Here you will find current trends and see how they relate to your business so you can continue to build connections with patrons and keep them coming back. Be sure to visit from time to time, to see what new insights we have to share with you, and how you can turn this information into a catalyst for success.
Stay ahead of rising costs by pricing for profit
It's no secret that food costs are rising faster than ever. According to the Bureau of Labor Statistics wholesale food prices are up 8.2% since last June and we've seen the highest food price increase in 27 years!1 Because of this, it is expected that upscale and moderately expensive restaurants will see a decrease in customer frequency. However, traffic at family style quick-service restaurants should stay relatively consistent, and 10% of consumers say they'll actually be spending more in restaurants over the next 90 days.2
With this in mind, now's the time to make a few adjustments in your menu pricing to head off the rising cost of doing business and increase your bottom line. Pricing for profit allows you to get the value you deserve for your product without altering the great food you're known for. Here are few things you can do:
· When you raise prices, don't do "across-the-board" changes
At some point you'll have to increase prices but, when you do, don't change them on a large number of items at once. If you do there's a greater chance for customers to notice and not like it. Instead, raise just a few items at a time.3
· Don't mark up your menu - reprint it!
Never cross out, write over or use stickers to hide old prices on your existing menu. This will call attention to the price change. Your best bet is to reprint the menu.3
· People like value but they'll pay for premium.
Ninety-three percent of pizzeria operators said their least-expensive pizzas are priced at $15 or less. But what might surprise you is that two-thirds of those operators reported up to 25% of their customers order the most expensive pie on the menu. The message? Serving a higher-end pizza still appeals to 1 in 4 customers and can make up a nice slice of your profits.
For more information please contact your Grande Sales Associate or call 1-800-GRANDE.
Sources:1Bureau of Labor Statistics; 22008 InvestorPlace Media, LLC;3restaurantowner.com, August 18, 2008; 4Pizza Marketplace Industry Study 2007
Turn your menu into a direct mail piece and get staggering results!
There's no doubt that your menu is the single most important sales tool you have. It's the one thing EVERY customer will look at and it makes your first impression with customers.
Whether you've been in business for years or just recently opened, having an ongoing direct mail campaign is essential to keeping your place top-of-mind with customers in your area. This is particularly important around the holidays and special events such as Super Bowl, graduations, Memorial Day, Thanksgiving and Christmas.
Direct mail has many advantages over other advertising mediums:
· It's targeted, which allows you to direct your menus and promotions to the customers you want to reach in your local and surrounding areas.
· It's personalized, which lets you craft messages tailored to different types of customers. For example, you can draw in busy families with meal deals or business customers with lunch specials or catering.
· It's tangible, so customers can hold onto your mailing, and your messaging and promotions will encourage them to interact with your business in the future.
· It's measurable, so you can track the response from your efforts and adjust your tactics for increased success.
· It's cost effective, which means your advertising dollars will go further because your targeted message goes directly to the people you want to reach.
Having a direct mail plan is crucial. Knowing how to run one is even more important. A mistake some operators make is to send out direct mail pieces to everyone in their area all at once, which can lead to an overwhelming surge of customers.
When you stagger mailings, you'll constantly be contacting customers, just not all at once. For example, try sending out a mailing to customers north of your restaurant one week, then subsequent mailings to customers in the south, east and west two weeks apart. By dropping mailings in this manner, each week will bring a new set of customers and eliminate large gaps of downtime, while keeping the numbers of customers at a consistent level your staff can handle.
Staggering the delivery of your direct mail lets you increase your customer base without sacrificing quality and overextending your capacity.
For more information, please contact your Grande Sales Associate or call 1-800-8-GRANDE.
1Percentage is based on POS reports from 11 independent operators who have tested Grande's Solutions @ Work . Menus through direct mail. Individual results will vary.