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4 ways to win with in-store marketing

No matter what other problems your restaurant faces, if you can consistently get enough people in the door those problems ultimately will not matter. High traffic will almost always lead to higher profits.

July 6, 2015 by Kent Barkouras — EVP Restaurant Solutions, Primary Color Systems

About 75 percent of all "new" restaurants fail within the first two years. Among the contributing factors include poor location, lack of market analysis, poor management or inexperience in hiring and training, lack of owner participation and commitment, poor inventory management, lack of brand and menu creativity, and for certain, undercapitalization. If you are a franchisee of a chain with 25 or more restaurants, however, odds of survival improve significantly. Utilization of and the strength of the franchisor’s tools are vital to success.

Just as important as eliminating the above factors that lead to failure is to identify factors that increase the likelihood for success. Implementing the right in-store marketing strategy from the outset is a key component. Franchisees that have access to the right local marketing tools will ensure that each restaurant gets off to a great start. Successful restaurant openings lead to increased team member morale, superb guest experiences, increased traffic and continued customer loyalty. This combination will work wonders for a well-run restaurant and can even offset the effects of a less than ideal start for those of you that are struggling with getting started.

Developing and maintaining consumer interest and likeability in the product or services is, after all, the whole point of running any business, especially a restaurant. Without customers, you have an empty restaurant, and an empty restaurant is one doomed for failure. No matter what other problems your restaurant faces, if you can consistently get enough people in the door those problems ultimately will not matter. High traffic will almost always lead to higher profits.

Here are some important issues and points to consider.

1. Execute local marketing strategy

In today's world, it is critical to quickly react to changes and opportunities in the local marketplace. Whether it is a new competitor in your trade area, a city event, school function or even a calendar promotion, operators do not have the luxury on waiting for the corporate support staff to attend to their needs. Opportunities will be lost and the result will be an extremely frustrated franchisee base. With the right support from the corporate support center, materials should be able to be obtained quickly and easily, customized to the franchisees' needs. When forced to do it on their own, materials tend to be off brand, of poor quality and ultimately cost more.

2. Acces marketing tools

Operators often lack access to the right type of branded materials for local activities, events and fundraisers. The franchisor should offer the franchisee base a tool kit with simple instructions and steps on how to carry out specific marketing events and campaigns. The ideal scenario is to be able to obtain them from one place, and not have to try and obtain the materials form multiple suppliers in various locations. Brands need to adopt a one-stop shop for all of their marketing elements so the operator saves time, avoids frustration, and most importantly has a successful event. The easier it is, the more franchisees will adopt best practices, which should drive traffic and lead to greater revenue and higher profits.

3. Embrace grand opening marketing kits

Most chains have developed a base kit for their franchisee to assist with their new restaurant openings, termed "NROs." The kit contains basic marketing materials such as posters, banners, yard signs, clings, balloons, flyers, cards, etc. In some cases, kits are much more comprehensive and include menu boards, menus, training materials and other items. Traditionally, a portion of, or all of, the initial NRO kit has been paid for by the franchisor as part of the restaurant franchise cost. For many chains, over time, the kit contents have become standardized in an effort to control costs and simplify fulfillment processes. Unfortunately, the number of kit components has no relationship to the "DNA" of each restaurant including its physical attributes and configuration. Ensuring that the ideal amount of materials are delivered for each NRO is the best way to get off to a great start.

4. Restaurant profiling is a must

Restaurant "profiling" highlights brand awareness and guarantees that each location receives marketing materials that are tailored to the restaurant configuration and store preferences. In an age where top marketers are maximizing every inch of available store frontage, window space, interior space, etc., having less than the ideal amount of branded materials for the grand opening and future promotions in unacceptable. Why wouldn’t you make the most out each restaurant’s unique DNA?

The answer is that it can, inexpensively, and should be done. Every restaurant should be profiled at some time, hopefully before its grand opening. The desired result should be a successful opening having maximized the marketing effectiveness of materials placed in correct locations. It will lead to future successes of limited time offer and calendar promotions and campaigns. There are marketing execution firms that can create and maintain specific store configurations and profiles of each restaurant, and provide instructions on how marketing materials should be placed accordingly. The bottom line is that each franchisee should get the most out of the marketing space they have.

Kent Barkouras is a 30-year veteran in the restaurant industry and pioneered the first web-to-print marketing portal that supported the needs of market leaders in Fast Casual, QSR, Casual and Family dining. Kent believes that partnering with innovative suppliers to maximize the most out of every opportunity while tightening the supply chain is critical to the collective success of both franchisor and franchisee. Kent currently serves as EVP of Enterprise Services at Primary Color Systems, a leading supplier of marketing execution services to the restaurant industry.

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