Clever Coupons

Reading through an old post on Restaurant Commando we stumbled across the idea of “clever coupons” in restaurants, and felt it was a good idea to revisit given the current economic times. (http://restaurantcommando.com/restaurant-coupons/restaurant-coupon-marketing-the-2-for-1-deal-is-dead)

The authors believe that the old “2-for-1” deal should be a thing of the past – a marketing tactic that effectively damages your bottom line. They state: “A discount that is attached to an entree is like a vacuum cleaner sucking the cash out of your wallet. This is NOT the right way to run a restaurant.”

Instead, they suggest that creating value for your customers does not need to involve a discount. The authors encourage you to use what Nathan Gilder of CouponCuisine calls “clever coupons.”

Rules of Clever Coupons
According to Gilder, the general rules of clever coupons are easy.

1. Create curiosity with an offer that is unique and unusual
2. Require customers to do something to qualify for the offer
3. NEVER offer a blatant discount

Gilder states this is effective because you build excitement with your unusual offer, and you also build on your restaurant’s bottom line as customers seek to take advantage of the offer. Gilder believes that this approach allows you to offer value and a unique experience to your patrons without simply offering a free entrée or other loss-leader.

Examples of Clever Coupons

• Bundled products (free shared dessert with two entrée purchases, free kid’s meal with two adult meals)
• Offer something that is not an entrée but is still something your customers want (free drink, appetizer, or even a cross-promotion with an outside store)
• Offer a fixed percentage off the total bill, once a desired ticket value is met

  

Remember to Track, then Trust the Numbers
One of the most important things to remember whether your restaurant is trying Clever Coupons or another promotion is to accurately measure the effectiveness of your efforts. Knowing the Return on Investment (ROI) will let you know whether or not you should continue, build more aggressively or pursue another direction.

1. Set a baseline of “normal” business activity. This is your “control” set of numbers. 
2. Identify how you will measure the results of each promotion and how you will be able to compare the promotion period results against the control numbers (e.g., collected coupons, a unique code in the POS terminals to be used, average ticket size, number of covers, etc.)
3. Have scheduled dates where you will measure and analyze the effectiveness of your campaigns against the performance indicated by the control numbers.
4. Before you begin, determine the minimum metrics, or goals needed to make the project a success. Set a date to measure this goal, and if it is not performing to the minimum standards, cut your losses and move on.

The struggling economy definitely has restaurateurs seeking new and better ways to bring in customers for repeat visits. Ideas like Gilder’s Clever Coupons could give your restaurant the help it needs to remain intelligently competitive.

What do you think? What was the most effective coupon or offer your restaurant has offered? What did you measure that led you to conclude it was such a big success?

Maintaining Your Restaurant’s Electrical Equipment

Without your restaurant's electrical equipment, your business cannot perform important functions like cooking, providing entertainment, or POS operations, which is why it is so important to include equipment maintenance as part of your regular business routine.

Failure to maintain your electrical equipment leads to break-downs and malfunctions which can affect your food and liquor costs, business transactions, and overall business performance and profitability. Before writing-off maintenance checks due to a lack of time or procrastination, consider the financial damage your restaurant could sustain when you are unable to serve food, track sales, or have to throw away hundreds of dollars worth of spoiled perishable items.

While regular maintenance checks may seem like a minor thing on your list of important operational tasks, failure to follow through with them could spell disaster for you and your business. Broken or damaged electrical equipment could cause such situations as:

• Cooler, refrigerator and freezer breakdown which can cause hundreds of dollars worth of food to spoil. Not only does this raise your food costs and monthly losses, but it lowers your ability to make sales and meet customer demand.
• Ovens, grills, of fryers break down preventing your kitchen from completing food orders, causing you to lose sales while creating a negative impression for your customers.
• Your POS system goes down possibly locking-up your cash registers and preventing an ability to process credit card sales, which inhibits customer service and sales as well as your ability to track reports.
• Your entertainment system breaks down preventing customers from dancing, listening to music, or watching sporting events on television. For clubs that rely on entertainment as a means to attract patrons, this not only creates a negative impression, but it can drive your customers to seek a good time somewhere else.

It is relatively easy to maintain your restaurant's electrical equipment:

• Keep all of the owner's manuals accessible. Most manuals come complete with troubleshooting guides, storage and electrical capacity instructions, and numbers or web addresses for the manufacturer in case of malfunction. In addition to these helpful tips, many manuals have maintenance schedules and guidelines.
• Make sure that your restaurant is adequately wired for your equipment. Overloading circuits can short-out your equipment, resulting in severe damage or fires.
• Perform regularly scheduled maintenance including checking electrical output, cleaning and replacing any temporary components like filters, belts, or coolant.
• Keep your equipment clean inside and out. At least once a week clean underneath and behind large pieces of equipment. If your POS system uses a touch-screen, keep the screen clean and your printers free from dust and debris.

Equipment maintenance is just as important for your restaurant as it is for any other industry. Do not put it on the back burner or wait to take care of it later. By the time "later" comes around you may have already lost hundreds of dollars in ruined stock or customer sales.

If you constantly run into equipment problems, your restaurant gains the reputation as a place where customers can expect inconsistent service and food as well as an overall unsatisfactory experience. Don't make the mistake of thinking that electrical problems will go away on their own.

As a restaurant owner, you must be ready to accept the responsibility of maintaining your equipment if you want to own a prosperous, growing business.

Have you had any recent experiences (either positive or negative) with maintaining your restaurant's equipment?

Maintaining Security in Your Restaurant

Unless you want a reputation as a rough-and-tough place that constantly has to deal with local police or suffers from frequent break-ins and robberies, you should invest in a good security system and staff.

Not only does your security system protect your establishment, patrons, staff, and yourself, but also it can lower your insurance premiums and develop a good relationship with your local law enforcement. Your security system helps develop a safe environment for your staff and customers during hours of operation while also reducing the risk of break-ins when your restaurant is closed.

Your security system has different elements, but 3 common areas of focus include:

• Alarm system: An electrical alarm system detects break-ins after hours, which reduces your risk of loss due to theft. When the alarm is triggered the alarm company typically contacts you and the police.
• Video surveillance system: A video surveillance system on each register and door can prevent employee and customer theft by allowing you to monitor activity in your restaurant. You can see who comes and goes, what they take with them, and how your money is being handled. You and select members of your management team can review surveillance tapes online at any time of the day with the help of certain video security companies.
• Security staff: Your bouncers and doormen prevent fights, excessive drunkenness, and keep your staff and customers safe by confiscating weapons and removing disorderly patrons. Your bouncers can escort female patrons and staff members to their cars, patrol the parking lots, and contact law enforcement in the event of trouble.

If you are having difficulty finding security staff, many off-duty law enforcement or military personnel are happy to offer their services to your establishment. Not only do they get a little more cash in their pockets, but you reap the benefit of someone who knows how to safely handle intoxicated people in emergency situations with minimal risk and someone who understands the legal ramifications of any actions you need to take to secure your business.

In addition to providing your patrons and staff with safety and reducing the risk of break-ins and theft, a good security system helps reduce your insurance premiums by lowering risk of loss to theft or liability in the event of a physical altercation. Some ways to maintain your system include:

• Regularly test and update your electronic alarm system
• Review video footage on a regular basis
• Perform background checks on your security staff
• Make sure your staff follows an established and legally safe protocol when handling problem customers

Each element of your security system is designed to protect your restaurant. Without reliable and adequate security you risk monetary and physical damage to your establishment and reputation.

Visiting your restaurant can be a fun, safe, and enjoyable experience without your customers or staff feeling like they are on lock-down or in a prison camp...but it is still important that everyone be aware you do have security measures installed.

As always, you should consult with experts and local officials to make sure you are doing all you can to create and maintain a secure environment in your restaurant. Contact your insurance company and your legal representatives to learn about your rights and liabilities. Contact local law enforcement to understand your obligations, rights, and the rights extended by your restaurant to your patrons. Find out who to call in the case of emergencies.

By keeping up-to-date with the latest software and alarm systems, online surveillance systems, and hiring responsible staff who can safely handle security situations, you can maintain your restaurant's security and ultimately create a more comfortable experience for every guest.

Welcome to AdvanceMe’s Restaurant Blog!

As any restaurant owner knows, there are a million unique details to understand about running a successful restaurant. At AdvanceMe, we have learned this through speaking with the tens-of-thousands of restaurant owners we’ve served over the past decade.

We hear stories every day from those in the industry, and we’ve heard a lot: the good, the bad and the ugly. Through it all, we are learning that there are some simple consistencies in running a strong restaurant, that there are a variety of tips and suggestions worth sharing and discussing with other restaurant owners.

The purpose of this blog
The purpose of this blog is to share information and encourage discussions about the various aspects involved in running a strong, successful restaurant.

The topics our team has outlined to cover this year range from selecting the right location through overhauling your menu items or hiring live entertainers, taking many stops in between. While we have outlined over 100 pertinent topics to discuss this year, we always encourage your input if there is something you would like to see. Let us know!

Another goal of this blog is to open up the lines of communication and encourage sharing between restaurant owners. We hope that different owners in different types of restaurants all over America take a minute to share their successes and their challenges. We believe there is value and important lessons to be found in almost every experience, and no one knows the industry better than those who work within it.

Finally, we are opening this blog up to give experts in the field a platform on which to share ideas and help each other grow. There is no doubt that running a successful restaurant can be tough, so we want to encourage the best in the field to step forward and be heard. We’ll get the ball rolling, but the input received from individuals and the dialogue that follows is what will make this blog a true success.

So we thank you for visiting our blog, and hope you find a wealth of information within it. We encourage you to join in the conversation and share your thoughts and ideas. We welcome your feedback, and look forward to bringing you information designed to help you run a better restaurant.

Bon appetit!