As the economy doldrums set in and few Americans can afford the luxury of that new car, computer upgrade or even that new flat screen TV, it’s the little things that we will rely on to make us happy. It’s a special lunch at our favorite place, a latte indulgence that feels like a hug. It’s Pizza and a movie. It’s take out or a drive-through pick up.
Euripides said: “When a man’s stomach is full it makes no difference whether he is rich or poor.”
This may explain why, although most consumer spending is down, the NRA forecasts that snack and non-alcoholic beverage shops including McDonalds, Starbucks, Dunkin’ Donuts and Jamba Juice, are expected to post growth. And while most retailers are down, Walmart and Costco are posting growth. Surely this must have something to do with their reasonably priced grocery departments.
So, how can we up-sell this concept while ensuring consumers will continue to see value in the experience and in the time and energy saved by dining out? Here are some simple truths that may go a long way to providing that “extra value’ customers are seeking.
Pamper your customers.
When times are tough and winter is coming on in more ways than one, we all have a basic need to be pampered and taken care of. This is fulfilled when one dines out, no matter how simple the experience may be. Now would not be the time to skimp on quality of the product or cleanliness of the store. Details like courtesy, greeting your customers by name, overall atmospheric warmth and free samples can go a long way to making them feel welcomed.
Motivate your employees.
Delivering value in an economy where raw food costs are going up, and prices are not, is a tough prospect any way you look at it. Many restaurant and franchise owners are asking how to best build morale when they can’t give their staff a raise or worse, they have to ask them to take a cut. Here’s when leadership needs to be more visible than ever before, rolling up their sleeves along side staff, setting the example and creating a team atmosphere. Short-term goals should be set and celebrated when met. Employees that above and beyond should be acknowledged and rewarded. Take a look at the little things you can do for people to compensate for the raise you’re unable to award. Many folks would appreciate an extra week of vacation time or a more flexible schedule. Keeping your employees motivated is the key to keeping your customers happy.
Broaden your game.
For those that provide coffee and sweets it’s all about introducing salty snacks and mini meals to their assortment. We’ve seen both Dunkin’ Donuts and Starbucks follow this trend; the one launching its flatbread breakfast sandwich and the other with its expanded salty breakfast offerings and a new line of “piadini’s.”
For those that already serve nice salty meals, it’s about stepping it up in the coffee arena. Mc Café has led this initiative with their attractive assortments of premium coffee options priced at the very affordable $1.99 – no need to go elsewhere if coffee is all you want.
Appeal to their inner-child.
It’s no secret that adults still watch cartoons, play video games and collect everything from toys to shoes. The lunch box or the “happy meal” for adults presents an opportunity for a no-brainer lunch decision that rewards the physical as well as the emotional need for something special. Programs like sweepstakes, games or reward challenges keep customers engaged and create an atmosphere of excitement and optimism.
Partner up.
In tough times we pull together. The right partnership can also go a long way to enhancing the experience. The obvious natural partners have been the entertainment companies (Disney or Universal) yet many restaurants big and small should consider gaming partners, music partners, local theater partners, retail partners and even major NGO’s that let folks contribute to something important and feed themselves at the same time.
This is key to bringing the restaurant out to the community, and the community into the restaurant. Give corporate discounts or special invitations to local businesses and make them feel like your place is “Conference Room C.”
Know where you live.
You can’t forget your multicultural audiences especially if your place of business targets families. You may find in the major markets that this is 1/3rd of your business opportunity as well as the one with the most growth potential. When budgets are tight, this can be seen as an added headache that most people don’t want to take on. It’s not as hard as you think, and a little effort can go along way. Media buys and sponsorship opportunities in this market are significantly less costly than they are in the general market and the returns are often greater. The fact that these communities are pretty tight knit make it easier to get them engaged.
Spread the word.
Key to all of this is managing the communication around your efforts. Getting the word out when you’re doing something new, and making sure you’re reaching all of the right audiences. It won’t matter if you have a fabulous new lunchbox special, that all of your ingredients are organic, that your food is better and your people are nicer or that you have raised over $1,000,000 for Jerry’s kids if people don’t know about it.
Pulling together in hard times can often help bring folks together, allowing you to identify opportunities for savings and ways to add value that you may not have bothered to identify otherwise. This could be seen as a survival strategy or a way of setting the stage for increased margins for the future.