A View From The Top

Little Greek COO: Why standing still won't work

Bryan St. George, COO of Little Greek Franchise Development/Little Greek Fresh Grill, discusses marketing techniques that can help restaurants during COVID-19. Hint: Doing nothing isn't an option.

Provided

August 6, 2020

By Bryan St. George, COO, Little Greek Franchise Development/Little Greek Fresh Grill

Marketing has always been a challenge during normal restaurant business but add the impact of a pandemic to the mix and it seems nearly impossible.

Let me walk you through the thought process most restaurant marketing people are thinking about right now when deciding what to do next.

Should we do a value promotion where we discount the menu items?

Bryan St. George, COO, Little Greek Franchise Development/Little Greek Fresh Grill

Value promotions work,and during this time customers are working with a tighter personal budget. The challenge for most of us, however, is that we can't afford to take a hit on our P&L. Some of us have seen the decline in in-store restaurant dining, which has carried over to reduced profitable soft drink sales that impact the profit for everyone. Take out supplies, PPE material, and food costs have all had an impact on our cost of doing business.

Things to take into consideration: from an operational side this is the easiest on store operations to execute, food cost is higher at this point for some raw ingredients, third party delivery sales have increased taking a chunk of the profits, and restaurant owners are very sensitive to the bottom line profit margins as we navigate the next 8-10 months of uncertainty. This promotion should be shorter than normal and monitor the sales lift to determine its viability during this pandemic.

What about doing a new menu item promotion?

New Menu items are a great way to minimize the impact to bottom line profits. Stores can charge the amount it costs without sacrificing profits. You can also position yourself to expand your customer base and have something to talk about in your social media posts that create a buzz. This option is also the most challenging at this time as you have many factors to take into account.

Things to take into consideration: From an operational side, this can be more complex to execute in an environment such as this one. You will have to confirm that the new item or ingredients will be available in this volatile marketplace not only now but at the time of the promotion. Build on items that you already have or can expand on. Keep the new ingredients to a minimum of two to four of possible. Make sure the new item(s) can be used in multiple arrangements (appetizer, entree, added to a plate already offered). Dining rooms may not be opened two to three months from now if increased Covid-19 cases dictate curbside or take-out only. Also, confirm that new menu promotions travel well in a potential high-volume delivery and take-out atmosphere.

Both marketing options can help grow your restaurant even in the middle of this pandemic if done correctly. Ask yourself the right questions, make sure you know the pros and cons to each marketing option before you decide to move forward. Don't be afraid to make decisions during this pandemic that will grow your business. Sheltering in place and making no moves is not an option for the survival of your restaurant.

Editor's note: A View From the Top is a series featuring first-person accounts from some of the fast casual industry's most innovative leaders. If you are interested in being featured, send email to editor@FastCasual.com

Marketing