In case you hadn’t noticed, we are now closer to the year 2076 than we are to the end of World War II. And we’re nearer to Sept. 11, 2019, than we are to Sept. 11, 2001. Yes, the world turns, time flies and change happens. Witness for instance how recent economic uncertainty has forced most operators to finally make significant changes in systems, strategy and spending, yet one key success area is still sorely in need of transformation: effective local-store marketing, or LSM.
Two recent outside/inside influences—the global recession, combined with a generational shift in foodservice leadership—are finally transforming the “restaurant business” into the business of restaurants. The economy forced us to focus on improving margins. Most companies have improved operations, cut costs, pruned underperformers, and affixed controls to maximize efficiency and minimize spending. Now it’s time to focus on the other side of the profitability coin: how to attain and retain more customers cost-effectively by better connecting to the community, or LSM. Here are the basics for executing an effective neighborhood-marketing program:
Conduct a thorough written SWOT analysis. Assess strengths, weaknesses, opportunities and threats for each unit every six months. This analysis should be compiled separately by both the GM and the area manager. Then compare and contrast the insights. Now detail a specific action plan to maximize the strengths and opportunities and minimize the weaknesses and threats.
Assess your current LSM strategies and tactics. Review each tactic in detail. Which ones have produced the best measurable results? Why? Be specific. Which have not? Why? Be specific. What have you “intended” to do but never gotten around to doing relative to connecting your restaurant to local businesses or schools? Specifics please, no generalities.
Know the neighborhood. No, seriously, really know it. Each GM and their assistant managers should conduct a thorough drive-through of the neighborhood within a 5-mile radius surrounding their unit. Note and list all the businesses, schools, churches, housing and organizations in the trade area that could be sources of new traffic. Determine what specific tactic might best drive more traffic from each business, i.e. phone calls, coupons, social media? Now break down the list into groups of 10 and assign one group to each manager to contact and develop each week. Have them review the local newspaper or its website for upcoming community events, weddings and celebrations that might be converted into new business. After 30 to 90 days, review each manager’s efforts and adapt, innovate and improve on each one.
Leverage the Web and social media. Access Google Alerts to know when people are mentioning your business, Tweet daily specials or events, maintain a Facebook fan page, and keep your website community-centric in tone and features. It’s wise also to remember that the original social media in business was—and remains—word-of-mouth.
Co-market with other businesses. Find out where your customers are before they visit you and where they go after they visit you to better define opportunities for referral business partnering.
Remember none of us is as smart as all of us. Michael Gross, principal at MBG Restaurant Marketing, suggests that many operators overlook the power and potential of their own crew to connect to the community. “It’s key to position your restaurant as a ‘crossroad’ for the community to meet, greet and eat,” he said. “Connect with the local leaders…and be sure to ask your hourly team members who they know. They have a wealth of contacts.”
Promote less, execute better. The proliferation of limited-time offers helps drive more traffic when properly promoted, but too many offers confuse both customers and crew.
Make one-to-one marketing inside your four walls an imperative. Don’t waste your money trying to constantly acquire customers that you can’t maintain because you forgot Sullivan’s First Law of Operations: For every dollar you spend on training, you spend $1.50 less on marketing. Focus first and foremost on where your company meets the customer—at the table, counter or drive-thru—and build all marketing solutions outward from that touch-point.
I’m confident that if you apply the eight tactics listed above you’ll be 65 percent ahead of 100 percent of your competition. And that’s change you can believe in.
