Published along with Forbes magazine on 2/17/10

Read the article here...

I'm not exactly sure when this recession will hit bottom. Most likely, the bottom will not be remarkably different (economically speaking) than today. The rate of job losses has dropped dramatically from the peak but we are still shedding jobs. Many employers have frozen wages and some have asked employees to take more days off without pay.

All of this belt tightening has made the American consumer afraid to spend money. This is not a completely negative fact of life. When Americans do not spen… Continue

We attended the 12th Annual ICR Xchange Investment Conference on January 13 and 14 2010, in Dana Point. Several snack, fast casual and casual dining operators presented, including Denny’s, Chipotle, Kona Grill, McCormick and Schmicks, Jamba Juice, BJ’s, Einstein Noah, Texas Roadhouse and California Pizza Kitchen.

Several restaurant common denominators were present and notable in the discussion:

· Restaurants are working very hard to lower their average checks via menu reengineering. This is no… Continue

Many people are pleased to see 2009 come to an end. Wall Street posted a solid 20% gain and oil prices were well below $100 per barrel. The bad news involved jobs. Month after month, companies shed employees in droves. We can expect the Federal Reserve to leave rates low until the job market turns the corner.

Increases in government spending at the federal level will be partially offset by cuts in local and state government budgets. Somewhere in the later half of 2010, I expect the job market t… Continue

Technology has certainly changed the way we do business and how we connect with each other. It has also changed how we make decisions about spending our money, even to the point of how we choose where we eat. There are questions to be answered when you are hungry. Questions range from “what am I in the mood for?” to “where should we go to eat?” The first question is difficult for third parties to have influence over. The answer to the second question is being heavily influenced by technology.

L… Continue

Bentonville, Arkansas – December 2009 – Two pair and you might leave work with an extra $100 today, according to Bennie Ray, creator of the new Texas Hold’em Motivational Game. Bray Productions, distributor of www.TheMotivationalGame.com , has seen sales of their new Texas Hold’em Game soar as retailers look for creative ways to motivate employees. “Timing is everything”, proclaims Rhonda Yi, a Game Designer with Bray. “The game could not have com… Continue

As the snow flies we are ramping up for holiday parties and winter getaways. The economy the economy. I'm literally sick and tired of people talking about how bad it is. I contest that most people don't even know the definition of recession? It's the reallocation of funds. Did you know that in the great depression, more millionaires were created during that time than any other point in history. You see the gaps are getting wider. McDonald's, Burger King's and fast food restaruants are pulling ou… Continue

Many restaurants have scrambled to increase their catering business. For many of these companies, a party simply requires an estimated guest count and a reserved table or room. The guests order off the menu and drinks are all charged by the drink. Rarely, the host may restrict their guests to specific entree choices. Usually, a printed menu is prepared with the limited choices specified with prices.

Some restaurants charge a set price per person for food but let the orders go through to the kit… Continue

Did you ever think why the company media representatives and the brand equity managers keep staking and lay emphasis about the essentiality of owning a professional logo design to march on? Is the build up of hype about having custom design logo warranted?

It sounds pretty much explainable, doesn’t it? A logo of a company is the character of the organization which marks its unique identity. There are many competitors of your business around you very near but what really signifies you is… Continue

Our industry is experiencing a shift in the demand curve. Restaurant goers are downsizing from upscale to casual, casual to fast casual and fast casual to QSR and take-out. The regular patrons at many family owned restaurants are watching their checks and eliminating an appetizer or dessert course. If you have a lower priced entree on your menu, you may find the popularity on the increase.

Most of the menu analysis and menu engineering models were built during a time of solid annual growth for… Continue

See who made the top 10 fastest growing restaurant chains with less than 50 units. You may be asked to register though.

Restaurantchains.net

I got this one from a friend last night and read it cover to cover. This should help us all get to the next level in regards to marketing on social networks and social media.



You can download it here:
http://tinyurl.com/ybbbdo9

As I travel I make it a point to read the in flight magazine and the magazine in the hotels that highlight area shops and points of interest. Because of the periodical that they are in, these ads are geared to catch the eye of the visitor who will be in town for only a short while. Certain fine dining restaurants always seem to be a key advertiser in these magazines, and for good reason.

The business traveler is a fantastic demographic for a restaurant brand to build a relationship with. Accord… Continue

The New York Times recently published an article titled "The Small Business Guide to Text-Message Marketing". If you're a small business looking at new innovative and effective marketing methods, text message (SMS) marketing is the way to go. Let's review --

1. Don’t even think about doing it the illegal way.

… Continue

Many brands are coming up with some great new menu items in an attempt to get customers excited and steer them away from the competition. But has anyone noticed that now they are all offering the exact same “New” thing?

It is vitally important to track and evolve your offerings in order to carve out a sustainable piece of a market share. You look at what you offer today, then you also look at consumer trends. But you must be able to adapt your business to meet the new demands created by those t… Continue

I recently read an article entitled "Managing Real and Virtual Waits in Hospitality and Service Organizations", published in 2005 in Cornell Hospitality Quarterly (CQ). If you manage or own a business where customers experience a wait, I highly recommend reading this article (link at bottom).

There are three ways to manage waits --

1. Manage the actual wait time. This involves accurately matching resources to customer demand. Ideally, customers would experience no wait whatsoever because

… Continue

Creating An Inviting Lobby

1 - Use Color!
Color can impact your customers in many ways. A traditional feel can be created using neutrals. For a more elegant appeal, try black and grey tones. Vibrant colors, such as reds and oranges, add energy and appeal to a space. A bold paint color or wallcovering is a simple way to transform a space.

2 - Let There Be Light!
Lighting is key to creating the appropriate atmosphere for your restaurant. Orange and yellow tones can create a… Continue

See our September 2009 (annual tracking) segment winners of the fastest growing restaurant chains by category growth % of Casual, QSR, Sandwich, etc.
Continue.....

Thanks for all the emails regarding Recipe Costing. The blog posts from July are posted here for anyone who missed the series:

The majority of operations I start work with do not have an operations manual. These same operators have no formal training for new hires. If you start as a line cook, you take verbal orders for most activities. The restaurant will not provide you with standard recipes. There are no photos of the production action and no information regarding weights and sizes.

When we… Continue

You may have lots of cookbooks, proprietary recipes, books with food yield statistics, market data, shopping lists, inventory count sheets, supplier quotes, product mix reports, quarterly tracking reports and other documents. A professional recipe model should be designed to integrate all of this useful information. The person working on this project needs to wear many hats: purchasing agent, steward, prep cook, line cook, and chef.

Rather than using a cookbook approach, start with your shoppin… Continue