Loading...

Follow Marketing 4 Restaurants on Feedspot

Continue with Google
Continue with Facebook
or

Valid

We look at what we learnt from Dinner by Heston.

Firstly, have a think about the photos that you’ve got.  I will put some images up in the show notes to give you an idea about the kind of photos that you can take with an entry level camera or a decent mobile phone.

Dinner by Heston has a unifying story throughout the menu – cooking food for centuries ago and reinterpreting them in a way that is interesting and compelling for customers.

Every dish had a story and they tell the story really well.  There was Savoury Porridge.  This was green and gives everyone something to talk about. Green Porridge.  For Dinner.  Savoury Porridge. Lots of interesting components to the dish to get people talking about the Restaurant.

I was lucky enough that my wife had booked the Chef’s table for us.  A great high value experience that gives you a close up view of the workings of the kitchen.

Our tea came with an hourglass to tell us when the tea was properly steeped.  A small thing that signals the value of the experience that you are having.

As a part of the Chef’s Table, we were able to see the quality assurance commitment that the team has. It shows. The steak that we had was probably the best I have ever had.

Mentoring in the Restaurant – does your head chef do this?  Helping out all of the team to be their best in the team.  I think mentoring is a big thing, it makes the team better and good mentoring usually means that your team members will stay with you longer because you are investing in their career.

We look at the sourcing work that the sommelier.  An eclectic range of drinks that were immaculately paired with the degustation menu.

Do you have an incremental revenue opportunity from birthday cakes?

Have a think about creating unique and epic desserts.

How can you create something, a physical link with the experience that you have created?

Are you using OpenTable?  Are you getting the email addresses of your customers booking through OpenTable?  Do you want to be giving them access to your booking list to another company?  We talk about IP leakage and what it can cost you.

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post 87 – Innovation and Epic Food at Dinner by Heston appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

What if you ran your Restaurant like Princess Cruises?

I spoke to a Restaurant owner and he said why think about cruises?

We look at operational efficiencies and how looking outside the Restaurant industry can give you ideas about innovation for your Restaurant.  We discuss Southwest Airlines and how they redefined industry best practice in turning around the aircraft.  It is a great story about culture and innovation that you can use in your Restaurant.

We look at our time from on the Sapphire Princess.  We look at the food with Princess Cruises.  It is amazing the quality of the food that is produced out of a floating kitchen.

We talk about what it is that your customers buy from you.  Often it is not the food, sometimes it is, but there are other products that customers are looking at.

The chefs did a great job in the descriptions of the food.  There were theme nights.  These are things that can drive more customers on quiet nights.  What if you swapped chefs with another chef to create unique events?

We talk about the experiences created by the pool, watching the TV.  We discuss beatboxing squirrels.

Princess Cruises aim for a family demographic and do a lot of work around creating experiences for the entire family.

How do they upsell with their alcohol?  For a family, what is your mocktail play for the children?  Wine tasting seminars, cocktail making seminars.  All of these are experiential events that add to the value of the cruise and are centered around food.

The chef ran a cooking demonstration, followed by a behind the scenes of the kitchen.

2670 guests and a crew of 1100.  3 square meals a day.  The costings and planning are done very well, because when they can’t run done the road to the local market.

The cruise industry understands revenue per available bed.  They aim to fill every room that they can.

Princess Cruises really understand the power of social.  The staff were always very keen to take a photo of the passengers with their own camera, knowing that the photos would be shared on social media.

How do they create great experiences around the food?

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post 86 – Restaurant Ideas from Princess Cruises appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Eater London has an article that details Deliveroo’s roadmap and the changes to it’s business model which was presented to investors in a slide presentation.  The changes put Deliveroo’s Restaurant partners directly in the firing line with it planning to commence to cook it’s own food.

The objectives for Deliveroo are to:

  1.  Create its own food offerings, personalised for customers
  2. Half the cost of food for customers
  3. Automate delivery
  4. Automate food production
  5. Double its profit margins

According to Eater, the slide presentation had a heading – “Own Content”, which was described as ‘hyper-personalized food produced by Deliveroo; lower price of food; create daily use case; greater margin due to supply chain savings and automation’.  Create daily use case means that they are planning on Deliveroo dramatically increasing the number of times that people order from them.

Deliveroo has built up a rich database of customer preferences, ordering frequency and contact details.  Not much of this is shared with the ‘Restaurant Partners’.  Restaurants do not get the customers email details.  This is explained as being a ‘privacy issue’, but in realty it is around using the restaurant for fulfillment only and cutting them out of the relationship with the customer as an intermediate step until they learn how to cook food and replace the restaurants wholly.

This will have dire consequences for many restaurants.  Losing the take out and delivery revenue will make many unprofitable, especially given that the delivery aggregators are doing everything in their power to kill off the dine in experience.  In an industry notorious for low margins, this will force many restaurants to close we believe.

This will be Restaurant Armageddon for a lot of small restaurants.  It will see Deliveroo, with a large database of individual customer preferences and ordering histories, knowing the numbers and locations of people liking certain cuisines.  Deliveroo will then be able to extend the Deliveroo Dark Kitchen concept to see Deliveroo staff in the kitchens, rather than the restaurant owners who are now prepping the meals in the Editions kitchens.

Deliveroo Valuation

According to Crunchbase, Deliveroo raised $385 million in a Series F round which was announced in September.  It has had 9 raisings for a total amount of $860 million and is valued at over $2 billion.

Following the raising, Martin Mignot, a partnew at Index Ventures stated that, “There is a lot of room to rethink how we eat.”  This is part of the negative implications for Restaurant owners we believe, with the risk that vertical integration by Deliveroo to cook the food will cut Restaurants out of the increasingly lucrative delivery market.

According to the latest financial results for Roofoods LTD it had revenue of £120 million in 2016, up from £18 million in 2015.  It’s cost of sales was £127 million and administrative expenses where £142 million.  It lost £129 million on revenue of £128 million.  This would be the reason behind the raising September 2017.  The loss in 2015 was £30 million.

Deliveroo – The Clear and Present Danger for Restaurants Deliveroo is aiming to start cooking it’s own food in direct competition with it’s Restaurant ‘partners’

What we have previously thought would be the endgame for the delivery aggregators appears to be coming to pass, with the evolution of dark kitchens to Deliveroo preparing their own food.  Deliveroo, Delivery Hero, UberEats and GrubHub are probably planning to ride out the issues over minimum wages and entitlements for riders until self driving vehicles mean that they can get rider of the riders and make delivery profitable for them.

Just Eat and Menulog are morphing to provide delivery in an attempt to compete with Delivery Hero, Grub Hub, Delivery Hero and UberEats, which have been eating into Just Eats traditional customers.

What should Restaurants do?
  1.  Look closely to the profitability of the contracts with Deliveroo and other delivery aggregators and online ordering companies.
  2. Develop your brand.
  3. Build your customer database.
  4. Be unique.
  5. Use our Free Restaurant OnLine Ordering system.  Yes it is free, no monthly or per order charges and it feeds into a CRM system.  We have customers saving thousands per month by using FROLO.

We believe that the concept will appeal to the lower end of the market.  It is like McDonalds offering to deliver food, which they always do.  Whilst anyone can eat McDonalds, (they have huge supply chain economies of scale), not everyone wants to eat McDonalds.  Deliveroo will have the advantage of selling a wider variety of cuisines, but apart from that, automated delivery will be ubiquitous, potentially with drones or self driving vehicles providing restaurants with their own delivery means.

There will always be a market for crappy food that is really cheap, there will also be a market for new food, great food, exotic food, tasty food, food that is healthy, is vegan, that is gluten free, food that excites and food that inspires.  This is what Restaurants do, this is what a chef does.  Deliveroo cooking and delivering their cheap food will attract the bottom end of the market, but there will still be a place for great restaurants.

Strong restaurants, especially the small family owned restaurants, are increasingly looking to Restaurant Disintermediation to take back their brands and their customer relationships.

Restaurant Delivery is not new, it has been around since the 70’s.  What is new is the ability for companies like Deliveroo and Foodera to compete against restaurants by paying below the minimum wage as a part of the Gig economy.

Deliveroo has been asked for comment on the details of the article posted in Eater, but did not respond.

The post Deliveroo’s aim to kill off it’s restaurant partners appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

FWO to test Foodora Sham Contracting in Court

Multiple newspapers are reporting that the Fair Work Ombudsman has alleged that Foodora is engaged in “Sham Contracting” and has been underpaying workers.  The Foodora sham contracting case centres around 3 workers which Foodora labelled as independent contractors.  It is being described as a landmark case for the Gig economy, with the Fair Work Ombudsman arguing that Foodora workers are entitled to the minimum award wage and that the company should be fined hundreds of thousands of dollars for underpayment, sham contracting and breaches of the Fair Work Act.

Natalie James, the Fair Work Ombudsman who was appointed by the Governor General in 2013 and is responsible for promoting harmonious, productive and cooperative workplace relations and ensuring compliance with Commonwealth workplace laws, stated in a statement that they “only way to answer the question of whether the workers delivering the meals are employees or ‘independent contractors’ is for someone to ask a court to consider the specific ‘relationships’ between a company and its workers.”

By labeling workers as independent contractors, Foodora is able to avoid paying the minimum wage, penalty rates, leave and other provisions under the Fair Work Act that employees are entitled to.  Some workers claim they earn as little as $6 per hour.

Smart Company is quoting workplace lawyer Peter Vitale as saying that, “It was inevitable these matters would find their ways into the courts, and there are potentially big ramifications for the wider gig economy.”   He says that the import part of the FWO submission is that each worker “was not genuinely conducting their own delivery business.”

The difference between an employee and independent contractor

The Fair Work Ombudsman is arguing that the level of control exerted by Foodora over workers means that they are legally employees.

“Courts have found again and again that merely labelling the relationship to be one of independent contracting does not make it so.”

Areas of interest to the court will be:

  • The uniform worn by Foodora riders;
  • The level of negotiation over rates;
  • Control over the hours worked;
  • Location of work;
  • Riders development of their own customer base; and
  • Ability to subcontract work.

Foodora also faces legal action from the Transport Workers Union for unfair dismissal of a number of couriers.  He stated, “The sham contracting comes as no surprise to the thousands of delivery riders, but action must go broader than just one company and just a few riders.  This area is crying out for regulation.”

Crikey has a very interesting article  detailing some of the nuances of the case.  It quotes Sarah Kaine, an associate professor of industrial relations at University of Technology Sydney, who discusses the intricacies of determining when a worker is and isn’t an employee.  The ATO looks at six factors – delegation, basis of payment, tools and other assets, commercial risks and independence, but legislation for superannuation and workplace safety use different definitions.  This has enabled gig economy companies to get around the definition of what an employee is.  She stated, “I’ve been on a panel with the head of Foodora and he said ‘we will not do this or that because we don’t want it to look like we have employees’. They’re quite explicit about it.”

The case is to be heard on July 10 in the Federal Court in Sydney.

Is this the end of Foodora in Australia?

Foodora, which we believe is third in order volume of the delivery aggregators is a long way behind UberEats and Deliveroo.  In the Australian market, which may not be big enough for 2 operates to create the economies of scale required to be profitable, it is highly unlikely that 3 operators will be able to operate profitably.  This follows the retreat from Australia of Delivery Hero which failed to gain sufficient market share in the fierce fight in Australia.

That fight has only gotten fiercer with the entrance of Just Eat subsidiary Menulog into the delivery space.  This is a curious move, but potentially necessary as Menulog was quite profitable providing order taking only and the move into the fierce competition of delivery aggregator has been driven as UberEats and Deliveroo took market share from Menulog in the capital cities.

An adverse ruling in the  Foodora sham contracting case , which could see it fined $54,000 for each contravention of the Fair Work Act could very well see Foodora leave Australia.  It remains to be seen how much resources it will commit to it’s legal defence.

It’s not just Foodora, UberEats, Deliveroo and now Menulog do the same thing.

The Foodora sham contracting case is not an isolated case and the implications for the Food Delivery business are massive.  The bedrock of the Gig economy delivery aggregators has been their ability to pay less than the minimum wage by labeling workers as independent contractors.  If Foodora riders as seen as employees, it could mean that the delivery aggregation business model is fundamentally unprofitable.  The industry has struggled for profitability since it’s inception and this may mean that it will not be long term economically feasible in countries that see the role of the riders as being that of an employee.

How the Gig economy undermines Restaurants

UberEats and Deliveroo, the pioneers in the industry like to trumpet the innovation that they are bringing to the Restaurant industry, but the fact remains that Restaurants have been delivering food for over 30 years.

One of the innovations in the delivery aggregator model is the ability to pay delivery riders below minimum wage, making it difficult for Restaurants to compete when they are paying the minimum wage, along with the other entitlements that the workers are entitled to.

This ability to pay below minimum wage, along with the branding work that they do and the ability to gain the customer’s email address have lead to the rise of the online aggregator.  The business model sees a customer history across multiple restaurants and denying the restaurant access to the customer contact details.  This is being used by companies like Deliveroo to feed into dark kitchens.  It has even seen Deliveroo state that it intends to cook it’s own food, in direct competition to the Restaurants.

A level playing field should see Delivery Aggregators paying the minimum wage and entitlements, just as the Restaurants have been doing since they started doing delivery many years ago.

The post Foodora, Sham Contracting, Minimum Wage, the Restaurant Industry and the Fair Work Ombudsman appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

We discuss products and services.  What is it that you do?  Many restaurants that we speak to who have been running restaurants for 10 years still do not know what it is that they do and what it is that their customers buy from them.

For the numbers for your Restaurant, make sure you have pessimistic numbers in there.  Too much optimism in your P+L spreadsheet makes it very hard to be long term viable.

What is your pricing strategy?

How do you put a restaurant under management?

Innovation – what is your approach to Research and Development.  R + D can be a clear differentiator for your restaurant.  Restaurants are designed for innovation, but too many don’t innovate.

Insurance, the costs and what is covered?

Are you designing your customer for high throughput?  Is your kitchen limiting the number of customers that you can manage?

What is your strategy around supplier choice – this can make a big difference for your story, your margin, and your success.

Fit out costs for your Restaurant.  How can you get a cheap fitout for your restaurant?

How much inventory do you need and how will you fund it.

We look at the Restaurant Marking plan and some of the big mistakes that people make when it comes to the restaurant opening.

Trading hours.  This is a small question but has some huge implications for your Restaurant.  This is not an easy question to answer without a fair amount of thinking and planning.

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post 85 – How to create a Restaurant Business Plan II appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

We talk about creating a Restaurant Business Plan as a living document to help you better run your business.

We have a copy of blank Business Plan Template and we go through the process of filling it in, and give you some ideas and guidance around the kind of information that you need to put in there.

Why is it important to create a Restaurant Business Plan?

We look at some of the resources that you can use to fill in some of the gaps that you have.

We discuss ownership structures, with the positive and the negatives that can coming from the varying structures.

We look at some sources for funding for your Restaurant, there are some sources of funding that most business don’t think about.

What are the considerations for the domain name and the business name. We look at the considerations that you need to think about and some of the ways that you can protect your business and your intellectual property.

Business location. There is a lot to think about on the location of where your business will be. We talk about what the implications for revenue, rent, and profitability are with the locations that you select. Should you buy your premises?  What are the risks and rewards of this strategy?

We look at the structure of the Restaurants organizational chart.  What are the considerations here? How do you retain your key staff?  Who is going to perform the roles that you need in the restaurant?

What is the succession planning for the roles in the restaurant?

How should you do your policy and procedures in the restaurant?

Hiring. Where can you find the people that you need for your Restaurant?  Is Facebook advertising an answer for your recruiting needs?  How long will they be working in the restaurant before the restaurant opens?

How will you train your team?

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post 84 – How to complete a Restaurant Business Plan appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Carrie is owner of Restaurant HR and company that specifically deals with Restaurant HR issues.  She also runs CarrieLuxem.com which helps Restaurants with the broader HR issues, like leadership and culture.

We discuss the definition of Leadership and how it is so important in Restaurants.

What are some of the steps that people can take to be a better Restaurant Leader?

We also look at the relationship between culture and leadership.

Can anyone be a leader?

We talk about some books that you can read:

Rework – By Jason Fried

Start with why – Simon Synek

What are the first steps to take when you are trying to turn a restaurant around as a leader?

You need to hold people accountable to what they need to do.

At what size Restaurant is it important to create a vision?

Carrie has created   resources to assist Restaurant owners to create and execute on your Restaurant’s Vision, Mission and Purpose.

We talk about Linkedin and how Carrie uses it to grow her profile.

Have a look at Carrie’s excellent book – Restaurant Operators HR Playbook

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post 83 – Restaurant Leadership lessons with Carrie Luxem appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

We finish off place as a part of the restaurant marketing mix.  Have you thought of running your Restaurant like a franchise?  Get the economies of scale in purchases and economies of scales in activities in your restaurants.  Create an operations manual so that everyone knows what needs to be done in the restaurant.

We look at dine-in, take out and delivery.

We finish off with promotion.  Promotion is not about the promotions that you run, but the channels that you use to promote your restaurant.

We look at some of the ways that you can increase the effectiveness of your promotion.

You don’t want to be the best restaurant that no one has ever heard of.

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post The 4 Ps of Restaurant Marketing III appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Price Setting – How do you set the price?  Price Leader, a Premium Price?  How does that impact your customers and how does it impact your profitability?

We look at M Y China and one of their amazing dessert item – the Sugar Egg Puffs.  These are awesome.

How does Menu Engineering fit in with your pricing?  We look at the Dogs, Stars, Puzzles and Plow Horses.

Revenue Per Available Seat Hour.  What is this metric, where did it come from and how important is it to your business model.  How can you influence it?

Getting the balance between your fixed and variable costs is critical.  How can you increase the number of hours that your restaurant is open without increasing the number of hours that you are working?

Loyalty discounts can make a big difference in increasing customer loyalty.  This increases the Long Term Customer Value for each customer and increases the Return on Investment for each new customer that you find.

Payment Terms.  Restaurants Love Cash!  Prebookings can decrease your no show rates.  Prebookings for fixed product, eg a degustation menu means you may be able to vary the price for higher demand nights.

Place – where is the the place?  Is it your Restaurant?

Valet Parking?  Ubers?  Courtesy buses.

How do food trucks fit into the mix?


Right click here and save-as to download this episode to your computer.

The post 81 – The 4 Ps of Restaurant Marketing II appeared first on Marketing 4 Restaurants.

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

What are the 4Ps and the Restaurant Marking Mix?

We look at Product.  It may be something that you eat or it could be something else, or a mix of both.

When you fundamentally understand the product that your customers want, you will be able to price it appropriately.

What are the demographics of people that you want to target and what is it they they want to buy?  Should you change the products that you sell through the duration of the day.

What is the competitor analysis look like?  If there are 8 local pizza shops, you probably don’t want to be the 9th.

What do you do and do you specialise in it?

How does the length of the menu impact the time your customers take to decide.

Packaging is a part of your product.  You want to avoid using other brands packaging for your food.  Use the packaging to reinforce your USP.

How does Nick Sarello at Nicks Pizza and Pub use monthly customer pizza recipes to build a community.

Too many restaurants don’t use just noticeable  differences in their pricing strategy.

Is Price part of the Product for your menu items?

What is yield utilisation and how can you get it to work for you in your Restaurant?

For more information on this podcast, check out our show notes.

If you liked this episode, please leave a review in iTunes.  It really helps us to get the word out and share it on our Facebook page.

For Free Tools  to build your Restaurant business, check out our free tools page.  We’ve helped restaurants around the world build the Restaurant that they always wanted with our tools.  Our free booking tool has taken over $25,000,000 in seats booked.


Right click here and save-as to download this episode to your computer.

The post 80 – The 4Ps of Restaurant Marketing appeared first on Marketing 4 Restaurants.

Read Full Article

Read for later

Articles marked as Favorite are saved for later viewing.
close
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Separate tags by commas
To access this feature, please upgrade your account.
Start your free month
Free Preview