June 16, 2008

The Goliath You Face

the goliath you face

It's one thing to understand that the big restaurant chains have lots of money to buy national and regional broadcast advertising, co-op mailers, joint-ventures with movie producers and such. But it's quite another to look at the range of human capital they have too.

 

The other day, I stumbled upon an ad for a major restaurant chain, looking for 'marketing managers'. I couldn't help think of the sheer mountain of talent they muster up against the smaller, independent mom and pop and chef-owned restaurants. If you're as busy as I think you are – running your own restaurant – you likely have never bothered to read just what you are up against.

 

This is why you need your own arsenal of tools that help you work smarter, not harder. Just read a portion of the job description for only one of the many chains you likely compete against in your trading area. (The bold and italics are mine).

 

"…they are responsible for meeting expectations and requirements of internal and external customers and acting with customers in mind. Marketing managers will: Develop and execute quarterly and semi-annual marketing plans for market-specific programs that drive customers, sales and profitability growth above and beyond national promotions. Partner with field operations to communicate, influence and plan local marketing programs ensuring implementation results in an appropriate return on investment (ROI) and adherence to marketing initiatives and objectives of the brand partner with local media contacts and sponsorship partners to create innovative approaches in support of marketing initiatives. Plan, manage, and measure budget and programs ensuring maximum cost control and effectiveness of marketing programs. Analyze and make recommendations based on market conditions, competitor data and customer research. Prepare materials for internal and external presentations on programs, business plans and management communications. Communicate a compelling and inspiring vision such that it is embraced by everyone. Successful marketing managers will have: Bachelor's degree in Marketing, Advertising, Public Relations, or a related field, with a minimum of 6 years marketing experience. Knowledgeable in current and potential policies, practices, trends, and information affecting business and are aware of how marketing strategies and tactics work in the marketplace. Exhibit the ability to communicate marketing initiatives that inspire and influence the field operations resulting in successful adoption, implementation and business impact. Knowledgeable about network, cable, and spot media planning…"

 

'Tired yet? I can understand. I got fatigued just reading this—and the rest of the copy in this ad. The fact is, these are the types of employees you will be competing with these days. The chains, especially if they are publicly traded, are under severe pressure themselves. They have to show positive results for Wall Street, or the top executives get the ax.

 

This is why you, as an independent – without a huge budget or marketing department; up against these super smart marketers in the Field – need to learn the same tricks of the trade that the big boys use. That is the raison d'être ('reason for being') of this blog,and the soon-to-be-published book: How to Market Your Restaurant…without it costing you an arm and a leg. Keep an eye on this blog; it will be available very soon.

What do you think? Care to share your 2 cents? I'd appreciate your feedback and comments below.

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Comments on The Goliath You Face »

June 17, 2008

Joe Fernandez @ 12:08 pm

The advantage independent restaurants have over these chains is that most people don't like to be marketed to. I believe the days of "communicating a compelling and inspiring vision such that it is embraced by everyone" are over. With the access to information, relationships, and user generated content that the internet makes available companies can not force a brand identity on to the public.

I believe independent restaurants need to focus on social media as a channel of establishing relationships with customers. Marketing isn't a one way conversation. Those who listen, talk and really participate can truly engage their community. Best of all these tools have amazing reach and are basically free.

I look forward to reading more about your marketing tips Roy.

Roy MacNaughton @ 6:05 pm

This is a super comment Joe.

However I think everything starts with your TARGET GROUP.

Depending on who you are trying to reach, inform and motivate to dine at your restaurant, the media you choose (e.g. whether social media as in Web 2.0…or 'traditional type media…like local radio, newspaper ads or outdoor (billboards) for example)will be a DIRECT FUNCTION of the group you are trying to reach and THEIR RESPECTIVE media usage habits.

Naturally, to cite another example, if you were targeting older folks, say 55+, you would not likely lean quite so heavily on social networking sites as you would on traditional local media, perhaps. That doesn't mean that people over 55 are NOT into Web 2.0….heck, look at me!…but they are not into it quite the same as those in the 18-35 age bracket, right?

Cheers,

Roy

Jay Mallinckrodt @ 8:03 pm

I agree with Joe's comments above. All businesses, especially independent restaurants, need to utilize the social features that are available on the Internet to effectively, both in cost and reach, reach their target audience. Some of the options include creating a Facebook Profile Page, Ning Social Network, or ensuring your business is listed in local directories such as Yelp! and Yokld.com.

I would also disagree with the thoughts regarding where the older demographic finds information about businesses. Everyday more and more people including the 55+ demographic are utilizing search engines to find information about local businesses. With growing usage of Internet search engines there is increased importance and incentive to get your business listed (with links back to your site) in as many places as possible.

Roy MacNaughton @ 10:08 pm

Thanks, Jay for your comment. As one who works with one of the Social Networking Web 2.0 sites, Yokid.com, I can understand your feelings.

However, take another quick peak at my words, and I think you'll see that I said: "…not likely lean so heavily on social networking sites…"

Jay, as you are aware, there are no "absolutes" in any form or part of marketing. I did not mean that those aged 55+ never use such sites…or are not learning to use them more. (I have a great friend I recently introduced to http://www.FohBoh.com/2008, the SN site for restaurateurs. He's gonna be 76 this year!)

I was trying to illustrate that in a world of options, there is no "one size fits all" (e.g. there are several options open — in addition to — social networking sites). Nor is there 'one true way' of doing anything–especially marketing.

I checked out your site. The first page brought back fond memories for me of Greenville Avenue…when most of the nifty new restaurant concepts were just getting started in that part of Dallas. It was a great time to be in our business!

June 18, 2008

Jay Mallinckrodt @ 4:39 am

Point taken Roy.

Utilizing as many of the marketing and advertisings options that are available, as time and cost permit, should be a priority to any restaurateur.

Thanks for checking out Yokld.com. Our goal is to provide one of these additional marketing outlets for restaurant owners who are recognized to provide high quality products and services.

Roy MacNaughton @ 1:46 pm

Thanks, Jay.

'Looks like Yokid.com is doing just that!

I suggest that restaurateurs give it a good look.

Every little bit of publicity, or "ink" helps, they say.

cheers,
R.

Jeffrey Summers @ 2:34 pm

Sorry, but "social media" (I hate that term – isn’t all media social?) is not yet the “end-all, be-all” answer for what ails the independent operator's marketing woes. 3rd party conversational platforms or any other ancillary tools that do not focus directly on the specific and unique dialogue you need to have with your guests will not help you put more butts in seats.

Roy’s comments on a business’s target market are absolutely correct as well. It is here that Joe’s comment resonates loudest, “I believe the days of ‘communicating a compelling and inspiring vision such that it is embraced by everyone’ are over.” Strike the words “vision” and “everyone” and replace them with “story” and “target market” respectively and you get a much truer picture.

If you learn which media your guests use to communicate and prefer to use in order to converse with you, you will succeed in building much deeper and more lasting relationships with them (read greater lifetime value). If you do not, you will simply be adding to the ever increasing level of “noise” that exists in the social marketplace today.

Roy MacNaughton @ 3:12 pm

'Could not have said it any better myself.

I rest my case at this point.

Joe Fernandez @ 3:18 pm

Don't want to put words in people's mouths but it sounds like we all agree that social media is a low cost (potentially) high impact tool that can compliment traditional marketing activities. Though there are challenges in discovering which social media platform is the proper channel to engage your customers, doing so can build deep relationships and great lifetime value.

My question is whether or not independent operators are ready to have the "unique dialague" we speak of? A social media campaign is quite different from traditional marketing in that it requires a sustained effort from the operator.

Jay Mallinckrodt @ 8:23 pm

The key to social media is that an operator will need to continuously be part of the conversation. But, one of the keys to this type of marketing is that if you provide a high quality service (mandatory) and participate in the conversation the community will pick up your message and run with it. Examples of this would include:
- Ranking and comments on Citysearch, Yelp & Yokld.
- Blog posts and comments.
-Etc.

Roy MacNaughton @ 11:57 pm

Jay, on the surface, this is quite logical. However, the reality of being a restaurateur today is not that straight-forward, or linear.

Being a restaurateur–especially in today's hyper-competitive, labor-crunched, economically depressed arena…is certainly no picnic at the beach!

These folks are working 60-70+ hours per week. They are trying to pay the bills, do the marketing, order and store the food, cook it, serve it; and hope that they have enough cash left over to keep the doors open. Sometimes, in the guise of a promotion, they have to sell $25 Gift Certificates for $5, just to get some much-needed cash in hand.

They don't have a lot of time to participate in the 'conversation' with the outside online community. Nor do they have a lot of cash to pay someone else to do it for them. They will have to carefully budget their time and money for such a task.

You'll have to convince them that it's worth it.

Moreover, most restaurateurs want to have some control over just who is "reviewing" their restaurant on any online web site or blog, available to the general public.

There. Someone had to just come out and say it.

I'll say it for them. Since I no longer operate a restaurant, "review" sites can't bother me. And if they do, most hard-working restaurateurs out there will applaud me, for telling it like it is.

If customers are happy with their offerings, any restaurateur will be tickled pink…especially if he gets to read about it (heck, I love to hear from my readers too!). But when you get slammed by some person having a bad hair day taking it out on the restaurant; or by some guy wanting to impress his buddies or gal with his own name in print…complaining for the sake of complaining, only because "if it bleeds, it leads" and this mediuum lets him…blood begins to boil.

This is hard for any business person to take.

So Jay, please excuse me if I seem a bit incredulous that most restaurateurs will be happy, if not anxious to participate in such situations. Generally speaking, (and there are always exceptions), I think many operators would prefer that online so-called "review" sites go the way of the dodo duck.

Of course, we know they won't. The excellent, relevant, useful and honest ones will likely survive in one form or another.

Then there are the 'review' sites that in order to be a part of, the operator has to pay. At first glance, many of these are OK; but any smart person will soon see that too many of the posts, or "reviews" are produced by one or two individuals, often the owners/or marketers of that same site. The visitors observe that for the most part, most of the "reviews" are "gilding the lily". Self-respecting restaurateurs may choose to give these a miss.

Another word for this is paid "advertorial"

The public are not stupid…they know the difference. The only one being duped here, in my judgment, is the naive, hapless food service operator, who perhaps doesn't know any better because this is all so new. Or s/he has been sold a load of cr@p to get him/her to pay up and be on this type of site.

Sorry Jay…but I think being on a so-called public review site mostly scares the hell out of most operators. Moreover, without any control in such situations, the more astute or even frightened operator, will steer clear if possible.

Now I may be wrong about this. I'm wrong about a few things most every day; so this just might be it.

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