Monday, February 22, 2010

How to Increase Profit And Clientele In Restaurant Business

I have been thinking what should I suggest in an attempt to solve Chad’s Palace problem which it is facing a challenging situation to increase its clientele and at the same time to increase its profit. While thinking, I got a few of ideas from Ruggerio’s book and some kind of other sources.

The continuous mission for every restaurant owner, even successful ones, is to increase restaurant sales. With so many dining establishments vying or contending for a customer’s business, effective marketing measures are key ingredients for attracting customer attention, establishing your restaurants identity and enhancing customer loyalty.

Word of mouth is the most cost efficient way to increase restaurant sales. If you present a wonderful dining experience, patrons will naturally refer your restaurant to others. But word of mouth works both ways. Bad reviews often travel faster than positive ones. That is why it is essential to be consistent in providing excellent customer service, quality food and an inviting atmosphere.

While chain restaurants rely on a corporate or top management moreover on new management formula to increase restaurant sales, independent restaurateurs can be more flexible, giving them a greater advantage. One important strategy is getting to know your customers. There is a reason why clubs, theater groups, business people, or friends who get together weekly only dine at one particular restaurant. It is because the owner greets them by name, knows their dining preferences and is aware of things going on in their lives. These restaurants have created a trusting and reputation, family environment that builds customer retention.

Without a doubt, rewarding typical clientele can lead to increase profits. If you know a customer has referred others to your restaurant or consistently brings in a group of business associates, consider giving a gift for a complimentary dinner or providing a free appetizer for the table. This is a great sales tactic to motivate your good customers to bring in business to your restaurant.

Your staff is an integral part of building sales. Besides providing impeccable or perfect customer service, your staff can increase restaurant sales by up-selling to increase the table check rather than ask if anyone would like appetizer or dessert, they should note which ones are house specialties or offer their personal recommendations. They should also promote higher priced dishes with reasons showcasing their value.

A comprehensive advertising and marketing plan is essential in growing and maintaining a profitable restaurant business. Your advertising needs to set your restaurant apart from others and attract a person interest and eagerness to try it. Your marketing efforts should be both in-house with promotions and in the community. Have a presence at community events within your service area, network with business and trade groups, or get involved with a charity that is of interest to you. The more visibility you can give your restaurant, the greater your market reach.

Using the Internet to increase profitability is a must. Your restaurants website should be as interactive as possible, allowing people to make reservations, see current specials and easily get directions. Have a presence on social media sites, like Twitter, Facebook, Blogspot, Wordpress and same kind of those social sites.

Incentives take on many forms, but all have shown to increase restaurant sales. Some examples of common incentives are discounts, coupons, punch cards, customer loyalty programs, business card drawings, promotions and special events. You might want to try a combination of incentives to enhance business and get more profits.

These all above are a few of my ideas that could be applied to Chad’s Palace problem. These ideas may be called as business strategies and creative or critical ways in running business. I hope all stated above are good enough to cater this problem.

Sincerely by,

Rafizi Ruslan

From my assignment given by Mr. Azmir, who is my lecturer in Creative Thinking and Solving Problem, I dedicate to him and to other fellows of my blog.


1 comment:

  1. I finally found what I needed in your blog! Thank you so much for sharing these details with us. You have been really helpful! Thank you and good luck!



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