Bathrooms:

Annual Bathroom Blogfest is occurring today, All Halos Eve! There are some great stories about the horrors of bathrooms in the customer experience.

Restaurateurs invest ten to twenty-five percent of their construction budget into building bathrooms. A significant portion of your monthly rent payment finances their continued existence. Many a wonderful dining experience has been obliterated after answering natures calling. Why?

Have you ever visited a restaurants bathroom and thought maybe you had entered a war zone. The bombed out stalls, the peeling paint, the unhinged stall doors, the burned out lights, the chipping grout and the stained bowl, did you think to yourself why?

A restaurant will not create customer advocacy with its bathroom in disarray. Is it really that difficult to insure that the bathrooms are clean, that there are ample supplies and that possibly there are fresh flowers?

All Halos Eve is about the forces of darkness marshalling their energy for their climatic battle against the forces of light. Your restaurant needs to be on the victorious side in the battle of the bathrooms!

Smile:

Roger Dooley’s Neuromarketing Blog post “Smiles Really do boost Sales”

“Flashing smiling subliminal images at customers waiting to be served at a burger restaurant doesn’t seem very practical, or very ethical for that matter. I think the study does show that even a tiny elevation of mood, so small that it is imperceptible to the subjects, could affect their spending. This means that the manager who trains her employees to smile is on the right track. It also suggests that imagery in the purchase area should be positive and people should be smiling.”

A smile is the best way to say “Hello, won’t you come on in. We are glad you here. You are very important to us”

Smile.

City Anchors:

CEO for Cities blog post “The Bookstore as a Community Center” emphasizes the role of restaurants in community development.

“Distinctive retail shops and restaurants, particularly those that function as community gathering places, are now important amenities for cities. Cities need to learn to value these amenities (all stores are not created equal) and act accordingly.”

Real Estate development and restaurants need each other desperately. Cities to attract the creative class need to be areas where both can flourish.

Restaurants have always been City Anchors!

Diners Bill of Rights:

Leslie Brenner’s Los Angeles Times article “Diners, Stand up for your Rights” examines a growing movement.

“VIP treatment. If you are not a VIP, you have the right to the same service as a VIP.”

Listen up restaurateurs, your guests are mad as hell and they are not going to take it anymore. Diners are demanding their Bill of Rights!

Tea is the New Coffee:

Restaurants and Institutions points to a New York Sun article “Tea Salon Get Set To Expand”

"It's not just about tea — it's a lifestyle," she said. "You aren't going to go to a yoga class and then drink an espresso. You stay in the moment — you drink a cup of tea."

Tea is gaining ground because coffee is not for everyone. People want a non coffee alternative to enjoy. Chicago based Argo Tea is a concept the encapsulates the trend very well.

Tea is the New Coffee!

Karma:

Christian Science Monitor article “A restaurant with no checks” outlines life in our brave new world:

"In the spirit of generosity, someone who came before you made a gift of this meal. We hope you will continue the circle of giving in your own way!"

A previous post “Set your own price” asked the question when this would occur. The universe has a way of answering all queries, that is after all Karma!

That’s Expensive:

Patrick Williams whose blog is a must read has a very interesting response next time your guest questions your price. Whether you are putting together a large private dining affair or are taking a large corporate catering order the first time client will undoubtedly say how expensive that is. Patrick’s response is

“I looked them straight in the eye and confidently reply, “yes, it is reassuringly expensive, isn’t it?” I confirm they are buying the best because I couldn’t possibly charge that price if what I sold didn’t deliver.

Of course, the product or service must deliver and I am confident what I sell does deliver, time and again.”

Try the response out next time a new guest pushes for a discount. You and your staff strive constantly to put out the very best product you can. Don’t discount period, if you must make concessions use the value added approach by offering some additional product at no or limited charge.

You are now ready to respond when guests feign shock and say That’s Expensive!

Make plain food taste Great:

Titus-Armand’s Project Armand blog post on “11 Tips to make plain food taste great” offers an interesting take taste enhancement.

“Adjust the lighting. Lighting is really an important accent. It adds texture and color and glow to the food. There’s not a lot of knowledge about what lighting can do and most people take it for granted – it’s either on or off. Experiment with it and you’ll notice that the food might actually start looking better that you would’ve imagined!”

The post is aimed at individuals, however restaurateurs can easily gleam some very good ideas to Make Plain food taste Great!

Relational Customers:

Grokdotcom.com post explains the difference between a one time customer and a customer advocate:

“Transactional customers:

• Consider only the current transaction when making a decision
• Are generally willing to switch suppliers, stores, etc., for reasons of price alone
• Prefer to be their own expert

Relational customers:

• Consider any transaction to be one in a series of interactions with a given business/expert
• Generally will not comparison shop once they’ve found their expert
• Are searching for an expert they can trust”

Restaurateurs need to be resources for their guests, not just providers of a service. Restaurants need to add value to their guest’s life and in so doing develop Relational Customers!

PCI Compliant

FastCasual.com has a good article on “PCI Compliance”

“The credit-card industry including Visa USA, MasterCard, American Express and Discover are cracking down on restaurants and merchants in an effort to better protect cardholder data.”

PCI compliance is being enforced vigorously. Many chains have taken an aggressive stance because they realize that a breach at any one of their locations puts the entire system at risk. The risk of course is non participation in the credit card payment system. That would be a death knell for any business in the 21^st Century as customers are making $0.36 purchases with debit or credit cards. Single unit operators must be certain that there stand alone credit card machines are compliant.

The industry has come a long way from the messy carbon copies and we still have a ways to go because customers are vigilant about their accounts. The ability to view transactions online has helped and hindered. Customers do not understand the concept that the issuers have of holding an account after authorization has been given. Many a restaurant accountant has had to explain to an angry guest, that their card was charged the correct amount by the restaurant and it’s the credit card issuer who has added additional amounts to the hold waiting for the batch from the restaurant.

It is very important that you as a restaurateur make certain your establishment is PCI Compliant!

What was that special again?

Melissa Clark of the New York Times did a great article “If it sounds Bad it must be Good”.

“THERE are some restaurant dishes that I order because they sound better than everything else on the menu, and there are some I order because they sound worse. My reasoning goes like this: If a chef dares to offer something as unappealing as, say, a raw kale salad, chances are it’s fantastic. I’ve played this game at restaurants all over the world, with mixed results. But when I score I score big, with a perspective-changing moment that can inspire pure glee.”

Restaurateurs need to consider all aspects of menu marketing when creating and naming items. Restaurant guests are oblivious to the expenditure of energy that is require to develop and then name an item on a menu Actually menu design is both art and science with the dull unimaginative creations holding sway in most establishments.

There are many Melissa’s out there who will trust you when you drift from the familiar and take a chance, now what was that special again?

The Mud of Mediocrity:

"Make no little plans; they have no magic to stir men's blood...Make big plans, aim high in hope and work” Daniel Burnham

David Schwartz’s landmark book “The Magic of Thinking Big” provides a framework for success, “Think Big”. One of David Schwartz’s keys to finding success by thinking big is the concept of “adding value.”

My favorite phrase from that book is “the mud of mediocrity”. Most businesses produce barely enough to get by because they are mired in the mud. These enterprises never rise beyond the level of competence and certainly never aspire to greatness. They are very comfortable in the mud.

An entrepreneur to succeed must add value to everyone that touches their path. A guest walks into your restaurant because they believe you will add value to their lives, an employee works for your organization because they believe your organization will add value to their lives. Vendors do business with you because they believe you will add value to their lives.

I have banged this drum before and I will continue to do so. A guest does not walk into your restaurant because they want food. They can get food anywhere. They walk into your restaurant because they want you to add value to their lives.

Adding value to everyone who touches your path will create customer advocacy and lift you from the Mud of Mediocrity!

Eye Contact:

Creating customer advocacy is as simple as making eye contact. When your guest walks in, make eye contact. If you are behind the counter look into their eyes and notice the color of their eyes. Have the host or hostess notice the color of the guest’s eyes when they approach. Have a server notice the color of the eyes of the guest that is ordering. When a restaurateur approaches a seated table, they should notice the eye color of the person.

Looking at the eye color is a very good trigger to help you and your staff make Eye Contact.

Thank You:

The ending of a dining experience is the beginning of the next visit. Athletes, musicians and showman always like to end strong and leave the audience wanting more. Restaurants need to close a guest visit with a powerful Thank You!

The guest has enjoyed a wonderful experience in your restaurant, the food was innovative and delicious, the service was exceptional, the ambience perfect, now say goodbye with a Thank You!

A Thank You can be a forthright expression when giving change in a coffeehouse, a Thank You can be a cookie placed in the guest’s car by the valet, a Thank You can be a hostess or manager at the door opening the door or helping the guest with their coat, a Thank You can be a complimentary dessert provided to a guest, a Thank You can be a firm handshake and a warm smile.

A Thank You to be meaningful must be genuine, it must be unexpected, and create in the guest a sense of belonging and community.

Thank You!

Rising Inequality:

Wall Street Journal Article by Greg Ip details the Income-Inequality Gap

“The wealthiest 1% of Americans earned 21.2% of all income in 2005, according to new data from the Internal Revenue Service. That is up sharply from 19% in 2004, and surpasses the previous high of 20.8% set in 2000, at the peak of the previous bull market in stocks.

The bottom 50% earned 12.8% of all income, down from 13.4% in 2004 and a bit less than their 13% share in 2000.”

The gap has been widening for thirty years so the effect has been pronounced. What might be an interesting question for restaurateurs is how this plays out in their restaurants. The last three decades has seen the rise of specialty coffee houses (i.e. Starbucks, Caribou), gourmet sandwiches (i.e Panera, Corner Bakery) and national upscale concepts (i.e. McCormick and Schmicks, Mortons).

Could the inequality that is being created be offset by the fact that some one can walk into Starbucks and for the price of a cup of coffee feel wealthier. The cost of meal or cup of coffee from a percent of income perceptive is negligible, however the wealth effect is substantial.

If your restaurant can find a way to make the vast majority of Americans at the lower 99% of the income strata, feel like they have experienced what the 1% of Americans at the top feel in their dining experience, than your restaurant will have bridged the Rising Inequality!

Contrast:

Robert Cialdini’s book “Influence, The Psychology of Persuasion”” offers a primer on the contrast principle.

“Sell the expensive item first then sell the accessories…if they buy a shirt first they may not buy the suit, but if they buy the suit first they will most certainly buy the shirt”

Patrick Williams of The Selling Sherpa advises “Start at The Top”

“…when people ask your price, start at the top. Trust me, if they can’t afford it, they’ll let you know. But what if they can afford it and you don’t offer it?

Starting at the top rung of your price ladder also discourages those who would make a buying decision based solely on price, and shoppers rarely become your most profitable customers.”

Seth Godin post on “Triangulation” highlights the contrast principle brilliantly,

There are two wines for sale at dinner: $9 a bottle or $16 a bottle. Which one do you order?

Now, imagine that there are three, and the third is $34. Are you more likely to buy the $16 bottle now? Most people are.”

Restaurateurs as a group have this aversion to asking top price for their offerings, why? Perceived value is a concept that relies totally on the contrast principle. A guest perception of a restaurant is influenced by their experience at other restaurants and their price points. You do not want to be the lowest price provider period.

Put the expensive items on the top of the menu. The principle of leading with your high cost, high margin items and relegating low cost, thin margin items to the least noticeable place on the menu is valid and workable. If they buy the Château Briand , they will buy sides, dessert and a bottle of wine. If they buy hamburger, they will not order sides and have water with their meal. Highlight the Chateau Briand

Restaurateurs will be pleasantly surprised when they apply the principle of Contrast!

Wham! Bam! Thank you!

Brand Autopsy post “Pick up Lines Don’t Work” offers some clear insight into how to build customer advocacy. (paraphrasing a bit)

“Restaurateurs need to stop delivering clever pick-up lines to customers and instead, start building a connection with customers.

It is not enough for a customer to be attracted to a brand. The customer must become invested in the conversation because the more time a customer spends interacting with a brand, the more likely that customers will want to begin a transactional relationship.

My advice? Be playful, be challenging, and be unpredictably predictable.

Be a playful brand. Customers do not want their brands to take themselves too serious.

Be a challenging brand. Customers want to tango, they want a give and take relationship and not one-sided take relationship.

Be a predictably unpredictable brand. Customers are turned off by complacent brands. They value brands that are willing to take calculated risks.

Keeping a customer involved in a transactional relationship is an on-going process. You cannot keep a customer on-the-shelf and simply use them whenever you need a sale. No. Customers need attention, love, cuddling, etc.”

The key that you should focus on is that the relationship is an ongoing process. To often restaurants take their guests for granted and assuming incorrectly that the guest does not need attention, the menu does not need revamping, the space does not need to be revitalized.

Customer Advocacy is a long term relationship and not a one night stand, Wham! Bam! Thank you!

One is not a Lonely Number:

Entrepreneur.com highlights the rise of One Item restaurants:

"They say one is the loneliest number, but judging by the growing number of specialty restaurants, going solo can draw a crowd. Some restaurants and food vendors are taking simple items like hummus, Belgian fries, crepes and even cereal and creating a menu based solely on them. Often, these specialty food stops feature nostalgic favorites or indulgences you simply can't pass up.

One classic making a comeback is macaroni and cheese. "We draw crowds from age 1 to 100," says Sarita Ekya, co-founder of S'Mac in New York City. "We've hooked a lot of people simply through word-of-mouth."

Less is more, sorry for the clichés, however simple is definitely better. One of the ways to get very good is to do only one thing and do it better than anyone else. Chipotle has built a brand on a very simple two item menu.

You might have an item on your menu right now that outsells everything else, or that your guests constantly talk about? Have you ever thought of spinning that item off into its own concept. The article stresses how word of mouth has spread about these locations. Customer advocacy is being created by doing one thing well.

Pizza, cereal, mac and chesse, cheesesteaks and a variety of other items are all proving that One is not a Lonely Number!

Show Time:

Patrick Williams at the Selling Sherpa Blog hit it dead on in his post when he stated:

“When it’s time to open the doors, its time to put away the personal issues and put on a show. Disney theme-park employees understand this concept very well. Outside sales professionals should also adopt this philosophy.

Anytime you are in front of the customer, they should see nothing but a professional presentation, regardless of what is going on behind the scenes.

Even when you are having a “bad day”, the show must go on. Maintain a professional demeanor at all times because you never know when you might be auditioning in front of a future prospect.

When you walk into a restaurant, you are there to resolve an issue, not to solve the staff's problems. The sooner a restaurateur understands that, the faster the restaurant will create customer advocacy. Restaurants are exactly like theater, a patron would be very annoyed if during the play the actors stepped out of character and started dealing with their own personal problems. The audience would walk out. The same thing will happen in your restaurant.

Remember when the door opens, it is Show Time!