I had no sooner written and posted the previous item, when I stumbled upon (no Internet pun intended) this announcement about an interesting (and not at all expensive) seminar on this very topic.

If you can spare the time, I highly recommend this:

"…A really important PRSA Event coming up on
crisis management… PRSA Tar Heel (Greensboro/High
Point/Winston-Salem, NC) is hosting a 2008 professional series
event. On Friday, September 12, legendary crisis communications
practitioners Al Tortorella and Mike Herman will headline the
full day professional development seminar, "Surviving the
Flames, Crisis Communications from the Pros Who Invented It."
Designed to assist PR practitioners, business owners and
professionals in strategically preparing for their next crisis
scenario, the event will run from 8 am to 5 pm at Elon University
(located just north of Greensboro on I-85/40). Cost is $99 for PRSA
members, $149 for non-members and $49 for students…"  

Get more information at: www.prsatarheel.org

How would you feel if the name of your restaurant, firm or chain was part of a front page story titled:  "Have You Eaten Any Of These?"

The sub-headline is:  "Check your fridge: More and more of our favorite meat dishes, sandwiches pulled from shelves."

This is today's front page for the Vancouver Sun.

Canada is in the midst of possibly the worst food-borne disaster in its history. One of the best known, almost revered 100-year old meat companies, Maple Leaf, the prime producer of more than 220 different products, has had their major plant in Toronto shut down by government inspectors. The total recall of anything they produce is going to cost them at least $20 million at a minimum.

Worse than any financial costs however, the death toll linked to the spread of deadly listeriosis by way of the allegedly tainted meats and other products, has reached 12. More than 30 are very seriously ill, with others expected. If you want to get a relative size of such a disaster in the U.S.A., multiply all these numbers by a factor of 10.

The front pages of the major dailies are carrying the terrible news. Broadcast media is full of it. The newspaper I mentioned above, the Vancouver Sun, lists hundreds of different products…and the names of at least seven different major food service and restaurant chains…right on the front page.

This food-borne epidemic – and the obvious resultant media frenzy – is shedding a heat lamp of light on both the supermarkets and entire food service industry in this country. The fear is palpable and mounting.

I’m visiting British Columbia today. In a restaurant at lunch, I watched people repeatedly avoid anything with sliced meats, meat products in general. They each had one major question of the server: "This doesn't have any Maple Leaf products in it, does it?"
I know, because I was one of them asking that very question. I was sitting at a table reading about this catastrophe; it sure made me sit up and take notice….fast!

I thought of Boston Pizza, Tim Horton's, Mr. Submarine, Shopsys, McDonalds, Pizza Nova, and the many other food service outlets named in the front page article. The listing of the names of the product types, the brand names and those selling them, took up 2/3rds of the entire front page of the largest circulation newspaper in all of western Canada.

The National Post, the equivalent of USA Today in Canada, has a headline: Listeriosis Toll Grows.

The newspapers point out the grim news: those with immune-suppressed systems, small children, pregnant women and the elderly are all at great risk if they come in contact with this bacterium.

For the food service business, here's the most disquieting part: this particular bacterium likes to live in the walk-in cooler. You have to operate your walk-in at less than 4 degrees Celsius to stop its growth. Additionally, it loves both salt and nitrates, which most other bacteria don't. This is why processed cheeses and sliced meats are at greatest risk.

This is not your common, everyday bacterium. The experts are postulating the possibility that this particular one is perhaps able to resist the types of sanitizers and cleaning agents now being used to clean and sanitize food production and food service equipment.

Moreover, it has a gestation period of anywhere from 2 to 70 days! The federal government bodies responsible are talking about watching these products and production facilities for up to 70 days.

Don't think it can't happen elsewhere…this company is reputed to be one of the very best in the industry for clean factories, proper procedures. Its record has been spotlessly clean…like its plants.

This is a major wake up call for all of us. Notwithstanding the tragic results of such a calamity, it is incumbent upon all of us in this food service and retail business to have a "crisis plan".  Do you have ways to immediately protect the public from such an outbreak…and to protect you and your employees? Do you have a plan in place for such a possibility? If you operate a chain, does the head office have procedures they can immediately follow to ensure that the damage to your reputation is minimal?

Can you imagine how long it might take for Maple Leaf to gain back part of that sterling reputation, if ever? I was in a supermarket this afternoon that had a pre-printed sign up at the deli department. It told the customers that they had immediately thrown out all and any of the meat products coming from the Toronto-area plant mentioned in all the media dispatches.

However, It did not mention that (as reported in the national and local media), most other operators are not taking ANY chances; they are throwing out any and ALL products (all 220 of them) made by Maple Leaf, regardless of the location of the plant which  processed their meats. Most retailers and food service operators are not taking a chance with this.

There are other major meat brands that are aligned with or supplied by Maple Leaf. The media are mentioning them too. You can imagine where this is leading.

If you have worked years to build up that most valuable of assets…your reputation…be assured that one slip like this can cost you everything you've worked for…overnight.

They say the best defense is a good offense. If I were you, I would ask my suppliers just where they are getting their products; I would want to know exactly how they are processed; don't take anything for granted. If this happens to your supplier of foods of any kind, you could go down with their ship.

If you don't have tons of dough to spend on spin-doctors to make it better in the media…immediately set out a "crisis plan" of exactly the WHAT, WHEN, WHY, WHERE, WHO and HOW you will defend yourself if such an event or any other crisis were to occur.

It's always easy to have a plan of what to do in the good times; but a plan for what to do if/when it hits the fan is more valuable. Ask your staff to participate and help you formulate what to do.

Remember Murphy's Law?

Here's a blast from the past…

"…The WWW now has many commercial sites that seek to get companies' messages to the public in a new and untested medium. While some hospitality companies have WWW sites, most do not, and restaurants are under-represented. Existing restaurant sites, however, make reasonably sophisticated use of the web's capabilities (e.g., text, graphics, sound, and interactive screens). The technology of the internet may allow marketers to take the ultimate step in mass customization, which is to create a distinct message (and package of product and services) for each customer. It almost certainly will allow personal interaction between restaurateurs and customers. "

This is a copyright excerpt from the Cornell Hotel Quarterly, Vol.31, No. 1…in 1996.

Yes, you read that right: in 1996!

Back then, when the web and sites were just getting started, restaurateurs didn't bother much with having a web site or doing any marketing on the Internet.

The problem is that 12 years later, far too many still don't.

How on Earth are you going to keep up with the way the world is moving? How will you know what your own customers are looking for?

What are their needs, interests; who are they listening to and what is being said?

One of the most famous copy writers in the world, Eugene Swartz, used to
attend every single movie that grossed over $100 million.  He purchased the
most common and highly subscribed magazines.

Why?

Because he wanted to stay in touch with the marketplace, with the common person, John and Jill Q. Public. He also knew that most people…particularly most marketing people he knew.…did not bother.

Swartz realized that this gave him a great advantage over the other copywriters and marketers of his day; because he could relate much better to what was going on around him.  When he knew what was happening, what folks were talking about, what they were interested in and why they did or believed things…he could market and sell his clients' products and services that much better.

So can you.

What do you think?  Agree….or disagree?  Care to throw your two cents' worth in too?  Just comment below…..

Which is the smartest thing to do: generate more sales, or reduce operating costs?

Actually, the ideal is to do both simultaneously. The only way to make profits is to increase sales and reduce expenses…at the same time.

Naturally, when it comes to “marketing,” most people immediately think of generating sales; and that’s good. However, there are other aspects to marketing that can often be managed easier, better and result in the same goal—profits. It depends on the circumstances: the average sale — or guest check — and the mathematics/economics of the situation.

When it comes to cost savings, there are many ways to cut costs: e.g. tracking basic commodities, purchasing, shipping, storage of dry, canned, refrigerated and frozen goods; reducing or eliminating certain media advertising charges, long distance/couriers, outsourcing, reduction in time spent on mundane activities; the list is endless. Let’s say you were able to reduce your operating costs by 10%. Additionally, let’s assume this amounted to $10,000. Where does this ten thousand go? It mostly flows straight to the bottom line: ‘net profits before tax’.

[You can even find ways to reduce your taxes!]

Now let’s take a look at the other side of the coin: generating more sales. For purposes of illustration, let's assume that your profit on each additional dollar of sale is also 10%. For every extra $100 thousand in sales (on the top line), you generate $10,000 on the bottom line. If your average sale is $25, how many extra units do you have to sell to earn the profit ($10,000) on that extra $100,000 in top line sales?

You have to sell 4,000 additional units, at $25 each, in order to yield the same profits you earn by reducing your existing costs by 10%. What if the incremental costs to achieve the $10 thousand in extra profits (through cost-savings) is $1,500? Would you spend an extra $1,500 to earn at least $10,000 in pure bottom-line profit?

‘Silly question.

How easy do you think it will be to increase sales? Generating those extra 4,000 sales units is not going to be a piece of cake.

Marketing, advertising, selling and servicing the customer can be expensive, time-consuming, difficult tasks. If they weren’t, we’d all be rich.

Going through your existing operating system and seeing where you can plug the holes, reduce the food and/or labor cost, trim the fat — or use new technology, for example — often takes less effort, time and related cost ($1,500 spent to yield $10,000 in extra profits) than trying to market to and service that extra deluge of customers; especially if customers are a lot harder to come by these days.

Take a sharp pencil to your operation and cost structure. Determine where you can make some money by not leaving so much of it on the table.

Often with a fresh, new set of eyes, or a different 'perspective', you will now 'see' things in your operation that were there all along. You just got into the habit of not really seeing them…we all do that.

There may be some hidden treasure here! If you're looking for treasure, start digging in your own back yard. Ideally if you can reduce your costs, while generating more top line volume, your bottom line will be a very happy camper…so will your accountant and banker.

What do you think? Give me your two cents' worth…submit a comment, just below…

Yesterday I reported how one world traveler felt about solo dining and how any restaurateur could improve business by ‘catering’ to these customers.

Len Hansen is just one of many tourism and hospitality people who are totally behind creating a rightful place at the table for the solo traveler.

Later, I caught up with another star of the solo traveler world, one of America’s foremost experts,, Sharon Wingler, international flight attendant of 30+ years with one of the major airlines, and author of The Joy of Solo Travel: How and Why to Travel Alone, plus producer of her own Website and newsletter with several thousand subscribers.

She literally was on her way out the door on her next flight, this time to Buenos Aires, Argentina. I asked her what, as a solo traveler, she was planning for her short stay there.

“I’ve already traveled solo to Buenos Aires in the late 80’s but I’m enjoying it now on layovers”, she said. So far I’ve enjoyed tango performances at two nightclubs, and I’m going to try to see a third on this layover, and sample more of the excellent Argentine wine. I also intend to visit the art museum, Museo Nacional de Bellas Artes. I’ve posted good information about Buenos Aires on the Travel Tips page of my Web site.” (www.TravelAloneAndLoveIt.com)

I wanted to get Len Hansen’s take on this market of solo travelers and diners; and those who comprise it. He told me “I think most of the hospitality industry is still missing the proverbial boat.” “Most solo travelers are very comfortable with themselves and what they do; they are not lonely; they are not looking for a hot date. Traveling alone means being in control of one’s direction and day. If we are treated well we don’t have to get someone else’s concurrence to do or spend more”.

He added, “Look at restaurants, for example. In most restaurants, appetizers are served with one type to a plate – "Here, honey, let’s each get a different appetizer and then we can share" For solo travelers, offer a "sampler" plate of a variety, perhaps one each of four different types. Have your wait staff suggest your "singles special sampler to accompany their choice of wine." Both are high margin items, extra money made while dinner is being prepared”. “

The lodging and tour business is not any further ahead of the restaurants. “Some of us think they are using outdated statistics and old water cooler assumptions about just who these solo travelers are”, he added.

How about you and your restaurant? Have you given any real thought to this market niche? What about mature adults? Those 55 plus. Do you know who has the most personal disposable time and money to dine out in restaurants? One guess.

What do you think?  Care to offer your two cents' worth on this topic?  Just submit your comments below…

"‘Just one?’" “The maitre’d in Miami asked almost condescendingly, as he then scanned the floor of tables for two, four and more, all mostly without customers, and spotted one in a dark corner. Surely, the deuces and four-tops would arrive later and be ‘real business.’

It was a bother to him when I said that the table area was too dark for my reading with dinner, for I would not be distracted by conversation. I was a solo traveler and diner on yet another of my 20 or more trips each year. I was a customer who would have a drink, perhaps an aperitif before dinner, two or three glasses of (high margin) wine with dinner, and would tip for service well above the house average. In this Miami restaurant, I was ‘put off’ because the maitre’d evidently did not value me as a customer. I skipped the pre-dinner drink, ordered one glass of wine, had an acceptable dinner for $30 when the restaurant would otherwise have had a $60, and high margin, customer”.

“There are millions of ‘me,’ individuals and professionals who travel alone, yes, in business, but more often for pleasure. If we like where we are we don’t have to listen to someone else about doing something different or going elsewhere. Solo travelers, unlike all other travelers, are in control of what they do and buy”.

These are the words of a man who should know. Leonard J. Hansen, (www.lenhansen.com) is the nation’s pioneer journalist writing to, for and about mature adults, having founded, edited and published the first senior newspapers in the nation in 1973. In tourism, he was Vice President, Marketing, for Sea World, Inc., radio and television promotion manger for the Seattle World’s Fair, broadcast and public relations director for the Seattle Center, adviser on tourism to the governors of Washington state and Alaska, and counsel to major attractions and hotel chains.

This fellow really gets around. He is what we call a “solo traveler.” Unlike most solo travelers, he is an expert on the marketing of hospitality and tourism, so his eye is much sharper when it comes to what we in this industry should be doing to improve our income generation.

“In Edinburgh, Scotland,” he said, “I was greeted by the manager of the restaurant. He welcomed me and, because he knew that I was an American and a solo traveler, asked if I wanted to join others at the community table. I agreed immediately and was led to a table set for eight but with five already seated, introduced to each of the others by the manager, welcomed by them. The next two hours were some of the best ever with visiting, learning from locals and from the travelers from yet other foreign countries”.

“Why don’t restaurateurs and hoteliers throw out all the old rules, and do some new thinking? Forget the "Just one?" question. Learn from the Europeans and consider a "community table." Don’t sit singles in the back, but at least one or two at tables near the front window so that other solo travelers/diners can readily see that they, too, will be welcomed”.

What do you think?  Give me your two cents' worth!  Stay tuned for Part 2 of this tomorrow….

What happens to folks who find themselves in an “institutional” food service establishment (nursing or extended care facility, university or staff cafeteria) and they’re not happy with the menu offerings?

These same people (with the obvious exception of those incarcerated in penal institutions) are exposed to the same marketing and advertising messages directed at the general public every day. They know where the good food is.

How does an institutional feeder compete with this?

Many of these operators need to start taking a leaf out of the ‘marketing book’ of the restaurateurs. They need to make their outlets more appealing to those who would use them; or are a ‘forced’ to use them, (e.g. a person living full time in a nursing or extended care facility).

If the food (obviously one of the most important parts of any day in such a place) is not top notch, there is a problem that will only get bigger. For staff and visitors, who are ambulatory, there is the obvious option of going out to eat at one of the ‘commercial’ establishments located nearby.

The objective, though, is to provide the kind of food that will make them happy and not want to wander. Given that, with the competition for the pocketbook as it is today, it is incumbent on these operators to use some “restaurant marketing” themselves to reach, inform, motivate and attract both existing and potential guests/visitors to their facility’s menu offerings.

Sure, they can use some of the techniques employed by the commercial restaurant operators; but the real secret is that these techniques have to be combined with one word that is not often used in ‘institutional’ settings: hospitality.

Why not start training your staff to deliver ‘hospitality’ with every meal?  Why not take a look around at the facility and see if the ambiance can be improved, music added, better uniforms for the staff, politeness injected, and a general sense of “we’re glad you’re here…eating with us today!”

The best way to do this is to suspend reality for a few moments and “pretend” that you are a commercial food service outlet, in a highly competitive market, in this down economy. "Imagine” just what you would do in such a situation. Naturally, you can’t blow the budget (scarce as it likely is); but you can use your imagination to see what you might be able to do that will not cost you an arm or a leg to bring ‘hospitality’ into the daily equation.

Whether you're an independent restaurateur, fighting daily against the economy and the big chains, or in the 'non-commercial-institutional' side of the business…"HOSPITALITY" is the magic ingredient we need in ANY food service operation.  Without it, you stand little chance of long term success.

What do you think? Care to offer your two cents’ worth? Go ahead…post a comment below…

I always find it interesting the number of so-called ‘experts’ who don’t know the difference between a ‘strategy’ and a ‘tactic’.

These words get thrown around daily by folks who have read about them somewhere; or they have heard other ‘gurus’ use them, so they mimic them and feel that they are using the 'correct' business buzz words.

A lot of buzz and buzzing around means nothing…without a flight plan.

In reality, a strategy is a plan of action designed to reach a defined goal. It is the act of finding out just exactly where you are and what kind of arena you are competing in, for what prize; then setting realistic and attainable goals suitable for that context, market or arena.

A tactic, on the other hand, is a way to reach that goal…to 'implement' the strategy.  It is a specific action-step, technique, or method whereby you can reach the goals laid out in the overall strategy.

It is not chiseled in stone; but a temporary ‘guesstimate’ of what to do. Most tactics don’t work at first. But if you adjust them enough, like a series of experiments, you can eventually get the right tactics for use at the right time in the right context or arena.  Sometimes it’s all about being in the right time at the right place…about timing.

If your strategy is sound, it will withstand the test of time in any marketplace. Google was around and an excellent search engine, two years before you even knew about it. Thomas Edison “knew” he could come up with the illuminated light, but he had to go through more than 400 different experiments to get there. You would think those many failed experiments were the hard part. Wrong. The tactics – most of which fail at first – are the easy part.

The right strategy – and coming up with it – is the most difficult part. It is the part that really takes some clear headed thinking, some research and question-asking; lots of diligence and “stick-to-it-iveness”…in other words: patience.

As Seth Godin said in his blog recently, “…the irony of the web is that the tactics work really quickly. But the strategy still takes forever. The strategy is the hard part, not the tactics. The frustrating part is that you see your tactics fail right away. The good news is that over time, you get the satisfaction of watching those tactics succeed right away…”

Now think about this: I can give you hundreds of ways to market your restaurant. So can others. That is not where the secret lies. Sure it never hurts to have dozens of unique ways to market your restaurant that the big boys won’t or can’t use. Or your smaller competitors don’t even know about. But where the rubber hits the road is with your STRATEGY.

The tactics don't matter if the strategy is flawed or flat-out wrong.

This is where the magic begins. Those with the best strategy win. Those who then intelligently and effectively implement that unique selling proposition-driven strategy best will be the all time penultimate winners.

Go back. Read that last sentence just one more time. I said the “unique selling proposition-driven strategy” right?

Those of you who follow this blog regularly already know what the U.S.P. (the unique selling proposition) concept of strategy formulation is. Check out my previous posts on June 24th and 26th dealing exclusively with this important marketing foundation.

Keep in mind, therefore, whenever you see a potential “tactic” or technique in this blog…and elsewhere…to view it in perspective, vis-à-vis the strategy you have adopted for your business or restaurant, using the U.S.P.

And be patient. Tactics come and go; but solid marketing strategies are as good and long-lasting as gold.

What do you think? Why not give me your two cents’ worth?  I’d love to see your comments below…

In the previous post, I was talking about the difference between a ‘coach’ and a ‘consultant’.

I mentioned that I really dislike the word ‘consultant’ since it now so overdone and everyone calls himself one, so the word is almost meaningless.  It's like telling someone to "…have a nice day…" Meaningless.

Now, let’s move on to how to pay them…

One thing I do agree with is how you pay them; and that is never by the hour. Personally, I have never earned revenue by the hour: that’s for accountants, lawyers and taxis.  They drop the flag and start charging regardless…in tenths of a mile, or tenths of an hour, your pick.

I was taught to charge by the flat fee for the assignment. (I always added a slippage figure of plus or minus 5%; and usually came in at no more than 98% of my original quote). How I worked out what that flat fee was is my secret; but I can tell you this: it related immensely to the VALUE of the solution to the client’s problem – and a few other pertinent factors.

I would never hire someone by the hour; or someone I thought was going to charge me to learn my business. Hence I would look for advisers (there, isn’t that a much better word?) that have relevant education, a demonstrated track record of achievement in this restaurant field; and with whom I know I can work well.

Recently I read one ex-restaurateur who had written a book slam ‘consultants’ while suggesting that if the consultant was not prepared to take part of his/her compensation in a commission or slice of the improved profits…he was probably not worth having on your business.

Bulldust!

I was taught by one of the best that this NEVER is a good idea.

Here’s why: there are far too many ‘variables’ out there that no consultant will ever have ‘effective control’ over. These variables include:  the client; the restaurateur, his wife-family, his employees, the weather and road construction/detours, to name just a few.

Each of these non-controllable factors can have a bearing, often negative, on the outcome of the adviser’s suggested moves for the client.

If it does not turn out the way he hoped, it is not necessarily his fault. So why should he lose money because of the actions of the client or other factors over whom he has absolutely no control? He is not a shareholder.  Unless you want to convert your expertise and experience in this venture into “equity” in the firm – and not minority equity either – why should you be treated as an owner?

Moreover, if they are wildly successful, most clients deeply resent the amount of money they will have to pay out…after the fact.  It’s just human nature. Remember all those stories about the crackerjack sales person who started making more money in commissions than his boss, the sales manager? You know how that one turned out.

‘Better to just offer your services, quote a fixed flat fee for them; come in under budget, do a great job, under-promise and over-deliver; then hope for the best; and a glowing testimonial from the client.

Using an adviser is not easy. You should understand that you are essentially buying another set of eyes that are not motivated the same as you; they do not own equity or interest in your operation. They are objective in that regard. This is a good thing, since they can bring a fresh new way or approach to your business.

A truly great adviser will never kiss your butt, just to keep you happy. His or her job is to tell you what you need to know, not what he thinks you want to hear.

Finally, realize that even though you think you have it down pat…you may not be asking the right questions. Additionally, you may think you have most of the answers; but they may be answers to the wrong or irrelevant questions. Knowing the difference is key.

Always consider: objectivity, transparency and honesty and you won’t go wrong.

What do you think?  I’d love to hear your two cents’ worth. Give me your comments below…

Independent restaurateurs often feel that they need to hire a consultant or someone who can help them increase their sales, reduce their expenses, or any number of ‘problems’ they may be facing.

I see this sort of ‘question’ or ‘request’ quite frequently on discussion sites and social networking sites like Fohboh ( http://www.fohboh.com/2008 ).

Here is my take on this….

In the past, I taught MBA students how to deliver ‘consulting’ and how to conduct consulting assignments. Having been a ‘consultant’ myself for so many years (I no longer do ‘consulting’; I prefer to be what online is called an ‘information marketer’), I was well versed in the do’s and don’ts of so-called ‘consulting’.

The biggest problem nearly everyone had was two pronged: (a) how can the person (prospective client) who has the problems, or feels s/he may need help, KNOW the right questions to ask? Then there was (b) how can the restaurateur – the one with the supposed problems – be objective about those same problems, since s/he is the one that has them or caused them in the first place?

It’s always good to remember when pointing a finger at someone or something, that if you look closely, you’ll see that you still have at least three fingers pointing back at you.

Objectivity, transparency, and honesty are the three prerequisites of any so-called ‘consultant’ (personally, I hate the word, myself…it’s been overused, hackneyed and done to death, kind of like the word: awesome, robust, coach and professional). Moreover, many restaurateurs use the words “consultant” and “coach” as if they are interchangeable.

They are not.  I, for one, understand that a coach is someone who listens to you objectively, helps you understand your problem(s) (or opportunity) and nudges you or points you in the right direction, once you know where you are, and where you want to go. It’s like a coach in football. He never goes on the field and plays. He coaches.

Many consultants, on the other hand, actually get in there and help IMPLEMENT the suggestions they have given to the client. ‘Big difference.  Sometimes the consultant dons the skates and plays a few shifts on the ice too. Unlike that football coach, he still can and will play the game.

Often, you can find a consultant with real world expertise and experience (remember you can’t microwave experience!) who has been in the trenches and really knows how to implement his own recommendations. S/he has not just learned these things from a book or being in school for four years. Anyone who has read or been to school can come stocked with ‘learned expertise’. But ‘experience’ is a whole different bag, entirely. You have to have lived it.

If you’re really fortunate, you might meet one who also knows how to coach the client/restaurateur and encourages him/her to get in the game, while actually playing a bit, if nothing else but to show the way.

In the next post, Part 2,  I’ll be talking about how to pay consultants, why you should NOT ask them to take a fraction of the action and other tips for working with them to maximize your return on the cost — or investment –  of having one around.

What do you think?  I’d love to hear your two cents’ worth. Give me your comments below…