When you are going to start any business, you must have to make your marketing plan before you start. The marketing plan involves product, price, place , promotion. It helps in defining the strategies and tactics a firm will use to reach its target customers. Marketing is an integral part to the success of your food business, so the strategy which is commonly used in the food sector is the marketing mix. It helps in achieving the desired result in specific target market.
The restaurant owner should carefully made its marketing mix to achieve the desired results. Here is the 4Ps(product, price, place, promotion) of food service industry.
In the restaurant industry, the products are the items which your restaurant has to offer to the customers and to the local market. These are the menu items and services. So make sure that when you are developing your products(food and services), they have quality, design, good packaging, features, variety, good customer services and innovative. You must keep in mind when deciding your products and service that what your consumer wants from you and how your products and services are different from your competitors, and do your product meet these criterias? If yes, then you are clear about your product and services which you are going to offer to your customers.
Place is basically the location of your restaurant which should be selected carefully before making final decision. Make sure that your place is located in the area of your target market and you have full availability of the necessities which you will be needing in the long term, like the supplies etc and customers can reach you easily as well and the road is clear as well as your parking area.Make sure that your place is reachable for the potential customers when he will be looking for your products and services.
The next and the most important factor is your price.It involves the amount of money that customers are paying to purchase your food and services. So make sure that you purchase the quality food and supplies in less cost so that you can earn maximum profits from your foods and item prices. Don't charge too much nor too less as if you will charge too much, you may lose your customers and if you will charge too less, you may not be able to earn your profit margin. So calculate your profit margin carefully. Cut the items which are not gaining profits and focus on the items which are helping you in gaining profits.
Promotion involves communicating your products and services to the customers. You are basically telling your customers in this step that what you have to offer .Without promotion, you may not be able to get the desired audience at your doors, so this is very important step you are basically advertising your product through media, newspapers, social websites and other promotional tools and persuading them to become your customers through different tactics.
These 4ps of marketing tools helps you in identifying your target market in which you will operate successfully and deciding your products and the strategies you will be using to promote your product in order to earn profit. You can also use this strategy to test your existing marketing strategy. And for more information, stay tuned with bistroservices.com.
Every business needs to earn daily profits to be successful and profitable.In the service sector, like restaurants, you can use different strategies and tactics to earn daily profits because it is one of those businesses in which you can directly communicate with your customers, so you have more chances to get knowledged about their likes and dislikes but the one universal thing which attracts customers in every corner of the world is getting things on discounts.Everyone works hard to earn money and want things on less prices, so when you offer them food on discounted prices, it has been observed that the probability of sales increases in restaurants and you are likely to get their attention more than on usual prices. It is a quick way to draw people in your restaurants and will not only increase your sales, but will also improve your restaurant's reputation and your restaurant business will become successful. Here is a list of benefits that you are likely to get through providing discount offers to customers.
Providing discount to customers is a great way to attract customers because people prefer buying things on sale rather than on usual prices.If you are offering a dish for $20, not everyone will be willing to buy it, but if you add a word discount with it, you will notice a margin increase on that dish. Because discount serves as a mean to attract more people to you. If your discount price is only for limited days, mention it well through your advertising media channels because people will rush to purchase that discounted food and you will get more customers in your restaurant. Your store will experience more traffic, and make sure to serve them well and be careful to turn around the tables timely!
Consider profit margin
But before you hurry to offer discounts to the customers, make sure that you will still make profit for the extra orders coming in and analyze before offering discounts about your current profit margin, breakeven point and markups and how it will affect your profit margin and sales target.First make a marketing plan about how you can encourage new customers to come in and the regular customers to become the loyal one through discount offering program.Considering this, calculate the best alternative discount prices and choose the best which will earn you more profit by comparing the competitors price and discount your prices in that month or time of the year in which you notice that your sales become low, review other options for promoting sales offers without reducing the price. These things must be kept in mind before offering your food on discounts.
Get one buy one
Now coming back to the discount context, it is not necessary that you only have to offer them discounts only with the discounted prices or a percentage discount, you can also provide them different kinds of deals like "get one buy one "deal in which customer can get one dish free with the other one. It will help you in increasing the size and value of customer orders and may also help you in moving stock which may be needed for clearance item. And will also helps you to purchase stock at reduced prices. because when there are guests coming into people's houses,they will prefer to buy that "buy one get one" deal.
Free more storage
Discounting offers also enables you to free up room in your store or may be a quick way to unload inventory because unlike durable items, there are some perishable items which don't stay long and expires in a short span of time and may create smell in your storage or fridge so during discount period, you can offer them that items at very low cost, hence making extra profits.
Not only this, people may also think to switch brand and may also choose your restaurant over your competitor. When you offer them discount at the very beginning of opening restaurant, it also becomes easier for people to try a dish at discount rather than paying at full price.If you succeed at attracting the first time buyer, you may also become able to increase your customer base for the long term.People may also purchase other items that are not discounted along with the discounted dishes.
For more assistance in restaurant matters, Bistroservice.com is a great consultant and provides full assistance in making restaurants and help in restaurant related matters.
How can you make your restaurant more profitable? Through spending more on interior? Offering discounts to increase sales? Investing in high priced menus? These are the ways to maximize profits but all of them need a huge investment too. But is there a way where you invest a little and earn a lot?!
Well,here is a scheme that can make your restaurant business profitable !!!
The best way to increase your earnings from hotel business is through developing a website. The ultimate goal of every business is to maximize profits. In the hospitality industry, the profit generation could be easier if a restaurant has its web presence. A website may help you to increase number of customers, more orders and lot of bookings.
W. Edwards Deming says:
‘‘Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.’’
The customers can connect with restaurants from their homes or offices, view the restaurant through web. The key to success for business is to maintain a higher stream of profits. In order to obtain the higher stream of profits. customers should know about your restaurant.
The positive feedback of customer on your website from online reviews will attract more people to visit the restaurant. The good word of mouth for your restaurant can boost the business. In the modern era, it is more important to get feedback from your customers and get their opinions and criticism. You will become aware of your weakness and deficiencies. You can improve it through customer’s advice or any consultant’s advice. It will help you to improve your business
According to Plutarch:
‘‘Know how to listen, and you will profit even from those who talk badly’’
It is easy and affordable to setup a website because the cost associated with developing a web is low. When a website is designed and start working, it engages its customers with the restaurant services to conduct business activities 24/7.
A website can brings customers and web viewers from all around the world as it allows every person,who has internet access, to visit your restaurant site from north to south and east to west of the world. It could make your products accessible to the global customers as well as it reduces the necessity of visiting trade show etc. More customers means more sales AND more sales means more profit because the key component of your income is SALES. So just take an initial step and make your own identity through a unique website. It will surely lift up your restaurant revenue graph because a website is:
· Extremely profitable.
· Good source of income.
· Low Cost(establishment cost)
· Easily accessible
· Increase customer traffic
The business with higher income is a major source of happiness and satisfaction for employees and owner both. And we know it very well that now trend is shifting from customer centric towards employee centric organizations. When restaurant staff is satisfied they can produce satisfied and happy customers which makes your business profitable.
Keep calm and make your restaurant business profitable! :)