Rebranding - Is it Time to Make a Change

There is nothing worse than getting stuck in a rut.  What may have worked when you first opened your restaurant just doesn’t seem to be cutting it anymore.  A few signs that some changes may be needed are as follows:

• Have you noticed that your business is not what it used to be?  
• The food doesn’t seem so special
• Your regulars seem to be visiting less and less
• Morale with the staff is low
• Staff turnover seems high
• You lack motivation
• You dread coming to work

Don’t worry, these things are normal but they are definite signs that you have got to get you and your restaurant out of the rut if you want to stay in business.   You may have to dig deep to get yourself motivated, but you did it years ago when you opened your restaurant and you can do it again now!  Here is how:

1. Create a new tagline.

Begin with refreshing your brand image.  Just like you did when you opened your restaurant, take some time to figure out what you want to deliver to your customers.  In other words, when a customer hears your restaurants name, what do you want to immediately come to their mind?  Form this idea into a new tagline attached to your restaurants name.  An example of this would be, “The Wharfside, any closer to the ocean and you would be swimming.”  Or “ Anthony’s Pizzeria, smile and say cheeeese.”   For more information about branding click here.

2. Find out how people see you now

The process of creating a new tagline has given you the opportunity to clearly see your vision of the new you. The next step is to accentuate the positive and eliminate the negative so you need to start asking questions.  You must ask your employees, your customers, and even people you meet in the grocery store.  Ask them what they know about your restaurant, what they think about your restaurant and things they may like to see added or changed.  This is going to give you the opportunity  to work on the perceptions that are currently out there that may not be what you want them to be.  It will also give you the opportunity to connect with the community by giving them what they are looking for.

3. Take a look at your competition

Go and visit your competitors.  Take notes on the things they are doing right and the things they are not.  Is there something that nobody else is doing that may be a unique selling opportunity for you? Explore different restaurant concepts to help you find new ideas.  Check out different price points and what is being offered.  Also go to review sites and see what customers are saying about you and your competition.  This information can give you great insight on where you need to be focusing.

4. Revamp your décor to fit your new brand

Don’t let this idea scare you.  You do not have to spend a lot of money to revitalize your space but it is essential that your customers will notice a difference.  New colors, textures, and lighting can make a tremendous difference.  Research other restaurants with the similar themes and get ideas for new color combinations and decorating ideas.  Think about how you may be able take your existing furniture and rearrange it to give the restaurant a new feel.  This is a great time to think about the traffic flow of your restaurant and work on ways to make service more efficient.   Places like Homegoods or even garage sales can have great inexpensive decorations to fill empty spaces and add a splash of interest.

5. Redesign your menu

A menu redesign will fill three important purposes.  The first is to promote your new brand and give your new image credibility.  The second is to make the food special again by adding exciting new items or specials.  The third and most important is to help bring in more money.   It is a fact that customers look at menus in a certain way.  Placement, highlighting, typeface, and descriptions all play a huge role in what your customers will buy.  You need to design your menu so that your customers order what you want them to order  (click here for detailed information regarding menu design).  Don’t forget your drink menu.  Be creative and come up with some great signature drink ideas that help enhance your brand.  

6. Get your staff to “buy in’

Your staff is your sales team.  Makes sure they fully understand what you are trying to accomplish with the rebranding and make sure you let them know how it will positively affect the money they make too.  Train your staff to encourage feedback from customers and encourage them to ask the customers to come back.  You cannot rebrand your restaurant without the support of your employees.  If they are unwilling or not excited about  what is happening it might be time to let them go.  

7. Get the word out.

Just because you work so hard to rebrand, don’t assume people know or care about what you are doing.  You need to build excitement and let everyone know what going on.  Since your staff is your sales team, encourage them to tell everyone what’s going on.  Try giving your staff $10 Gift Certificates to hand out to everyone they know or use social media channels to get the word out.  Post pictures of the changes and talk about the new menu; build excitement by having a ‘Look What We Have Done” party.   

8. Monitor reactions and financial results

It is important to know reactions to your changes.  Hopefully by the increase of revenue you will know that you have made a huge difference. However, don’t take anything for granted.  Once again consult your staff for any feedback, listen to them and ask questions, and use comment cards in the check holders to get feedback from your customers.

Now that your rebranding has brought new life to your business keep the momentum going and set one day every month to brainstorm new ideas to keep your restaurant from getting old.  Little tweaks make a big difference and keep you relevant to your customers.

If you need help finding motivation or figuring out where to begin, we can help.  Call us at 845-598-4760 or email us at info@TheRestaurantPlaybook.com and we’ll get you started.

Understanding Credit Card Processing

Merchant service providers act as middlemen for your business and bank to help process and manage bankcard payments. Regardless of how small your business is, you need to offer card payment services to make it in today’s times. Card payments have become the most common method and so it is essential for restaurant owner’s to make sure they offer convenience to their customers to reap bigger profits.But it is not as simple as that. Credit card processing requires planning, research and complete understanding to make sure you aren't paying higher discount rates than you have to. Following is an explanation of exactly how much you are charged for various transactions:

Interchange

Discount rates are broken down into numerous categories known as interchange. Interchange can include more than 100 different rates that change every year, however, in most cases Independent Sales Organizations (ISO) charge bucket rates to merchants. Bucket rates are an easier way to categorize the dozens of different rate categories into groups to form a simple rate structure comprising of similar interchange levels. Bucket rates include Non-Qualified, Mid-Qualified and Qualified rates.

Qualified Rates

Qualified rates are bankcards that are used on premises. For businesses like restaurants that usually run on a brick and mortar structure, most transactions are done on the premises, via card swipes. These transactions don’t include any reward credit cards like Bonus cash, Flyer miles or other incentives for the customer. Merchants are charged the lowest discount rate in this category which ranges from 1.65% to 1.95%. Qualified rates are usually low because the chances of a merchant getting a chargeback are the lowest and due to the lesser risk for the card and the merchant to absorb the cost of accepting fraudulent bankcards.

Mid-Qualified Rates

Mid-Qualified rates are charged for bankcards where the transactions are made via telephone/email etc. where the cards aren’t swiped. Although for restaurants offering cash on delivery, mid-qualified rates hardly apply. However, in cases where restaurants may accept payments on phone, or via online forms or websites, or are offering reward cards, then mid-qualified rates apply. The risks of fraudulence increase if a bankcard is not present, thus the discount rates are higher and range from 0.85% to 1.29% plus the qualified rate.Reward cards are also charged the same because eventually it is the merchant that absorbs the cost of MasterCard/Visa’s ability to offer reward card incentives.

Non-Qualified Rates

Non-qualified rates include International, Corporate and Business bankcards. These have the highest discount rates among the three and can range from 1.12% to 1.63% in addition to the qualified rate. Multiple factors are responsible for the high discount rates including the following:

• These bankcards of the highest risks comparatively.
• Business and corporate cards have highest limits.
• The processing company deposits the funds into the merchants account upon approval and receives the funds afterwards.
• International cards require thorough verification due to the high risks.
• With international cards, more often than not, the processing company has to calculate the rate of exchange of the currency to the US dollar before withdrawal.
• The non-qualified rates remain the same regardless of whether the card is swiped or not.

Item Fees

Apart from the discount rate, an item fee is also charged on bankcard transactions. This fee is reflected when a merchant receives a bankcard where the merchant has to settle all transactions for the day or needs to obtain approval. The terminal has to dial out to obtain an approval or batch out for the day. For each transaction where a merchant has to batch out or obtain an approval, the merchant is charged a cent. Depending on the type of business, a merchant is charged from 18 to 20 cents per dial out.

Monthly Statement Fees

Merchants are charged for the monthly report of discount fees and transactions that they receive. This statement is provided at the end of each month in order to help the merchant tally their revenue and accounting from bankcard transactions. Depending on the type of business, merchants are charged somewhere between $7.50 and $10 per month for the monthly statement. This monthly statement is also analyzed and reviewed by Independent Sales Agents when consulting with a merchant about converting current ISO.

How to Find the Right Processor

It can be very difficult for restaurant owners to find the right processor for bankcard transactions. There are numerous things that you need to keep in mind to make sure you are not paying higher rates and fees than you have to. Following are a few things to keep in mind when looking for Credit Card Processors:

• Be on the lookout for processors who claim they can ‘save you money’ without having any knowledge of your business and card processing needs.
• Steer clear of agents wanting to check your statements right away. Yes, it is important to check the statement before they can plan your discount rates, but both of you need to get a better understanding of what is needed and what is on offer before jumping to confidential financial reports.
• There is no such thing as ‘whole sale pricing’ as far as MasterCard and Visa are concerned, so if that’s what the sales agent is offering, then there isn’t much validity to their claims.
• If the representative starts offering you rates without understanding the nature and structure of your business, then that’s a red flag waving right at you. There is a huge difference between the rates on a statement and the total cost incurred. In the end, it is the total money you are charged that matters, not the numbers on your statement, regardless of how tempting and pretty they look.
• Service is just as important as the offer at hand. So steer clear of representatives who choose the trickiest of times to ring your bells. A reliable agent will help you find the best deal at the right time and most importantly at your convenience.
• You have questions about matters you don’t understand? Good for you. Don’t let complex, default answer fool you. If you don’t understand what your representative is trying to tell you, then the chances are neither does he/her. And it’s time for both of you to move one and for you to find someone who knows what they are offering and knows how to tell (sell) it too.
• A good processor will stay updated on cost fluctuations or reduction in cost from MasterCard/Visa and will inform you about the changes too. So you need to know that they know what needs are.

The more you know the easier and more convenient it will be for you to find the right processor. It can be both frustrating and costly to let your processor tell you stories that although take you to fantasy land on paper, end up costing you real time money. Your business is all about you, your costs, your profits and your transactions. So by knowing how credit card processing works and how you are charged for it will help you make a more profound decision. Because in the end, it is very easy to identify processors who work for your best interest, and they are usually the ones that companies have stuck to for longer period of times. So do a little research to find out who the other merchants, especially in the restaurant business, are entrusting their credit card processing with.  

The Last Guest of the Night

The right time to end nighttime dinner service is something that is different in every restaurant and for every restaurateur. Do you want to wrap things up and go home by eight p.m., or are you happy with customers still wining and dining until 2 a.m.?

Likely it’s somewhere in between—and if you have a separate bar area that’s a factor--but whatever your preference, it’s crucial to have a firm line on your late night service policy that’s completely clear to your staff and your customers, and that everyone’s on board. Here’s why:

Entice them in, don’t rush them out

Last Saturday, on a lovely early-summer night, I went out to dinner with a friend at 9:30 p.m. Late, yes, but the doors were open, the place was still full, and the hostess was welcoming. So far, so good.

But midway through a delightful meal, our plates still half full of tasty food, the waitstaff seemed to start a kind of rush-and-hover that made my dining companion and myself suddenly feel like they couldn’t wait until we left. The staff began to run around as if they were in a big hurry to end the night. Three times servers tried to take away our plates, which still had food on them that we were still savoring. The third time my fork was poised toward the plate, and I had to tell the server that I’d prefer to enjoy the last bite.

One of the traits of a great server is being able to sense when patrons are finished with their food. No one likes to have their plate or drink snatched away before they’re done with it. Servers may think they’re being subtle and the customers don’t notice, but if they start sweeping and vacuuming or are moving around double speed, it gives patrons a message that they want them to leave. Not only is it likely to lower the tip, but it may make customers consider another place to eat next time.

Everything on the table

You want people to have such a good time at your place that they never want to leave and can’t wait to come back, but clearly you and your staff need sleep (not to mention, a life after work). So figure out an ending time you can live with, for you as the owner, for the kitchen, for the bar, and for the waitstaff, and everyone needs to be on the same page. Restaurant owners don’t have to stay until the last pot is washed, but everyone needs to know what time the kitchen closes. If there are parties who want to prolong the delight of your fine atmosphere and their happy tummies with another drink and linger awhile, you need to decide how to handle that and instruct your servers accordingly. Sweeping and vacuuming near guests who are still eating is not only unappetizing but sends a clear signal to them that may not be the cordial message you want to convey.

So consider specifying on your menu what time the kitchen closes, and ask your hosts to alert latecomers to that. If you’re not present that late in the evening, then designate someone to be in charge and make sure no one is rushed out the door, or they just might not rush back.

Going Green in Your Restaurant

Besides being kind to Mother Nature, going green can also save you money and resources. Going green is not a fad.  If anything, the movement gets stronger each day, and for good reason too.  In the past many have stayed away from green alternatives because of the costs associated with them but as we are seeing the increase in demand for these products and greener business practices, green alternatives are becoming more accessible and less expensive.

As the movement towards being green increases, having a green restaurant can actually attract customers who appreciate and share your values. When comparing apples to apples, customers are more likely to go to the brand they believe in and who they know cares about the mark they make on the world. It may not have occurred to you that going green can help you connect with your customers but it can become a reason you gain a loyal customer.

8 Shades of Green – How to Make the Leap

1. Flip the Switch  -  One of the simplest and most effective ways to conserve energy is to turn lights and equipment off when not in use. Appliances that are plugged in and not on draw a small amount of electricity at all times, so if you can unplug them altogether, it’s even better. Turning off a broiler for one hour a day per day could save you $200 a year.  The point here is if you don’t do business between lunch and dinner, turn your broiler off and unplug your appliances.  You will not only be helping the environment but you will be helping your wallet too.
2. Switch Bulbs - Did you know that compact fluorescent bulbs use about 75 percent less energy than the traditional light bulbs you use? They may cost more upfront but you will reap the returns by lowering your energy bill and having to buy bulbs less often.  The average compact fluorescent last up to 10 times longer than a regular bulb.
3. Use Energy Star™ Appliances.  When buying new equipment, or replacing old, buy Energy Star.  A change to Energy Star can save you up to 25% of your energy bill without surrendering quality. You will also want to check, some municipalities may extend you a credit for buying Energy Star.
4. Keep Control of Disposables  It is important that your staff is aware of what they are giving away. Set limits as to what is given to the customer in the form of take out condiments.  Your staff may not understand the cost or environmental consequence associated with grabbing a handful of ketchup packets, a fist of salt and peppers, and a wad of napkins all for one small take out order. Educate your staff and set standards.  A burger should get two ketchups and 2 napkins, etc.  Staff should also ask if they need disposable utensils or not.  10 to 1 if a customer is going home or to their office they will want to use their own.
5. 5. Educate Yourself   Ignorance is not an excuse for wasting energy. It is important that you understand your bill and audit it frequently.  You can begin by knowing precisely the amount of energy you consume and you should be able to track how it varies throughout the year, as well as year to year. If you are unsure of how to read your bill, contact your energy company to walk you through it. You need to become the expert.
6. 6. Use Green to Clean.  There are more and more environmentally friendly companies specializing in green cleaning products for the foodservice industry. The average restaurant that uses traditional cleaning chemicals can produce pounds of poisonous waste per year.  One of the biggest culprits among restaurant cleaning products are degreasers.  But daily cleaning products such as pot soap, glass cleaners, furniture polish and other general purpose cleaners give a negative impact on the environment too. Look to find products that are 100 percent safe.  It doesn’t make sense to go “sort of” green.
7. 7. Switch to Biodegradable  On average restaurants produce over 100,000 lbs of garbage annually.  Switching from Styrofoam to a compostable to-go container can make a big difference.  Not only can biodegradable containers breakdown and become rich earthly materials, but they also use less oil in the manufacturing process than petroleum based plastics.  A double win!
8. 8. Live by the 3 R’s Reduce, Reuse, Recycle  Make Reduce, Reuse and Recycle your restaurants mantra. Post it in your kitchen, your office, and in staff break areas.  With these three words YOU can eliminate waste and help save the environment!  The way you choose to handle waste not only affects your bottom line but also affects the future of our world's ecosystem.