Why your restaurant is losing profitability?

Have you ever thought of this dreadful question and tried to figure out a promising restaurant marketing solution for your business?

Well, I being a Marketer, am often bombarded with similar questions like how to grow our business, how to market it etc. But this particular one reminds me of one of the client meetings that I attended a few days back.

A nice summer morning and I was still struggling to get into my daily work routine after the long Christmas holidays. I remember doubling my daily coffee dose that day and checked my list of client meetings for the day before leaving with my naturally large smile.

‘Mark’, the name of the restaurant owner I was going to meet today had connected with us recently for a consultation meeting. I entered his restaurant and there was him with a sincere smile on his face reaching out his hand for a handshake and I did the obvious. I then followed him to his small cabin behind the reception area and was offered a relaxed chair to sit on. We started with a formal introduction about each other and then he came to the actual topic, Mark said, “Sheryl, I have invested a lot in this restaurant and I don’t know why but I am not getting good profits”. Before I could start with my pitch, he pulled out a diary from the drawer, flipped through it and placed it in front of my eyes with his finger pointing at some numbers.

Mark continued, “These are some figures showing the number of customers I am receiving each month, I think this would be useful for you to know where we stand”. I looked at those figures per month and I knew that what Mark wants to tell. As I looked up, Mark looked at me with an inquiring face and said, “The visitors are not growing and the profits graph is not impressive”.

I knew I was not here for just an answer or a restaurant marketing pitch, but for a solution. So I learnt a more about his restaurant business and he answered to each of my questions patiently. There were questions like the year of establishment, the months with the highest number of customers, and the main target audience.

I had known enough to feed Mark’s curious eyes with my experience and knowledge, so I helped myself to a pen and a paper, where I wrote my 1st solution “The 7 Km Radius Rule”. I knew Mark was not sound with the various concepts of digital marketing and I wanted to cut to the chase right away.

“The 7 Km Radius Rule” I read it to him loud and continued, “See Mark, what matters the most for your business is your target audience, and for your restaurant business, you just cannot ignore the 7 Km rule. Your target customers are right here within 7 km radius of your restaurant and approximately 85% of your visitors will come from here. So the first thing you need to do is promote your business within this 7 km radius, whether online or offline.”

Mark’s gesture showed he was a little satisfied with the solution, but his curiosity demanded more and I wrote down the 2nd solution on the paper, “Reviews and Referrals”. This time it was Mark who read it (in an expressionless voice), “Reviews and Referrals”. I then continued, “Mark, how do you choose a hotel? You look at the facilities, price, and then when you have your options ready, you decide your preference based on the customer ratings or the reviews from your FRIENDS. That same goes for restaurants, you need to invest in the word to mouth marketing strategy for your business, whether online on social media or offline.”

Mark gave a satisfied smile and said, “you have hit the nail on the head, I think we are lacking in it a little.” I gave an appreciating gesture and read the 3rd solution loud while writing it “Wrong Marketing”. I could see Mark’s curiosity climbing on his eyebrows and I continued, “Mark what if you are promoting on the wrong platform or pitching the wrong audience? Your marketing investment plans should be decided. You need to be clear whether you are looking for long-term results or for instant returns. There is – SEO, SEM, Social Media Marketing, Email Marketing, Influencer Marketing, Content Marketing, Offline Promotion, but the question is ‘where you will find your right audience?’ So, that is where I can help you decide and implement the right restaurant marketing strategy for you.” Mark had been a patient listener all this while and his expressions made it clear that he agreed with me on many points.

Now I had focussed a lot on internet marketing and I wrote the 4th and the most crucial reason why your restaurant visitors might not be growing – “Your Food Is Not Good”. Before I could start, I looked that smile on Mark’s face. And I said it clear, “No matter how good is your marketing strategy, if your food is not good, people will not come to your restaurant.” Mark laughed out loud and said, “Why don’t you give it a try you will surely like it.”

A storm of laughter broke down in the cabin, I heard the door behind me opening halfway and in a welcoming voice someone said, “Your table is ready Sir.” Mark placed the paper in his diary, and we left the cabin.

Have you ever found yourself at a crossroad, where your restaurant business has stopped showing any growth and all you want to know is “How can you increase your restaurant visitors?” So, above are some points that might help you!