The key marketing principles that restaurant companies or owners need in order to be successful applies to any type of restaurant. When following these key marketing principles, you must remember to be consistent in your offerings so that you don’t alienate any of your customers.

Target Audience

A target audience is the demographic group that your restaurant targets, with two of the most important demographics for restaurants being age and income. Define the age or income group that enjoys your food, amenities and ambience. To accomplish this, conduct surveys in your restaurant. Ask questions that measure your customers’ satisfaction with various aspects of your business, such as food taste and value. Include a few questions at the end of the survey that identify their age and income ranges. Your most satisfied customers are likely to fall within the age and income groups of your typical customer profile.

Branding

Branding is the closing the gap between what you promise and what you deliver. This pertains to your menu items, prices, atmosphere, decor and anything that sets you apart from your competitors. Your individuality is what helps you acquire and retain loyal customers. Keep your branding consistent to keep from alienating your core customer base.

Operations

If your operations aren’t running well, then branding and marketing will fail as well. Operations include factors such as food quality, service, hospitality and cleanliness – all elements in which customers have high expectations. The best way to ensure successful operations is to train your employees properly in using the proper amount of ingredients, serving customers, and ensuring guest satisfaction.

Promotions

Promotions consist of advertising and in-store marketing. Determine which media sources are most likely to bring in new customers – this could be anything from coupons, to flyers, to banners. Many restaurants hold monthly or quarterly promotional events that include specials on meals. Study the promotions of your competitors and go a step further.

Retention

It costs seven to 10 times more to acquire new customers than retain them, so it’s essential to have a retention-marketing plan in place. Focus your marketing efforts on your loyal or most frequent customers. They are the key to your business success, so it’s important to reward them with coupons and special deals every once in a while.

What restaurant marketing tips do you suggest? The goal of the Source1 Purchasing Program is to improve your overall business operations and provide you with the necessary resources to keep your establishment running smoothly. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your restaurant.

As of recently, many hoteliers are opting to remove room service from their establishments to be replaced by a new food and beverage concept – a pantry market in the lobby.

Many media outlets have been criticizing the loss of the traditional guest service in hotels, most showcasing the data behind the change that show the revenue loss associated with the luxury of having $30 pancakes while you relax in your bed.

However, according to recent studies, hotel room service revenue as a percent of total hotel revenue in the United States has been declining since 2007. In 2012, hotels reporting room service revenue averaged contributions of 1.22 percent of total hotel revenue, compared to 1.52 percent in 2007.

In terms of hotel room service revenue in dollars per occupied room, 2012 saw amounts around $3.25, which is down from $4.33 in 2007.

The Hilton’s The Herb N’ Kitchen concept offers grab-and-go breakfast, lunch and dinner options as well as made-to-order items such as salads, pizzas and hot items. Hotels can choose to customize the setup, including buffets and/or carryout items.

Operators are cutting hotel luxury amenities such as business centers, minibars, bellhops, doormen and even traditional front desks for checking in across the U.S. For example, Yotel New York in Midtown Manhattan asks guests to check themselves in at kiosks in the hotel’s “Ground Control.” If their rooms aren’t ready, Yotel’s guests check their suitcases with a robotic baggage storage system. One main reason behind changes like these is cost control. For example, by eliminating room service, which doesn’t result in much revenue for hotels in the first place, the Hilton Midtown will cut 55 workers from its staff. In fact, room service only accounts for about 1.2 percent of the industry’s revenues. Not many people are willing to pay $30 for a hamburger that is delivered to their hotel room on a tray – instead, they would prefer to have free WiFi, free breakfast, or free parking.

The 93-room Quail Lodge, a golf resort in Carmel, California, just reopened after a three-year renovation and as introduced a reduction of low-revenue extras while instead offering those highly requested perks. Who needs hotel room service, bellhops, and doormen when you can have free breakfast, Internet, and parking?

Do you prefer to offer the basics at your hotel or would you rather have all of the extras available? Source1 Purchasing has customized contracts with a variety of suppliers so that you can create a successful pantry market for your property. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your hotel.

While convenience and value are still the top factors when consumers make food decisions, there is now an increasing desire for a healthy lifestyle and  more mindful of food and beverage options. Mindfulness is a quality shared by both foodservice professionals and consumer foodies. Here we’ve provided you with the latest consumer trends to help you with your restaurant decisions.

1. Deliciousness and smart choices. Food should be delicious to appeal to consumers who are both value and gourmet conscious. Many foods that consumers feel to be the most delicious are processed foods that contain very little nutritional value. However, when presented with menu descriptions that focus on taste, flavors and ingredients, consumers tend to find these items more desirable.
2. Minimalism. When observing labels, consumers want to see real ingredients rather than a science formula. Many consumers describe a high quality experience with the word “homemade”, preferring meals that are less processed and more like they were freshly made in the kitchen.
3. Disguise. Healthy foods become more desirable when designed to look like a less healthy option. Creative packaging and marketing add new appeal to healthy snacks like blueberries and carrots. The salty, crunchy snack satisfaction of packaged snacks is now available in a variety of sizes and includes many different types of vegetables like kale and sweet potatoes.
4. Be mindful of brand language. Consumers are more likely to seek out the source and understand their food philosophy rather than simply pick up products that claim to be natural or artisan. Many leading food manufacturers and retailers allow consumers to connect with their food philosophy in statements on their website and practices in their businesses.
5. Provide trust. Consumers want food from companies they trust to provide nourishing, delicious food while being respectful to those who produce it. Millennial consumers in particular are evaluating companies not only on their products and their brands, but also on their corporate conscience. Today’s consumer is active and in charge of the foods they like and the places they like to eat. When surveyed about sources they trust, friends, family and social networks outrank marketing messages. Savvy marketers have learned how to join the conversation.

Source1 Purchasing is your source for the latest consumer trends in the restaurant industry to keep your establishment running at it’s fullest potential. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your business.

It’s essential for restaurant owners to keep up with the latest consumer trends and adapt to those changes if they want to be successful. To keep you updated, we have created a list of some of the new consumer trends of this year.

Quality over price. We typically relate higher sales with lower prices, but recent studies prove otherwise. It has been determined that high quality foods and freshness are more important to consumers than price. To adapt to this change in customer priorities, avoid compromising quality just to offer lower prices.

Redefining “healthy.” Consumers are becoming more concerned with their diets, and are therefore demanding healthier dining options. However, while in the past healthy options have been “sugar free” or “low fat”, today’s consumers prefer food options that are “natural.” This shows that consumers want to know where their food is coming from.  To appeal for today’s health-conscious consumers, you can try and include the following concepts in your menu: gluten-free, organic, local, and sustainable.

Diversity is key. The population is always growing and becoming more diverse, so adding diverse and exotic ingredients to your menu items will help you adapt to this trend. Try incorporating “regional” items into your menu, or recipes that are associated with a specific place or community. You can also feature recipes from various parts of the world that can be made with local ingredients – this gives you the opportunity to be creative!

The rise of mobile orders. It’s no surprise that consumers are becoming more dependent on the Internet and their mobile devices, so it’s understandable that mobile and online orders actually have higher totals than traditional channels. On average, those who opt to place an order online select larger, more expensive portions than those who order via the phone or in the restaurant. Additionally, restaurants see an 11% increase in orders every month when they embrace online and mobile ordering.

As consumers change their demands and expectations, you must adapt to meet their needs. The Source1 Purchasing Program helps you stay informed on these needs to ensure efficiency and success of your business. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how we can benefit your establishment

A restaurant’s virtual storefront is just as important as the actual storefront, where customers can interact and form a first impression. Customers visit your website to learn more about your business, including what’s available on your menu and where you are located – they may even be interested in placing an order online.

Providing your customers with the option to order online allows them to browse menu items, add them to the cart and see the total of the items they have ordered. They are also able to delete items, add sides, and try a new coupon offer. Online ordering is a perfect for having your customers explore your website and interact with your menu in a new way. Here are a few other benefits of online ordering:

Sell more.
It can be easy to forget to upsell when speaking to customers, but when a customer places an order online you will never have to worry about your online ordering system forgetting to up-sell top items on the menu.
By ordering online, customers have more time to look over the menu, increasing the chance of adding other items to their cart. Be sure to include appetizing pictures showcasing your menu items. Online ordering helps increase the average order size as opposed to orders that are called in.

Reduce order errors.
Online ordering is a necessity if you often find your staff struggling with language barriers. Avoid miscommunication with an easy-to-read menu online for your customers.
Boost sales.
Many restaurant websites are strictly used for information only, prompting the customer to drive to their establishment or pick up the phone to place an order. However, many customers would love the option to simply view an online menu and click to order. With online ordering, you are securing more orders and increasing sales through your website.

Improve efficiency. 
Not only are you reducing order errors by providing online ordering, but you’re also decreasing the amount of time spent on the phone. Ordering on the phone can take anywhere from 3-8 minutes, but the average online order takes about 30 seconds, which means you’re increasing efficiency and accuracy.

Have you begun creating an online ordering system for your restaurant? The Source1 Purchasing Program provides you with the latest trends in the restaurant industry to ensure the success of your business. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your establishment.

It can be a challenge managing your restaurant’s online reputation with the world of online reviews consistently rising. However, it is not impossible. After running your business all day, it’s exhausting spending a couple of hours managing your online reputation, but the key is to work smarter, rather than harder. Utilize the following tools and strategies to free up more of your day while still effectively managing things online.

1. Dedicate one hour a day to your online reputation. Establish a daily calendar reminder and commit to spending only one hour per day responding to reviews, tweets, and comments. Rather than checking throughout the day, focus on doing so during your scheduled hour. After the hour has passed, don’t check for new reviews again until the next dedicated reputation management time.
2. Set up e-mail notifications. Save yourself the energy it takes to constantly refresh your restaurant’s business page by setting up e-mail notifications. This way, you’ll be notified in real-time when new reviews have been written, friend requests have come in, tweets have mentioned you, etc. You may also want to subscribe to each sites’ newsletter to stay on top of product announcements, business best practices, and even a summary of your business’s metrics for the past week, including calls, check-ins, website clicks, etc. On Yelp, you can change your e-mail preferences in your Business Account under the Account Information section.
3. Take advantage of free tools. You can create a virtual storefront with the free tools available on the sites your customers pay the most attention to. Begin by copy-and-pasting pre-existing information from your website or marketing materials, like the business description on your “About” page, onto your business listing on the sites you’re focused on.
For example, on Yelp you can enhance your business listing and bring in new customers by using the free tools available in your Business Account. To begin, focus your attention on the following sections:
• Business Information. Here you can add your business’s website, hours, specialties, and other basic information, as well as a 3,000-character description.
• Photos. Adding photos is highly recommended. In fact, those searching on Yelp remain on a business page with photos 2.5 times longer than one lacking photos. This can include pictures of your establishment, dishes, staff, and more.
• Deals and Gift Certificates. Setting up a Yelp Deal or Gift Certificate is a great way to invite potential customers to make a buying decision while on your Yelp page. If you’re not sure what to offer, just do a quick search on Yelp and filter by who’s offering a Yelp Deal in your category for ideas. It’s free to set up a Yelp Deal or Gift Certificate, though there is a revenue share, should it lead to a sale.
4. Monitor your traffic. Most online review and social media sites provide businesses with information about the traffic they’re getting and how consumers are engaging with their business page. Review how your business’s profile is performing once a month; observe the number of user views you’ve received, clicks to your website, and so on and fill in any gaps to increase the possibility of turning those viewing your business page into an actual customer.
5. Market your business the smart way. To spread the word about where your business can be found online, add logos of the sites where your restaurant has a strong online presence on your business cards, in your e-mail auto-signature, and in your storefront.

By implementing these strategies, you will be provided with the best insight on where your business can improve based on customer feedback, and potential customers can view the positive experience that other guests are having with you. Source1 Purchasing provides you with the latest news, trends, and advice to keep your establishment running smoothly. Check out our website to learn more about the Source1 Purchasing Program and how it can benefit you at www.Source1Purchasing.com.

While it’s never thrilling to receive complaints from guests, you can use them to your advantage to help improve your hotel operations. If you aren’t quite sure what to do, we’ve provided some tips on how to handle guest complaints in a hotel:

Dealing with negative feedback
Normally, an initial reaction to negative feedback is to be defensive, but this should be avoided. Instead, try to learn the source of the problem by tactfully asking some questions. Remember to empathize with the guest and be understanding. The least you can do is apologize and explain any improvements that have been made if necessary.

Online reviews
This principle also applies to online reviews. Your response to an online review not only affects the guest who posted the review, but can also influence the decision of travelers who are reading that review. Ignoring your online reviews, whether they are good or bad, can give the impression you don’t care. Even worse, being defensive suggests you’re denying any problem exists, which can make the situation worse.

Responding to negative hotel reviews in a timely manner shows that you do appreciate feedback. To make the process easier, you can set up a Google Alert on your establishment so you know when someone is talking about your business online.

Handling negative feedback appropriately will reflect well on you, demonstrating your professionalism. For those with complaints, try and have the reviewer call you to discuss the matter on the phone rather than online. This way you can receive all of the details relating to the matter without sharing the discussion with the World Wide Web.

Empower your team
Provide your team with the necessary skills and authority to handle complaints. Encourage and train them on how to ask for feedback and respond when the feedback is negative. This is great for guests because your staff can handle things immediately rather than having to call in a manager for help. Be sure to make it clear to your staff just how much authority they have when it comes to resolving issues, such as providing guest compensation.

Keep an eye on your team, observing how they handle negative comments, and then provide them with feedback, such as praise or guidance if more help is needed.

The LEAF list
You can use the LEAF checklist as a guideline on how to handle negative feedback from customers:

Listen: Listen and respond to the guest, showing that you understand what they are saying.

Empathize: Apologize and show that you understand they’re disappointed, but remember to not take it personally. Don’t become defensive – customers don’t want to hear excuses. Even if the problem wasn’t your fault, let the guest know that you are working on a solution.

Action: Ask guests what they believe is an appropriate solution, and offer alternatives so they have a sense of control over the situation. Rather than telling your customer why something went wrong, tell them what you’re doing to make it better.

Follow up: Ensure that the guest is satisfied with the outcome. Learn from the feedback and keep en eye out for similar issues and discuss them with your team so that you can prevent future problems from occurring.

If handled appropriately, complaints from guests can be turned from a negative to a positive. Source1 Purchasing works to keep you informed on the latest trends in the hospitality industry to keep your operations running smoothly. To learn more about the benefits of theSource1 Program and what we can do for you, visit our website at www.Source1Purchasing.com.

Three developments hurting the restaurant industry
and three trends you can use to combat them

By Gabrielle Gresge

The final month of 2014 has ushered in time to look simultaneously forward and backward: backward to assess the trends and financial situation of the past year, and forward to understand the implications of those trends and how to take advantage of them. Particularly in the restaurant industry, minimum wage increases, the consequences of Obamacare and increases in commodity prices pose risks to future financial success. However, increases in the number of jobs, notable decreases in gas prices and glowing consumer confidence may just be able to combat those negative forces. Combined with revenue management aided by Source1, the beginning of 2015 could pose great opportunities to firms with the right arsenal of tools.

1. BAD NEWS: Minimum wage increases: In the wake of the 2014 midterm elections, 29 states will be offering a minimum wage above the $7.25 federal minimum. In addition, a bill has been introduced to the House which calls for an increase in the tipped minimum wage from $2.13/hour to $3.39/hour by the end of the year—there are hopes that the wage will be as high as $5.93 in 2016. These mandated increases help employees and perhaps increase work rate and morale, but greatly hurt restaurant firms, who rely greatly on the minimum wage to keep costs low. Increased wages begin a trend of increased menu prices to make up for lost profit, which can lead to lagging business and decreases in tips to waitstaff—which cause owners to fill legal implications by making up the difference in lost tips.

GOOD NEWS: Increases in the number of jobs: According to The Wall Street Journal, the United States economy has been experiencing steady job growth of 226,00 jobs added on average during the past seven months. The unemployment rate reached just about 6.1% this past August, which marks its lowest level in six years. This growth is positive in two facets: one, more jobs simply means more consumers and therefore increased profit potential. Additionally, 10% of the workforce is within the restaurant industry, signaling that the industry is growing.

2. BAD NEWS: Obamacare: The newest healthcare legislation mandates that employers employing 50 or more employees who work 30 or more hours on average per week are required to provide healthcare to their employees. According to Bloomberg, 21% of restaurant workers fit this characterization.

GOOD NEWS: Increased consumer confidence: Bloomberg claims that consumer confidence in the United States has reached its highest level in almost seven years. Pertaining to the restaurant industry, this number has directly correlated to the Restaurant Performance Index, which the National Restaurant Association says has increased nearly 2% since September 2014.

3. BAD NEWS: Increases in commodity prices: According to a recent survey by SpenDifference, 93% of restaurant chains plan to increase prices by 2.1% in 2015. These increases have been brought on as a result of increased prices in commodities, particularly in meat and pork.

GOOD NEWS: Decreases in gas prices: Gas prices have been down $0.76 since the end of June 2014. This positive change in prices can be linked directly to the fact that October’s sales total in the industry ($48.6 billion) saw a $1.3 billion increase since June.

We know the trends—now what?

The positive and negative forces affecting the restaurant industry can be manipulated to the advantage of owners through the use of revenue management as guided by Source1.

Source1 aims to utilize its connections with suppliers in order to attain the best possible pricing for its customers: hospitality firms. The trends outlined above affect every aspect of the Source1 vision; a large part of revenue management rests on economic trends. Source1’s unique partnership with thousands of brand name partners allows us to help our customers combat negative trends while maximizing positive ones.

Cintas Corp. has released a list of the top four restaurant injuries. One in 20 on-the-job injuries and illnesses all over the world occur at eating and drinking establishments, seemingly due in part to an inexperienced workforce operating in an environment where cuts, burns, slips and falls are a common occurrence. According to studies from the Occupational Safety and Health Administration (OSHA), for every dollar spent in safety programs, businesses can save between four and six dollars from costs associated with injuries and fatalities, which seems like a small price to pay to ensure the safety of your staff and customers.

According to the Cintas Report, the top four restaurant related injuries that occur are:

1. Lacerations and punctures.
2. Burns. As many as one-third of occupational burns occur in restaurants, totaling about 12,000 reported cases per year. However, the actual number is projected to be much higher.
3. Sprains and strains. Misplaced or hard-to-reach items can lead to worker injury due to overreaching or tripping. Restaurant workers can also suffer from strains due to improperly lifting items.
4. Eye injury. Workers operating around grease or sanitizing chemicals often experience splashing in their environment, resulting in an injury to the eye.

Developing and implementing a first-aid program at your establishment created with these common challenges and injuries found in foodservice operations can ultimately protect workers. The following steps can be followed in order to help operators prepare for common injuries:

1. Put in an onsite first-aid cabinet. Place the cabinet in an area that is easy to locate so that all employees can quickly and effortlessly access it if an accident happens to occur.
2. Be sure to stock the cabinet with a variety of supplies to treat common foodservice injuries.
3. Regularly check the cabinet and restock as needed.
4. Train your employees on the proper use of the items in the first-aid cabinet and procedures on how to handle emergency situations.
5. Combine first aid initiatives with other safety programs, such as AEDs and fire programs.

By making yourself aware of these possible hazards and preparing yourself as well as your employees for potentially dangerous situations, you will be able to provide better protection against accidents. Source1 Purchasing is here to help you improve your establishment, ensuring that operations are running as smoothly and efficiently as possible. Visit our website at www.Source1Purchasing.com to learn more about the benefits of the Source1 Program.