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TIMES ARE TOUGH RIGHT NOW AND MOST RESTAURATEURS AND COMPANIES ARE FIGHTING FOR EVERY DOLLAR..
Before we giveaway the farm and discount everything in sight to drive foot traffic into our businesses, let's first do what we were taught in grade school... "Stop, Drop & Roll". Let's look at how we can fight the fire sale mentality. So let's look at it this way. Any successful business (service or product based company) does one thing. The Experience they deliver to their Customers outweighs the perceived value that is placed upon that product or service.
Step 1:
Look inside your four walls at how consistent your product and deliverables are. Consistency must be achieved first (the basics or tangibles). You must be operationally predictable. Customers need to know your products and services are good and consistent every time. If they are not, spend your valuable time and assets on fixing the root cause of Why Not.
Step 2:
Experience: The Experiences must exceed the expectations of the guest or consumer. .This is what we call un-predictability. These are behavior driven and are organic, personal. authentic and memorable. The bi-product is an increased perceived value by the consumer.
"Companies that fail to provide consistently engaging experiences, overprice their experience relative to the value perceived"
-"The Experience Economy"
Most people that fly Southwest Airlines give it high marks and they have a tremendously high return rate from consumers. Southwest is not the cheapest airline to fly, but they go above and beyond most other airline's standards. A couple illustrations of this would be that they offer free beverages and snacks, no cost for luggage, rewards program for frequent users, Flight Attendants engage customers by singing and entertaining while providing service. All of these aspects increase the guest experience and perceived value. People will return if they feel that a product or service is a good value for their money and their experience was a memorable one.
BMW: Slogan is the "Ultimate Driving Machine" and they back it up with $0 Maintenance for the first 4 years on any new or used BMW.
Disney states they are "The most Magical Place on Earth" You can spend a lot less than $90 per person for admission to a theme park and Disney knows that. They also know that once your child walks down Main Street and sees Mickey Mouse and Cinderella's Castle that the Magic potion has taken effect and your child has a grin from ear to ear. By the time you leave, you are validating that experience with a T-shirt for each family member and a photo to capture the moment. In this instance, the experience outweighed the cost of admission.
This works the same way in the restaurant or any service sector business. You must have Predictability first. Great food or Product served in a clean, friendly atmosphere. You must also have Un-Predictability That wow experience by the server, flight attendant, sales clerk or character.
We have consulted many businesses and taught 1,000's of employees over the years our "Predictability and Un-Predictability" philosophies and some folks hit it out of the park.
Here is another example. The reason that Hard Rock Cafe can charge you $13.00 for a burger and Ruby Tuesday's charges $8.50 is simple. Most likely it is the same 1/2 lb fresh Angus Burger from the same ranch and same type of cow, but HRC is selling you an experience also. Let's take a look at this statement "Great food served in a museum environment with a dash of Rock N Roll music and attitude." Wow! What a statement! With that being said, they cannot over promise and under deliver or they will be out of business. So let's see how they can pull this off. When you walk in, you hear Classic Rock N Roll playing. You are approached by the tattooed, blue-haired hostess. As she walks you to your table, she tells you a story about Eric Clapton's guitar that is hanging on the wall, or whatever other piece of cool memorabilia that is positioned near the table you will be sitting at. Even before you order, your expectations have been exceeded. Then your food is delivered hot and fresh by a guy dancing and singing to Nirvana.. At the end, you validate your experience at the retail store with that classic Hard Rock T-shirt. They gotcha hook, line and sinker! HRC sells you a Rock n Roll Experience, Museum and Concert admission and a Burger all for the low price of $13.00.
Now you say, "What a great value!" I have been teaching this concept for years and the successful companies Get it and Do It. Increasing value is both structured and organic. You ask, "How can this be?" Well structured is planned. Refer to the example using the HRC. Their servers dance and have fun, all while serving you. This is the organic side and cannot be taught. It is hired.
"Companies that fail to provide consistently engaging experiences, overprice their experiences relative to the value perceived.”
- The Experience Economy
This article is posted by International Restaurant & Hospitality Group,
visit us at
The old question, "Should I spend my money on discounting or spend my money increasing the experience of my guest?"
Most people go out and judge a restaurant by the Reality vs Expectation scale
Remember 92% of the people who visit you will not talk about you.
The remaining 8% are thinking 1 of these 3 things -
My expectations exceeded our expectations (WOW)
They met our expectations (Ok or neutral)
They did not meet our expectations ( Will not see me again)
News alert....
With the state of the economy International Restaurant & Hospitality Consulting Group has launched a Free Download Section. to help restaurant owners and managers, reduce cost, increase sales and productivity. This Free download section has great forms such as Operational Templates, Human Resource Templates, Legal Forms and other Great Information and Resources geared to the Restaurant and Hospitality Industry
Download the free file and also sign up for our mailing list for new information.
International Restaurant and Hospitality Consulting Group is an International Full Service and Self Service Consulting Group geared to the Hospitality Industry
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website: International Restaurant & Hospitality Consultant Group
IRHCgroup Online Store
4 Levels of Leadership:
PEOPLE WILL FOLLOW YOU IF THEY FEEL YOU KNOW WHAT YOUR DOING.
ONCE YOU MASTER THIS YOU ONLY HAVE 3 MORE PRINCIPALS TO GO...
The Second LEVEL IS THE INTERPERSONAL LEVEL OR TRUST LEVEL:
The Interpersonal Level represents relationships and interactions with others
Interpersonal = Trust
In order to Impact others in this Level you must developer these eight traits
1) Impacting and Influencing 5) Innovation
2) Modeling 6) Problem Solving
3) Self Accountability 7) Communication
4) Strategic Thinking 8) Coaching and Development
The Third Level is the MANAGERIAL LEVEL
We look at individuals who are working together to get a job done. Specifically we look at their functions and roles.
Managerial = Empowerment
Individuals and groups within the organization capable and willing to produce the
desired result or objectives
The Forth Level is the ORGANIZATIONAL LEVEL
Organizational level can be examined in terms of how jobs are organized and get done.
Systems and Structures and Processes
Organizational = Alignment
How the organizational structure and systems are aligned with the Mission and
with customer requirements or needs
For full presentation click on link below
http://tinyurl.com/ya55lmx