Restaurants consistently face the most daunting competition; competitors on every corner, revenues are based on consumer's disposable income and being too busy working to cook, margins are tiny and your employees can literally eat your profits. And this economy only adds to the challenges. Jeffrey Summers of Restaurant Coaching Solutions has brought success to restaurants for 27 years. His mission is taking good restaurants and making them great businesses. Jeffrey generously shared his wisdom on July 8 on how he helps make great businesses.You can listen here at this link.
Before the show started we talked a little bit about how is the restaurant industry doing. You surprised me when you said in some areas the restaurant industry is doing great. I expected a real gloom and doom story and asked you why or where were these successful restaurants and you said it wasn’t geographic areas but it depended on the operators and the concept.
You can find success stories in every industry!The restaurant industry is no different. The problem is we have a hard time getting the good news out about our industry.
980K food service businesses in the US and employs more people than any other industry. There are many pockets their are operators that are having tons of success. Bankruptcies get more success than stories of business having banner years. there are tons of success stories.
Restaurant coaching solutions has no client in negative territory.
One of the most successful clients we have and this may shock you is in Detroit Michigan, with same-store sales up over 20% from last year.
He had a successful restaurant before he asked us to join him. But he needed help sustaining the business and leveraging the concept to expend.
It is about leveraging what works and tell this story better to more people or better or getting through the noise.
You’ve written a book. What’s the title? How long was it in the making?
“Building Better Restaurants.” This book contains the core philosophies of creating successful restaurants. It took me 27 years to gather the knowledge. During this time, I had an ongoing business and I was writing a blog and association articles and on twitter. I write a bout 4 hours a day. When I decided to write my book, it took about 6 months to write the first draft, while I continued to help my clients, run my business, market it.
I never really thought about writing a book until my coach suggested that in order to take my business to another level I needed to compile my tips, my knowledge, my resources I’d gained over 27 years and write a book.
You list the top 10 reasons why people should not buy this book. I’ve never seen anyone do that. Why?
Ah, just to be different and just to filter the tire-kickers and those who are serious.
If you don’t have a passion for the business, success can sometimes not find you. And I decided a long time ago that I didn’t want to work with people who weren’t as passionate about success as I was.
And the list was to point out that “Look this might not be for you.”
What are the biggest trends effecting your clients now?
- Reactions to their economy.
- Addressing their restaurant concept now in this economy. Does it still work? Do I need to change it?
- How do we scale our results?
- Working with social media. It’s having a tremendous impact. How do I leverage it for my customers.
How are these trends different from when first began working in this industry?
There are the same challenges. They are always the same challenges. The challenges we are facing are not so new and different than what was faced years ago.
And there are the same opportunities, too.
Only the tools have changed. Operators now have more tools to take advantage of these opportunities and fine tune these issues.
Now, there’s more of me around. 27 years ago there was no such thing as a consultant, much less a restaurant consultant.
The support network for operators is much stronger now, too.
What’s been the response of the restaurant industry to Social Media? Do you see your client and prospects embrace or reject social media tools more or less than their counterparts in other industries.
They’ve been tepid so far. Restaurant owners are slow to change most of them are hesitant. They are slow to change. The marketing that’s worked for them 10 years ago, is what they prefer to stay with, sometimes to their own detriment. even if the results are failing. They’re very cautious. They’re like to test a lot and see success stories. They’re waiting to see more success, with restaurants.
They do like the opportunity to save a lot more money and the broader reach. advertising.
It sounds like you’re recommending they drop traditional advertising in favor of social media.
Absolutely. Where it fits.
Where it fits their business. Only where it fits. It depends on whether they’re ready for it. But, not everyone is ready for it. If your business is not social, it won’t translate into social media success.
Great marketing can kill a good business. And the same thing goes for social media.
If your business lacks engagement, if it’s not authentic, if it lacks depth of authenticity and engagement, if you’re not transparent with your customers (and your employees), if you’re not focused on building relationships then social media won’t work.
Our radio show, Hospitality 101, has a 3 part show that talks just about this.
25:05
Is there a common stage when clients contact you? Just before the doors close, they see a negative change in their business, they see change coming their way and they want to get on top of it.
They call at all levels of business, from start to finish.
A Wise man once said "Average operators try to predict the future, outstanding ones simply create it. Do you know who that wise man was?"
[laughing] That was me.
Helping operators to create their future it is important to have a shift in attitude. They must take down their blinders and meet all of the opportunities and expand their thinking. They should get in touch and reconnect with their passion of why they even wanted to be a restaurateur. They soon realize they have all of the answers within.
How do you help your operators simply create their future?
Sometime operators get the mentality that they are all alone. They continue to believe they are just fighting everyone, by themselves and become defensive. This is where coaching shows them that they are not alone! They can gain the strength with the support from a coach. It becomes a transformation!
Let’s help those listening. Can you offer three ways, three things they can do, to create their future?
1. Must have the want-to! Reignite why they got into the business in the first place. Reconnect and re-energize with their passion. Know their business. Where it comes from. How are profits created in their business? NO gimmicks.
2. Who are your guests? Understand how to communicate and engage with them? How to get them involved in your business, creating a loyalty
3. Know your community!! This is where your guests come from. Engage and develop your community.
Bill Clinton, that same Bill Clinton, campaigned on the famous slogan of It’s the Economy, Stupid. But you say It’s really not the economy. It’s your attitude about where you see your business headed.
You must have the attitude and mentality for success, especially in today’s recessive economy. The bad news is everywhere. You must not lose sight of why you are here and what you want. There are always peaks and valleys in every business and you must adapt or learn how to effectively leverage the tools you have. Recalibrate your business to meet the demands of your market! Provide value in this economy. Discover what your guests most want and need.
Can you share another case-study, keeping confidentiality of course, where a client’s attitude about where they saw their business headed, saved the day and continues to save it now? You have a case-study page on your site, right?
Oldest restaurant family and in the oldest city in the United States; They have been in business since 1956 in the downtown area. Due to the economy and length of time in business, they have hit a wall. They needed to discover some new opportunity and break out of their current stagnation. They needed something brand new – their historical success was having much less of an impact as time went on. If they wanted to continue and flourish, they needed to look towards the future. We suggested that the operators close their second store and build a $ 3 mil new restaurant into The Path of Progress. This September they’ll open that store.
The Path of Progress: In a city or market where the construction is going, the lifestyle, the activity, the growth of the city. Every city has its cultural place...the building growth and economic progress.
What can our listeners take from this example to apply in their own business?
1. Operators MUST have a plan to see success! You can not begin a journey without a roadmap.
2. Flexibility: plan must be flexible and take advantage of opportunities as they come up. If you can’t, then you will miss opportunities. Nothing stands still. You must lead, follow, or get out of the way.
3. Profitability: Must understand profitability, not just driving traffic, creating buzz or having the best dressed people. The nationwide average is 7.2 cents of profit on the dollar...focus on profitability!
43:28
You have a post on your blog titled the Yin and Yang of Restaurant Marketing. I love it. It’s about the two philosophies of marketing for restaurants: Transaction based and relationship based.
We’re focused on hospitality and restaurant, but this philosophy can relate to any business. Many owners are now just giving away FREE! Retail philosophy does not work in a restaurant. FREE stuff does not work in this business! You can’t treat the consumer like another transaction. You have to engage with them and if you don’t build the relationships, you will find yourself down the street at the mercy of someone else who is. Someone else will get it and they will be the winners.
Coupons and discounts are merely transactions. They are just driving sales, but you are not creating relationships, building loyalty.
You need to understand relationship marketing.
Create relationships. Your customers are NOT transactions! Avoid the gimmicks and schemes. Put yourself into people’s lives!
Be in touch with the lives of your guests. If you’re not a part of their lives, someone else will be.
Can you leave us with one more inspiring quote?
I’ll leave you with two of my favorites:
1. “Chance favors a prepared mind.” Louis Pasteur
You have to be ready and prepared for everything to be able to take advantage of all of the opportunities.
2. “The world is full of abundance and opportunity but far too many people come to the fountain of life with a sieve instead of a tank card...a teaspoon instead of a steam shovel. They expect little and as a result they get little.” - Ben Sweetland
You can follow Jeffrey Summers and gain more insights, tips and resources at these locations:
Twitter
Blog
Hospitality 101 each Tuesday on BlogTalk Radio.
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