Restaurants: What's working now

17 replies
This month, OC Register published an article about the biggest restaurant failure's of 2011 here in Orange County.

I took the information and turned it into a "no frills" special report. There are big names in there I'm sure you'd recognize.

http://rickduris.com/OCRestaurantClosures.pdf

Why did I do it?

Shock value.

Most restaurant owners have a perpetual smile on their face. When in fact, they're worried, struggling to keep the doors open.

They're proud. And they have every right to be. Running a successful restaurant is the hardest of work.

And they know if word leaks out they're struggling, they'll be in worse trouble.

You can use a report like this to get under their skin when you see them. You want them to give you the real story. Not just what they tell their customers.

Locally here, this report serves the purpose.

After you get an appointment, and after initial pleasantries are exchanged, it's time to get down to business. Ask how they're doing.

Of course, they'll tell you everything "couldn't be better." That's when you share the report, because there are so many restaurants going out of business.

Now, they know you know. Things are not so rosy. The conversation takes on a entirely different tone.

After you have an honest conversation, they'll want to know how you can help them boost business.

I thought I'd share this report with you today. Maybe you can do something similar in your area.

It's just a piece that gives them permission to open up and share what's really happening. Because the fact is, restaurants of all kinds and sizes are struggling.

Me, You, we... with what we know, we can help them.

- Rick Duris

PS: And if you're in Orange County, feel free to use the report as is.
#copy ranger #copyranger #restaurants #rick duris #working
  • Profile picture of the author Aaron Doud
    Honestly I don't know if I would take a negative tone with a client.

    For all we know those resturants closing were due to people like him putting the competition out of business.

    If the client has a positive outlook why don't we? Hell if he is already doing great it makes our job easier. We just have to help that upward trend continue. Unless a resturant always has full tables and a 30 to 45 min wait they can always use more customers.

    And if it is a local company with one or more resturants they could always expand when business gets to be too much.

    In sales I honestly believe you never go negative. Yes you can scare up a sale but I think you are better off to take the positives and roll with them.

    I honestly would be scared to take on a client that was negative. Negativity breeds negativity. The whole company could be tainted by his additude. I've seen it dozens of times with bad managers. One bad egg can make a whole store or resturant go from positive comps to negative ones within a year.

    And I've seen the opposite where stores and/or employees that were written off can be turned around by a positive manager. Hell in the early part of my career I was often one of those turn around managers. Where companies would shift me from store to store every few months to take unprofitable stores and make them profitable.

    Hell three of the best managers I ever had work for me were written off by the pervious manager and thier superiors. And all 3 ended up being store managers later. And two of the three I still have in my facebook friends and both work as managers for a different company now. Honestly I think both of them make more money than I do these days.

    I never saw them as written off. I came in with a positive additude and expected results. And I respected them, their opinions, and their abilities.

    As consultants we can do the same thing. We can come in with positive additudes. Business is great. The recession doesn't matter. We can help grow any business. If the owner is positive he will love our positive attitudes. He will buy into the vision of now and our vision of the future.

    Attitude spreads. What do you want to spread?

    PS Not all resturants are struggling. The local Olive Garden is always full and has a 30 plus min wait every time I go. The local Texas Road House is similar. A local pizza chain named Harris is always busy at their location near me. And honestly in my local market we have more retail and resturants per capita than we should. Yet resturant after resturant that I visit(and I eat out 1 to 2 times daily) is always busy when I am there. Maybe the resturants I am going to and that all these others are going to are the exceptions in the area. And maybe the reason they are the exceptions is the same reason all of us are going to them. Good food, good service, and a great atmosphere. And all of that starts with managers and owners. Feed the positive and avoid the negative.
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  • Profile picture of the author xlfutur1
    Wow, that is a sobering report. I agree that too much of a negative tone just makes everything a drag for everyone involved. Better to concentrate on the positives of how much more you can do for their restaurant by incorporating things that others didn't do.

    I don't think its a big secret that if a restaurant is not doing well that it could go out of business and the owner will be well aware of that. Bringing this to the forefront may make the guy want to get out sooner than later and chuck it altogether.
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  • Profile picture of the author Eddie Spangler
    Do not like this approach at all. If they have already granted me an appointment then they already have shown some type of desire to increase business. I dont need to show them how bad it is to get them to open up and tell me how it really is, normally they are the ones telling ME what's going on.

    I think most are already aware of the closings around town as word does get around their restaurant community pretty quickly.

    Something like this might be better served as a report or blog entry on your website that gets some owners attention who are on the fence or who may think they dont need to advertise because things are going well now...I just cant see whipping this out at the start of a sales presentation though.
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  • Profile picture of the author RickDuris
    Maybe I wasn't clear enough. This is not negative at all. When presenting the report, we do a soft delivery. Let me explain a bit more:

    1. Ask how's business.

    2. They'll usually say "Great!"

    3. We say "Oh really? Because I was just reading this report. Here, I've got it right here."

    4. As you give them the report, you say "Well, I'm glad you're doing good, because it looks like restaurants around here are suffering right now."

    5. They skim through the report. Then they'll say something like "Well, business could always be better."

    6. And that's your opening to say something like "Well, let's see how we can help you do that..."

    That's it in a nutshell. We don't tell them the sky is falling.

    - Rick Duris
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  • Profile picture of the author NewParadigm
    It can be good info if used/presented the right way.

    Only a fool would say or imply, "if you don't buy my services, you'll end up on this list!" You don't want to put them on the defensive.

    This could be a good marketing angle for IM/prospecting. "Top 10 reasons why <insert your city> Restaurants are Failing" What restaurant owner wouldn't get this free report?

    A report like this would be a good conversation starter, getting the operators expert view of what has gone wrong w/ those restaurants(he just might even be projecting HIS problems, so listen carefully

    I would add to this report w/ info on successful restaurants and get his/her opinion on what they are doing to succeed. You just might happen to have a few of your clients on the success list

    It's all about how you approach this stuff.
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    In a moment of decision the best thing you can do is the right thing. The worst thing you can do is nothing. ~ Theodore Roosevelt

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    • Originally Posted by NewParadigm View Post

      It can be good info if used/presented the right way.

      Only a fool would say or imply, "if you don't buy my services, you'll end up on this list!" You don't want to put them on the defensive.

      This could be a good marketing angle for IM/prospecting. "Top 10 reasons why <insert your city> Restaurants are Failing" What restaurant owner wouldn't get this free report?

      A report like this would be a good conversation starter, getting the operators expert view of what has gone wrong w/ those restaurants(he just might even be projecting HIS problems, so listen carefully

      I would add to this report w/ info on successful restaurants and get his/her opinion on what they are doing to succeed. You just might happen to have a few of your clients on the success list

      It's all about how you approach this stuff.
      I'm with you - it's a conversation starter for the guys who are doing WELL.

      In any area where there's a bunch of restaurants, some are doing well and some are struggling. Sometimes right next door. May be the service is slow, the quality is poor, whatever. You can't fix that.

      Given the choice between working with a restaurant owner who's doing well and one who's not, I'd go for the positive guy every time. This report would be a great opener: "what is it you're doing that they were not?"

      But thanks for the idea, Rick. Your report has value - it's just a question of how to use it.
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  • Profile picture of the author RentItNow
    I like it. I think i would modify the lead slightly saying;

    "How's business?"
    "Great!"
    "That's fantastic, I do not remember seeing you on the recent published restaurant closures report so you must be doing better than most. What's your secret?"

    To me it would then get under their skin and at some point you know they are going to ask..."What report?" But at least you are letting THEM sort of bring it up.

    My step-daughter uses these "plant the boom" tricks all the time. Oh what we can learn from teenagers looking to get their way.
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    I have no agenda but to help those in the same situation. This I feel will pay the bills.
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    • Profile picture of the author RickDuris
      That "plant the boom" is a wonderful strategy, John. Thanks for sharing.

      Also, I was just talking to a colleague who also does local marketing and he said he's aware of twenty more high-profile restaurants that have closed their doors in Orange County.

      Maybe this approach requires a delicate touch. I don't know. What I do know is it's working here in OC.

      - Rick Duris
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  • Profile picture of the author Edwards WOrld
    This Is the Tool i was looking for, I call it the "Wall Tumbler".

    So for walk Ins I call it the Wall Tumbler bringing the owners wall down... No sales pitch here just facts about the business they are in which happens to be restaurants..

    Hey John how you doing today, I decided to step in today to see what you guys are doing here... How's business?

    Alright..

    I just wanted to know how you keep out of this report? Slightly hand it over..?

    An then be positive all the way through from there, wall dropper an boom Listen an adjust your pitch.

    Thanks Rick !

    -Ed
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  • Profile picture of the author mjbmedia
    Anytime you say to another business owner 'Hows business?' theyll answer with 'fine!' , OK the majority of times then.

    maybe 75% of the time, its far from fine, its either going really well but we dont want to brag or tempt fate in case youre having a hard time , or its not great at all but we're too proud to admit it to you , so 'fine' is an easy non commital answer to an often unwelcome and poorly considered question.

    This report, delivered well, would make them admit theyre one side or the other of this reports dividing line , and from there you can define your offers accordingly , people want to admit when theyre struggling, they want the help, but it can be so difficult to actually say the words until something like this report shows that, compared to some of the bigger names in the region, you're not doing quite so bad
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    Mike

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  • Profile picture of the author mjbmedia
    One idea as I looked through the report again, is doing some research into what marketing methods those troubled businesses used (or didnt) via some software that tells you such things and putting that into the report to highlight what they missed out on doing and how that could have saved them, and of course its one or more of the things you offer , if only theyd have found you before they found bankruptcy.
    Dont make the same mistake, youve found me, youre lucky, dont let me go
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    Mike

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  • Profile picture of the author RickDuris
    I know it SEEMS like restaurants like Olive Garden are doing crazy business, but the fact is, they're struggling JUST LIKE EVERYBODY ELSE. Check this out:

    Olive Garden's slump hurts Darden shares- MSN Money

    Looks can be deceiving, for sure.

    I discovered this by talking with a Client today. They shared with me Darden, the holding company, had been struggling with the Olive Garden brand.

    The REASON Olive Garden is busy is because they are offering a three course meal at lunch for $6.95. They're hoping like heck these folks bring their family in on the weekends.

    But even if they do come, they're just barely keeping the doors open.

    Moral: Just because restaurant LOOKS busy, doesn't mean they're making money.

    Don't let someone's obvious success, lead you to believe you can't help them.

    - Rick Duris
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    • Profile picture of the author Edwards WOrld
      Rick is right i used to Server At Olive Garden an yes the only thing they sell now is Soup, Salad, an bread sticks fro $8 in hopes for ppl to up grade etc.

      -Ed
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      • Profile picture of the author BurntOut254
        Restaurant owners do not want to spend a nickel on anything that won't make them back money immediately right now. Plus they're getting tons of people saying they can get them on Google places and on the first page.
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        • Profile picture of the author juice
          I like your strategy a lot Rick. It makes the conversation "real" right away... and outlines a common problem for restauranteurs in the area.

          Now that you have their attention, I would use @NewParadigm's suggestion:
          "I would add to this report w/ info on successful restaurants and get his/her opinion on what they are doing to succeed. You just might happen to have a few of your clients on the success list "

          Kinda of like a Case Study of successful restaurants, preferably the ones that you have provided services for.
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  • Profile picture of the author Aaron Doud
    I think this Olive Garden discussion is such a key on why local matters.

    Clearly nationally Olive Garden sucks. But here locally they do great. Always full. Though strangely also always having people have heart attacks in their restaurant. I kid you not when me and my friend Elinda were were there the other night a person had a heart attack right after she got there and while we were eating another ambulance showed up.

    And years ago when I was working for BK I managed the store across from them and at least weekly there would be an ambulance there. Makes me wonder if I should eat there.

    So maybe the key is to kill your clients....

    Ok not really the key is to recognize that every business and every market is unique. While we might offer the same services to all how we present them and how we get them excited will be unique to each.
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  • Profile picture of the author mjbmedia
    But being full isnt the answer.

    Marketing consultants round my area love doing this BOGOF deals, buy one meal get the other free paying for the highest priced one, hoping people will also buy drinks, starters, desserts sides etc , it doesnt happen .

    They offer it on the restaurants quietest day(s) so you could have say a Wednesday where normally theyd get 10 couples paying full price , theyve now got 45 couples paying half price , now that may sound great until you look closer and realise that 35 of those 45 couples were dining on days other than wednesdays and 'happily' paying full price until they see this offer then think 'hell lets eat Wednesdays instead and only pay half price' , the other days of the week then become their quietest days and the 'clever' marketing consultants sugggests that as they are now busy on Wednesdays (even though its half price and stealing their own full price paying clients) lets run that BOGOF deal on Mon, Tues and Thurs too , you'll make a killing!!!!!

    No wonder they struggle , theyre listening to pig thick marketing consultants
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    Mike

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