... and how to beat the big brands at their own game.
It's no secret, 2024 thus far has been a struggle for restaurants, especially the independents. Rising cost of goods, inflation and continued strain in the labor pool are some of the top battles we are all up against. And no one is fighting it harder than independents.
Yet, 60% of all restaurants are small chains and independents, which means they have the numbers. Yet the top top 1500 chains command 67% of the revenue.
All these stats (and more) can be found in The State of Independent Restaurants report from Nation's Restaurants News and Unilever. In that same report are some clues, a roadmap if you will, on what independents can do to close the gap by modeling after the bigger chains.
I've read this report 5x (and you should too) and here are the biggest insights I have gained.
You can bet your bippy we will be implementing these at my restaurant, Handcraft Burgers & Brew!
1. ATM PLZ More SMS SRSLY
Crazy Pita knows what to do ... and so do their guests.
Almost 50% of chains are using SMS to market to their guests, whereas about only a 1/3rd of independents are.
How do I read this? I always like to say I don't need to figure out on my own what works, I can let others figure it out and learn from their insights. Stand on the backs of giants.
If it works, all brands should adopt and test it.
We use Ovation for SMS and have learned that we can send SMS marketing messages twice a month as long as they are tied to an opportunity with a limited window of availability (like a discount, offer or event.) Also, we've learned from our partners at Ovation that Sunday has the lowest redemption rate of any day form SMS offers whereas Wednesdays are 6.3x higher.
2. EMAIL. EMAIL. EMAIL.
Brooklyn Bread Cafe has an average open rate more than twice the industry standard!!
I'm going to beat this horse well past its death ... the best, cheapest, and most effective way to drive retention is through email marketing. The data shows it over and over again.
This means that your #1 priority in marketing is to capture our guests email addresses AND USE THEM!
I’ve got a playbook for capturing emails from your guests six different ways, a playbook for weekly email marketing, a playbook for automated marketing even for independence and a list of at least three things you could do with your email that you didn’t think about.
Want access?
3. BIGGER CHECK SIZES
Dont you want these patatas bravas from Sunrose California Eatery!?!?
With guests dining out less frequently, it's important that we maximize their visit / order when they do. Growing check sizes is a bigger priority and easier than increasing guest frequency.
If you have servers, suggestive sell.
If you have kiosks, make sure they upsell before checkout.
Bring added focus marketing efforts to apps, beverages, desserts, sides, catering, private parties and anything else that increases your average check size.
Take a look at our marketing at Handcraft Burgers & Brew - you'll see we talk about our loaded tots A LOT, especially in reviews on Google and Yelp. Its because we have seen what it does to check sizes!
You know what else grows check sizes (and frequency)? Offers, bounce backs & loyalty. We use Spendgo for that.
4. SIGNATURE ITEMS
The OG from Handcraft Burgers & Brew.
Having a signature item reinforces your brand identity and if you are the same as everyone else, you have nothing. What is your signature item?
Signature items drive traffic and repeat visits. A key insight from the report is to work on the profitability of your signature item.
Chad - should we add a deluxe version of the OG with bacon, egg and fries?
5. LTOs. LTOs. LTOs.
Check out the Blarney Burger from 5 Napkin Burger!
The chains know this .... limited time offers get big engagement on social, they get impressions in the press and work to renew the brand to returning guests. That means they are good for awareness, acquisition AND retention.
According to the report, "More than four in five chain respondents (83%) offer LTOs, compared with only 58% of independent operators."
I know there is no magic bullet in marketing but for sure limited time offers is a really big, powerful and strong bullet, and there's your proof.
Why do you think we have Burger of the month at Handcraft Burgers & Brew? We know the power.
PS. If you’ve never had smashed tater tots on a hamburger, it’s a game changer! Wait until you see what we do in March and April!
***BONUS INSIGHT!**
Add elk to your menu. Read the report and you'll understand why. And then call me once you do because it’s DELICIOUS!
Check out the Elk Burger from Dark Side of the Moo in NYC!
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Do you need help with any of this? Send me an email rev@brandedstrategic.net
- Rev Ciancio
WHAT DOES REV DO?
*I help restaurants to build guest marketing programs.
*I help hospitality tech companies with lead generation and content marketing.