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June 2010 Volume 8, Number 6
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Trends in Restaurant Marketing
Recent trends in the restaurant business have been encouraging. Operators are reporting gains in both traffic and same-store sales. The Restaurant Performance Index, a key barometer of industry performance, has risen for several consecutive months. Measures of both the current industry situation, and expectations for the next six to twelve months, are trending positive.
The challenge for operators continues to be in effectively driving traffic and sales. Some of the recent gain is reflective of consumer confidence rising, but some is also driven by seeing small gains on a weak year-ago comparable period. Additionally, many operators sacrificed margin and check during the economic recession, and are now seeking ways to build back sales volume without discounting.
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Marketing is often an undercooked advantage in the restaurant industry. Traditionally, operators focus on the menu, food quality, service delivery and décor. Beyond this, though, savvy operators will market to potential customers to create visits, and current customers to cultivate loyalty. This category of marketing is more externally focused, and sometimes is considered simply advertising and promotion. There are new, sophisticated techniques that operators can use to drive visits, visit frequency, and sales.
Driving traffic to the restaurant assumes the restaurant itself is a quality experience. Investments in marketing will not work if when the customers arrive, they do not enjoy the food, service, or ambience of the unit. These areas of execution must be at the standard the operators intend. In large chains and franchises, product and service standards are very specific and carefully monitored. This level of delivery creates the brand position for the restaurant - what customers can expect when they come to dine.
An important marketing question is having a clear understanding of the target market for the restaurant. This is not a question of cuisine or location, but rather one of which customers and occasions the operator seeks to serve. For example, two Italian restaurants may be on the same intersection. One has a less expensive menu with many entrees below $10, a children's menu, and a brightly-lit, festive dining room. The other has a more refined menu with entrees over $20, an extensive wine list featuring Italian vineyards, and has a cozy, intimate dining room with linen tablecloths. From these descriptions, it's easy to understand the target market of each - families for the first, special occasions/couples for the second. While the obvious answer is usually the correct one, it's important to remember that once you establish your target market, you need to stay consistent.
There are four common ways that operators use marketing techniques to drive traffic and check:
- Creating new customers through first-visit trials
- Building frequency from existing customers by encouraging repeat visits
- Increase the total check size through suggestive selling and merchandising
- Growing party size by recognizing loyalty and celebrations
Industry analysts recommend that 3-6% of sales should be allocated to marketing. This is not a fixed formula - you may spend more during slower months to drive traffic, or invest more at busy times to build repeat clientele. Also, driving new customer trial visits will be more expensive than recognizing repeat customers' loyalty. However, while many restaurants devote 80% or more of their marketing efforts to new customer trials, most experts recommend a 50/50 approach, or even spending more money recognizing loyalty. Of the four ways to build volume, only one relies on bringing in new customers. For an established restaurant with a solid customer base, no more than 40% of marketing efforts should be devoted to creating new customer trials.
The internet has created a very effective mechanism for restaurant marketing. Consumers now rely on the internet to search for products, services, and local information including restaurants. At a minimum, restaurant information needs to be available online and in local search websites. Even better, restaurants should create a website as a means of advertising and communicating with customers.
Creating websites has become much easier, and many internet service providers and website hosting companies offer easy-to-complete templates that will create a web presence for a restaurant quickly. The website is primarily an external communications vehicle, but can also be used to accept reservations and collect information on current and potential customers.
In a review of restaurant websites, the most important things to remember when building a restaurant website were:
- Prominently showing the address and phone number of the restaurant
- Providing a map and directions to the location
- Include details on the type of cuisine, including a copy of the menu if possible
- Show high-quality color photos of the dining room, exterior building, and have pictures of the managers if possible
- Have an email link where customers can contact you - and respond to email messages with the same timeliness as if they were phone messages
- Let customers provide you their email address for future contacts
- If you have news features or special events, keep them current
- Brand consistency - if you have an upscale restaurant, you should have a tasteful, upscale website. If you are running a fun, family pizzeria, your website should reflect that image.
- Use the website to sell - gift cards sell particularly well online
- Use the website to accept employment inquiries and applications
One of the most important factors to succeed in this area is to devote adequate time to it. Managing the website, responding to inquiries, and ensuring effective communications with customers can yield great dividends in traffic and sales.
As online marketing expands beyond websites into social networking, new opportunities for mobile marketing of restaurants are emerging. The latest trend among lunch trucks is to capture followers on social networking sites such as Twitter and Facebook, and use those connections to drive traffic. Kogi BBQ in Los Angeles and Skillet Street Food in Seattle are two of the best-known, although more lunch-truck and mobile providers are gearing up to use social marketing.
Kogi's has almost 63,000 followers on Twitter, and sends out messages where its trucks are located. Customers will wait for the signal before heading toward the location for its famous short-rib tacos and other fusion cuisine. Smaller efforts are also getting press - the Food Shark lunch truck in Marfa, TX, and the Rickshaw Dumpling Truck in New York City both have small, avid followings on Twitter.
Popularity has grown to the point where a Los Angeles-based website, TruxMap, now provides location information in LA, New York, and San Francisco. In Chicago, where local regulations prohibit lunch trucks, fans of the concept are using social media to try and drive changes in the policy.
Operators see benefits in social marketing beyond just generating traffic. Customers can provide feedback on new menu items, and send pre-order and catering requests. Through the social networking sites, operators can reach new users who are connections of current customers. Some truck owners also customize their routes based on the locations of their most loyal followers.
Another strategy is the use of smartphone applications that use GPS. By knowing the geographic location of a customer, restaurants can communicate or target potential users through their mobile phones. Several chains, including Burger King and Applebee's, are testing iPhone applications that let customers search for local units, and also provide a means for the chain to provide local deals or coupons to target users.
New technology that recognizes where customers are is being tested for more effective local marketing. Traditionally, a restaurant might have done a mass mailing of coupons to households in nearby neighborhoods. Now, the same restaurant can use mobile marketing (e.g. text message alerts) to send communications. These can be targeted to the same households that live nearby, or sent to anyone in a defined radius around the unit at a particular time. So, during a slow lunch period, an operator could send out an instant message to encourage visits. These do not necessarily have to be discount offers. While the technology is still being developed, it has broad implications for local marketing.
At Kingston, we want to support all of your efforts to deliver great dining experiences for your guests. Our primary focus is to ensure you have the high-quality, great-performing produce that makes your menu come alive.
For more information, please contact your Customer Service Representative or Jody Boline.
Sources: Forbes, Quantified Marketing, Restaurant Report, Wall Street Journal, comScore, Nation's Restaurant News, National Restaurant Association
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Red Potatoes
This year's harsh weather conditions have also affected red potatoes. While quality has generally remained good, there have been significant issues with sizing. This has in turn affected market pricing for red potatoes.
Recently, prices have begun to fall to near-normal levels. This is due to better sizing and volumes in the last month from California, Arizona, Florida, and southern Texas. Looking forward, volume from North Carolina, Virginia, and northern Texas should help continue the favorable quality and sizing trends. One concern is recent frost hitting some of these growing areas, which could lead to more volatility in supply.
Growers in Minnesota, Wisconsin, and North Dakota have been experiencing ideal weather conditions so far this year. Expectations are for good sizing and volumes for later this fall.
For more information, please contact your Customer Service Representative or Travis Hess.
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Rail Information
Per mile surcharge for June is $0.20
Distracted Driving Meeting Set
On May 25, 2010, The Federal Motor Carrier Safety Administration announced its Motor Carrier Safety Advisory Committee will hold a three-day committee meeting June 8-10 covering distracted driving by commercial motor vehicle operators.
FMCSA will request that MCSAC provide information, concepts and ideas on ways to prevent distracted driving by commercial motor vehicle operators, with a particular emphasis on in-cab technologies and activities. This task will assist FMCSA in identifying options for addressing driver distraction associated with certain in-cab technologies.
This activity is separate from FMCSA's current rulemaking concerning texting and the agency's forthcoming rulemaking about the use of wireless telephones. In addition, FMCSA will seek information and ideas for consideration in updating the agency's strategic plan.
The meeting will be held at the Hilton Alexandria Old Town, Washington and Jefferson Rooms, 2nd Floor, 1767 King St., Alexandria, Va., located across the street from the King Street Metrorail Station. For more information, write Shannon L. Watson, senior management analyst, Strategic Planning and Program Evaluation Division, Office of Policy Plans and Regulation, Federal Motor Carrier Safety Administration, U.S. Department of Transportation, 1200 New Jersey Ave. S.E., Washington, DC 20590; call (202) 385-2395; or e-mail mcsac@dot.gov.
For more information, please contact your Customer Service Representative or Jeremy Teeples.
Source: eTrucker.com
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Each month in the E-News, we will share insights into the activities of the Kingston Quality Assurance team as they visit growers, packers, and distributors. We hope this will help give you more information on our commitment to food safety and security. This month's report is from Cindi Thompson, Food Safety/Quality Assurance Supervisor.
Blight and Mildew
This year's weather has been unusually cold and wet. To the QA manager, this unseasonable weather presents a number of significant challenges to quality product in the field. The most common and urgent issues to address are blight and mildew.
Crops need water, both via irrigation and natural rainfall. However, too much water is just as bad for crops as not enough water. Additionally, lower ground temperatures from cold conditions can lead to higher incidence of fungal diseases. Combined, these factors can greatly reduce harvest quality and volume.
The extra moisture in the ground, plus increased ambient humidity, unfortunately leads to those ideal conditions that breed disease. The two most common fungal diseases are Botrytis, and Powdery or Downy Mildew.
Botrytis is a gray mold that affects both fruits and vegetables. It results from extended periods of cold, wet weather. Most commonly seen in fruits like strawberries, it can also show up in onions and leafy plants. The spores of this mold are easily spread by wind or cross contact. Also, the spores in diseased plant material can remain in the earth dormant for seasons and may resurface at anytime.
Powdery or Downy mildews include over 300 related fungi. They affect leafy vegetables, manifesting with white, powdery or yellow spots on the main leaves of the plant. In addition to being unsightly, mildew retards the plants' maturation and development. This can lead to decreased yield, premature decay, and other supply issues. These mildews are spread primarily by wind and excessive rain splashing on the plants, which pushes the spores to neighboring plants.
Control of these diseases is possibly through the use of fungicides. While effective, the treatments are expensive and can be harmful to surroundings. In our QA monitoring, we look for signs of disease and make the correct assessment as to whether and when treatment is necessary. Coming out of a cold, wet winter, we are particularly vigilant for signs of disease.
For more information, please contact your Customer Service Representative or Jeb Johnson.
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Each month, one of our associates will share one of their favorite recipes using different Kingston products. We hope you will try one or all of our family recipes, and all of the great ways to enjoy our high-quality, wholesome products.
Patty's Clam Chowder
Ingredients
4 large Kingston potatoes, chopped
1 large Kingston yellow onion, chopped
˝ lb bacon, cut in small pieces
˝ cup chopped ham
5 or 6 large celery stalks, chopped
1 pint half & half
8 cans chopped clams with liquid
Preparation
Chop potatoes to desired size, smaller pieces are better. In a large pan over medium heat, cook potatoes in liquid from clams (without adding additional water) until tender.
While the potatoes are cooking, brown chopped bacon in a large skillet. Remove cooked bacon from pan, saving about half of the bacon drippings. Add ham, celery and onion to the pan and cook in the bacon drippings.
Drain bacon, ham, celery and onions on paper towels. Add the drained mixture to the cooked potatoes and clam liquid. Bring to a low boil. Slowly add half & half to the mix, and raise the heat but do not allow to boil. Add salt & pepper to taste.
For a serving suggestion, add a pat of butter on top.
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Kingston Service Anniversaries
Join us in congratulating our team members on their many years of service.
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Cindi Thompson 23 years |
Charlie Howard 16 years |
Brittany TeNgaio 14 years |
Justin Sommers 12 years |
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