Most Independent Restaurateurs Make those 8 deadly Mistakes 

 

The chef is an artist at heart.

1. Sharing your thoughts with friends, family members, customers and staff will prove to be much more fruitful  than trying to think alone. Ideas comes from rubbing brains against each other. Having someone to bounce ideas off and get an objective opinion is critical.

2. Why a Marketing Plan?
A marketing plan will help you to navigate through the constant decisions you will have to make on the route to success. There may many ways to market your business at very low cost. A good marketing plan implemented effectively, efficiently, and consistently, will always bring positive results. Soon to come on our site our Gorilla marketing Plan. Shots in the dark, such as adds in throw-away papers, are exactly what is sounds like throw-away $.

Take example from success, McDonald has ten of thousand of stores all over the world. This is a brand recognized my billions, why do they still advertise? The answer is: Whenever they tried to slow down on their advertising programs, their income dropped considerably. If McDonald needs to advertise to keep their sales up, what do you think you need to do, for your restaurant? Continue reading

Who Is Cooking?

Definition: Identifying your competitors and evaluating their strategies will allow you to determine their strengths and weaknesses in relation to your own restaurant.

A competitive analysis is critical to set up a winning Marketing Plan. With a thorough evaluation, you can establish what makes your restaurant unique, and what will be your marketing angle in order to reach your market.

Place your competitors in strategic groups according to how they compete for the share of the market dollar in your area.

For each competitor or strategic group, list their **cash-cow dishes, evaluate their service, their objectives as well as their current and past strategies. Evaluate their strengths and weaknesses, and *gross sales. Continue reading

What is the SWOT? do you need it? Where to find it?

It is impossible to make an accurate business decision without making a complete and accurate evaluation of the internal and external influences, which can affect your business.

The SWOT will help you to make the right decisions and lead you in the right direction to maximize potential gains.

By analyzing the four elements of the acronym. Knowing the positive and negative elements of each you will be able to evaluate the elements, which will help you to progress in your quests for NIRVANA.

Here are the acronyms for our example Joe’s Cafe:

STRENGTHS

Great chef, his savvy experience gives a unique advantage to thebusiness

Small staff — can change and adapt quickly to various changes: In economy as well as customers’ whims.

WEAKNESSES

No training programs in place for the dining room or the kitchen.

Martha’s Joe’s wife has no previous restaurant experience Continue reading

U S P

“Here we go again, something to think about.” Martha drops herself on the sofa and look at her husband, “what is the story about USP?”

“It’s all very simple, it means Unique Selling Proposition.” Joe winks in Martha’s direction, “Do you get it?”

“I don’t understand, unique in what sense?”

“Well, actually it is a marketing gibberish. It simply means what makes our restaurant different than anyone else.”

“Different,” Martha wide eye, continues “What do you mean, how are we different?”

“This is what we are going to need evaluate. In what respect are we different?”

“For one, I am ME, different than any one else.”

“Yes, my darling you are different, and it might be our USP. Let’s look at all different possibilities.” Continue reading

Menu Engineering

Joe will cook a storm for you

There are much talk about menu engineering those days. What is Menu Engineering?

The answer has nothing of rocket scientist. M.E. as I will mention the subject for the rest of this jabbering.

Example Joe’s Cafe, an American experience. Joe and Martha want to open a neighborhood restaurant. Joe has ten year of experience, for the last four of those ten years he was the executive chef at the Four Seasons Hotel in Beverly Hills. Martha a hair dresser with twelve years of experience is a great communicator her best quality, she is a great listener. Continue reading

A Complete Flop [or more on leases]

Fellows wanna be restaurateurs listen to this one, it’s a good one.

I opened the Bicycle Shop Cafe in West Los Angeles in the fall of 1975.  In my possession I had only $25,000 cash to build a restaurant, even at the time it was not even enough to take care of the plumbing without including the rest.

When the restaurant opened at a cost of $180,000 I realized the mess I was in. Where did all the missing $ came from?

I borrowed from three different Banks, 2 Lenders, one Leasing Company and the guy who installed the air-conditioning.

With all those loans, my monthly payments was a mere $12,000. This was before I could pay the rent, the payroll and food, wine& beer purchases. My accountant gave me 2 months of life.

I could not go bankrupt, I had no alternative but succeed. I did it, through Marketing the restaurant by unusual ways, with the help of GORILLA MARKETING. Which I will explain in details in up coming posts.

First thing first, lemme tell you of the biggest mistake I did. Continue reading