In order to earn money in the joint business, restaurant owners have to get a competitive advantage. If hard work on its own would do it, most restaurant owners would already be rich.
There are just 2 real and sustainable competitive advantages anyone can have in the restaurant business.
Restaurant owners can’t have the top chef or even the very best location or even the best menu or the most affordable prices — at least, not for very long. Chef’s can get an even better quote, highway construction, creating projects and population shifts turn locations that are great into so-so locations. recipes that are Great can be swiped and even improved upon. And of course, aiming to have probably the lowest prices is just not the way to go.
The only 2 real and lasting competitive advantages any restaurant owner can have are — Innovation and Marketing.
Ray Kroc knew the benefits of innovation when he stated, “McDonald’s can innovate faster compared to the competition can copy.
Peter Drucker (probably the greatest management author plus guru of all times) claimed, “Innovation is the only lasting competitive advantage anybody can ever have in any business.”
e’s right — “Marketing” is simply a sub-part of “Innovation.”
Applying unique marketing strategies is a major part of originality because —
Marketing is the one and only thing that generates profit for a restaurant. Everything is an expense.
Marketing (when done right) is the greatest investment any kind of restaurant owner can easily truly make. In the stock market or in property someone may hope for a 5 % or possibly even a twenty % return on the investment of theirs. But in marketing, a $100 investment in marketing (ads, direct mail, press releases, etc.) could bring in $1,000 in profit and often much more.
For instance, changing just a small number of words in a headline is able to bring in two to ten times more profit from identical ad. Plus the only cost to make the change will be the time it took the restaurant owner to learn how to write headlines. What type of return on investment is that?
The typical restaurant owner thinks his role would be to “run his restaurant.” He does not have time to market his restaurant — as well as to find out tips on how to promote a restaurant. Perhaps that’s why he is average.
A restaurant owner can’t generate $100,000 a year performing ten dolars and hour work. A restaurant owner’s duty must be to market, innovate as well as promote his/her restaurant.
The restaurant marketing plan for the majority of restaurants is based on whatever the most recent advertising salesperson was promoting. When it comes to advertising, many restaurant owners simply emulate what the big corporations are doing. That may spell disaster for virtually any impartial restaurant.
Most restaurant owners work hours which are long, but it doesn’t take long hours to market, innovate and boost a restaurant.
Look at it in this way. A restaurant owner who masters originality and advertising and marketing may exchange restaurants with any restaurant owner in town. Let him have the location, the menus, the chef plus staff and a year from the restaurant owner that knows the way to market and innovate would’ve likely the most profitable restaurant.