Opening a Second Restaurant Location? Consider These Important Things First
To be a restaurant owner brings its highs and lows (what profession doesn’t?) You can do what you do every day, but you also have a huge amount of responsibility on your shoulders. Nonetheless, you have found success in establishing and operating your first restaurant, so much so that you are planning a second.
Due to the success of your first restaurant, you might be excited to add a new one. Because of this success, however, you may also be afraid as to how the business will be affected by the arrival of a second restaurant location.
There is no simple, clear way of knowing whether you are prepared to open a second (or 20th) restaurant location. However, before you begin planning, here are some essential questions to ask yourself.
Is your restaurant so busy it’s difficult to deal with crowds?
Are your customers driving long distances to visit your restaurant?
Do you have plenty of cash flow?
Do you believe that opening a second location will increase your capital?
Are you ready and able to put in long hours to launch the new restaurant?
If yes is your answer to all of these, then congrats! You’re likely prepared to open another restaurant. Before you do, though, here are some important things to think about.
Do You Have Steady Cash Flow?
Consider the cost before you jump into launching another restaurant. You’ve already created the groundwork to open a venue, and you know how much money is required to get your project off the ground. So far you’ve been successful, but have you time to do everything again?
When you have enough cash flow to finance the new location, you are probably ready to open a second location. But beware of using the profit from your existing location to break new ground. If you take this risk you don’t want to lose your existing profits
When you have enough cash flow to finance the new location, you are probably ready to open a second location.
One choice is to obtain capital from an outside source, particularly from investors who concentrate more on expanding their investments than on making immediate profits. But debt with high return rates is always risky, but even more so when your new location is unlikely to turn a profit for the majority of the first year.
Have You Found the Right Location?
You’ve heard it said, time and time again, location, location, location. But in this case, it’s important to consider where you’ll open your second restaurant in relation to your first restaurant’s location. Opening too close to your flagship could weaken your customer base. On the other hand, it could be an ideal solution to open a second location nearby if your product is trending and there is low competition.
If it’s too close, consider opening further away from your existing restaurant to attract a slightly different audience. As always, the population of the area, demographics, and market will need to be weighed. You’ll likely want to look elsewhere if you intend to open a Mexican restaurant in a town that already has 7 competitors.
If possible, try a ‘pop-up restaurant’ where you are considering to open your next location.
If possible, try a ‘pop-up restaurant’ where you are considering to open your next location. This is a great way to test the concept in a new market. This allows you to measure the audience, demand, and popularity to see whether it fits properly.
You can either make it a mobile kitchen or rent an empty space that once held a restaurant when you launch the pop-up. Arrange a dining area and advertise the pop-up in a way that clearly indicates its temporary aspect.
Have your employees explain to your guests the purpose of the pop-up and ask your guests for feedback. You will get opinions as to whether or not people want to see your restaurant become a more permanent location in the area. From this point, you can choose whether to open up there or to start searching for a new location.
Do You Have the Right Team & Resources in Place?
You’ve got the cash flow, you’ve found a suitable location but now think about the long-term. If you want your second location to succeed, you will need to train and retain a quality team. You can’t be in two locations at once as the owner (unless you have magic powers) so you have to make sure you can trust the people who operate your restaurants.
You’ll need to be as involved as possible at the start of your second location. By this point, your first restaurant should be a well-oiled machine, thriving on its own enough that you can trust the current staff in charge is doing well. You’ve already set quality standards at your first restaurant, and setting your new location up for equal success is just as crucial. In the early stages, being highly involved as the owner can help ensure that your operations run as they should.
During the early days, devote your attention to the new locations so that you are hands-on in preparing your new employees for success.
To ensure that things are operating as efficiently as possible, monitor each area of the restaurant; front of house and back. When changes are needed, it is best to get these out of the way quickly. Spend your energy on this new location and ensure that you give it the attention it needs to run successfully and grow.
Is it Time to Rebrand?
You may get too large and grow beyond the previous brand identity of your restaurant. This is often a good thing! But if you never invested the time to create your brand with a vision of the future, it can cause problems for you as you expand into new markets with your second restaurant.
Let’s imagine you’re a little Italian restaurant. Your first location has been established and the restaurant has been successful. Fast forward a few years, and you’ve launched three new locations in your area. At this point, you’ve been presented an opportunity to expand your restaurant into new states/cities beyond your current market.
Your name, unfortunately, is ItalianKitchenOhio.com. This could be a major issue and a valid reason to rebrand.
This is a fairly regular occurrence in businesses that grow rapidly. Your business that started with humble beginnings has now outgrown itself. Suddenly, you moved from the small local cafe to an up-and-coming restaurant enterprise. Ensure that you are setting your business up for long-term success with a brand refresh, or complete brand overhaul.
Because your first restaurant experienced so much success, it’s common for restaurateurs to consider opening another location. It’s exciting to think and dream about it, but it also means many possible risks that you have to face. Before you step into it, make absolutely sure that you’ve thought through all the details, and every scenario to make sure that you make an informed decision. And after all of those considerations, if you believe you’re all set, I hope you experience huge success with your new location!
Digital Marketing Checklist for Restaurant Owners
Congratulations – you’ve decided to start your own restaurant. Now that you are a restaurant owner, it is important to put time and effort into your digital marketing for your restaurant, as this is a key component of customer acquisition for restaurants. Digital marketing for restaurants is complicated, but it is an essential component to your overall success, in addition to providing excellent food and service.
We’ve written this checklist as a jumping-off point, to help you start thinking through some of the elementary components of digital marketing for your restaurant. You’ve likely started to brainstorm on each of these as you began thinking about opening your restaurant, but this checklist will help you flush out each in more detail to set you up for success.
1. Develop a Strategy
It isn’t enough to simply have social media accounts, send emails, and build a website. There must be a strategy behind these components in order to make them effective. A marketing strategy typically contains your company’s value proposition, key messaging about your brand, data on your target audience, and any other high-level elements that make sense to include, such as how you expect your employees to treat your customers. We also highly recommend including a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to help you clearly see areas where you can focus your marketing strategy in order to build a competitive advantage.
Once you’ve thought about your strategy, it is time to write it down. This is critical to get everyone on your team on the same page, as well as help you check in with yourself periodically regarding the strategy you’ve created. Once you’ve written your strategy, remember it is not set in stone. It can be readjusted and reevaluated as time passes and your business needs change.
A marketing strategy is critical because it connects all of the components of your marketing and keeps them in alignment.
A marketing strategy is critical because it connects all of the components of your marketing and keeps them in alignment. It is also a fundamental part of building a winning marketing strategy that will help you stand out against your competitors.
2. Understand How Much a Customer is Worth
Once you have a strategy in place, it can seem like the next logical step is to start choosing channels and launching all of your marketing efforts. However, before you start investing time and resources into specific marketing initiatives, you need to have a clear understanding of how much each customer is worth. This will help you have a very clear understanding of which marketing efforts make sense for your business and customer acquisition – and which ones don’t.
There are already thin margins within the hospitality industry, and many hospitality ventures fail. If you are offering a discount or promotion to customers to bring them in, and also losing a significant amount of profit from each customer due to overall marketing costs, you might not be getting anything, and that is obviously not sustainable for any business, but especially a new business.
Therefore, it is important to calculate how much profit your business generally receives from each customer. Then, you’ll need to figure up how much of that revenue you want to invest in your marketing efforts. One of the best parts of digital marketing instead of traditional marketing is that you can typically track how much you are spending per lead or per purchase, and have a very clear indication if something is working or not. If a margin for a particular channel is too high, it is also fairly easy to turn off that channel to avoid spending too much. You also have a lot of opportunities to test in digital marketing, which does not exist in traditional marketing.
3. Invest in Brand Identity
Now that you have a good indication of how much you can reasonably spend on marketing, the next steps are to invest in your brand identity. You will use the components of your brand identity to build all of your other marketing components, so it’s important to invest a good amount of your budget in this arena.
Your restaurant’s brand identity includes your logo, your website, your interior and exterior designs, your signs and your menu design. This is one area that many restaurant owners outsource, especially in the beginning, so that they can be sure they are starting out as competitively as possible. Because your brand identity will be the foundation for all of your marketing, it is not something to take lightly or rush through.
Because your brand identity will be the foundation for all of your marketing, it is not something to take lightly or rush through.
Take a look at other similar businesses for inspiration on your own brand identity. This can also help you make sure that your brand identity ideas are aligning with your overall restaurant concept and the market you are entering.
4. Procure Photography
We eat with our eyes first. As a restaurant owner, you know your food’s presentation has to look good. But this concept actually starts well before your customer’s orders. In your advertising, on your website, on your social media channels, and anywhere else your potential customers interact with your brand – they will expect to see pictures of your food.
Just like the other components of your brand identity, you will want to make sure you invest in your photography. You will want to hire someone who specializes in food photography for restaurants, as it is considerably different than other types of photography. Depending on your budget, you may also consider hiring someone who is familiar with food staging for the photoshoot.
You’ll want to get pictures of multiple dishes – ideally, everything on your menu. Even if you do not have plans to use an item in your promotions right away, that may change later on and it will be much easier if you already have these photos ready to go.
In addition to the menu, you’ll also want to have plenty of pictures of the inside and outside of your restaurant.
5. Launch Your Website
Once you have your overall strategy, brand identity, and some amazing photography, you’re ready to dive into digital marketing efforts. The first major component of your digital marketing mix is your website. Most of your other efforts will connect to your website, and it will be the hub potential customers use to find out the answers to their questions and determine whether or not they will go to your business.
For restaurants, it is critical that your website is mobile-friendly. Most people who are researching where to eat are doing so on-the-go. If your website doesn’t load well or is not easy to navigate, you will lose potential customers.
For restaurants, it is critical that your website is mobile-friendly.
You’ll also want to make sure your website contains many great photos as well as your menu. Answering potential questions is also very important for your site. Your restaurant’s location, hours, and prices are all common inquiries your guests might have before deciding to come to your restaurant.
Depending on your type of restaurant, you may want to include information about whether or not you accept reservations and if private spaces are available for parties or groups. Think about the questions you typically have before visiting a new restaurant, and ask friends and acquaintances what they would want to know in advance – and put all of it on your website, in an easy-to-navigate format. You can also browse other restaurant websites to see what information they include and add anything to your own website that you might have missed.
6. Claim Social Media Channels
Once your website is set up, it is time to claim your social media accounts. Even if you do not plan to be incredibly active on a particular channel, you’ll want to set up an account so that you can be aware of any conversations happening about your business on that channel and also to avoid someone else taking an account you might want later.
The most popular channels for restaurants include Facebook, Pinterest, and Instagram. Depending on your target demographic, you might also consider platforms like Snapchat or Twitter.
Again, you’ll want to set up these accounts on each channel, but then you will choose which channels make the most sense to update regularly in alignment with your overall strategy. There are multiple social media management tools that can help you manage multiple channels at once, and even schedule social media posts in advance.
Your food photography investment will be critical on social media – especially the more visually-focused platforms like Pinterest and Instagram.
7. Optimize Local SEO and Online Listings
Similar to social media, you’ll want to claim your restaurant, or add it, to any online listing platforms. One of the most important is Google My Business. This is the listing that pops up to the right when searching for a particular business. It includes information like your hours, what you serve, where your restaurant is located, and what the price point is. This is a very attractive search placement for a business, and should not be ignored. It is very straightforward to create or claim a listing. Then simply follow Google’s prompts to ensure everything is filled out properly.
You can also add pictures of your restaurant to these listings to attract more attention and to give anyone searching a better idea of what to expect from your restaurant.
Additionally, it is important to optimize your website and social media channels for Local SEO. While that sounds like it could be a complex process – it is actually straightforward. It simply means including your location (City, State) in multiple places on your website and tagging the location on your social media channels. This will ensure your restaurant is included when people search for things like “restaurants in Miami, Florida.”
8. Prepare for Reviews – Good and Bad
When claiming online listings, you should also take management of your business on review sites such as Yelp, TripAdvisor, and UrbanSpoon. If your business has not yet received any reviews and hasn’t been added to that website, you can add it yourself to encourage customers to start leaving feedback. Taking ownership of your business on these sites will allow you to add any information that may be missing, correct anything that isn’t right, and respond to any new reviews you receive.
And you should plan to respond to all of the reviews your restaurant receives. Being responsive to positive and negative reviews is one way to attract additional reviews. It is also a way to get in touch with customers who may have had a bad experience but were not able to adequately communicate that while they visited the restaurant.
Many restaurant owners are nervous about online reviews. They worry that unhappy customers may trash their business and keep new customers away. They are concerned that competing businesses will create “fake” negative reviews in order to damage their reputation. And they worry that satisfied customers may create negative reviews in order to take advantage of their business. While all of these concerns are valid and do occasionally happen – it is far more likely that they won’t.
You should develop a strategy to handle any reviews – especially the negative ones. We recommend that restaurant owners simply ask a negative reviewer to reach out to a specific phone number or email address to resolve the problem. If the person reaches out, try to make it up to them in a way that makes sense. “Fake” reviewers will likely not reach out to you directly, but you will appear to third-parties that you have made an effort to make things right – which is crucial in the hospitality industry.
Some restaurant owners fear that they will have trouble responding to reviews without being defensive. In these situations, it can be a good idea to assign review management to a marketing person or a manager. Provide the person who is responding to reviews with clear guidelines on how to handle specific situations, and then stay off the review sites!
9. Advertise Your Business
Once your website and social media channels are set up, it is time to start advertising your business. This is one place where it is absolutely critical that you understand the value of your customer. Social media advertising as well as paid search advertising, for example, will provide you with a very clear cost per lead metric. You’ll want to make sure that the cost per lead is appropriate for the overall value of the customer.
There are dozens of advertising options to consider, but for restaurants, we highly recommend Google Search and Facebook. For Google Search, you’ll want to make sure you appear at the top when people are searching for restaurants near your location. Facebook advertising has a lot of options that allow you to provide a notification when someone is near your business. You can also target people who live near your business in a highly-specific way, which makes Facebook a great platform for restaurant marketing.
It is critical that you test different ads
Once you set up advertising, it is critical that you test different ads. Test different pictures, ad types, copy, offers, and platforms. Discover what works well for your business and what doesn’t.
10. Consider Messenger Marketing
Facebook Messenger Marketing is one of the newer paid social media channels restaurant marketers are attempting to capitalize on. Messenger marketing is engaging on a highly-personalized level, making it one of the more effective channels, when used properly. There are multiple ways a restaurant can approach marketing through Messenger, but some of the more common include:
Showcasing your menu
Offering discounts for birthdays or anniversaries
Depending on the goal you want to accomplish and your type of restaurant, you may want to invest in a Chatbot that can handle a majority of the inquiries and conversations for you.
Because Facebook Messenger Marketing is relatively new, there is a lot of areas to capitalize on for relatively low cost. It is definitely a channel restaurant marketers should be considering.
Additionally, there are a lot of other digital marketing efforts restaurant owners can take advantage of once they have tackled the basic concepts on this list. For example, there are delivery partnerships that can help restaurants get in front of new and younger audiences, depending on the type of restaurant and the target market. There are also other types of digital advertising to consider such as Instagram or Google Display. Restaurant owners can also set up remarketing efforts to encourage customer loyalty which includes combinations of social media marketing and email marketing efforts.
Hopefully, this checklist has provided you with a starting point for your digital marketing efforts. Marketing strategy involves a lot of components, which is why so many restaurant owners often choose to invest in a restaurant marketing consultant or restaurant marketing agency. It can be overwhelming, especially if you are just starting out in the restaurant industry or as a business owner. Even if you have managed the basic components on this list on your own, advancing to the next level and knowing how to achieve growth through digital marketing channels is another challenge that can be difficult for even the most seasoned restaurant owners.
Take your digital marketing efforts one-at-a-time, and stick to your foundational strategy. If you do need help, guidance, or support along the way, reach out to a restaurant marketing professional who can help.
6 Tips for a Winning Influencer Marketing Campaign for Your Hotel
In the last decade, the advertising of hotels and leisure has changed forever. The era of billboard advertising is rapidly coming to an end, and more than 2 billion internet users spend an hour and a half every day on social media, looking at their phones once every 12 minutes. The key to marketing success with ad-block also on the rise is to adapt to changes in consumer buying behavior.
Influencer advertising is rocketing in popularity due to these trends. However, if not done the right way, incorporating influencers into a successful marketing strategy may pose problems. These challenges are discovered at the execution level when assessing influencers, handling collaborations, and managing deliverables and at the operational page when it comes to duties, making deals, and securing complimentary room nights approvals. These can be addressed by owners and operators by educating their teams on how to deal with potential challenges.
1. Create Your Goals
Is your hotel’s goal to promote awareness or direct bookings in a particular market, bolster its Google ranking, or attract interesting content that can be reused on other marketing channels?
Each owner and operator wants to have an occupancy of 100 percent at all times, and ideally a directly booked. Achieving the best, most meaningful audience to the target market of your hotel — on the platforms on which they spend most of their time— is a logical place to start in achieving that goal. More than two-thirds of the time that a person spends on booking trips consists of the processes of thinking and planning. It is therefore essential to capture potential customers early, often before they even know they want to visit a venue, location or property. In “sales-speak,” this is near the beginning of the AIDA (Awareness-Interest-Desire-Action) funnel when regarding direct bookings.
You may also want to promote the property to produce alpha and achieve your IRR (Internal Rate of Return) goals after repositioning properties. Being able to promote your hotel’s rebranding or renovation quickly and cost-effectively helps to speed this up.
2. Set Clear Deliverables
Understand what your hotel needs from any partnerships and find a way to streamline the process.
No matter if RevPAR or EBITDA is your focus, leveraging unsold inventory to create a large, engaged community with the property can make a difference for both in the longer term. What owner or operator does not want great visibility?
3. Develop a Process for Receiving Requests
A process for incoming applications ensures that each application is received and processed in the same way. Consistency is a major thing that a brand can do to earn trust, and everything matters.
Consistency is a major thing that a brand can do to earn trust, and everything matters.
Having a simple online process to which all influencers are referred is the best way to approach it. The form should ask some obvious questions concerning the scale and demographic characteristics of the influencer’s followers, and why they believe they are suitable for your hotel.
This form is important for a few reasons:
First, it helps us to snuff out influencers who weren’t willing to fill in a few bits of information for consideration, which helps you avoid time-wasters.
Second, all requests go to the same place and can be handled systematically.
Third, it ensures that there is positive, professional and consistent interaction with every influencer that reaches out.
Finally, it assures that the influencer receives the correct information and makes tracking the entire process easier.
4. Set Aside “Room Off Nights” with Revenue Management
Not only do the most successful hoteliers utilize their unbooked rooms, but they also allocate some inventory as “room-off” so that the occupancy levels of their revenue management system are not affected. Consequently, addressing any potential conflict between key performance indicators (KPIs) for revenue management and KPIs for marketing and PR is also easy.
5. What’s the ROI?
Digital word-of-mouth can easily produce a return-on-investment average of $6 per $1 paid. Hotel owners and operators can receive full monitoring capabilities with the correct approach and remove the uncertainty from influencer relationships. At the minimum, you should be able to calculate new website visitors and record click-through rates
…Remove the uncertainty from influencer relationships
6. Relationship Building
Influencer marketing isn’t going anywhere. This is nothing new, so with that in mind, collaborate with those who are most aligned with your property so that when influencers come back, the hotel can benefit from recall marketing in the future.
The overall message we want to highlight is that it’s necessary to put in place strategies, processes, methods, and agreements to build an influencer marketing campaign that is meaningful, reliable, and creates the right perceptions for your hotel’s brand.
Ultimately, the successful integration of an influencer marketing strategy focuses on a prolonged effort to target an engaged niche audience. Having already shown interest in the brand, the consumers that your hotel targets are key to any efforts towards increasing your online presence through social media.
Restaurant Marketing Ideas for 2020
The restaurant industry has historically been among one of the most competitive industries. In today’s digital marketing landscape, this has never been truer.
When advertising your restaurant online, you’re not just competing against other restaurants to get your ads in front of your potential customers. You’re competing against millions of brands that are targeting the exact same individual.
This article showcases 7 ways you can get in front of potential customers and keep your existing customers loyal in 2020.
1. Messenger Marketing
With modern technology, wearable devices, and a phone in every pocket, it should be a no-brainer that restaurant marketing tactics should evolve as well. The days of generic direct mail campaigns to the masses are gone. These types of marketing campaigns were very difficult to track, and would often result in wasted money.
Messenger marketing for restaurants is a great new way to engage with your audience, track their behavior and purchases, and bring in predictable revenue on a monthly basis. Using applications like ManyChat or MobileMonkey you can set up these campaigns for your own restaurant. They can be fairly complicated, however, so it may be worth working with a restaurant marketing consultant to get help.
If you aren’t offering Wi-Fi in your restaurant – or you are just freely giving it away – you are making a huge mistake.
Don’t charge your customers money for the Wi-Fi. Instead, they require them to sign up with their phone number and email address.
This is a fairly inexpensive way to boost your customer remarketing list – plus offering Wi-Fi is another perk for your customers. On your form, you can notify them that they’ll be opting into email communications automatically, but they are free to unsubscribe any time. Then you can send emails about sales, new menu items, and friendly reminders about how awesome your restaurant is.
You can also ask them if they would like to receive text messages from your brand.
3. Text Message Marketing
Text message marketing has been on the rise for a few years now, but brands are still trying to figure out how to use it to their advantage. The key with text message marketing is to hit your customers frequently enough that they keep you top of mind, but not so often that you become a nuisance.
There are also a lot of privacy laws that apply to this type of marketing, so it is critical that you get your customers’ permission (and a second opt-in) before you start utilizing this channel.
Once you have a customer list, you can advertise your sales or promotional menu items. There are a lot of third-party text messaging providers to choose from. Several of them are budget-friendly. Some of them may even integrate with your POS system. It is critical to shop around for the best bang for your buck with any technology platform – but that is especially true for text message marketing.
4. Push Notifications
If your restaurant has an app, you are likely already utilizing push notifications. However, if it doesn’t, or you aren’t, here are a few examples for when to use them:
When a customer is near your restaurant
When you have a sale or coupon code
When you release a new or promotional menu item
When they have not visited your restaurant in a specific amount of time
If you do not have an app and are not interested in creating one, you can set these up as browser notifications. Browser notifications are slightly less effective because they are designed for the desktop instead of mobile. However, if you’re mostly serving a lunch crowd – it could be worth sending a lunch reminder push notification out to your potential customers.
Delivery is king in the restaurant industry at this time, and there are no indications that that is going to change in the next couple of years. Some restaurants are attempting to fight the inevitable, and it isn’t going well for them. Still, others are doing the bare minimum by simply pairing with a 3rd-party food delivery service but that may not be a great strategy either.
Delivery is king in the restaurant industry at this time
Yes, you should consider partnering with a food delivery service, but you must also make sure your food (or at least the food you allowed to be ordered through the service) is still delicious when it arrives. Too many restaurants are offering their entire menu without any modifications, and it is preventing their growth.
If the budget allows, it is also worth offering promotions or even purchasing ads through these delivery services so that your restaurant is sure to be seen. Many of the delivery services will remind customers of restaurants they have ordered from or browsed in the past so that extra marketing boost can help offset the cost of the service.
Several restaurants also offer promotions for new customers, such as free delivery. You’ll want to explore your promotional opportunities with each third-party vendor before settling on one specifically.
6. In-Store Kiosks
Several fast-food chains have started incorporating in-store kiosks already, and this is another trend we expect to see growth over time. Customers enjoy being able to customize their orders without having to talk to a person. They also help increase accessibility at your restaurant.
Additionally, in-store kiosks give you the opportunity to collect additional data that restaurant owners have not had access to before. For example, you can collect data about the most-viewed menu items, even if they aren’t ordered the most. That type of insight encourages you to change an ingredient in that menu item to make it more appealing.
Many in-store kiosks also partner with the POS for aggregate data about specific customers. This means you can personalize your marketing efforts in a new way. Imagine being able to send an email or text to a specific customer, advertising a discount on an item you already know they love.
Although the initial cost is high, there is also a decrease in labor costs associated with a kiosk. It is certainly something worth looking into this year.
7. Community Events
People are also placing higher importance on brands who do “good” and restaurants do not fall out of this category. While it’s great if you can source all local ingredients and recycle practically everything, that may not be realistic.
Another route to consider is utilizing brand activation ideas such as getting involved in local community events and sponsoring charity events. These can seem like losses, but they can do a lot to boost your reputation in your local community.
If you aren’t sure where to start, contact your local school systems and see if they are interested in doing a “Dine and Donate” event. Basically they pick a day and anyone who brings in a flyer for the event on that day (or mentions the promotion if you don’t really want to collect dozens of flyers) your restaurant would donate a percentage of the check to the organization.
While you certainly shouldn’t do this too often so that it isn’t sustainable, it can be a great way to get in front of new customers while building goodwill and a solid reputation in the community.
Things to Keep Doing
We’ve also put together a shortlist of items that you should already be doing by now. If you aren’t, make these marketing efforts urgent priorities. While you may not be able to incorporate all of them right away, you’ll certainly want to tackle a majority of them by the end of 2020.
Advertise Your Restaurant on Social Media
Yes, there are a lot of brands advertising on social media already. However, most social media advertising platforms do offer pretty specific targeting options, which means you have a good shot of getting in front of your customers.
Because competition is so high, social media advertising should not be your only marketing strategy. However, it definitely needs to be part of your restaurant marketing mix.
Facebook is the largest social media marketing platform – and for good reason. Facebook also has the most users. One of the best parts of Facebook advertising is the audience targeting options. You can choose customers based on their locations, and/or their demographics. If you have an idea of who your target market is, this can be invaluable.
You also have the option to target an audience based on their interests. That means if you’re a vegan restaurant, you can target users who have expressed interest in veganism. If you are a burger and fries place, you can target users who love a good sandwich.
Another great component of Facebook advertising specifically is that you also have the ability to create specialized ads when a potential customer is near your restaurant. This can mean if they are a few blocks away to within a certain zip code. This type of targeting is great because it can also help you get in front of potential customers who may just be visiting the area instead of only those who live nearby.
Local SEO for Your Restaurant
Make sure your website is optimized for local SEO. This means optimizing your website so that you always rank in localized searches. This means making sure you’ve completed your Google My Business profile, and embedding a map on your site. You’ll also want to include your city name and state in titles, headers, and meta-descriptions within your site. While this sounds like a complex strategy, once you understand the concept of local SEO, it can be fairly straightforward to implement.
Online reviews greatly influence decisions when it comes to choosing a new restaurant to go to. While you can’t/shouldn’t delete negative reviews, you can respond to the guest’s comments and try to make bad experiences better.
You should also respond to positive reviews. This will create a relationship between your brand and the customer, which may encourage them to share their experience with your restaurant with their friends and family. You can also consider services such as Ovation to help you easily capture and manage feedback from your customers.
Restaurant Loyalty Programs
If you don’t already have a loyalty program in place, get one. There are several options out there. You might look to see if your POS system has one already. If your POS system does not, there are several third-party vendors you can try. Most of them are pretty affordable – and it is easy to calculate your return on your investment once you start tracking your loyal customers.
Some examples of third-party loyalty programs include Preferred Patron, ReUp, and Upserve.
There are several restaurant discount apps out there such as ChowNow or Restaurant.com. You might even consider running a promotion on Groupon. This is an excellent way to draw in new customers as well as to remind past customers to come in again.
Print Advertising & Coupons
For almost all industries, print and coupons seem to be dying off. The two industries where that doesn’t seem to be the case are restaurants and grocery stores. If you are already sending coupons out to local residents, continue doing so. In fact, there are now several services available where you can send specialized coupons or letters to those who have just moved into your city or within certain zip codes.
If you haven’t implemented this strategy already, consider it. There is likely a coupon circulation in your area designed for local restaurants to advertise in.
If you are interested in any of these marketing tactics but aren’t exactly sure how to set them up or which ones to prioritize, consider hiring a restaurant marketing agency or restaurant consultant. Restaurant consultants have likely worked with several restaurants in your area. They are already familiar with how to best get in touch with your target market.
A restaurant consultant can help you create an overall marketing plan for your business. Some restauranteurs consider hiring a general marketing firm to handle the promotion of their restaurant. However, they quickly discover that marketing or PR firms can be too expensive for one single restaurant. Your consultant will either handle your marketing directly or come up with a promotion and brand strategy utilizing outsourced agencies that the consultant is familiar with and trusts.
This marketing strategy can include everything from the overall restaurant concept to web design and the social media strategy. You will discuss your current marketing efforts and any that you wish to include in the upcoming year, and your restaurant consultant will balance your budget along with the typical efficacy of each tactic before helping you decide on a perfect strategy. Hiring a restaurant consultant can be an excellent way to boost your brand quickly, without having to make any marketing mistakes in the process.
What is a Ghost Kitchen?
A ghost kitchen, also known as a ghost restaurant, a virtual restaurant, or a cloud restaurant, is a food business that exists solely to provide delivery. In these restaurants, food is intended for off-premise dining only.
In a typical ghost restaurant model, the food is made in a rented kitchen, while being ordered and delivered through a third-party delivery service.
Ghost kitchens are often found in high-rent areas, like college towns. Instead of drawing in foot traffic, virtual restaurants work well anywhere as long as their delivery service can easily access customers.
Ghost kitchens are a fairly new concept, although some pizza places have already had carry-out and delivery-only options for years, however, they still maintain a brick-and-mortar location, which ghost restaurants do not.
Why are Ghost Kitchens Gaining Popularity?
In most cities, the restaurant business is already incredibly cutthroat, meaning there is very little room for new players. Delivery is also increasing in popularity because customers want convenience.
Many traditional restaurants, start-ups, chains, and third-party delivery services are looking into ghost kitchens as a way to manage the demand for delivery while increasing market share.
How Do Ghost Kitchens Work?
Ghost restaurants typically operate through a third-party delivery platform.
From the customer’s perspective, he or she finds a restaurant to order from after browsing through a favorite third-party delivery app, such as GrubHub, UberEats, or DoorDash.
The customer places an order and receives the delivered food from the third-party vendor.
From the restaurant’s perspective, the restaurant receives the order and fulfills it in a kitchen that does not offer a storefront. It then hands the order off to the delivery partner.
The Pros of a Ghost Kitchen
There are many pros to the ghost kitchen model. The first is that the ghost kitchen model reduces the need for start-up costs and resources. This allows new players to enter the restaurant scene in a given location without as much of a barrier to entry.
For example, if one is attempting to open a food truck, there is a cost to secure a truck and procure the right kitchen equipment for the truck.
This also opens up more opportunities to experiment. If one model fails, it is fairly inexpensive to switch gears and try something different.
Ghost kitchens also do not require new restaurants to compete over high-traffic locations, since customers do not visit the location itself. This also means that these restaurants aren’t renting dining space that isn’t being utilized.
Another benefit is that the ghost kitchen model does not require an existing customer base. Your restaurant will find hungry customers through a third-party platform.
Ghost kitchens also have fewer overhead costs because the kitchen is rented. There can also be reduced labor costs because the only staff required is the kitchen staff.
Unlike a food truck or a traditional restaurant, there is also less variability based on the weather. A restaurant with a separated parking lot or a food truck may experience a decrease in sales if the weather is poor.
The Cons of a Ghost Kitchen
The biggest problem with a ghost kitchen is that these restaurants often have to pay a high fee to third-party delivery services, sometimes as high as 30%. There can also be additional costs associated with premium placements on the third-party vendor’s site or app.
Another factor against ghost kitchens is that they don’t have that brick-and-mortar or truck for visibility and brand recognition. This is why digital branding even more important for Ghost Kitchens.
It can also be a bit more challenging for these types of restaurants to receive licensing, especially if your business is the first of its kind in the area. Inspectors may not be used to this type of business model and maybe more reluctant to license the business.
Location can be a negative factor for kitchen staff and business owners because rentable kitchens are not always in the most easily-accessed locations.
Lastly, because it is such a new model, it is a major risk.
Getting Started with a Ghost Kitchen
If a ghost kitchen sounds like a venture you’re interested in trying, there are a few key steps you’ll need to take. There’s a lot that needs to be considered when opening a new restaurant, even a ghost kitchen.
Gain access to rentable commercial kitchen space
What many new-to-restaurant-owning entrepreneurs fail to realize is that food that is sold to consumers must be produced in a licensed commercial kitchen. This isn’t the major hurdle it once was as there are now many shared-use kitchens or commercial kitchens you can rent by the hour, day, or month. Think of this as a coworking space for chefs, caterers, food trucks, and other food producers without traditional kitchen spaces.
You’ll need to gain access to a rentable commercial kitchen in your area before you begin. Prepare for a somewhat lengthy process when it comes to starting out, as the kitchen will want to vet you and your business before agreeing to rent to you.
Apply for inspection
Once you’ve locked down your kitchen, you’ll need to apply for your inspection with the health department. Many health departments will need to visit you in the commercial kitchen space before you start selling your food.
When the health inspector comes for the inspection, they will want to see your production methods, food storage areas, and general flows. You will also need to have these written out for your final inspection and to receive your license, so it is best if you can provide that to the health inspector when they visit as well.
The most important thing to communicate with your inspector during your inspection is that you are producing food safely and legally. Walk them through your menu, your production process, how you plan to hold time and temperature, and what third-party service providers you plan to use. This includes any national or local food distributors and suppliers, as well as your delivery service.
Select your third-party service provider
There are many third-party service providers to choose from. Tech-enabled ordering platforms will charge you a fee in exchange for providing one of the most critical aspects of your business – so you need to choose wisely.
When looking at providers, you should find out what your options are and evaluate them based on the average delivery times, reliability, and customer service. Look at their customer reviews and interview your top contenders. This should be a partnership, and it will be an incredibly painful process if you select the wrong vendor.
Sometimes these delivery services charge a painful commission fee – as much as 30% of the order. However, it is still going to be considerably less cost than trying to deliver yourself, and your customers will be able to find you through their platform, instead of you having to find all of your customers through your own marketing efforts.
Plan for delivery
One of the biggest cons for chain restaurants who are starting to offer delivery is that their food is not made for that type of distribution. It doesn’t hold up well to being transported.
As you plan out your menu, make sure your food is temperature-controlled and holds up well to travel. You don’t want your food to arrive cold, soggy, or overly messy. If it does, you’re almost guaranteed to lose customers quickly.
As you think about your menu, keep it simple – especially to start. Consider reusing the same ingredients in different ways to keep costs down.
You’ll also want to train your staff to make sure quality is consistent.
Have a loyalty plan in place
Loyalty is critical for the success of any local operation – especially food service. Check with your third-party delivery provider for the ability to add a loyalty program or coupon codes. Then you can distribute these codes to your customers when their orders are delivered.
Loyalty is critical for the success of any local operation – especially food service.
You can also build up loyalty on your social platforms. Perhaps run a contest for customers who post pictures of your food where they can earn a discount on their next order. Contest or not, be sure to reward customers for formally reviewing your business or even sharing it on social media. Word of mouth and referrals are just as critical to your ghost restaurant’s success as loyal customers are, if not more so.
Identify your niche
Again, this applies to nearly any type of restaurant, not just ghost kitchens. You need to have a niche – whether that means you are appealing to an underrepresented demographic in your area (like working parents or the elderly) or filling a void for a specific type of food (Thai in a city that does not have many Thai restaurants, for example.)
If you’re feeling stuck, have conversations. Chances are, your friends, neighbors, and relatives have ideas for what they “wish they could have” in your area. Once you come up with a concept, test it conversationally as well. One person’s opinion may not mesh with the overall landscape.
Digital branding is king
Since you don’t have a brick and mortar or a truck for customers to immediately identify with, you will need a strong online brand. You might even consider hiring a marketing consultant or firm to help you get started if this isn’t something you are already familiar with.
Since you don’t have a brick and mortar or a truck for customers to immediately identify with, you will need a strong online brand.
One of the most important brand components is a strong name. Make sure it isn’t too similar to another restaurant in your area, and it should also align with your menu and the type of cuisine you offer. If “Buckey’s Burger Palace” only sells tacos, that is probably not a model that will be set up for success.
You’ll also need a solid website. Make sure your site looks professional, and functions well. Include a lot of pictures of your food, and a unique logo that is clear to read.
A strong social media presence is also critical. Facebook, Instagram, and Snapchat are the most common platforms for food companies and restaurants to connect directly with customers. Again, make sure your social media accounts have a lot of high-quality pictures of your food so that these channels showcase what you have to offer.
Make sure your website and your social media channels direct your potential customers to order from your chosen third-party vendor, so your potential customers can easily locate you. Because ghost kitchens are a relatively new concept, this may be a new process for your customers too, so walking them through it can set you up for success.
You should also include your menu on your website and your social media channels. This will entice customers to order from you, even if they are unfamiliar with ghost restaurants or your chosen third-party vendor.
Ghost restaurants are certainly worth considering if you’ve been interested in getting into the restaurant business but start-up costs and capital have been a barrier for you. However, you should know that as a new concept, these types of businesses are still risky and may not be immediately successful. It may also be too new in your area, and therefore you may not have access to a rentable kitchen space in your area at this time.
Be sure to choose a great name and focus a lot on your restaurant’s branding
However, if you do decide to give it a try, be sure to choose a great name and focus a lot on your restaurant’s branding. It is also critical to choose an excellent third-party ordering and delivery service.
By taking these steps, it is possible to see success through this new restaurant business model. To help ensure your new business venture is successful, it may be worth hiring a restaurant marketing agency. These types of professionals will have a much better idea for how to appeal to your target audience as well as what will be successful and what may not be.
Holiday Marketing Ideas for Restaurants
When it comes to Marketing Your Restaurant during the Holiday season, it’s important to make a plan. It’s no secret that most restaurants see a substantial loss in attendance and revenue around the holiday season, especially in countries like the United States and Canada, which can result in a significant financial loss for your business.
Such problems can be attributed to the fact that, well, it is just plain cold outside during those months of the year. From mid-to-late September to early April, the weather outside is frightful, and most people do not like having to go out that front door unless they have too. Most of the time going out to eat at the nearest McDonalds or Wendys is not on that list of necessities.
Additionally, it is during these times (especially from November to December), that families will often go on vacation to various parts of the planet, often for multiple weeks at times, thus resulting in increased air-fare revenue, but a further decrease in restaurants revenue.
However, that does not mean it is game over. There are some restaurant marketing strategies and tactics that can be fun and engaging that will help make the holidays a little less painful. Let’s go over just a few of those ideas right now.
Top Restaurant Marketing Ideas for the Holiday Season
Offer the Patrons A Special Menu Item at a New Price
Often one of the easiest ways to get people into a restaurant is also a classic; setting a new price of a popular menu item at your restaurant for the holidays. By doing something like this, during this particular time frame, people will be more inclined to make the trip since they know that if they do not, they may miss out on the savings for the year.
Give Two Delicious Meals for The Price of One
This is another easy one, and very common to see restaurants offer during the holidays. Entice your customers with a two-for-one-deal. A special offer like this, providing additional savings can be just what you need to fill your restaurant during the holidays. It works well, but use this strategy sparingly; you don’t want your customers to get addicted to expecting deals all the time.
Offer A Different Kind Of Meal For The Holidays
Everyone loves a good holiday menu item. Subway’s Apple Pie Cookie, Sonic’s Pecan Pie Funnel, Starbuck’s Peppermint Bark Frappuccino. During the several short weeks of the holiday season, these restaurants often see great success because they provide their patrons with something not seen every other day. So, perhaps add a new holiday-themed menu for a change.
Start-Up A Charity Drive
The holidays are all about giving and goodwill to others, why not join in on that spirit and start up a charity drive? Perhaps for every ten dollars spent, three of those dollars will go to a local Children’s hospitals or non-profit. McDonald’s is one of the most famous for this, supporting families with sick children through their Ronald McDonald House Charity program.
Speaking of Charity, Money Is Not the Only Option to Donate
Many organizations will host annual food or clothing drives throughout the holiday months, bringing in as much food and clothes to donate to local charitable organizations. So, perhaps offering something similar can help boost sales. You may even consider giving away a free menu item if a customer donates to the cause. While it does sound like you might be losing money by this method, it also brings more people through your doors. So, not only do you get them into the building, but you also build up a positive reputation with the community.
Offer Special Pricing for Children’s Menus
Another excellent way to boost revenue and marketing is to lower pricing for children’s menus or just children in general. However, it is not uncommon for restaurants to offer some kind of “children under 4 eat free” promotion year-round. So, if you’re not already offering this deal, consider offering it during the holidays. It might be just the thing you need to convince more families to bring them along.
Change Your Tune
It is the holiday season, so you know as well as I do what is going to be blasting on radio stations: Christmas songs. If you are the kind of restaurant that likes to have music playing in the background, perhaps changing the station to one that is playing Christmas music can help. It is a small change, but one that costs nothing and can help boost the morale of both customers and employees.
Deck the Halls with Holiday Signage
It is extremely common for businesses to decorate their buildings with holiday colors and iconography. I know our local Churches sees an increase in attendance during the holidays because they set up various Christmas and holiday decorations; so, perhaps spruce up the windows and dining area with holiday imagery.
‘Tis The Season to Be Jolly
Perhaps allow the employees to wear festive clothing and colors for the holidays, instead of just that regular uniform? Red? White? Green? A mixture of all three? Why not? The holidays are a time to spread happiness, and by having your employees show and express themselves through their creativity (not to mention through the marketing), you can expect some people might just be coming back next week.
If You Are Willing to Go with The Extreme
Then perhaps redecorate the entire restaurant to be nothing but a winter theme? Maybe make the dining area Santa’s Workshop or a frozen wonderland? This goes exceptionally well with allowing staff to wear festive colors or outfits. (Though, in my experience, it is best not mandating the employees wear these colors if they prefer their standard uniform). Though, do take care not to go overboard too early.
Is to play appropriate Christmas movies and specials if you happen to have a TV or TVs in your restaurant. While it is uncommon for most eatery establishment to have them outside of sports bars, some family establishments still have one or two playing anything and everything at all times.
Perhaps Consider Going Digital
In the past twenty years, the internet has gone from this slow, clunky and unresponsive tool that required no one to be on the phone line to use, to now one of the most potent and intricate tools to ever be constructed. As such, sending out holiday-themed emails, offers, messages, notifications, and decking out your advertisement to model something more festive can be a nice gesture (especially if those who subscribe to your email listing get a coupon or savings with those deals).
Special Contests and Events
The holidays are about giving merriment and gifts to those around you, so why not offer gift cards to your customers for special events? Maybe a gift to your 100th customer of the holiday season? Alternatively, random “hey, you just won a free twenty-dollar gift card to (insert store name here), kind of prize. Alternatively, run contests and special events via your website or inside your place of business. Nothing drives up happiness (and sales), like getting a gift card just before Christmas. It is a fantastic gesture to make for both your employees and your customers, and everyone will be happy.
Add a Traditional Holiday Meal to the Menu
This one ties back to the third option listed above, but this time, go above and beyond the call of duty and maybe offer customers traditional Christmas dinners during the month of December. Dinners like ham and turkey, mass potatoes and stuffing, all that delicious yumminess and more. This alone can be an excellent marketing strategy for that final month of the year.
Pastries! Lots And Lots Of Pastries
This one may be tricky to do if you are not running a bakery, as this idea does benefit them more-so than traditional restaurants and fast-food joints, but that does not mean they are out of the picture. Most establishments offer some form of dessert, traditionally cookies and cake. Perhaps instead of traditional cookies, you can go with gingerbread cookies?
Host Community Events
The holidays are about family, friends and getting together with one another. Perhaps hire local artists to play at your restaurant or a community lot with you as a sponsor. This is one of the best marketing ideas I have to offer here.
Let Us Not Forget the Employees Themselves
The holidays can be stressful for men and women in the service industry, show them you appreciate their hard work and determination by throwing an after-work or Christmas party for your employees and their families. Another way is to make sure everyone goes home with a nice additional bonus. Whatever you choose to go with, make sure it comes from the heart because by making your employees happy, that will not only reflect on their performance during work hours, but word will spread about how kind and generous you are to both your employees, and to the customers, along with the general reception of it all.
Invite Mr. and Mrs. Claus
If you are running a restaurant that caters to families, perhaps see about asking one of your employees to dress up as Santa or Mrs. Claus and interact with the children. Or, if you can afford it hire a professional Claus for a special experience.
Maybe See About Cross-Promotion
Cross-promotions can be a fantastic marketing tool, just like everything else we have discussed in this list. Maybe see about teaming up with a local competitor to boost sales in various areas like goods and services, while also offering competitive prices. You can even combine this with giving back to charities or non-profits and do some good for your community.
Lastly, Have Fun with It
Christmas is a time for festivities, joy, and merriment. There are loads of methods to drumming up marketing support during the holidays because of the time and era we live in. The best tip I can give when trying to increase revenue via marketing is to make it all about the holidays and the people, while also having fun with it.
Christmas is such a beautiful and wonderful time of the year, and everyone deserves to be happy during these times. I hope this article gives you some thoughts and ideas on how to go about marketing during these times.
How to Calculate Room Cost – Hotel Revenue Management Tips
This article goes into detail about how to calculate room cost, and what that can mean for your hotel. For those who would prefer to watch, I’ve also created a video on this topic which you can watch below.
Finding the Right Number
Someone walks up to your hotel counter at 11:59 pm and says “You have 10 unoccupied rooms that are going to sit empty, and I need a place to stay. Here’s $20. It’s $20 more in the cash register that wasn’t there before.” Do you take it?
For successful revenue management for hotels, knowing how much it costs to put someone in a room is an important first step.
Knowing this number will let you know how low you can go when changing rates throughout the year. Restaurateurs will be familiar with this concept because they have to “plate food” or calculate how much each part of a given dish costs, then use that information to calculate how much to charge the guest.
Figuring how much it costs to rent out a room is a little bit of a tricky question because there are two answers. I’m going to explain both of the costs, the differences between them, and I’ll show you step-by-step how to calculate these for your property.
The first cost is called “incremental cost”. It doesn’t matter that you remember the name of this cost (you can even make up a name that helps you remember it), it’s just important that you understand the concept.
Remember our late-night guest standing at the counter offering us $20? If we reject his offer and leave a hotel room empty, we incur no additional incremental cost. Why? Incremental cost answers the question “What is used up if I rent a room to someone?”
Imagine this: the hotel owner’s family member has a house fire, so he lets them stay at the property for one night for free. It’s not free for the hotelier to let them stay there. He will incur additional costs. Those costs are the incremental costs. What will those guests “use up”?
Here’s a quick brainstorm list that you can add to:
Water (washing hands, brushing teeth, showers, flushing toilets)
Wear & Tear (walking on carpet, sleeping on the bed, turning doorknobs, using lightbulbs)
Housekeeping (room must be cleaned after they leave, cleaning supplies used)
Laundry (sheets, towels)
Some people won’t include wear and tear, but then I give them this example: if a mattress costs $1,000 and is rated up to 1,000 nights before it needs to be replaced, then each night someone sleeps on that mattress they use up $1 of the lifetime value of that mattress. Although difficult to track this same scenario is playing itself out as guests sit in your chairs and walk on your carpet.
To calculate the incremental cost, look at your expenses from your P&L (Profit and Loss Statement) for the previous calendar year for the categories we mentioned above. Take that number and divide it by the number of room nights sold for the year and this will be your incremental cost to put someone in a room. (Spoiler alert: it’s usually about $20.)
Example: A hotel’s expenses for these categories is $200,000 and they sold 10,000 room nights last year. $200,000 ÷ 10,000 room nights = $20 incremental cost.
So, do we sell the late-night guest a room for $20?
Really, it’s just a waste of time to let him stay because you’re just spinning your wheels, not making any profit. You’re also training your customers to not pay the going rate for your property and to just wait until the last minute and give you a low offer.
On the other hand, it will put an additional $20 of revenue on the books. So if you’re getting ready to sell you want to have as much revenue on the books as possible (even if it’s not profit), because banks and buyers really like that.
Also, if it’s a slow time, taking that additional booking will give your housekeepers an additional room to clean.
So again… do you book the room? A revenue manager’s favorite answer is “Depends!” Feel free to reach out to me and let me know what you’d do.
We’re not done yet. The incremental cost is only half of the story. I’d like to introduce you to “burdened cost”.
Again, I don’t care if you remember the exact name for this (there isn’t going to be a test later). Call it whatever you want as long as you understand the principle. This cost is a full or complete, all-in cost. It is “burdened” with all of the costs a property incurs.
We’ve already addressed the day-to-day costs associated with what guests use up with the incremental cost. If you’re reading this, you’re likely a manager, front desk or office worker and I want to make sure you get paid. That’s where this cost comes in.
Burdened costs are costs that you have to pay whether you sell 1 room or 100 rooms.
You’re going to pay the maintenance worker to go check and adjust the pool levels every morning regardless of occupancy. You’re going to pay a Night Auditor to be at the front desk all night watching Netflix…I mean running end of day reports regardless of the number of rooms sold. With an incremental cost of $20, that means anything we take over that goes to help offset these constant costs. I’m getting ahead of myself. Let’s stop and make a brainstorm list of burdened costs:
Staff (maintenance, front desk, management, breakfast attendant)
Parking lot repair
Cable TV (Example: $10 per room per month regardless of occupancy)
Chamber of Commerce membership
There could also be major costs such as all new furniture for all of the rooms that you might want to take an extra step with. If you expect that furniture to last 10 years, then you could divide that cost by 10. Use just a tenth of that cost in your burdened calculation to help keep from skewing the number. Just do this for major purchases like furniture, mattresses, and carpet.
To calculate the burdened cost look at your P&L again and at the bottom will be a list of total expenses.
Let’s use a number of $400,000. Take that number and divide it by the total number of rooms sold (this will be the same number you used for the incremental cost). Let’s use 10,000 room nights. $400,000 ÷ 10,000 room nights = $40. In America for a basic hotel usually the incremental cost is about $20 and the burdened cost is about $40. If you’re in a big city, or higher-end property these numbers, of course, will be higher.
So, what does this $40 number mean? If you are not consistently getting over $40 a night for your rooms, then you will soon be out of business!
Now, as we already mentioned you can dip below $40 for a short amount of time if it’s part of an overall strategy. Maybe January is a very slow month for your property, so you go to $30 on Sundays. This is $10 more than your $20 incremental cost meaning you can take the $10 you “profit” and use that to help offset your burdened costs like managers’ salaries.
You also might do this because you want to give your housekeepers a few more rooms to clean for the week and because it will help bring down the ADR (Average Daily Rate) for guests who are looking for longer LOS (Length of Stay).
A Word of Caution…
A word of caution when flirting with ultra-low rates even if it’s just for a short amount of time and as part of an overall strategy: there is a rate that is low enough that it starts to attract trouble. When I’ve run experiments of “how low can we go” at the properties I work with, we’ve found that number to be about $45.
Below that rate is when you start getting frequent visits from the cops and have lots of complaints of unruly guests. Suddenly those few extra dollars just aren’t worth it.
The first step in successful revenue management is knowing how much it costs to put someone in a room. The basic cost that guests use up by being on your property is the incremental cost, and for a budget hotel in America is often about $20. The big-picture, all-in cost that matters at the end of the year is the burdened cost and is usually about $40.
On the other end of that spectrum, you need to be competitive during times of low demand.
Going too low can cause you to get frequent visits from the cops and soon go out of business, but finding that sweet spot where you’re competitive and beating your competition on the rate is an effective strategy to steal market share.
Follow the process to figure both your incremental and burdened room cost and use those numbers to start your journey to successful revenue —-management.
Chris Hunter operates HotelRevenueMan.com and is a preferred partner and content contributor for Longitude Branding.
It’s the Small Things: Restaurant Micro-Experiences
The use of micro experiences is what makes a restaurant experience so unique, and it’s these experiences that create a more memorable dining experience for your guests, and fully activate your restaurant brand.
A guest will always keep in mind the quality of your customer service and the taste of your food, but it’s in the small and subtle details that the true essence and soul of your restaurant experience is put on display.
Imagine, for instance, walking into a new restaurant. You see and hear familiar sights and sounds; the melody of your songs and the aroma of your favorite food. You look up and are greeted with a warm smile by your server.
These moments are short and may not seem important, but these tiny moments will add up to create a lasting impression of the restaurant in your guest’s mind. The customer may not associate the positive thoughts about the restaurant back to that specific moment, yet still, it created a memorable restaurant experience.
Top 8 Ideas for In Restaurant Micro Experiences
There are a number of ways for a restaurant to use micro experiences to improve their guest’s experience. In fact, there are even marketing agencies who specialize in helping you create these “micro-experiences.” Here are my top eight suggestions for creating positive micro experiences for your restaurant’s guests. If you utilize these eight ideas, you are sure to obtain guest loyalty, helping you create a reliable source of business from repeat customers.
Not only that, but happy customers will share their experience with others, attracting even more new customers. Even if your business is already doing well, these eight tips can still help you create an even better experience for your customers.
1. Engaging Your Staff
Micro experiences can be implemented in almost every area of your restaurant, but one of the simplest ways to create a more memorable micro experience is by training your employees.
Now, I don’t mean that you simply teach them to do their job duties. You are likely already doing that. What I mean is that you should train your employees on how to create great impressions through micro experiences.
To do this you will need to explain the concept of micro experiences to them and provide them with real-life examples of how they can use the concept on the job. That way each of your staff members can create micro experiences that will induce guest loyalty.
You could put a reward system or program in place to encourage your staff to work on improving their communication with the guests. Or, reward employees for providing exceptional customer service and extending kindness towards customers.
Be sure that you help them see how a better guest experience can translate into their paycheck also. After all, happier and more loyal guests often will translate into higher check averages.
Another benefit of this would be keeping your employees happy and engaged. Employees who are engaged tend to care more about their job and work harder at it. After all, it’s really difficult to ask un-engaged and unhappy employees to create positive micro experiences.
2. Your Atmosphere & Service
Your restaurant should certainly have a good vibe and soul. A personal style goes a long way when it comes to creating a memorable dining experience for your guests. It’s just another subtle thing that will contribute to your guest’s overall impression.
Having a personalized style may seem like a minor detail, but it makes a huge impact. This alone could be the thing that sets your restaurant apart from the hundreds of others. A unique interior and aesthetic can make a customer excited to return. If you’re dining experience has evoked certain feelings that they don’t get anywhere else, then they’ll always return to you to feel that way again.
Maybe it’s the personalized style of decoration or a personal theme that provokes feelings of excitement, joy, and interest in your guests. Or it could be the way that your guests are greeted, and served that makes them feel at home. But remember, there’s a difference between providing great service and providing great hospitality. Hospitality is everything when it comes to building a memorable restaurant experience.
Danny Meyer put it well when he said,
“Service without soul, no matter how elegant, is quickly forgotten by the guest.”
Danny Meyer, Setting the Table
The guest’s surrounding and overall vibe of your restaurant can greatly impact the way the guest feels regarding your establishment. This can help your establishment to stand apart from the rest.
3. One-Of-A-Kind Menu Options
Of course, your food will leave an impression on your guests, but that’s not what I’m talking about here. I’m talking about the restaurant’s ‘signatures.’
I’m sure you can think of a restaurant that features one item that you can’t find anywhere else. McDonald’s “Big Mac,” Burger King’s “Whopper,” Red Lobster’s cheddar biscuits, or Taco Bell’s “Dorito” tacos are just a few examples.
People tend to know what they want before selecting where they will eat dinner.
By offering one of a kind menu options along with guest favorites, you will encourage customers to select your restaurant.
Once you create that one delicious item that only your restaurant can provide to guests, you will inspire your guest’s loyalty. They will flock to your restaurant to get that one of a kind item. These signature items are what makes your restaurant your own.
Your guest trying that one of a kind menu option is a micro experience in its own way. They will remember that signature item, how it made them feel, and associate it with your restaurant. So, you better make sure it’s good!
4. Beverage Programs & House Speciality Drinks
If your restaurant serves alcohol this is the perfect way to create memorable micro experiences. Serve house drinks or feature specialty drinks. Provide affordable alcoholic beverages. You could even host a happy hour.
People love to drink and have a good time. If you can do two things for them, those guests will be loyal to your restaurant for life. First, create a fun, laid back environment. Second, serve premium, great-tasting, and affordable alcohol.
It’s easier to create positive micro experiences when the guest has had a drink. They can be more relaxed, open, and open to dialogue. It will create a lasting impression of your restaurant.
People generally love alcohol, so if you can serve the guest’s favorite alcohol at an affordable price, you will attract a ton of business. If you can create a positive dining experience through the use of micro experiences, you will keep those guests coming back for more fun.
5. Unique & Comfortable Furniture
The furniture should fit your restaurant’s style but should also stand out and make a statement. It needs to to be comfortable, visually appealing, and different. Furnish your establishment with pieces the guest will remember fondly.
Your guest probably won’t dwell on the appearance of the furniture; they will just briefly consider it. However, in most instances, micro experiences can occur in just a short amount of time. On the same token, if your furniture is uncomfortable, odd-looking, or predictable and mediocre, the micro experience your guest will have will be a negative one.
In the brief moments that your furniture grasps the customer’s attention, the guest should feel positive about the appearance and comfort of the piece of furniture.
That positive thought will work alongside the alcohol, food, and atmosphere to create the guest’s overall full impression of your restaurant. Remember, the overall guest experience is just a collection of micro experiences that lead the guest to feel a certain type of way.
6. Quirky Fixtures & Decor
You’re probably wondering what I mean by quirky accessories. I’m referring to every non-furniture item in your restaurant. Decorations, wall decor, table pieces, etc. All of these FF&E elements throughout your restaurant will make an impact.
These small pieces can invoke certain feelings or be conversation starters. The restaurant fixtures and decor will contribute to the unique furniture and atmosphere. They should seamlessly blend in but stand out, or feel out of place.
To create a great micro experience with these quirky fixtures and decor you need the guest to first notice the piece. Then note that it is intriguing, cute, or different. The piece should ideally make the guest laugh, smile, ponder, or point it out to their dining companion.
These quirky accessories should be unique to your establishment. This is another micro experience idea that can set your establishment apart from the rest. The most successful restaurants utilize this idea; sometimes it comes naturally, but other times it takes some thinking to get it right.
7. Utilize Atmosphere & Ambiance
Before you can use an atmosphere to maintain positive micro experiences, you must create the atmosphere. You can customize your restaurant’s atmosphere with ambiance, sounds, scents, and textures. The atmosphere has to be felt by the guest.
You can do this by selecting a certain type of music that works with the restaurant theme. The ambiance, or lighting, plays a key role in creating an atmosphere.
Even the scent of your restaurant is important. In fact, there are companies that solely focus on “scent-marketing” such as Scent Air. This is a very interesting way to create an experience because studies have shown that 80%+ of customers are willing to spend more time in a place with a pleasant scent. Also, emotions are generated, in large part (75%), by specific scents we recall.
An enjoyable atmosphere will create an initial impression, but it will also contribute to the effect of each one of the guest’s micro experiences throughout their stay.
The atmosphere will affect everything, including your guest’s impressions of other people. Your atmosphere plays a big part in showing off the heart and soul of your establishment.
Ultimately the atmosphere of your restaurant will color the restaurant experience in a certain shade.
8. Keep it Clean!
Your goal is to create a positive dining experience, which involves a guest enjoying food. Because of this, your restaurant has to be clean.
Most people don’t really notice when a space is clean, however, they always notice when it is dirty.
That said, this idea is more about preventing negative micro experiences than creating a positive one. When serving food, cleanliness is the gold standard.
Think of this scenario, your guest has just received their food and they complement the server on its speedy delivery. Their mouth is watering as they inhale the delicious aromas. The guest and server exchange a smile.
So far, so good, right? Unfortunately, not, because the guest just picked up their fork and there was a hair sticking to it. The guest will now have to wait for a new fork and eat their meal with the memory of the dirty fork lingering on their mind.
That dirty fork just ruined an otherwise ideal micro experience. Had that fork been clean this guest would have had perfect restaurant experience.
3 Restaurants That Utilize Micro Experiences Well
The most successful restaurants utilize micro experiences in creating positive guest experiences. Theses restaurants who do this are able to stay relevant, popular, profitable and most importantly, in business.
Below are a few restaurants that utilize micro experiences well. Let me walk you through a guest’s experience at each establishment. Then you should review how they create great dining experiences through micro experiences.
Cracker Barrel is a home-style restaurant that prioritizes the guest’s experience. The restaurant chain’s motto is ‘Pleasing People.’ The chain does such a great job at this, that they have one of the largest percentages of return customers.
Cracker Barrel is a home-style restaurant that prioritizes the guest’s experience. The restaurant chain’s motto is ‘Pleasing People.’ The chain does such a great job at this, that they have one of the largest percentages of return customers.
The restaurant pleases people by focusing on micro experiences. A guest walks in the front doors, entering the restaurant’s country store. The store features countless unique items, most of which are created solely for the restaurant.
An employee greets you at the door with a huge smile and inquires how you’re doing. You follow the sign pointing to the hostess station. At which point the host reviews the daily special and featured items.
As you are led to your seat, you notice the old fashion signs decorating the walls and lit lanterns at every table. You sit down on a wooden table, which features a homemade peg game.
The menu consists of country style favorites that are meant to remind you of sit-down meals, enjoyed with family. There are a few select meals like Grampa’s Breakfast and Uncle Herschel’s Favorite.
The restaurant has a personalized style that follows a central theme, and they extend their style into their decor and accessories. Cracker Barrel offers one of a kind menu option. They create an atmosphere with their friendly customer service and cozy table-top lanterns.
Rooster’s claims to be, ‘A fun, causal joint.’ The restaurant features chicken wings but offers a variety of other American Foods. This restaurant is what it claims, pretty casual.
Upon entering the restaurant, you are greeted by a cashier, who will lead you to your seats. You’ll likely notice the high ceilings and light wooden furniture. The huge party table will stand out and the televisions will roar with the latest in sports.
You will definitely admire the sports memorabilia that covers the walls, but it will be the hilarious sayings displayed in black print on the square, white signs that capture your attention.
As you survey the menu, you’ll love the large selection of wing sauces, and intriguing list of appetizers. There is also a robust alcohol menu, that always includes bargain-priced featured drinks.
When you order, you’ll have to order the dumpster fries, or tots, as an appetizer. They are truly mouthwatering and come with a signature sauce.
Even the servers are casual in jeans, or jean shorts, and a blacktop. The bench tables are long enough to accompany a family or group of friends.
The restaurant uses micro experiences perfectly. They have a personalized style that contributes to the atmosphere of the restaurant. The funny signs are a great example of quirky fixtures and decor. The dumpster fries are one-of-a-kind menu option that you’ll have to try. Plus, bargain drinks are a great way to inspire guest loyalty.
The Cheesecake Factory
The finest of all the dining establishments on the list is The Cheesecake Factory. From the moment you approach the building, you will notice the attention to detail. The building itself has the shape of a factory.
In the winter this restaurant features fire heaters on the patio for waiting guests. When you enter the restaurant, you are greeted by a romantic style ambiance. There is both a bar and bakery located near the hostess station.
The host takes your name and seats you at the first available table. As you walk to your table you are navigated through an array of fancy tables with coat racks. When you take a seat, you can’t help but notice how comfortable and intimate your table is.
You can order a drink from an extensive beverage menu, which includes alcohol. Then you have a huge variety of meals to choose from. You can’t beat their signature chicken marsala.
The meal will be incredible and the service delightful, but the most impressive part of the evening will be the dessert. They don’t call it “The Cheesecake Factory” for nothing! You can select a huge slice of cheesecake from almost fifty options!
The server will box up any remaining food for you to take home with you. These restaurants are almost always located near shopping centers.
The Cheesecake Factory creates a memorable dining experience by creating micro experiences. They include the personal touch of the warmer, which extends caring thoughts towards their guests. The restaurant features exquisite furniture, one of a kind menu option. Come on, fifty types of cheesecake? Plus, the restaurant features a personalized style and atmosphere.
As you read through the list of ideas and restaurants that utilize the ideas perfectly to created incredible micro experiences that lead the guest to have a memorable dining experience, do you notice anything?
Each of these items has to do with the way the guest feels. That is the key to creating great micro experiences.
You have to make the guest feel something positive and the stronger that positive feeling is the better.
When a guest associates positive feelings with your restaurant, you are successfully creating memorable micro experiences. This is how you obtain guest loyalty and customer satisfaction.
Do you notice how these three restaurants create micro experiences? Every aspect of their establishment is geared towards their potential guests. These establishments have put a large amount of thought into what will grab their customer’s attention and invoke certain feelings.
If you want to improve your guest’s dining experiences, you will need to create great micro experiences too. The guests will create them with or without your help. You will need to gear their attention towards things that will reflect your establishment in a positive light.
Restaurant micro experiences create a memorable dining experience for your guests. You need to make sure their micro experiences are positive and fulfill the guest’s expectations for your establishment.
10 Brand Activation Ideas for Your Restaurant
As a restaurant owner, you are likely always looking for new ways to draw more people to your restaurant’s food and services. However, restaurant branding, and marketing can be more difficult than you think. Not only do you need to draw them, you also need to keep them coming back for more.
This is where brand activation comes in. Brand activation is key to getting consumers from simply browsing your menu to actually visiting your restaurant and eating your food.
In this article, we will discuss ten brand activation ideas to help drive more consumer action to your restaurant. If you want to find out how to elevate your restaurant’s marketing impact, keep on reading.
What Is Brand Activation?
Brand activation is a relatively new marketing idea. Essentially, it is the idea of motivating consumer action through a variety of experiences. In other words, it is about drawing attention to brands by creating unique interactions that result in long-term connections with consumers.
Brand activation typically occurs in the form of activation events.
Activation events are one-time, exclusive events that encourage consumers to interact with a brand, see a brand in a new way, and draw more in-store or in-restaurant activity. The key is that brand activation events have to be unique, memorable, and shareable.
It should be said that brand activation events or campaigns can utilize a variety of methods, such as:
Whatever method you use is up to you and your circumstances. Just remember that the goal is to create a distinct experience that ups the notoriety of your company or restaurant.
1. Utilize Social Media
Social media is easily one of the most definitive aspects of our daily culture. As a matter of fact, 54% of social media users use social media to research products and interact with a brand. So, if your consumers are not talking about your restaurant or brand on social media, you are definitely not connecting with them well enough.
An easy way to generate some attention on social media is to get consumers to post about your brand. This could be anything from simply sharing a photo post about your food and reviews to sharing promotional content.
For example, Sonic did an experiential campaign at Coachella. They sold square-shaped milkshakes during the music festival that could only be purchased through Instagram.
Another great idea is to use social media to hold contests or giveaways.
Domino’s held a fun giveaway on Instagram called the Piece of the Pie Contest. Essentially, Domino’s fans or consumers had to take a photo that showed they are a super fan. The most elaborate photo won a grand prize of $10,000, but Domino’s gained more fan interaction than ever before.
Social media is a great avenue for boosting your brand’s followers and visibility. Fun, interactive social media campaigns are an exciting way to get more consumers to try your food.
2. Leverage Common Problems
The basis of selling any type of product, including food, is that you are solving some common problem or need. The same idea can apply to brand activation events for your restaurant.
For example, when summer festival season hits, the heat can be a major downer on any person’s day. However, bring awareness to your own brand by supplying guests with refreshing drinks or a fun way to cool down.
Vitamin water put a clever spin on this idea by providing music festival guests with a fun misting station. With this quirky, interactive idea, consumers got to cool down and Vitaminwater was able to gain more exposure for their brand.
You should also consider getting a stand at your local farmer’s market. If your restaurant is offering new menu items, this is a great opportunity to offer samples and build up interest in your restaurant.
3. Create Fun & Unique Consumer Experiences
Like we mentioned above, the key to a successful brand activation campaign is that it is unique and cannot be easily replicated.
The events you create surrounding your restaurant have to be unexpected and something your customers have not experienced before.
One great way to create a unique restaurant branding experience is to make use of pop-up shops or cafes. Pop-ups are essentially temporary retail spaces that give companies an opportunity to sell their product in a completely personalized space. For restaurants, it is a great opportunity to present their food or service in a fun new way.
For example, Subway set up a pop-up outdoor salad bar. Subway’s goal was two-fold: encourage healthy eating and to promote their new Salad of the Day menu option. It was a smart way to promote their new menu while also playing on consumer’s desire for healthier and more readily available produce.
Another fun twist was Quaker’s pop-up breakfast vending machines. This unique play on the traditional pop-up shop featured a large vending machine with two workers dressed as robots doling out free breakfast. To make the experience even better, each oatmeal dish was specially prepared according to each consumer’s taste.
Remember, the key here is that you want consumers to activate or act on your brand. You want to create activities that will put the product in your consumers’ hands so they can get a well-rounded experience.
That also means ensuring that your event does not stagnate. For example, if you have a large event, try to intersperse smaller activities or experiences while people are waiting around. Try to aim for collaborative activities as it will encourage a more light-hearted, open environment at your event.
4. Make Learning About Your Company Fun
If you want more people to care about your brand, it is important that you share its roots. Sharing the who, what, why and how of your brand is important to help consumers connect with your brand’s values. However, instead of just trying to tell people about your brand, one of the best restaurant marketing ideas is to teach them more about your restaurant methods, such as cooking classes or recipe development.
A cool example is Haagen-Daz’s sensory dessert schools. Haagen-Daz set up their two-day dessert school to teach how sight, sound, and scent contributed to tasting ice cream. However, Haagen-Daz elevated the pop-up event with talks by major social media influencers and Haagen-Daz ice cream tester, Alison Gray.
Nespresso did the same with a sensorial coffee club pop-up. The Nespresso Connoisseur Club is a traveling culinary adventure, featuring taste tests and classes by Michelin starred chefs. It is an opportunity for Nespresso to share their brand in a new upscale light that is deeply immersive and informative.
Bringing consumers into the fold of what your brand does behind the scenes is a great way to establish a trusting relationship with them.
Not only do they get to learn about your specific restaurant and your products, but they also have a growing appreciation for your work.
5. Make Your Events VIP
A simple way to develop stronger relationships with consumers is to make your brand activation events exclusive. Now, it seems counterintuitive at first. By making an event exclusive to a specific group of consumers, you are obviously excluding other consumers.
However, making events VIP will help you develop stronger emotional connections with consumers. Those consumers who are a part of the exclusive group will feel more valued and will develop a stronger bond with your brand. This way they are more motivated to share your brand with other people.
Moreover, on a logistical note, making events exclusive is also a smart, budget-friendly idea. If you don’t have a huge marketing budget, all you can afford is a short-term branding event.
However, influencers and local media are more drawn to short-term events, especially if they are fresh and creative. This way the more tight-knit an event feels the more people want to be involved or in the know. And, as we said, the more exclusive an event is the more likely people feel the need to share it online.
6. Be Spontaneous
If you truly want to be remembered by consumers, do something memorable and completely unexpected. For example, Lipton Iced Tea completely took London by surprise when they stuck a 100-meter, bright yellow water slide in the middle of the morning commute.
The day-long event encouraged people to come out and bring their swimsuits and pool inflatables with them. And all throughout the even, Lipton employees handed out samples of a variety of Lipton products while also promoting the Daybreaker event series.
This is the time to think out of the box. The more creative you are the better because it will help you stand out from your competition.
From using slip and slides to using flashmobs, you don’t have to stick with a basic food service setting to promote your brand.
7. Utilize Technology
The heart of brand activation events is their face-to-face interaction that digital marketing can overlook. However, this does not mean you should completely discount technology. As a matter of fact, your restaurant branding events should be so memorable that your consumers can’t help but whip out their phones to share it.
If you are holding a pop-up shop, encourage attendees to share pictures, videos and to even make a hashtag. However, you can take your branding game to a whole new level by making social media an active part of the event. Take, for example, Marmite’s positivity recording pop-up cafes.
Marmite opened up a Twitter pop-up shop that used social media as a means of payment. When patrons would enter the shop, they would give their social media handle. The pop-up cafe then uses a “Love-O-Meter” to analyze tweets to see if they are sharing positive or negative messages online.
If you are identified as a positive, loving spirit, you are given a sample of a Marmite summer snack. This is a great twist on using the power of technology and social media. Here, technology and social media actively play a part in the success of the branding event.
You can even go simpler than that. If you are holding a cocktail party, provide a variety of photobooths and award the most creative photo at the end of the event.
You can host a food scavenger hunt and have participants hunt down food-related clues. When they find the answer, they can just snap a picture and send it via text.
Whatever method you choose, you can be sure that technology will help your brand interact with consumers in a fun, immersive way.
8. Get Your Team & Staff Involved
If you really want your brand to stick out, it is important to get your team on board with branding events. Due to their close relationship with your company and brand, they are easily one of your best promotional resources.
Try to get your team involved from the very beginning. Inform them of your idea and get their feedback. They might have some cool ideas that could improve your idea.
Bringing your team in on brand activation ideas is integral to having a successful and memorable event. First, well-informed staff will ensure that the whole event is flowing like a well-oiled machine. In turn, you can ensure all guests or consumers are getting the best experience.
Secondly, getting your team involved is a great way to have them brush up on their knowledge of the brand. Their ability to share the history and roots of the brand and cool, hidden details can help build brand loyalty with consumers. Moreover, it can build brand loyalty within the team itself.
9. Communicate Your Brand’s Values
A successful branding event gets consumers to understand and align with a brand’s values.
Shared values are the basis of establishing a strong bond with your consumers.
That being said, if you are struggling to think of brand event ideas, go back to your roots and build off of your values.
As one of the most value-driven brands, Ben & Jerry’s does this particularly well. During the Big Ice Screening Film Festival, Ben & Jerry’s established a bike-powered pop-up outdoor theatre.
For three days, consumers could engage in a multitude of childhood games and get food and drinks from a variety of stalls. However, the highlight of the event was Ben & Jerry’s effort to use renewable energy for the entire event.
The event had stationary bikes that were used to power the movie screen. In addition, they also employed green energy, hybrid power source provided by Firefly.
The entire event was really to promote Ben & Jerry’s newest ice cream flavor. However, it was further bolstered by the brand’s commitment to environmental causes.
Although elaborate, outlandish ideas are sure to draw attention to you, working off of your values is sure to keep people around. And committing to those values consistently only shows consumers that you are a reliable and dedicated company. In turn, people will only want to support and interact with your brand more.
10. Help Your Consumers Help Others
An excellent way to get your consumers to interact with your brand and to further promote your values is to help your consumers help others. More often than not, people see issues that they want to help with or change but do not know where to start.
This is a great opportunity for your company to step up to the plate and bridge the gap between important issues and potential solutions.
One great example of this is Skittles’ Holiday Candy Pawnshop Pop-up. The four-day branding event allowed consumers to bring in their unwanted items and trade them for candy. All of the collected items were then donated to a Goodwill ReUse center.
This could easily be replicated for your restaurant branding. Maybe during the holidays take canned food donations in exchange for a meal at your restaurant. Another great idea is to get the community involved in a huge potluck for the local homeless shelter.
Not only does your brand gain more visibility, but it also gains visibility for positive reasons. Moreover, this will make people more attracted to your brand because they know if they are supporting your brand, they are also supporting a good cause.
As technology and digital media continue to evolve, learning to market for your brand continues to grow more complicated. Fortunately, brand activation events give you an opportunity to get your brand on the front-lines without the risk of blending in with the competition.
Activation events allow you to repackage your products and share them in a whole new way. Moreover, activation events bring your in-store or in-restaurant traffic to new heights and allow you to build more meaningful relationships with your consumers.
So long as you focus on your audience and focus on making your experiences unique and shareable, brand activation events can help you ride the tide of changing trends.
6 Popular Brand Naming Methods
Anyone who’s had to come up with a new name for their business understands how draining the journey can be, and how quickly that early excitement is surpassed by a feeling of hopelessness triggered by the realization that all the nice names are already taken.
The subject of naming strategies is covered by plenty of articles. Most of them concentrate on the list of conditions a new name should follow–it should be original and easy to remember, and in line with the brand vision. All of this is relevant–after all, the name is the most important and vital medium, and there are many brands that have shown that a good new name can make all the difference.
Not many articles, however, discuss what certain naming choices may mean for the future for the company and what can actually create the most problems in the future.
This article talks about the important elements of the naming process and decisions that should be analyzed and decided upon before moving forward with any fresh name. Considering these factors at an earlier stage can save businesses time and resources in the years ahead.
The first question you should ask is if you really need a new name. If you’d like to set up a new business, it needs a name, of course, but if you’re creating a new product, for instance, check first whether you can use any current names that the organization already owns, especially if it’s already acquired some brand recognition.
Developing a new brand from the ground up is a preferred option for many people because it gives them a sense of creativity, but this decision shouldn’t be made lightly. In most cases, it can take years and be very expensive to build brand recognition. You can try one of the following alternatives instead.
Endorsed brand (e.g. Avid Hotels by IHG )
A Subsidiary brand (e.g. Hyatt Regency)
A Product Variant, with a branded house framework (IHG® Rewards Club)
You’ll notice that all of these examples stem from a reputable and recognizable parent brand.
Finally, look five to 10 years ahead when regarding the new name and how it fits into the landscape of your current portfolio. Think about what the potential future products will be, where structurally they will fit, and how they will live in harmony with the product you are launching now.
The Right Naming Process
Once you’ve decided on how to approach the brand architecture, it’s time to start deciding what types of names would best serve your brand’s future. At Longitude, we have a full name development process that we guide our clients through – from concept to trademarking.
However, naming your business is something that can be done on your own as well. Just make sure you take a strategic approach and think through all of the potential meanings, benefits, and challenges within the name you pick. Naming your business shouldn’t be a clumsy or casual process. It is truly a rigorous, holistic and dynamic process guided by very specific branding and business goals.
The first task of developing a successful brand name is to educate yourself with some of the brand naming techniques and identify which model is suitable for your business, your product or service, and your intended audience.
1. Founder’s Name
This may be one of the most simple naming methods, but it can also be the most difficult to use properly. This method uses the name of the individual(s) who established the business as the brand and describes the products with or without additional descriptors. One of the most popular examples of this is Disney, named after founder Walt Disney.
2. Descriptive Names
Another relatively simple standard on brand naming, this approach creates brand names that reflect the offered products or services. One valuable thing to consider with this category is that brand names that seem to depict a product are truly strong brands that have become associated with the goods they supply – such as Xerox for photocopiers, Band-Aid for small bandages, and Scotch tape for… well, tape.
3. Geographical Names
Again, this straightforward naming system is just what it sounds like— using a landmark or geographical reference in a brand name linked with a product or service, for example. Amazon, Patagonia, Boston Market, and New York Life.
Geographical names associate a brand with all of the characteristics of history and culture for which its name is known— whether that be good or bad. These names are often used by companies that once marketed to a geographically restricted crowd but have since expanded. Obviously there are natural constraints to naming or renaming your brand after its home region. Plus, it’s almost impossible to find a name that hasn’t been already used.
4. Evocative Names
Evocative brand names reside just on the other end of the creative spectrum. Evocative names use suggestion and symbolism to recall the brand’s positioning or experience. They are unique and versatile, and create a strong differentiator. Because evocative names often tend to be complex and multifaceted, they are a chance to forge a deeply significant brand that is greater than solely the products or services you provide. They can become the backbone of your brand’s position.
Evocative names are much easier to trademark than descriptive ones because of their originality. Though, getting executive buy-in on an ambiguous name which requires some unpacking can be difficult.
5. Neologisms (Invented Names)
One fun part about creating a name for a brand is that if you can’t figure out the best word(s) to describe it, you can always just invent a word yourself. Invented names are fanciful, if not distinctive, fabrications. These kinds of names provide a brand with the most creative latitude, but that doesn’t make them simple to dream up. Often, they are constructed out of Latin, Greek, or other foreign root phrases and altered to best represent the character of the brand.
As a general rule, acronyms are often difficult for people to remember, and can be one of the most challenging names to trademark. Yet, using an acronym for a name has been a default staple for many businesses since the concept of branding became a thing. Despite the challenges with this naming strategy, brands like UPS, KFC, and IBM don’t seem to be phased despite their name being a series of uppercase letters.
The name you choose is one of the most important keys to your brand’s success. Taking the time to develop a memorable, evocative and truly distinctive brand name will provide you with a strong foundation for a successfully positioned brand in the market. Eventually contributing to increased profitability for your business.
Although the naming methods are finite, there is an infinite list of possible brand names. The journey of naming your business is exciting and frightening at the same time. But remember this, a perfect name won’t make a bad product awesome, but a great product can make even the most odd name memorable.