Archive for September, 2013

Are Your Restaurant Profits Walking Out The Door?

I find it truly amazing how large the portion sizes are at most restaurants! For some restaurant owners this may be a strategy to help your restaurant get know. Large portions…. cheap prices. But to those restaurants have they ever considered the impact on the profitability of the restaurant?

This past week, my wife and I went to dinner at a local restaurant. We had both been out at separate meetings and rather than go home and cook dinner, we decided to meet at a restaurant that was convenient for both of us. The meal was good, service was excellent but the portions were just too large. We walked away with a To Go bag that had enough food for lunch and dinner the next day.

What is the impact of portion sizes on restaurants profitability?

For the restaurant owner, large portion sizes have a direct impact on food cost as a percentage of sales. If your food costs are running high, consider how large your servings are. Are most of your customers asking for a To Go box? This is a clear sign that your portions are too large.

For the consumer, are large portions healthy for you? In our country, obesity is a major factor in health issues and rising medical cost. It can lead to several types of diseases which are not good.  In fact two thirds of all Americans are technically obese . Portions

Large portions as a marketing tool may be your strategy but I would ask restaurant owners to consider other alternatives such as excellent customer service, consistent food quality and impactfull marketing activities. Increasing profits can be significantly improved with restaurant marketing programs that get more customers in the door and raise check averages. Getting to come back more often can be achieved without large food portions.

With over 30 years of experience in the food industry, CORE Restaurant Marketing’s mission is helping restaurants improve their revenues. To learn more about how CORE Restaurant Marketing can bring value to the restaurant industry, download the Free White Paper “Key Drivers to Restaurant Profitability”. We can also be reached at 1-888-890-9492 x 101.

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How can a Loyalty Program help your restaurant?

Statistics say that over 50% of diners participate in a least one loyalty program? Is your restaurant playing in the game?

Restaurant marketing is evolving very fast with the aid of technology gains. Yet some restaurants are still using old fashioned punch cards for their customers. While punch cards can achieve some of the same end goals, they do not give you access to the wealth of information to help you market to these customers.

Let’s look at the benefits of a loyalty program. Statistics show that consumers enrolled in a loyalty program bring the following results for a restaurant.

  1.  Increase customer visit frequency.
  2. Spend more. In many cases, check averages are 25% higher or more than non-loyalty club members.restaurant marketing
  3. 82% of loyalty program members referred at least one person to their program.
  4. 60% of consumers will patronize a restaurant if it has a viable community involvement program.

These four elements are the “Holy Grail” for restaurants. Get more customers coming in the door, have them spend more and come back more often.

To make the programs even more effective, many loyalty programs come built in with a marketing suite that includes, email marketing, social media integration, community involvement program and a text message program to help communicate with your customers. These tools help to build continual communication to increase the effectiveness of your program.

Obviously the question of expense enters into the decision making process. In most cases the return on investment is significant. We utilize a formula with our client which in one case shows an additional $135,000 in annual revenue based on a loyalty program cost of $2,500. We work with our clients to show them this analysis up front based on their actual numbers.

If you would like to learn more about how a loyalty program can help your business, please contact us for Free Analysis or download our whitepaper https://hj124.infusionsoft.com/app/page/loyalty .

With over 30 years of experience in the food industry, CORE Restaurant Marketing’s mission is helping restaurants improve their revenues. To learn more about how CORE Restaurant Marketing can bring value to the restaurant industry, download the Free White Paper “Key Drivers to Restaurant Profitability”. We can also be reached at 1-888-890-9492 x 101.


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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