Selling Smarter: What is your Marketing IQ?
By Tom Boyles | PMQ Staff

Is money getting tight? For casual dining and fast food this is a great time of opportunity according to many of the experts I have spoken to. Many industry suppliers such as George Carrageorge at Torino, Matthew Chandelor at JL Lennard and Andrew Morris at Spyral have said business over the past few months has actually increased. If the industry suppliers are selling that means their customers (the restaurants) are selling too.

A recent report I read in The Australian, stated that in tough economic times many Australian consumers still enjoy their meals out and are turning to fast food as their choice. “This is a great time for fast-food outlets to catch a bigger share of the market as more people turn to less expensive hamburgers, pizza, chicken meals and sandwiches,” the article said (For the complete article go to Theaustralian.news.com.au and search for “Fast Food”).

If your cash flow is starting to get tight, now is not the time to start tightening your purse strings when it comes to marketing. When customers are flocking to you, you have all the business you can handle… that may be a time to cut back a little because too much business can be as bad as no business. But, when the number of people waking in slows that is the time you need to spend money and efforts on marketing the most. The slower the traffic the more they need to hear your name and hear incentives. So what are some things you can do to get the numbers back up? Let’s test your marketing IQ.

Discounting
Is it a good idea to discount when times customer counts are down? No. Looking desperate does a few negative things to your business. First you devalue your brand and the perception of quality. Once customers start buying a pizza at a discounted price they come to expect that price from that point on. When you bring prices back in line with the normal menu they feel ripped off…like you just gouged them on the price. You also start to brand yourself right along side those other cheap pizza brands (which we won’t mention here). Use other marketing strategies to add value. Something like a free soda with any order of $20 does more to help you. Be sure to state your menu price for the free soda because if it is $4 then their perception is that they received almost a 25% bonus for the purchase when in fact your cost of the soda may have only been $1.5. The same strategy cn be applied t other menu items such as salads or breadsticks.

Trade
What is one of the best ways to cut costs while marketing to other businesses? Trading. You have to get your oil changed. You need business cards. You buy flowers for your wife/girlfriend. You eat out at other places. One good way to reduce your expenses is to trade services and goods for food. Talk to the owners of the oil changing stations, florists, printers and offer free meals at your restaurant in exchange for things you need. This can get people in your shop who may not already be current customers.

Suggestive Selling
What should your staff be suggesting to customers? A natural reaction is to promote your best selling pizzas and entrees, but training your staff to suggest your high profit/low cost menu items is a better way to boost your bottom line. Take a good look at those things on the menu that have the best profit margins. Identify the best money makers and then call a staff meeting. Give your employees a few examples of how to suggest these items to customers. It may be something as simple as recommending breadsticks or it may be a good wine. Train your staff to let the customers place their order then have them suggest another addition that has a nice profit, such as a coffee, salad or dessert. Make sure to identify at least one item in each category (entrée, pizza, dessert, beverage, etc.) that can be added on to an order. The key is not to ‘push’ the item on the customer, but simply suggest or recommend it. A simple comment like, “Before my shift I sampled our new Tiramisu we just added and it is really delicious. When you are finished I can bring you one if you like, but it is really good.” When someone comments that a particular item ‘is their favorite’ or that they sampled it prior to going to work it helps to reinforce to the customer that it is a good idea. Getting customers to add on to their order is great, but the best way is to make sure your staff knows which items earn more money and suggest those.

The Health Check
During the slow periods of the day, what is the best way to utilize staff members who are on the clock? Clean, clean, clean. As Stephen Millar discusses in his article in this issue, doing an assessment of how your restaurant appears to the average customer at first glance is crucial. There is an old saying one of my former bosses used to say; “Be cleaning instead of leaning.” When it slows down, rather than leaning against the counter, employees should be cleaning up. It may be as simple as wiping the glass on the front door or simply replacing a broken light bulb. The details are what make the difference. Are there scuff marks or smudges on the walls? Could the sidewalk use a good sweeping? Are the menus sticky or dirty? Things as simple as pushing all the chairs under the table make customers’ first impression of your place better, so have your staff cleaning instead of leaning.

Sampling
Generating takeaway and catered orders can be difficult but are a great way to boost sales when dine-in traffic is low, but what is the best way to do it? Sampling. At least twice a week you should be working to get more catered orders and the best way is to let people try before they buy. Think of two groups that order food in for functions. Think about offices where they have group meetings, sports organizations, retail stores where workers can’t get away for lunch. Don’t hit the places that already order, but the new potential customers. Take one pizza and cut it into small pieces so everyone can try it. Bring a few small portions of a dessert or an appetizer, but remember to also bring menus and business cards so they can call. This may even be a great time to try and trade your food for goods and services with the owner. Sampling can also be as simple as taking a new pizza addition to the menu and standing in front of your shop and offering small bite size samples to those walking by or samples to dine-in customers before they order. A free sample is always a welcomed treat and can get new takeaway orders and kickstart sales of new items.

Simply committing two hours per week to your marketing can make a difference of thousands of dollars per month. Things as simple as cleaning up when business is slow to walking around and talking to your customers are the small details that make you stand out from all the other places. If you have a great idea that isn’t mentioned here, give PMQ a ring (1800 008 487) or shoot us an email (tom@pmqaustralia.com) and let’s hear it. We may feature you as a marketing guru in the next issue of PMQ.