3 Restaurant Marketing Trends to Watch in 2014

Marketing in today’s world can feel like a fragmented endeavor, what with all of the various options that are available. Traditional media marketing through television, radio and print remain important cornerstones of successful restaurant campaigns, but modern marketing options through social networks and digital and mobile platforms are equally critical. Rather than despairing over the fragmented nature of all of these options however, restaurant operators should embrace them as an opportunity to shine in multiple avenues and look for ways to implement integrated marketing and branding plans that build consumer awareness in new ways. Here are three restaurant marketing trends you will see a lot more in 2014.

Utilizing Restaurant Industry Applications and Refining Social Media Interactions

Smart phones now account for some 64% of all mobile phones in the U.S. and that figure grows steadily year by year. Consumers increasingly expect to be able to use their phones to interact with your business. Restaurants around the country are rolling out mobile-coupon and mobile-loyalty platforms with great success. Along with payment, loyalty, ordering and reservation functions, several restaurants are also developing games that align with brand messages or give food rewards to players to entertain and engage users. There is as much fragmentation within the type of device on which an application runs as there is in marketing avenue options. So, until there is an ‘ultimate device’ that everyone uses, it’s best for restaurant operators to keep versatility as top priority when developing and improving their applications. 

On the social media front, restaurant operators need to be more mindful than ever about how they look in the eyes of the public, and be prepared to deal with crisis should it arise. Previous years have shown us how quickly a brand’s reputation can get damaged through social media by careless responses from moderators regarding customer concerns. With a number of hot topics, such as minimum wage, poised to make headlines in 2014, restaurant operators should have a response plan of action or think about adjusting their cultural identities to best turn politics to their advantage. 

Old-Fashioned Restaurant Marketing Still Works, Especially on T.V.

With the rise of digital and social marketing, it can be easy think that you can let traditional media marketing fall by the wayside. This couldn’t be further from the truth. Despite the increasing popularity of digital and social marketing, television, in particular, remains a highly influential form of advertising. In fact, 68% of consumers surveyed in September of last year said they take action at least some of the time after viewing a TV commercial. The only thing that inspires a higher action rate than that is recommendations from friends and opinions posted online.  This underscores the folly of neglecting traditional forms of media marketing. 

Restaurants Co-Brand for Greater Reach

There is one final trend to watch in 2014 that we’ll discuss here. That trend is the potential that can be unlocked by partnering with the right companies and getting your research and development teams to collaborate. Such unions can be wildly successful for both businesses. Think of Taco Bell’s Dorito Locos Tacos, Cinnabon lending its signature flavor to Burger King’s breakfast products, as well as bottles of vodka, and McDonald’s and Kraft’s McCafe-branded coffee scheduled to hit grocery stores this year. Looking for ways to partner up and collaborate with other businesses in your area is a smart way to create a win-win situation for everyone, and you can count on seeing more such unions in the upcoming year.

Media marketing strategies will continue to evolve with technology and consumer demand. To be successful in the coming years, restaurant operators should focus on building integrated marketing plans and recognize that multiple media avenues are opportunities for creatively reaching and engaging customers.

Confident and Effective Restaurant Management

Effective managerial skills are critical to the overall functionality of your workforce. Managers set the pace and the example for the rest of the staff, and employees very much take their cue from their managers about how to treat their jobs. Managers who are insecure, poor communicators, or who get locked in power struggles end up losing the respect of the employees, which, in turn, affects the quality of the service that they provide.

If you want to ensure that your staff stays motivated and treats their jobs with respect, it’s essential that the skills of the people in management positions are up to par. Fortunately, there are a few easy tips that anyone can keep in mind which will help nip mediocre management in the bud.

Effective Restaurant Management Starts with Confidence

Confidence is more crucial to effective management in the restaurant industry (or anywhere) than a person might think. People who are confident in themselves and their abilities come across as composed, secure, and trustworthy. Managers who exude confidence give their employees a sense of security that they are a person who knows what they are doing and are to be trusted in their directives.

Now granted, even the best of us don’t feel confident all the time, but if you’re in a management position, you at least need to understand how to come across as a confident person. Simple things like making eye contact for instance, or having good posture, positive facial expressions, and a professional appearance can make all the difference in the world in how people perceive you.

Excellent Communication Skills are Essential in Restaurant Managers

Along with confidence, managers also need to have excellent communication skills. They need to be able to give directives without coming across as being overbearing, wimpy, or ignorant of the situation. They need to treat people fairly, be able to communicate clearly and calmly about what is needed, and why and they need to be able to truly listen to and respond to the needs of their wait staff.

Obviously, they also need to be able to think ahead, anticipate situations before they arise, and act to correct any potential issues in a calm, clear, and rational way. Needs are expressed clearly and power struggles are dissolved as employees begin to trust in the equanimity of the manager as well as the fact that their needs are being heard and respected.

Restaurant Managers must Excel at Positive Reinforcement

The final ingredient to truly effective managerial skills is the ability to foster an atmosphere of teamwork and respect among the workforce. Along with having confidence and excellent communication skills, managers achieve this largely by positive reinforcement. They focus on their employees’ strengths and on what they are doing right. They tell their employees how valuable they are to the business and how much they appreciate all that they do for them.

Furthermore, effective managers are problem-solvers. They see every challenge as an opportunity to grow and learn and they keep an attitude that nothing is insurmountable.

Having effective management makes all the difference in how the rest of your staff perceive and respond to their jobs. Confidence, clear communication, and an upbeat, positive attitude are the key ingredients for successful managers in the restaurant world.

Experts Feel the Outlook for the Restaurant Industry in 2013 is Positive

Despite the fact that the restaurant industry has had to deal with numerous negative pressures and uncertainties over the course of the last several years, many experts feel that 2013 will actually usher in a record high in restaurant industry sales. The projection is that sales will reach around $660 billion this year; representing a 3.8% increase from 2012 (adjusted 0.8% for inflation.) Although growth isn’t expected to be explosive, this remains positive news for those involved in the restaurant business.

The Fact that People want to Eat Out Is a Major Contribution to Growth in the Sector

One of the biggest factors that protects the restaurant industry no matter how bad the economy gets is the fact that it offers a service that customers actively seek out. We see again and again that people continue to spend their hard earned dollars eating out, no matter what the state of the economy is.

Now, obviously people who are feeling strapped for cash may perhaps make different choices in regards to how they eat out – doing so less frequently or down-trading to establishments with cheaper menus – and restaurant owners have had to shift their practices accordingly. But this doesn’t change the fact that people want to have nice meals outside their homes. In fact, one of the biggest factors contributing to the expected growth of this upcoming year is actually the pent up desire many people have to eat out on a regular basis again.

Why Restaurants are Flourishing Again, Despite Rising Costs

This is the sixth consecutive year of economic weakness. By this point in the game, most restaurants have either rose to the challenge of finding innovative ways to cut costs and control productivity or they have had to close their doors. Those restaurateurs who have been able to stay the course and solve their operating dilemmas are now able to shift their focus from simply keeping their heads afloat to growing their sales base instead.

Grow Your Sales Base with Strategic, Focused Marketing Plans

Given the fact that success this year is so dependent on attracting and retaining new customers, it only makes sense to have a marketing plan that is extremely targeted and efficient in place. Follow your metrics closely, make a point of understanding what is working and what isn’t, and shift your technique accordingly. Social media is going to play a big part in the success of your marketing campaigns as well, so if you haven’t already developed a strong social network, spending a little extra effort in this arena can have big payoffs – especially if you get creative with your campaigns and utilize marketing gimmicks that engage users and encourage them to help you spread the word.

Pre-tax profit margins will continue to be slim, so it’s also important to keep an eye on every aspect of your operations, monitoring for areas which could use some adjustment.

All in all, things are looking up for the restaurant industry this year. The people are there, and they want to eat out. Your job is to keep up with reforms that increase productivity and efficiency while finding creative new ways to attract them to your establishment.

The Restaurant Industry Addresses What is Most Important to Customers at Protein Innovation Summit

The Protein Innovation Summit of 2012 will be presented by the Meating Place and Plate on April 16th and 17^th at the Trump Hotel in Chicago. This year’s theme will touch on the question:  how do you satisfy a customer that wants to enjoy an indulgent, sustainable, economical, and healthy meal all at the same time? The problem people are running into is that restaurants can only offer 2 or 3 things—3 at the max—in one menu item.

 

Sustainability, Nutrition, Indulgence, and Cost

Two market research groups, Techonomic, Inc. and The Hartman Group, will try to address all of these factors at the summit. Instead of trying to run in circles pleasing everyone, these research groups decided to study and survey what the customer really thinks. Wouldn’t it be great if you could read minds and figure out what customers really think about these issues?

For example, what do they think when looking at a menu and its relationship with local foods? What are they thinking before they purchase the maple-iced donut with bacon on top? How closely do they relate good nutrition to sustainable living?

 

What’s Going on at the Protein Innovation Summit?

The two marketers will address market sustainability and balancing indulgent options with healthy menu choices. In addition to this overall theme, subtopics include how consumer needs are affecting the meat and poultry industry. Case studies of sustainable meat in Chipotle, Hyatt and other prominent foodservice establishments will be reviewed.

Additional topics and panels to be discussed will be animal food choices, price trends in meat and poultry, nutritional issues with Culver’s Tallgrass Beef, Fairmont Hotels, and Advance Pierre Foods. Carcass optimization will be addressed—most likely in light of the “pink slime” concerns.

 

 

U.S. Restaurant Industry Forecast for 2012 — 4 Predictions to Watch

As the economy recovers, restaurant owners have become more innovative and efficient—some may even call it thrifty. Call it what you will, but the situation is still the same: restaurant owners have to find ways to deal with a hard sell and a tough environment to make a profit.

Predictions for 2012 in the Restaurant Industry

1. An Improved Customer Experience

Not only are restaurants more efficient and innovative but so are the food quality, special offers, and new products. As a result, a customer loyalty will increase for these businesses—and their profits.

 

1. More Financing Available

If restaurant financing and loaning continues like it did in 2011—and it should—the debt opportunities for medium to larger restaurants and franchises will increase. Lending will continue to prosper as the country still recovers during the economic downturn.

 

1. The Buzz about Social Media Continues

You’d be hard-pressed to find someone that is not involved in a social network, but restaurants interested in the social media networks came in droves last year. Social Media is the new word-of-mouth for restaurants, but there are techniques and etiquette to how you present yourself. Whether this will have a long term benefit is still to be seen.

 

1. The Role of the Restaurant becomes Invaluable

One of the largest private sector employers is the restaurant industry. They now employ close to 10 percent of the nation’s workforce. In 2011, the restaurant industry reported that all of the loss of jobs in the economic downturn have recovered. There are now over 105,000 more jobs available than there were before the recession. These figures are expected to increase, too.

Be mindful of  these four factors, and be ready to adjust to a new normal in the restaurant industry.

Merchant Cash Advance Bolsters Restaurant Loans and Financing

Merchant Cash Advance has reported that they will increase restaurant lending from $500,000 to $2 million. These loans are designed for medium-sized businesses that are in the need of fast financing.

 

According to Merchant Cash Advance in a recent press release on March 7, 2012, they report, “We have been able to secure a new financial partnership that allows us to connect business owners with literally millions of dollars in working capital.”

 

Restaurant Financing – Mutually Beneficial to Both Parties

 

Merchant Cash Advance has always had a vested interest in food service. Their restaurant loan program is in high demand and is their primary source of success. The prerequisites for admission to the loan program are also easier to meet than before.

 

A restaurant pulling in $300,000 a month could be eligible for $2 million in financing with little processing involved; however, startups do not fall in the same category. In some cases, a small startup may get $20,000 in loans IF they are bringing in $20,000 a month in gross sales or $1,000 a month in credit card sales.

 

Still, this offer is a lot more than most credit unions and banks are willing to offer. Merchant Cash Advance specializes in several different restaurant loan programs, and we think that other loan programs may follow suit due to their high level of success.

 

Merchant Cash Advance does not cater exclusively to restaurant owners. They also work with suppliers and wholesalers, and even retail outlets.

 

Economic Future Looks Bright

 

Since the unemployment rate went down to 8.3% nationwide, the restaurant industry has been one of the first to feel the weight lifted. People are willing to eat out more. Restaurants are lined up for prosperity again.

 

Not only does this look hopeful for current owners looking to broaden their horizons, but it says good things for the restaurant industry overall.

 

U.S. Restaurant Industry Forecast for 2012 — 4 Predictions to Watch

As the economy recovers, restaurant owners have become more innovative and efficient—some may even call it thrifty. Call it what you will, but the situation is still the same: restaurant owners have to find ways to deal with a hard sell and a tough environment to make a profit.

Predictions for 2012 in the Restaurant Industry

• An Improved Customer Experience

Not only are restaurants more efficient and innovative but so are the food quality, special offers, and new products. As a result, a customer loyalty will increase for these businesses—and their profits.

 

• More Financing Available

If restaurant financing and loaning continues like it did in 2011—and it should—the debt opportunities for medium to larger restaurants and franchises will increase. Lending will continue to prosper as the country still recovers during the economic downturn.

 

• The Buzz about Social Media Continues

You’d be hard-pressed to find someone that is not involved in a social network, but restaurants interested in the social media networks came in droves last year. Social Media is the new word-of-mouth for restaurants, but there are techniques and etiquette to how you present yourself. Whether this will have a long term benefit is still to be seen.

 

• The Role of the Restaurant becomes Invaluable

One of the largest private sector employers is the restaurant industry. They now employ close to 10 percent of the nation’s workforce. In 2011, the restaurant industry reported that all of the loss of jobs in the economic downturn have recovered. There are now over 105,000 more jobs available than there were before the recession. These figures are expected to increase, too.

Be mindful of  these four factors, and be ready to adjust to a new normal in the restaurant industry.

Merchant Cash Advance Bolsters Restaurant Loans and Financing

Merchant Cash Advance has reported that they will increase restaurant lending from $500,000 to $2 million. These loans are designed for medium-sized businesses that are in the need of fast financing.

 

According to Merchant Cash Advance in a recent press release on March 7, 2012, they report, “We have been able to secure a new financial partnership that allows us to connect business owners with literally millions of dollars in working capital.”

 

Restaurant Financing – Mutually Beneficial to Both Parties

 

Merchant Cash Advance has always had a vested interest in food service. Their restaurant loan program is in high demand and is their primary source of success. The prerequisites for admission to the loan program are also easier to meet than before.

 

A restaurant pulling in $300,000 a month could be eligible for $2 million in financing with little processing involved; however, startups do not fall in the same category. In some cases, a small startup may get $20,000 in loans IF they are bringing in $20,000 a month in gross sales or $1,000 a month in credit card sales.

 

Still, this offer is a lot more than most credit unions and banks are willing to offer. Merchant Cash Advance specializes in several different restaurant loan programs, and we think that other loan programs may follow suit due to their high level of success.

 

Merchant Cash Advance does not cater exclusively to restaurant owners. They also work with suppliers and wholesalers, and even retail outlets.

 

Economic Future Looks Bright

 

Since the unemployment rate went down to 8.3% nationwide, the restaurant industry has been one of the first to feel the weight lifted. People are willing to eat out more. Restaurants are lined up for prosperity again.

 

Not only does this look hopeful for current owners looking to broaden their horizons, but it says good things for the restaurant industry overall.

 

How Will Google Wallet Affect the Restaurant Industry?

Google launched the first version of Google Wallet at a press conference on May 26, 2011. Then the mobile app made its debut on September 19, 2011. A limited amount of restaurateurs are trying out this new system of payment with Google Wallet.

Jamba and Jack in the Box have reported that they anticipate traffic to their stores to increase as tap and go payments become a part of consumers’ everyday routines. For many places, contactless payment may require an upgrade in their current hardware and POS software. But Jamba feels that the change will be worth it in the long run.

Here’s How Google Wallet Works

Currently, you must have a Sprint Nexus S 4G and use Citi Mastercard to apply this technology, but by the beginning of next year that is expected to change. Android already has plans to incorporate Google Wallet as well as just about every other mobile phone company. Since Google is a trusted name, the app is expected to take off.

The system allows for easy swipe with the phone in brick and mortar locations. The app also automatically applies any Google Offers and participating loyalty and gift card locations. Now you can truly go paperless with your coupons!

Soon Google Wallet is expected to add a sticker that you can scan right on the smart phone, enabling the customer to ditch their credit cards and carry everything on their smartphones

Google Wallet Provides Increased Security

Not only will Google Wallet bring an added convenience to eating out, but it is more secure. With any other type of debit card or credit card, it can easily be stolen and used. Google Wallet requires a PIN to access any of its features on your phone. Plus, you can always lock your phone, too.

Currently, Google does not store transaction details, but they are expected to do so. Needless to say, our purchasing demographics will probably be researched and explored for purposes of advertising.

 

Restaurant Social Media: How Good Is Your Branding?

How good is your word-of-mouth reputation? Chances are if you aren’t actively participating in a restaurant social media campaign, you have probably fallen off the radar. In our last blog post, we reviewed some of the best restaurant websites in the industry. A large factor that contributes to the success of these websites involves customer interaction. If you don’t have a social media manager for your corporation, you are giving away business.

National Restaurant News Releases New Social Media Tool

The NRN website announced the release of Restaurant Social Media Index (RSMI) in 2011. The tool was invented to give an analysis of how customers are interacting with restaurant social media. Effectively, this will tell you how the general public rates your brand.

You may submit your restaurant for analysis here. The tool measures and reports on activities concerning your restaurant from the following platforms:

• Facebook
• Google+
• YouTube
• Twitter
• Blogs
• Gowalla
• Foursquare

By monitoring the activity of your friends and followers, you can tell how well your brand is doing and what customers think. The tool provides the following data:

• RSMI score out of 300
• Klout score out of 100
• Social media growth
• Ranks your website’s importance on major social networks
• Customer sentiment

RSMI Top 100 for the Third Quarter

RSMI released the Top 100 social media brands. Here is a quick peek at the top 10.

1. Starbucks
2. Wendy’s
3. Chick-Fil-A
4. McDonald’s
5. Outback
6. Jimmy Johns
7. P.F. Chang’s
8. Applebees
9. Chipotle
10. Pinkberry

It’s very interesting to see the switch of advertising from print and TV to digital media. For example, Chili’s discontinued three weeks’ worth of TV advertisement in lieu of an intensive social media campaign. The results were astounding. They went under budget and had better results than TV.

We’ll be keeping a close eye on these scores and report interesting findings in the coming months as this scoring becomes standard in the restaurant industry.