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My failure with restaurants

by Ehsan_am
39 replies
Hey Everyone,

I decided to take offline marketing seriously and give it a go.

I wasn't really sure what niche I was going to start in and had many ideas for different business models so I decided that I would just start with what seemed to be the low hanging fruit and a very basic approach.

I teamed up with one of my friends who was laid off recently and agreed to give him a 25% cut on every order if he starts doing cold in person approaches.

The idea is simple. He chooses and area in town ( Paris ), goes there and starts getting into restaurants and ask for the owner or decision maker and ask them if they have a website.

1 - If they have a website, he offers a mobile website and SEO
2 - If they don't he tries to sell them a website.

This sounded like a very solid plan since most restaurant don't haev a website here. This is very strange since there is some decent search volume.

After over 100 approaches we have 0 orders.

He says that there is a number of people who are interested. they ask for our contact information but never call back. This probabaly comes from a trust issue and we might be able to solve this by trying a different approach. We could try to offer a free listing on our restaurant directory and get our foot in the door.

However, he mentionned that he has the feeling that these restaurant owners don't have 1000€ or even 500€ to throw at webdesign let alone SEO, mobile, etc

I'm facing a dilemma. I'm thinking to maybe expand my directory and offer them basic wordpress websites on subdomains on the directory root domain for 50€/month or something similar that might help with their budget problem.

My main approach would be to call them up and ask them for an interview (John Spangler style) and offer them a free one page listing on the directory and take it from there. I can also create a special promotion section where they can create their own coupons and promotions (Groupon style).

Considering that there is over 10000 restaurants listed on yellow pages in Paris it shouldn't be that hard to make some decent residual money.

Let me what you think about this plan.

Thank you in advance
#failure #restaurants
  • Profile picture of the author kursat
    Here is what I would do.

    Sign up for affiliate programs with Hostgator, JustHost etc... they normally offer around $45 per new hosting contract.

    Do the same with domain names.

    Then offer restaurant owners FREE website design and help them get hosting and domain name from your affiliate links.

    You should make around $60 - $100 per restaurant.

    Then offer to put adsense or ads on their webpages and split commissions.

    Just a few ideas...
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  • Profile picture of the author RRG
    You should hire Don to go over there. He gets checks on the spot, one call, no worries about relationship building or any of that crazy stuff.
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    • Profile picture of the author dv8
      Originally Posted by RRG View Post

      You should hire Don to go over there. He gets checks on the spot, one call, no worries about relationship building or any of that crazy stuff.
      HAHA!!

      That's "the" funniest THING "I've" heard ALL day!
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    • Profile picture of the author cshilling22
      Originally Posted by RRG View Post

      You should hire Don to go over there. He gets checks on the spot, one call, no worries about relationship building or any of that crazy stuff.
      Hahahaha... BAM!
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  • Profile picture of the author Rus Sells
    Your problem is you hired a friend which is admirable as he's in need for work but, he's no salesman and that's the issue I'm seeing right here.

    Now, if your serious as you've said hire real salespeople to introduce your services to company's and user your friend to help you with other things.
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    • Profile picture of the author Ehsan_am
      Originally Posted by Rus Sells View Post

      Your problem is you hired a friend which is admirable as he's in need for work but, he's no salesman and that's the issue I'm seeing right here.

      Now, if your serious as you've said hire real salespeople to introduce your services to company's and user your friend to help you with other things.
      @Rus My friend used to be a salesman for two years before he got laid off so he is not totally cluless.

      @JMB I'm not sure that kind of approach is really doable with restaurants. I've talked to a couple of my friends who own a restaurant or work in a restaurant and they seem to agree on the trust issue. It seems that we are lacking on the relationship building which is not surprising.

      I actually built these friends websites for their restaurants and it is only after they learned what a website can do for them that they decided to go fo it. It seems that most people consider a website just like a new shinny object that is not nice to have but not necessary. They probabaly do not understand the value and my friend lacks in knowledge to convey the value.
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      • Profile picture of the author JMB Marketing Group
        [DELETED]
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        • Profile picture of the author qu4rk
          Originally Posted by JMB Marketing Group View Post

          You didn't PM me for the "promo letter" to show them".

          WOW! Can't believe that you didn't reach for that "extra" help!

          Don't know how else to help you.

          Sincerely,

          JMB
          JMB can you PM me?

          Thanks
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      • Profile picture of the author digichik
        Originally Posted by Ehsan_am View Post

        @Rus My friend used to be a salesman for two years before he got laid off so he is not totally cluless.

        @JMB I'm not sure that kind of approach is really doable with restaurants. I've talked to a couple of my friends who own a restaurant or work in a restaurant and they seem to agree on the trust issue. It seems that we are lacking on the relationship building which is not surprising.

        I actually built these friends websites for their restaurants and it is only after they learned what a website can do for them that they decided to go fo it. It seems that most people consider a website just like a new shinny object that is not nice to have but not necessary. They probabaly do not understand the value and my friend lacks in knowledge to convey the value.
        Hi there-

        Just wondering, if you have built websites for friends of yours who own restaurants, why aren't you using them for references and the websites you built for restaurants as examples to show your work. Also, why aren't you introducing them to qr codes as a way to increase their business?:confused:

        It's up to you to educate them on how a website and qr codes can help them to increase their revenue. Perhaps you should re-evaluate your approach and write a script for yourself and your partner, one which educates the business owner and explains the benefits of having a website. Look on the net and find examples of fine dining, casual dining and cheap eat restaurants in your city which have websites(in other words show them their competition and how they are using websites to increase their business). No one wants to be outdone by the competition.

        Remember, you are not selling them a website, you are selling them more customers and more profits.
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    • Profile picture of the author sahuja
      Originally Posted by Rus Sells View Post

      Your problem is you hired a friend which is admirable as he's in need for work but, he's no salesman and that's the issue I'm seeing right here.

      Now, if your serious as you've said hire real salespeople to introduce your services to company's and user your friend to help you with other things.
      Yes, I am of the same opinion. A salesman who is skilled in such a job may better handle things than an inexperienced person.
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  • Profile picture of the author JMB Marketing Group
    Originally Posted by Ehsan_am View Post

    Hey Everyone,

    I decided to take offline marketing seriously and give it a go.

    I wasn't really sure what niche I was going to start in and had many ideas for different business models so I decided that I would just start with what seemed to be the low hanging fruit and a very basic approach.

    I teamed up with one of my friends who was laid off recently and agreed to give him a 25% cut on every order if he starts doing cold in person approaches.

    The idea is simple. He chooses and area in town ( Paris ), goes there and starts getting into restaurants and ask for the owner or decision maker and ask them if they have a website.

    1 - If they have a website, he offers a mobile website and SEO
    2 - If they don't he tries to sell them a website.

    This sounded like a very solid plan since most restaurant don't haev a website here. This is very strange since there is some decent search volume.

    After over 100 approaches we have 0 orders.

    He says that there is a number of people who are interested. they ask for our contact information but never call back. This probabaly comes from a trust issue and we might be able to solve this by trying a different approach. We could try to offer a free listing on our restaurant directory and get our foot in the door.

    However, he mentionned that he has the feeling that these restaurant owners don't have 1000€ or even 500€ to throw at webdesign let alone SEO, mobile, etc

    I'm facing a dilemma. I'm thinking to maybe expand my directory and offer them basic wordpress websites on subdomains on the directory root domain for 50€/month or something similar that might help with their budget problem.

    My main approach would be to call them up and ask them for an interview (John Spangler style) and offer them a free one page listing on the directory and take it from there. I can also create a special promotion section where they can create their own coupons and promotions (Groupon style).

    Considering that there is over 10000 restaurants listed on yellow pages in Paris it shouldn't be that hard to make some decent residual money.

    Let me what you think about this plan.

    Thank you in advance
    Ehasan,

    You're both going it the WRONG WAY!

    First of all, if you don't have a personal relationship, these are the steps to take:

    1. You need to send a letter via direct mail (it needs to be compelling in order for them to read and respond to it).

    2. If they respond to your compelling letter, you then send them a questionnaire to fill out (this step will either qualify or disqualify them).

    3. If they fill out the questionnaire, then it's on to the next step.

    4. The Next Step, is set up the appointment to meet, greet and ask them more questions in order to proceed to help them.

    5. Then you take it from there. However, my favourite lead generation method is joint venturing with other businesses, and/or sending letters to their past clients.

    The point here is that businesses don't want to hear "what could be"! They want results NOW, and without gambling with money that they don't have to spend.

    The way I KNOW is to show them how to make money WITHOUT any costs to them. If you can show them the way, THEY WILL LISTEN and WILL BE ON BOARD!

    Anyway, those are my tips. Hope this helped!

    Cheers,

    JMB

    P.S. If you would like help on any of these steps and/or scripts, then please PM me and I will help you (this is for the OP only -- sorry)!
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  • Profile picture of the author Chris Cho
    damn bro that's a hot mess. i can only see two things going wrong.

    1. your guy must be reaaaaaaaally bad
    2. you just got REAAAAAAAAAAAALLY unlucky

    don't give up though. maybe try another 100 times. this time you should do it or someone else should do it. you can't find out the answer why it didn't work out unless you test something else out.

    btw, business owners never call back. I have two clients who put their deposit down and it's been about 2 months and still didn't call me back to finish their site.

    If they don't call back... i can see why your prospects wouldn't call back.

    don't give up and keep on keeping on bro. I started with restaurant too so I know you'll do well as long as you stick to it till the end! =)
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  • Profile picture of the author Rus Sells
    @Rus My friend used to be a salesman for two years before he got laid off so he is not totally cluless.
    OK, but you didn't mention anything about your friend experience so...

    You said he's telling you,
    He says that there is a number of people who are interested. they ask for our contact information but never call back.
    Right?

    Orite, does your friend have his two years of sales experience in Business to Business sales? Was the market he got laid off from a B2B market or B2C.

    See your entering a world where tons of business owners get hammered every single day for services like you want to offer. These people aren't the next teenager looking to buy the next hot phone, if you get my drift.

    My frank analysis is that unless your friend gets some help in selling he isn't going to earn enough to pay his bills in this tough market. And if he can't pay his bills how is he going to help your business grow.

    I know I'm coming off as a dick but I really think its necessary.

    Two things I've learned from being a business owner for over 20 years.

    Don't have family as business partners and,
    Don't hire friends to work for your business. EVER!

    Now you obviously can choose to do what you want but if you choose to help him become a better salesperson then you as the business owner must make a decision to help him get better at closing.

    If you search your heart you'll know if its worth the effort to your business to help him get better or, if the time spent could have been used to find more experienced, hardened, sussesful sales people with a proven past of sales experience. 5 years minimum.

    The balls in your court however I think you're friend has a lot to learn about selling and that you should not abandon having salespeople just based on what he reports back to you.

    The facts are that the business owners are getting pounded by telemarketers, emails, and direct mails. But only a small percentage are walking into establishments and making a personal presentation. This puts you ABOVE all the other marketing noise they are hearing day in and day out. All you need with this situation is a good closer who will right business for you.
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  • Profile picture of the author oldyounggary
    This doesn't sound like a failure, this sounds like a learning experience that could pay off bigtime. It allows you to hone the pitch and also the sales funnel.

    He said he had a number of people interested. He needs to set appointments for you to talk to them. Then YOU build the trust.

    Can you get testimonials from the friends you built sites for? If you can show them those sites, even better (social proof and show of expertise.)

    Your idea about the simple websites might be a good idea, get them on the hook and then expand their horizons with Fanpages, text marketing, QR codes, whatever...

    Keep going!

    Good luck,
    Gary
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  • Profile picture of the author Sonomacats
    I think one of the reason John Spangler's approach is working so well is that he is not going in there to sell them. He's there to give them something.

    If you go with his approach, I'm sure you'll do well.

    However, another approach is to take that idea and tailor it to what you're good at. GIVE them something.

    For example, you could create a great website in advance and get it ranked first. THEN contact them and say you have this site that you built.

    Tell them they can have it for free for a month. Or at a huge discount because you're new in the area. Or .... whatever feels right to you.

    The worst thing you can do, though, is to try to sell them anything. Especially if your friend isn't a great salesperson.

    But if you create a relationship by giving them something or making it valuable to them, then let them know that you can do the work for them. If you set it up right (like John does), then they'll be asking you if you can help them out. Not the other way around.
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    • Profile picture of the author Greg guitar
      Originally Posted by Sonomacats View Post

      I think one of the reason John Spangler's approach is working so well is that he is not going in there to sell them. He's there to give them something.

      If you go with his approach, I'm sure you'll do well.

      So true-this is what some millionaire marketers call "the power of free", and it works spectacularly well. It definitely makes you stand out in a field where most people are just going straight for the wallet.

      To the OP: if your friend has cold called 100 places, with 0 sales, then it's time to adjust the approach. A multi-step sales process could warm them up so the calling is less cold.

      Better to contact 10 businesses 10 times-offering real value up front for at least the first 5 contacts before asking for the sale, than cold call 100 more once each. Think Frank Kern's "results in advance", where you give them a taste of some of the biggest benefits you offer before asking for the sale.
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  • Profile picture of the author Ehsan_am
    @ Rus You definitely have a point and I should probabaly either find a better sales person or go out there and try it myself.


    One of the main reasons I chose this approach in the first place is that the french market is pretty much open. We are 5 years late on anything related to Internet. For instance QR codes are a huge unknown here and it is only very recently taht I have seen a couple of them in ads.

    One of the questions my friend was supposed to ask business owners is if they had been contacted by any other business for webdesign or SEO. 80% have responded "You are the first one". This kind of reinforces my idea of them being skeptical and not knowing what they are missing.


    @digichik We do show them examples of the websites we have done in the past. Especially the restaurants but as you said I need to educate them how things work so going for an indirect sales approach is probabaly better for getting that appointment during which I can educate them on the benefits.
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    • Profile picture of the author DrPaul
      Originally Posted by Ehsan_am View Post

      One of the main reasons I chose this approach in the first place is that the french market is pretty much open. We are 5 years late on anything related to Internet. For instance QR codes are a huge unknown here and it is only very recently taht I have seen a couple of them in ads.
      @Eshan_am All the more reason to get your clients AHEAD of the curve.

      I'm going to be blunt and recommend two things.

      1) http://www.warriorplus.com/wso/view/35151

      The very first WSO I purchased on the forum (and still the best one I've seen so far) from Digitalcostas, "The Ambulance Method", tells you how to get local clients to come to you, instead of the other way around. This WILL work for you and your friend, because I've used it with my brother-in-law with our business here in Florida.

      2) How To Find Desperate, Hungry Business Owners Replay

      This is the webinar Costas did last week. He explains in detail the Ambulance Method and is holding a masters course starting tommorrow which I highly recommend.
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  • Profile picture of the author riseplaces
    How about throwing in list building via trafficwave.net. For $18.00 mo. they offer unlimited autoresponders, lists. You could create an autoresponder for each client, host in on your own directory pages along side their free listing. Because of the unlimited nature of trafficwave.net you could host an unlimited number of businesses list building efforts for just $18/mo. all under one roof. Let that sink in. You say none of these people have websites. Well how many of them do you think have e-mail lists? On a seperate page on your website have a simple form the restaurants can go to and post their e-mail broadcasts (limit them to 1 a month for free.) Just copy and paste from your form into their autoresponder campaign. Remember you get unlimited everything for one low monthly price. This autoresponder might be worth more to them than the website.
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  • Profile picture of the author Ehsan_am
    Thanks for the suggestions DrPaul. I'm going to check them out.
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    • Profile picture of the author DrPaul
      Originally Posted by Ehsan_am View Post

      Thanks for the suggestions DrPaul. I'm going to check them out.
      By All means, That's why I posted them.

      HINT: Costas gives away a big taste of the meat of the Ambulance Method, in the webinar replay video.

      Since the replay is free to watch, I'd recommend watching the video first, then coming back and purchasing the WSO and registering for the training classes.
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  • Profile picture of the author angmoore
    How about offering one restaurant a free campaign and getting results to show the others. Find someone who is struggling that you can really help. Start with one that at least already has a website. Down the road you can make quick template sites that won't take too long. If you can't give it away then you can't sell it so see what it is they are open to.
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  • Profile picture of the author TheKeys
    Try to lower your prices or offer an incentive. Show them previous examples and how the companies you worked with benefited from you.
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  • Profile picture of the author Vincenzo Oliva
    First of all no good salesman will ever try to sell something to someone without first probing them with questions to uncover their needs, twist the knife a bit, then, and only then offer a solution.

    How about a little fear of loss? Did your friend ever show them a print out stat of 435 people that search for a so-and-so restaurant on a mobile phone every month?

    Did he ever show them what their site looks like on a mobile phone while they're standing there?

    Did he ever show them what their competitors mobile friendly site looks like with their "click to call" and fast response mobile site?
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  • Profile picture of the author jondabach
    Restaurants can be an enormous waste of time. Most will meet face to face because they feel obligated to know their local vendors but then rarely take action.

    You need to qualify the lead through direct mail (the survey method above is genius).

    Facebook crusher has a great qualifying system too - no affiliate link or anything just do a search to check it out.

    But restaurants don't have a big marketing budget usually so it has to be REALLY compelling.
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  • Profile picture of the author Ehsan_am
    We changed our niche today. We decided to go after different local businesses and the results are amazing. We have 3 meetings already and it is not even noon yet. It seems that the restaurants were just a bad choice of local business.
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    • Profile picture of the author Fernando Veloso
      Originally Posted by Ehsan_am View Post

      We changed our niche today. We decided to go after different local businesses and the results are amazing. We have 3 meetings already and it is not even noon yet. It seems that the restaurants were just a bad choice of local business.
      Thats exactly what I was going to advise you: change target to companies with $ and in the know.

      No point chasing sardines when you can get caviar.

      Just sayin'...

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    • Profile picture of the author JeffNormand
      Originally Posted by Ehsan_am View Post

      We changed our niche today. We decided to go after different local businesses and the results are amazing. We have 3 meetings already and it is not even noon yet. It seems that the restaurants were just a bad choice of local business.
      It's funny you posted that, because I was just going to say "In my experience, restaurants are typically not what you want to start with.."

      I'm glad you figured it out already, and congrats on the success, keep it up!
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  • Profile picture of the author tamilataha
    you can do online advertisement....and improve your business
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  • Profile picture of the author TyErickson
    Restaurants typically spend 8% of their budgets on advertising. A busy restaurant should be doing at least $1M in sales making the advertising budget $80,000 or $6,667 per month. There's money to be had if you pick the right restaurants.
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  • Profile picture of the author Ehsan_am
    Well It seems that their budget wasn't really the problem. We were making two big mistakes :

    1 - Targetting restaurants in a large and highly populated city ( Paris). These restaurants probabaly have already more business that they can handle. They don't need internet promotion. They probably fill up with people passing by.

    2 - We needed to target a market that relied mostly on people looking for what they have to offer or actively searching for it on the internet. In our 3 set up meetings we have an antique shop, a sauna and a massage place.


    We might have success if we hit the restaurants that are not in the center of the city and are in a more remote place but it seems that our first target market just didn't need our help.
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  • Profile picture of the author Ehsan_am
    OK I just came back from 2 meetings. One cancelled on us.

    The first client had just too high of expectations and I didn't even want to work with him. So I simply thanked him and said I coudln't deliver what he was asking for for the price point he was ready to pay.

    The second client had already two websites and I felt her shield was up from the get go. Nevertheless, I managed to sell her a brand new website + a mobile website and a possible 200€/month for SEO I'm very pleased since selling a website to someone that has already two isn't easy. All I did was to apply some great advice that I read in many threads here. I let her talk and I listened. As soon as she mentionned the reasons why she wasn't happy with her actual website I knew what to sell her.

    All in all a good day. I hope tomorrow is going to be the same.
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    • Profile picture of the author midasman09
      Banned
      I'm sorry...I feel like "chiming in here".

      I began my long sales career in Downtown Chicago....and I soone discovered that...whatever I was selling....I better do ONE thing;

      Offer prospects something they CAN'T GET from others!

      So....take a step back and think about your target market;

      WHAT can little ol' YOU offer....that others CAN'T?

      or....WHY...should prospects buy YOUR program....rather than staying with what they already have...or....WHAT makes YOUR service or program of More Value than others"

      I call it the ...."Unique-Critique"!

      If your service or program is the same as what 100 others are offering, then...it just comes down to a matter of....who's got the best Price!

      However....if YOU have something that other's aren't offering....then, Price is NOT a factor!

      Don Alm....within 3 presentations I can determine HOW to sell my program and...at what price!
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    • Profile picture of the author DrPaul
      Originally Posted by Ehsan_am View Post

      The second client had already two websites and I felt her shield was up from the get go. Nevertheless, I managed to sell her a brand new website + a mobile website and a possible 200€/month for SEO I'm very pleased since selling a website to someone that has already two isn't easy.
      WOOT! Very good! Congrats.
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  • Profile picture of the author Hugh
    It took my over twenty years to learn how to make "Easy Sales".

    Hugh
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    "Never make someone a priority in your life who makes you an option in theirs." Anon.
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  • Profile picture of the author marcusalphaeus
    Hang in there, dont give up guys
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  • Profile picture of the author dancorkill
    Originally Posted by Ehsan_am View Post

    However, he mentionned that he has the feeling that these restaurant owners don't have 1000€ or even 500€ to throw at webdesign let alone SEO, mobile, etc
    You have answered your own question, do you want to earn less than 1000 per client if so pursue this niche, if not new one. Look for people ALREADY spending big money on online marketing. Do a google search look who is advertising on adwords .
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  • Profile picture of the author Dedew
    =) it's always a learning process
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    Add your business product or service to quality website directory. Write a review for people to easily choose your business over your competition.
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    • Profile picture of the author khairole
      Keep trying until you get there..
      It took me 6 years to unveil right customer to work with..
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  • Profile picture of the author dtaylor
    Way to go with getting a new client.

    Sometimes, for whatever reason, you just need to change things up a bit.

    One thing is for sure, if you keep contacting businesses on a daily basis you will make sales. Most people would not have gotten past the 100 rejections without giving up.

    Good job, keep it up!

    DTaylor
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