SYSCO iCare... You've Got Connections.

Business
Builders
July 2008
www.syscoicare.com
  Father's Day
 

Why Smart Operators Invest in Their Business During a Sluggish Economy

During good times, everybody makes money: well run businesses make a lot of money and poorly run businesses make some money. During more challenging economic times, well run businesses still make money, but poorly run businesses go under. Whether you call it a shakeout, Economic Darwinism or something else, we all know it happens. Something else happens, as well. When the economy rebounds, the consumers serviced by those marginal competitors will be looking for a new supplier – market share will be up for grabs – and the operator that has invested in his business during the downturn will be better positioned to capture it.

> View More

Restaurateurs Ready to Call On  Mobile:
The Why and How of this 24/7 Channel

Like email a decade ago, permission-based mobile marketing is emerging as a powerful new way to reach your customers outside of your restaurant. Why? Because cell phones are with your customers 24/7 and they are using text messaging like never before – over 12 billion sent each year (and growing rapidly) in the United States according to the research firm Informa.  

> View More

Increase Sales 50% by One Extra Visit
 Per Month

Now there’s a title that will get your attention.  Stick with us here, follow the logic, and I think you will see the point. Most owners and managers believe that when sales start to slow they need to increase current marketing efforts, try new advertising options, or adjust the menu.  Any of these choices can quickly eat up valuable capital at the most inopportune time. Changing the menu risks losing sales by confusing or alienating current customers.  Expanding your marketing approach immediately adds costs with no guarantee of an increase in sales.  Remember the old adage about it being much less expensive to keep the customers you have than to advertise for new ones?

> View More

Gift Cards, an Excellent Way to Improve Your Business

Gift cards continue to grow in popularity among consumers; and it is important for restaurant owners to capitalize on this trend. Gift cards have become so popular that last year (2007) 90 percent of consumers either purchased or received at least one gift card. Furthermore, 60 percent of consumers both purchased and received a gift card in 2007.

In addition to being popular, gift cards also bring more profit to the restaurants who sell them. Consumers spent an average of 29 dollars more than the original value of the gift card they received in 2007. Christmas and birthdays are the two most popular occasions for gift card purchases.

 

> View More

Why Smart Operators Invest in Their Business During a Sluggish Economy

During good times, everybody makes money: well run businesses make a lot of money and poorly run businesses make some money. During more challenging economic times, well run businesses still make money, but poorly run businesses go under. Whether you call it a shakeout, Economic Darwinism or something else, we all know it happens. Something else happens, as well. When the economy rebounds, the consumers serviced by those marginal competitors will be looking for a new supplier – market share will be up for grabs – and the operator that has invested in his business during the downturn will be better positioned to capture it.

Remember the 1981-1982 recession? According to a McGraw-Hill study of 600 companies covering 16 different SIC industries from 1980 through 1985, firms that maintained or increased advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during and after the recession. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising.

> Download Full Story
 

Restaurateurs Ready to Call On  Mobile:
The Why and How of this 24/7 Channel

Like email a decade ago, permission-based mobile marketing is emerging as a powerful new way to reach your customers outside of your restaurant. Why? Because cell phones are with your customers 24/7 and they are using text messaging like never before – over 12 billion sent each year (and growing rapidly) in the United States according to the research firm Informa. Still not convinced? The National Restaurant Association 2008 Restaurant Industry Forecast reports that one in five people would like to receive cell phone notifications from their favorite restaurant if they had the option.  Considering those numbers, it’s hard to see why any restaurant wouldn’t want to utilize this valuable communication pipeline.

Mobile allows restaurants to send text messages to their customers about promotions, new menu items and events, all on their cell phones.  In addition to regular communications like these, restaurants can conduct polling, customer surveys, ‘text-to-win’ contests and more, all of which will build customer databases, increase top-of-mind brand awareness, drive customer traffic and sales.  With its seemingly endless possibilities, the Mobile Marketing Association projects that 89% of brands will use text messaging to reach their audience in 2008. 

> Download Full Story
 

Increase Sales 50% by One Extra Visit Per Month

Now there’s a title that will get your attention.  Stick with us here, follow the logic, and I think you will see the point. Most owners and managers believe that when sales start to slow they need to increase current marketing efforts, try new advertising options, or adjust the menu.  Any of these choices can quickly eat up valuable capital at the most inopportune time. Changing the menu risks losing sales by confusing or alienating current customers.  Expanding your marketing approach immediately adds costs with no guarantee of an increase in sales.  Remember the old adage about it being much less expensive to keep the customers you have than to advertise for new ones? According to a 2005 California Restaurant Association survey, the typical restaurant gets up to 80% of its sales from repeat customers. Considering the amount of sales from this group, it is clear where your marketing focus should be. In a slowing, flattening, or receding economy this group becomes even more important.

Now we get into the mathematics of how just one extra monthly visit can increase your sales over 50%.  First we need to break down your repeat customers into four groups based on their visit frequency.  Let’s say the guests in Group 1 come in once a month, Group 2 one-two times per month, Group 3 three-four times per month, and Group 4 four times per month. We will apply some assumptions regarding the percentage of your repeat business represented by each group.  Let’s assume that Group 1 accounts for 25% of your business with Group 2 at 33%, Group 3 at 15%, and Group 4 at 7%.  These percentages total the 80% of sales from repeat business. For simplicity, assume monthly sales are $100,000.  The following tables illustrate how one more monthly visit for each group leads to a 50% increase in sales.

> Download Full Story
 

Gift Cards, an Excellent Way to Improve Your Business

Gift cards continue to grow in popularity among consumers; and it is important for restaurant owners to capitalize on this trend. Gift cards have become so popular that last year (2007) 90 percent of consumers either purchased or received at least one gift card. Furthermore, 60 percent of consumers both purchased and received a gift card in 2007.

In addition to being popular, gift cards also bring more profit to the restaurants who sell them. Consumers spent an average of 29 dollars more than the original value of the gift card they received in 2007. Christmas and birthdays are the two most popular occasions for gift card purchases. With that said, there is another important holiday right around the corner. The 4th of July marks the anniversary of our nation’s independence. This holiday also provides your restaurant an opportunity to promote gift card sales and increase your profit.

> Download Full Story