, it’s important to understand the menu that will be developed to assist in estimating kitchen & bar size constraints and the type of equipment needed. Kitchen and bar equipment can range from $50,000 to $125,000+ USD depending on the size of space. Consider in this budget shelving, storage, and small wares in addition to any required exhaust hood systems.
Plates, glassware, and takeout containers Based on the size of the restaurant and project sales and turnover, how many plates, drinking glasses, and takeout containers will one need to get started? Consider each type of glass (wine, beer, juice, martini etc.) in addition to soup bowls, salad bowls, desserts and so on.
Food and beverage supply The cost of purchasing food and beverage for opening is often overlooked. Though some suppliers will offer payment terms, it is best to budget for the first shipment(s) in addition to food & beverage for training.
Rent & Operating Costs
Security deposit As a new entrepreneur without any kind of track record, a property manager will likely require a security deposit that will be returned after the first twelve months of business. This can range from $5,000 to $10,000 USD.
Lease payments During renovations, a property manager will often settle on a negotiation for ‘free rent’ during that period, usually 2-3 months. However, it is ideal to budget 1 to 2 months of lease payments in the case of any unexpected delays.
Utility payments It is wise to budget for 3 to 6 months of utility costs and keep in mind that many utility companies (water, energy, and gas), will want a deposit from new customers.
Capital cash flow Many restaurants open with no money left in the bank. This can become a critical situation. It is best practice to budget at least 1-3 months or more worth of wages and lease payments to be on the safe side, and to have money in the bank for emergency and simple cash-flow purposes.
Marketing & Advertising Costs
Web design and social media
Unless one plans to do in-house, a professional marketing agency may be hired to design a website, set-up social media channels, and get the restaurant listed on all of the crucial review sites.
Logo design This could be provided by the same agency as above. It is always suggested to have a professional design the logo and branding package. In this category, also consider the cost of trademarks.
Outdoor and indoor signage This cost can vary greatly, depending on the style of sign needed for the property and the layout of the logo. One must not forget about interior signage and branding as well.
Menu printing There must be a budget for menu covers and printing. Again, this cost can vary, depending on number of seats, style of menus, and if there are printed takeout menus to be distributed.
Other mediums Set aside a budget for any video production, radio commercials, print advertising, and other partnerships that may be needed to generate opening day buzz!
Grand Opening Costs
Staff uniforms Once a restaurateur has an idea of the staff plan, a uniform budget can be allocated for chefs, cooks, bartenders, servers, and managers. To save some costs, it’s ideal to have employees provide their own pants.
Staff training A start-up restaurant will want to set aside two to three weeks of training and orientation. It is best practice to set up a mock training schedule during the planning stage to develop this budget.
Soft opening Often you will have a one week practice period so your staff can run through real-life scenarios with a select group of guests. A budget should be set aside for food and beverage costs, as a soft opening is often offered for free to guests.
Grand opening Consider a budget for a grand opening event that will attract the attention of local dignitaries, media, food bloggers, and the immediate community.
Administrative Costs
Business licenses Though minimal and needed, research your local and regional licenses and their associated costs, including traditional business/corporation licenses, liquor/beer licenses, and music licenses.
Ordering and payment solutions A point of sale (POS) system is vital for customer service, inventory, communication, and other reports. Set aside a budget for a program and set of hardware that is suitable for the style of concept.
Insurance/legal fees Construction insurance and operating insurance should be purchased prior to opening, for the renovation and training period. You should also allocate part of your budget to a business lawyer who can read through lease agreements.
Accountant It is ideal to have an accountant during the start-up phase, to track and organize expenses and to guide a restaurateur in the right direction, financially. This individual will also assist in setting up payroll and HR files for all start-up employees.
Hidden costs As with any type of project, there are always hidden costs that are not accounted for. It is best practice to set aside a budget, similar to that of the operating capital, to ensure there are some funds available in case of emergency.
All of this may become very overwhelming for a start-up venture. With a proper feasibility study, concept development plan, and business plan – in addition to a restaurateur surrounding themselves with the right team of consultants, engineers, designers, and contractors – a start-up project can in fact stay within budget.
Originally Posted on FoodableTV by Doug Radkey – 06/20/2017
Traditional comment cards and now online reviews play a large role in this industry, but only a very small percentage of guests actually fill out the forms and/or leave a review. Plus, it doesn’t always provide a measurable result.
To get a truly unbiased, outside perspective, a secret shopper or ‘diner’ in this case, is often the best option.
For a minimal investment, a secret diner program can become a profitable training and development platform for owners, operators, and managers. A secret diner also provides a different perspective: one that speaks from the eyes of a customer and not from the eyes of an owner, manager, employee, friend, or family member.
After a secret diner visit (which is suggested to be once every month or at least every three months), a secret diner should leave a comprehensive report of the visit with a list of positives, negatives, and a score for a variety of categories. This score (which should be shared with staff) can be used as a measurable tool while also implementing a high level of accountability – with a goal to improve the score after each future visit.
A secret diner, whether for a franchise or independent restaurant, bar, hotel, or entertainment venue should be looking to fill out the following in their reports for restaurant operators to evaluate:
Curb Appeal
A secret diner will score the establishment on parking, visibility, the landscape, lighting, and overall cleanliness of the exterior elements.
As a first impression, this score is extremely important and should not be taken lightly.
Greetings
No matter the type of concept (whether it’s a host/hostess in a full service restaurant or a staff member behind a counter at a QSR), the restaurant will be evaluated how long it took to be acknowledged upon entering.
Share the in-house policies for greetings with the secret diner beforehand so they know what to look for.
A secret diner will also report on how smooth the process was while timing each of the interactions, including greetings for table service and how long a guest is traditionally waiting to be seated or taken care of for drinks.
Service Sequence
Service staff are often the make or break between a positive and negative guest experience.
Are they following proper procedures when owners and managers are not around?
Are they announcing specials, walking a new guest through the menu, up-selling, or simply making suggestions based on knowledge of the menu?
Are they gossiping with other staff, or are they on their mobile phones?
Are they able to adjust to a potential conflict a secret diner may throw at them unexpectedly?
These are all measurable results that can be used for future training purposes and improving customer service sequences.
Quality Control
Food and beverage is of course, a crucial element to the success of the restaurant. A secret diner will test an establishment on timing between ordering and receiving each portion of the meal (including drinks) in addition to the overall taste and the overall presentation.
They will take note if they feel something is missing (maybe a garnish), if something was under or over-cooked, or simply could be better in terms of presentation.
All of this information is prudent to the improvement of a successful bar and/or kitchen.
Cleanliness
A secret diner will also take note of the cleanliness throughout the restaurant. These individuals are trained to look for clean chairs, tables, menus, condiment holders, floors, washrooms, and walls etc.
From where they’re sitting, what is visible to them at server stations, behind the bar, or into the kitchen? Use this information to improve cleaning schedules, work stations, and checklists.
Special Audits
An owner, operator, or manager may also consider hiring a secret diner to look for a specific issue they feel they’re experiencing. For example, is a bartender being too generous and adding in an extra half ounce (or more) of alcohol when asked nicely by the customer? Are they checking identification of possible underage guests? These are just two examples, but a secret diner can often be better eyes and ears than that of a camera.
A secret diner program is often overlooked or considered an unnecessary expense. If an establishment looks at it as a way to control costs and achieve efficiency, and is completed on a consistent basis, if will undoubtedly improve customer satisfaction and customer experiences. In addition it will also improve methods for current and future employees, training platforms, inventory control, and overall operations.
All of this is extremely important when looking to grow, gain respectability within a community, or simply improve operations. Without these reports, a restaurant would be losing out on the opportunity to better themselves with an unbiased view of the establishment.
Nobody is perfect, but everyone can work towards a common objective and a secret diner program is the perfect start.
Originally Posted on Resto Biz – By Doug Radkey 06/14/2017
No question, every restaurant or food and beverage related establishment starts with a vision. A dream for most that must be met with the right research, planning, and overall mind-set. Similar to the true definition of branding, one’s market will, and must, also define the concept. To be successful, you must be open to building a venue the market both wants and needs.
A common theme through the first phase of starting a restaurant (or any business) is research, research, research! Whether you’re an experienced restaurateur or new to the scene, if you are looking to start a new restaurant, the question you’re likely asking is, ‘where does one start?’
A feasibility study, concept development plan, and a strategic business plan are the three key steps in developing a scalable, profitable, memorable, consistent and sustainable restaurant. These plans should be composed simultaneously and reviewed by industry experts prior to securing any leases or further investments.
This article, the framework for a restaurant concept development plan, will not only deliver on vision and purpose, but assist in determining realistic start-up costs. A restaurant concept development plan should (at the very least) follow these essential headings, after a thoroughly completed feasibility study.
Restaurant Concept Summary
This first section is about giving the start-up restaurant character. Summarize the dream, the proposed name, and the main descriptions for the concept on one page. From there, take the time to carefully craft a value, vision, mission and culture statement, which will build the foundations for your brand.
The concept summary should also highlight any proposed operational configurations and hours of operation in addition to management and staff requirements, plus uniform design and wage structure, which should flow from your previously written culture statement.
Architectural Design
The overall restaurant experience is summarized into four basic areas: food (30 per cent), service (25 per cent), environment (24 per cent) and cost (21 per cent). It’s imperative to ensure that the ambiance and environment match that of the menu to drive a memorable concept.
Every piece of real estate is unique in its own way; a 1,000 square foot location will have different needs than a 1,000 square foot location two blocks away, so it is difficult to be 100 per cent accurate, but this section will surely define any future budget restraints.
With the right research techniques, one will be able to determine the space allocation (number of seats, take-out counter size, washroom requirements, and kitchen/bar production space) needed to meet financial objectives in the feasibility study.
From there, define the interior characteristics your location would need and list out your wants versus needs for the interior design. Taking research to another level in this section will properly estimate the costs for your desired floor styles, wall finishes, lighting, tables, chairs, and so on.
Take this time to also list out the top three to five interior designers, engineers, architects and contractors that you would like to contact and have bid on your project.
By the end of this section, you should also be able to determine if you’re in a financial position to purchase/remodel a restaurant, build a new restaurant, or retrofit an existing restaurant space.
Bar & Kitchen Production
Much like the architectural design, it’s imperative to plan out your kitchen and bar space. A helpful tip to remember is the average kitchen equates to approximately 20 to 28 per cent of the overall space. To plan a kitchen and bar properly, you must also have a solid idea of the proposed menu and estimated number of seats or daily orders.
Take this time to determine the key pieces of equipment required to execute the menu in addition to understanding their specs (electrical/gas/water usage, and overall size), plus estimated costs for each piece of equipment.
Based on the above, will your establishment need an exhaust hood system? What is the estimated ‘BTUs’ that will be used for accumulated gas equipment? What is the estimated number of ‘amps’ required for accumulated electrical supply? Lastly, what technology-related equipment will you require to execute on the customer service side (POS and digital boards for example)?
Once all of this information is collected, list out the top equipment suppliers in your area that you would like to bid on your project for when the time comes.
Menu Design Attributes
Understanding the core menu items early on will allow a start-up to plan the kitchen and also determine estimated food and beverage price points. You don’t need to have the entire menu completed, but a solid idea that flows with the remainder of your concept is required.
Based on the menu, what plating, take-out containers, and glassware styles will be required? Based on seats and projected orders, how much of each will be needed at start-up? Take this time to source possible suppliers and their estimated costs.
Knowing your core menu will also position you early on to determine key food and beverage suppliers and begin mapping out possible supply chain solutions in addition to any challenges you may face to meet the demands of your concept.
When a concept development plan is complete, it will assist in completing the strategic business plan by preparing you for capital requirements, budget limitations, construction related options, space planning, lease requirements, and overall day-to-day operations.
Originally Posted on FoodableTV – By Doug Radkey 06/07/2017
Outside of social media, word-of-mouth, and online directories – how else does a potential guest notice a restaurant? The answer; a store’s outside appearance.
As a restaurateur, it should start with a concept development plan that not only focuses on the interior, but one that also focuses on creativity throughout the exteriors architectural design.
A restaurant’s exterior, even in a shared retail plaza or downtown core with minimal ‘store-front’ square footage, should offer a sense of transparency and cohesiveness between the inside and the outside. When a potential guest is outside of a restaurant, they should also feel a sense of energy, enticing them to go inside.
Not every restaurant is going to be a hidden gem within the community. As always, one must thoroughly think about the message that’s intended to be delivered. With proper planning and thought processes, the exterior will help make a memorable, first impression.
Do an Initial Audit
Walk through the targeted (hyper-local) neighborhood and take note of the immediate surroundings and other restaurants. What restaurants are standing out in a positive fashion? What about the restaurants that are driving a negative emotion as it’s approached? Take note of these findings and make a to-do and not to-do list.
Consider the Parking
In this industry, we talk a lot about guest experiences. The first thing a guest is going to experience is the parking situation. A perfect way to ruin a positive restaurant experience is to have guests leave only to discover that their cars have been ticketed or towed. Consider the concept’s intended capacity, both take-out and dine-in traffic, hours of operations, and the surrounding businesses – plus the parking spaces they will be demanding. Is there enough convenient parking spaces for everyone? If not, move on to the next.
The Importance of Landscaping
Depending on the location, not every restaurant will have the opportunity to customize storefronts or offer unique landscaping. However, even the most minimal locations can be creatively executed with greenery and/or gardens etc. A restaurateur should also consider the brand’s color scheme and overall style, while providing a distinctive contrast with any of the neighboring businesses.
Branding in the Storefront
Signage is an obvious requirement to draw attention, to allow for ease of recognition, and to drive a concept’s primary message. Any secondary signage (on windows for example), should have text and graphics that easily coincide with the concept. As an operator, it’s important to remember that potential customers want to see inside the restaurant, so don’t overuse window graphics (and please stop using hand written notices on doors & windows).
Menu Display
If a restaurant is in a high foot-traffic area, ensure the food & drink menu along with the daily special is posted and available to read from outside the restaurant. Remember that your menu is the best marketing tool, so make it readily available, even during non-operating hours.
Embrace Openness
Is there a creative way for potential guests to visualize or smell the cuisine or listen to the sounds coming from inside the restaurant? Find ways to have the energy from within the restaurant, fill the streets or parking lot without disrupting neighbors or landlords.
Outdoor Seating
Depending on the concept and seasonal climate, outdoor seating can easily drive some of the most positive experiences for guests. Similar to “openness,” it presents a restaurant the opportunity to create a visualization of food, drink, and service from the street. However, it’s important to remember that choice of furniture must equally play an important role and that staff members are responsive and are clearing outdoor tables regularly.
Lighting
A restaurant’s lighting, both inside and outside, is extremely important. Interior light choices need to be considered from an exteriors point of view as well. Potential guests walking by should be able to see food, drink, and the atmosphere. This will help to drive a guest’s decision to come in. Outdoor lighting for patios need to be creatively decided upon and it’s equally imperative, that there is enough exterior lighting for the safety of both the guest and staff.
Do a Curb Audit
Do a walk around of the restaurant every 1-2 days and ensure it’s clean and tidy. Then, take the time, every few months, to simply people watch. Sit outside, near the restaurant, and see how people react when they walk up to or by the restaurant. Are they slowing down? Are they looking at the menu? Are they stopping and looking inside? Count how many for each category over the course of 1-2 hours and consider making adjustments as needed.
At the end of the day, a guest wants a memorable dining experience. This starts outside. If it is uninviting, a potential guest will turn away or keep walking. If it’s cluttered, unorganized, or dirty, they will quickly associate this with the interior, including the kitchen.
Curb appeal is a means of effective communication. When developing a concept plan and/or when choosing a location, consider each of these external factors to ensure the restaurant is in a position to foster positive customer emotions and “touch points.” This will ultimately drive awareness, revenue, and repeat business.
Why You Should Conduct a Restaurant Feasibility Study
Originally Posted on Typsy – By Doug Radkey 06/01/2017
So you have an idea for a new restaurant or bar – fantastic! But will it have long-term sustainability, or will it just become another failing statistic in 12 to 18 months?
Is it a restaurant you want to open because it’s been your dream… or is it equally a restaurant your market both wants and needs?
A feasibility study is an essential component of your start-up’s success, but it’s a process many new restaurateurs skip out on, leading to wasted time and a quick loss of investment. A feasibility study must be conducted in order to determine the potential success rate of the restaurant, and to minimize the risks related to the start-up.
This plan or study should be the first of three plans (a feasibility study, a concept development, and a business plan) that work as a cohesive unit prior to securing any lease or investing any further funds.
Here are four essential categories to assist you in researching and presenting a successful feasibility study.
Step One: Preliminary Analysis
Outline your proposed restaurant in terms of service style, target market, required location size, and style of food and beverage. Take this time to be as specific as possible!
Next, determine if your restaurant will fill a gap in a currently under-served niche in your market (look at age groups, income groups, and multicultural populations – specifically). List as many details as possible.
Will your new restaurant successfully compete with similar food & beverage concepts within your proposed market? Is there enough room for more? What advantages will your new concept bring to differentiate itself? Use this time to consider intended food & beverage quality, space capacity, location needs, value statements, pricing structure, and atmosphere.
If your market has zero direct competitors, first ask yourself: why?
Next, what immediate challenges or threats will your start-up face? What is the labour market looking like? Are there enough qualified chefs, managers, and bartenders, for example? Would your location have challenges in terms of supply chain management or food and beverage delivery logistics? Are you close to a farming community?
If you think your early vision has a chance – move on to the next step of the process.
Step Two: Market Survey
A good market analysis is key to your success. Accumulate and analyze your market’s population trends, lifestyles, demographic features, community profiles, cultural factors, traffic patterns, local capital improvement projects, and the income levels within your target city.
Next, analyze the food and beverage offerings within your community. Map them out by location and style of concept. Keep in mind high-end grocery chains that now offer quick meal solutions.
Complete a SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) to analyze the pricing, menu options, location, seating, promotions, service level, customer reviews, and community involvement of each key competitor.
Finally, get out in the market (physically and/or online) and survey actual target customers. Ask them a series of important questions regarding your visualized concept. Document these answers for review and analysis to determine if the target market is not only large enough, but has room for growth.
Step Three: Mock Financials
This is an important step, for obvious reasons. But how will you know your proposed restaurant’s monthly expenses and revenue? With careful research, analysis, industry percentages, and reports from government agencies, you can determine averages and projections for your concept and style of service.
With this step, you can also determine projected start-up costs (budget constraints), staffing needs, wages and salaries, food and beverage costs, average monthly lease payments, marketing and advertising costs, and much more.
To determine potential revenue, you can project your operating hours, seating or take-out capacity, and revenue per customer goals that are a reflection of the market size. Use this data to complete an hourly based foot traffic analysis to back-up your numbers and realistically see how many customers can be served per hour, day, week, and month.
There is a lot of data you need to research, to complete this step, so you may want to consider hiring a professional who knows the industry and/or local market at this point. It is important to understand projected break-even points and if there is enough demand in your market space so you know you can generate a profit.
Step Four: Review
Re-examine your entire study so far. Make sure it is organized with graphs, charts, and plenty of factual data. Does the data reflect realistic expectations? Analyze your risks, time, and overall projections.
Listen to your gut feeling and make sure your next decision is a calculated one. The more data you collect, the easier the decision will be. Are you ready to make the commitment? If not, walk away now.
If yes, great … the next step is taking this data and implementing it into your action plans!
Originally Posted on FoodableTV – By Doug Radkey 05/15/2017
It doesn’t matter which region you’re in — the warm summer weather provides restaurateurs the opportunity to develop seasonal flavors, all while providing them the ability to fill their seats (and patios) to drive new revenue channels.
To execute a flawless summer program, it’s important to start planning as early as possible, preferably 2-3 months prior to the start of summer. Developing a summer program this early will allow a venue to determine cash-flow needs, staffing requirements, inventory levels, and any additional training requirements to ensure a smooth operating season.
As with any seasonal or marketing related program, it’s imperative to use a SMART mindset towards your planning; one that is Specific, Measurable, Attainable, Realistic, and Timely. Secondly, it’s a fantastic opportunity to utilize your staff to brainstorm menu items, themes, and other special events. Finally, one should also use this time to review previous years’ seasonal data to set new, attainable financial goals.
The goal at the end of the day is to generate awareness, repeat business, and an increase in revenue over the course of three months. Here are nine ways to get started with summer planning, regardless of your concept type.
1. Drive Energy.
The warm weather attracts tourism and gets locals looking to re-explore their outside surroundings. The restaurants or bars that provide the right mix of energy are the ones that will attract a consistent level of guests throughout the season. Look for ways to utilize live music, themed parties, and interactive games (inside or outside) on a daily or weekly basis throughout the summer. A fully pre-planned calendar of events will drive energy, create excitement, and develop repeat business!
2. Create Event Buzz.
To maximize an event’s reach, it’s best to use a three-tiered approach to creating event buzz. Have a plan in place to promote your seasonal events. You’ll need to one prior to the event, one during the event, and one afterwards, recapping the event. This will ensure you’re promoting the event, giving guests a means to engage with your brand. You’re also giving an opportunity for others to see what they missed out on, making them intrigued to not miss your next event!
3. Connect w/ Your Farmers Market.
Consumers are looking for new flavors and innovation, as well as creative summer-like takes on traditional menu items. There is no better way to stay ahead of this need than by utilizing and building stronger relationships with local farmers market. Provide your culinary team with the means to develop unique, limited-time offers with not only seasonal produce, but a variety of barbecue-related flavours as well.
4. Put a Little “Theatre” in Drinks.
Innovation shouldn’t stop with just the kitchen-related menu items; beverages need to be included into the mix, too. (It is hot out, after all). The “garden-to-glass” trend continues to grow and new, refreshing spirits are becoming readily available to develop unique flavorful drinks with a memorable presentation. Beer and cocktails with low-levels of alcohol should also be featured, plus creative mocktails and house-made spritzers should highlight one’s summer menu offerings.
5. Utilize Video & Storytelling.
These two elements are really required for any time of the year, but to promote your events, your limited-time offers, and summer drink menu, there is no better way to amplify the message than through video. Use this opportunity to showcase service staff planning an event, cooks building that signature summer burger, or bartenders pouring that refreshing beverage. Remember, with today’s smart phones, you no longer need to break-the-bank on video production!
6. Tap Social Circles.
Summer is a great opportunity to reach out to sporting teams, bike clubs, and other outdoor enthusiasts. Can your venue host after-parties? Can your venue host a social-media-only party or tasting event? Don’t be afraid to reach out and partner with other local businesses and organizations. Every campaign should have a social media and/or community-driven strategy behind it.
7. Convince Guests to Return for Three Visits.
Each seasonal program and its associated campaigns should have the goal of guests returning at least three times. Understanding your target market, is it realistic to see a guest return three times per week, three time per month, or once per month over the summer? Once you truly understand their lifestyle and spending habits, you can develop events and campaigns to drive summer loyalty and a personalized experience.
8. Use Quality Designs.
When a venue gives itself the opportune time to plan, a sense of higher quality often comes with it. Budget for and take the time to create high-quality designs for posters, ads, video, and social media posts. This will speak volumes to potential guests while providing a perception of value to not only your new summer menus, but also your events and overall venue.
9. Remember, it’s All About Finesse & Balance.
Absolutely, the summer provides an opportunity to think outside the box, but don’t go overboard with menu changes and special events. Know your target market, know your concept, and know your financial budgets. Develop a program that is simple but memorable, profitable, and effective, and without placing additional stress on your kitchen, bar, or service staff.
In summary, concentrate your summer plans on presentation, energy levels, storytelling, and developing a personalized guest experience. Doing so will develop a sense of community and culture, setting your venue up for success, even as the weather (and often sales) begin to cool down!
Collaborating w/ Local Chefs & Businesses – Even the Competition
Originally Posted on FoodableTV – By Doug Radkey 05/01/2017
The word “collaboration” stems from the process of two or more people or organizations working together to achieve something that is remarkably outstanding. Giving that some thought, shouldn’t all restaurants and bars alike be working toward achieving this goal and mindset?
The problem is not everyone has learned that even collaborating with the “enemy” (competition) is not necessarily a bad thing. Restaurants have an array of opportunities to collaborate with suppliers, their community, and yes, even the competition, while working towards a common goal; more awareness, traffic, and revenue.
The below suggestions all have two key components: ticketed events and/or message amplification.
Local Farms
Assuming your restaurant is sourcing product from local farms, fisheries, and other artisans; consider taking that relationship to another level.
Guests today are looking for one-of-a-kind experiences, along with food and beverage pairings that develop a perception that it is personalized or customized – just for them.
This is leaving an opportunity for restaurateurs and their culinary and bar-focused teams to work alongside local suppliers to generate not only unique recipes but also a series of educational events where a farmer, chef, and bartender, for example, can educate guests on the product throughout the meal.
The farming partnership can also be taken to an “expert level” by having your restaurant host a dinner at the farm itself — climate and locality permitting. This takes the educational component to a new level and allows a culinary team to execute in one of the most creative environments, all while guests get to enjoy a variety of sensory-related experiences.
Local Beverages
Similar to that of the local farm collaborations, restaurants and bars have an opportunity to further enhance awareness, revenue, and experiences by partnering with local breweries, wineries, and distilleries.
Beverages today are an important aspect to the overall dining experience, and what better way to drive that message than to create pre-fixe menu nights using a chosen local beverage? This will give your culinary team the creative ability to infuse this beverage and flavor in all of the dishes, while a representative of the company walks guests through the production, tasting techniques, and flavor profiles of their product, creating a fun night and memorable experience worth sharing.
Chefs
For a one-night-only type of event, consider collaborating with another local chef at either your restaurant or theirs (or ideally alternate the next month). Use this opportunity to put a unique, one-night-only menu together that fits within the confines of your concept and put together the creative minds of both chefs.
The “aha” moment is when you both get to expand awareness to each others’ market and close network of guests by promoting this exciting event. This also drives a perception that you’re community-minded and open to creativity. And developing an event that can generate additional revenue on what could be a slower night for your concept always helps.
Charity
Cause-related marketing has always been a crowd-pleaser and is very easy for restaurants to execute, especially with venue space, food, and beverage options already in-house. Take this opportunity to communicate among your staff to generate a list of causes you and your team would prefer to support within your community.
Reach out to them and collaborate on an event that will generate awareness, guest experiences, and minimal revenue for the restaurant to cover costs, at the same time generating a generous portion of revenue for the cause or nonprofit organization.
This type of collaboration will generally grab the attention of local media and dignitaries, further amplifying your reach and awareness, and again driving the perception you’re a valuable member to the local community.
Competition
A little friendly competition has never hurt anyone (that we know of) and collaborating with other local restaurants can be very beneficial for everyone. Consider partnering with your local business resource centers to generate a one-night-only or week-long “restaurant/bar crawl.”
You can even develop your own event with other similar restaurants in your area, for example, a battle of chef creations or bartender creations. Consider a “Caesar Battle,” meaning which restaurant/bar can create the most epic Caesar drink, with a reward going to guests who visit and try each location’s creation.
The ideas are truly endless, and really fun, for everyone involved. Whichever is decided on, ensure it is driving traffic into your location. At the end of the day, it’s about the guest and egos need to step aside.
Now find ways to creatively combine two or more of the above collaborative ideas for the most unforgettable experience and revenue-generating opportunity. All of the above options and events will enhance your social media strategy, amplify your messaging throughout the community, improve your community perception, increase staff morale, and generate revenue opportunities for you and your shareholders, while developing a destination, not just a restaurant.
