Archive for January, 2013

Rising Commodity Cost Impacting Your Restaurant Profits?

With a projected rise of 3.5 percent in food commodity costs in 2013, an increase of ten percent from only three years ago, restaurant owners are at a crossroads of adjusting for market changes while still meeting consumer preferences. To stay ahead of the game, restaurant owners need to hone in on data from their point of sale systems (POS) to measure what is selling and what is not.

“It is a tough time to be in the food industry and it is not likely to easier in the near future,” said Joseph Welsh, partner with CORE Restaurant Marketing. “Taking a strategic approach to menu design and engineering based on what customers are actually buying is a best practice that all restaurant owners should employ.”What is Driving Food Prices?   Corinne Alexander     cealexan@pu

Preferences for menu items and food tastes are constantly changing and by mining their POS data restaurant owners can make sure they cross utilize products they purchase and create the best possible customer experience while maximizing the restaurants profit potential. Welsh recommends that menus and data from POS systems be reviewed twice a year to determine popularity and profitability of their menu items. The results will allow for purchasing of the correct products and ensure the lowest cost for highest return. This will make sure that consumer’s needs are being met, while simultaneously increasing restaurant revenue and economic value for the owners.

Reviewing menu layouts is a key component to profitability. As consumer behavior changes, so too should menu design, pricing, and images. Restaurant owners have reported up to a 17 percent increase in sales, higher check averages and increased profits as a result of utilizing proven design techniques.

In addition, pricing is a key aspect to maintaining profitability. Restaurants can benefit from retail pricing strategies that promote value while staying competitive in the marketplace. Owners should review their competitors’ menus and make sure that not only are their prices aggressive, but that they also use tactics to maximize their profits. Studies show that prices should end in a nine to maximize profits and that certain menu items should highlighted and called out perform better. Take-out menus should also be assessed and utilized as marketing materials to increase revenue.

More and more restaurant owners are teaming up with restaurant coaches to combat these rising food costs and implement a profitable game plan for the years to come. CORE Restaurant Marketing provides restaurant marketing services that enhance the profitability of restaurants. With over 30 years of experience in the food industry and more than a decade in customer rewards programs, CORE Restaurant Marketing has gained a vast amount of knowledge and built an extensive network to make these challenges just another bump in the road, and nothing more.

If you would like to see what you can do to improve your restaurants branding and profits, sign up for a free menu consultation visit CORE Restaurant Marketing or call 1-888-890-9492, extension 101.

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Resolve To Be Better

Resolve To Be Better

Happy New Year!

2013 is upon us and many of us have taken stock of the past year and are setting plans to make 2013 a better year for our restaurants. Sounds like a tall order, but much like anything you need to break it down to manageable chunks. Here are three steps to enhance your restaurant marketing.

Improve your restaurants performance.

Your restaurant menu is the first place to look at for profitability improvement. Every customer that comes through your door looks at this to make a decision. Does your menu have the right items at the right price? Food commodity costs have been rising, when is the last time your menu was updated. Proper pricing along with design tactics can significantly improve your profitability.

Customers are the mainstay of any successful restaurant, do you have a way of communicating with customers when they are not at your restaurant.  Customer loyalty programs can be a great tool to communicate with your customers as well as rewarding them for choosing your restaurant. Many programs come with email marketing and text messaging to help facilitate communications with your loyal customers.

Now that you have driven traffic to the restaurant, are your servers prepared to be your brand ambassador? They can make or break any restaurant and should be trained to present your restaurant in a way to generate referrals and positive reviews.

Three steps to improve your restaurant marketing for 2013. Will you resolve to be better?

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CORE Restaurant Marketing

Joe Welsh

Joe Welsh

Joe Welsh is a Partner with CORE Restaurant Marketing Solutions which is a national restaurant marketing agency focusing on helping restaurants improve their sales and profitability. Joe has worked with restaurants on a local and national basis. He has developed and implemented programs for US Foodservice, Gordon Foods and Performance Food Group. Joe has his Master’s Degree in Food Marketing from St. Joseph’s University and over 30 years’ experience in the Food Industry covering both the retail and foodservice sectors.

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