"What
if everything is an illusion and nothing exists? In that
case, I definitely overpaid for my carpet."
- Woody Allen
Your
guests define 'value' by the quality of the restaurant
experience and the memory it creates. Memories of great
value last and are shared with others.
Quality experiences don't 'just happen'. They get orchestrated
like a play or piece of music, scene by scene, note
by note. It requires a process. |
Transforming
Existing Data into Wisdom and Wisdom into Profit
In the first three issues we focused on gathering data to
know your guest: when and how often they visit you, who
they come with, as well as how they feel about you. Next,
we focused on orchestrating the actual experience.
In the next several issues, we'll look at data that you
already have, but might not be leveraging to its full advantage.
Because there is often just too much information, make a
habit of using The 80/20 Rule
to get the biggest bang for your buck. The 80/20 Rule says
that 80% of the most important stuff, the stuff that makes
a difference, is contained in 20% of the data. Everything
must be measured by the return it produces. That
includes the time you invest.
Getting Value from Sales and Guest Counts: Learn when
your customers visit you For sales and guest counts,
The 80/20 Rule says that
80% of your sales & counts occur within 20% of days/meal
periods/hours. It may seem obvious, but many restaurateurs
don"t track sales and guest counts.
- Break
out sales and guest counts by meal periods and weekday
vs. weekend.
- Keep
a weekly This Year vs. Last Year Chart.
As
you plan your business, you'll find statistical reasons
to support one tactic over another. My philosophy is to
'shoot when the ducks are flying'. First, maximize the areas
where the business currently is, then go on to the next
idea.
Getting
Value from Credit Card Usage: Learn where your customers
live or work
For zip codes, The 80/20
Rule states that 80% of your guests come from 20%
of the zip codes you identify through credit card analysis.
Credit cards provide a ready-made database. From which zip
codes do my customers come both for lunch and dinner. Once
you know which zip codes they are, apply The 80/20 Rule.
- Concentrate
your efforts on the top 20% of zips. These include most
of your guests. I promise you will get a bigger bang for
your buck.
- If
you do not take credit cards, greet guests as they come
in and ask where they work and live. Mark both on a map,
and display it in the restaurant.
- Since
no one has an unlimited budget or unlimited time, focus
your marketing money and energies on areas that will produce
the biggest return.
Getting
Value from Menu Mix: Learn what people are buying at each
meal period.
For your menu mix, The 80/20 Rule
states that 20% of your menu generates 80% of the popularity.
20% of your menu generates 80% of your profit. Caution:
What is most popular may not be what is most profitable.
20% of your inventory creates 80% of your cost. Here, the
exercise is simple and profound.
- Since
they are not necessarily the same, measure both menu profitability
and popularity.
- Use
menu real estate differently to give some immediate help.
In
the next issue we'll look for
places to find additional data that can increase your profitability.
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Part
1 - Maximize your Profitability
Part
2 - Maximize your Profitability
