Page 17 - OhioRA 2012SpringFlipBook

www.ohiorestaurant.org 15 Spring 2012 Issue

Next is to pay attention to the reviews on sites such as Yelp, Urbanspoon and Zagat. Eighty-fve percent of these reviews will be positive, but it is how you respond to the negative ones that will strengthen your relationship with your guests.

Ingredient 3: Build Your Online Audience

Building an online marketing database today is imperative. Without it, you will fall behind the crowd for sure. The power of our marketing message now belongs to the consumer, so establishing a strong permission-based database is key to gaining a positive return on investment for your restaurant. The core constant that all consumers must have to participate in all of their social media and online activities is an e-mail address. Build your e-mail list with in-store enrollment tactics, fully educating your staff on the importance of capturing e-mail addresses. Build your following online as well, on Facebook and Twitter. Offer new fans incentives and promotions to gain “Likes” and “Followers” so that they eventually enroll in your e-club, but get their permission or they will be annoyed at getting your spam. Don’t forget to integrate solutions like online ordering and OpenTable. The goal is to funnel all of the guest data online from all of your sources into one clean easy-to-access database.

Ingredient 4: Engage Your Online Audience

Now the fun begins. You have built your online presence and developed a viable online database. Start engaging your guests to build guest loyalty and increase their frequency in your restaurant. Start with loyalty communications, thanking

those most loyal guests for their patronage by offering VIP experiences and targeted communications on key events, such as birthdays and anniversaries. Plan on 1-2 promotions via e-mail once a month that are focused on guest appreciation not just a discount. Use Facebook and Twitter for your daily guest engagement. Offer trivia contests, witty commentary and live event information. Have fun with it.

Ingredient 5: Keep Score of Your Online Campaigns

Just like a new menu item, you keep track to see hot it sells. The same concept applies here. When you launch a promotion or campaign to your online database, keep score on the results. Track the number of messages sent, offers redeemed, the cost of the campaign, discounts and, of course, net sales. Then report your success to your staff. It will build their confdence in the value of building a strong database.

When you invest some time and energy in establishing an online presence, you’ll set your restaurant up for success during this social media era. It takes a while. Plan on 4-5 hours per week to start. Once you’ve established your presence, you’ll need to invest only 2-3 hours per week.

By Joe Gabriel, Fishbowl Marketing

The fallout from the Great Recession continued to be felt long after its “offcial” end, as household income declined for the third consecutive year in 2010, according to U.S. Census Bureau data. Real median household income was $49,445 in 2010, down 6.4% from its recent cyclical high in 2007 and its lowest level since 1996.

Although the overall downward trend is a cause for concern, the sharp decline in the number of higher income households poses additional challenges for the restaurant industry.

After jumping 74% between 1990 and 2007 — the strongest increase in any income category — the number of households with income of more than $100,000 declined 5% between 2007 and 2010. During the same three-year period, the number of households with income between $75,000 and $99,999 also fell 5%. In the end, there were 2 million fewer households with income of more than $75,000 in 2010 than there were in 2007.

The potential implications for the restaurant industry are signifcant, as higher-income households represent the majority of spending in the industry. According to analysis of data from the Bureau of Labor Statistics, households with incomes of $100,000 or more are responsible for 37% of the total spending on food away from home, while households with incomes between $70,000 and $99,999 account for 19% of industry spending.

As customer demographics vary across restaurants and segments, the recent shift in household income has potential implications for spending patterns within the industry, particularly among full-service operations that rely more heavily on higher income households.

The Haves Have Less

Higher-income households are prime restaurant customers