Sunday, April 30, 2006

Links outta whack!

I just recently had to switch servers and redesign my blogs - was going to do it anyway! - but one thing thats still giving me problems are the links in each posting. If you read over an article and the backlink doesn't work, just drop me an email and I'll personally send it to you and then get that specific link fixed. I apologize for the problem!

Jeffrey

Friday, April 28, 2006

How, when, and why you should fire the troublesome client (or guest!).

Eventually it happens, how you deal with it is up to you completely.

Telling a client you have to fire them or no longer work with them is a tough decision to make. The potential for things to go wrong in the process is huge.

- You lose the money (although, the time they were costing you more than probably makes up for the money).
- You do damage to a persons (many times) fragile ego.
- You lose any goodwill with that person (chances are good they will talk bad about you to as many people as they can).
- You may find it incredibly difficult to do - sometimes even reversing your "firing" and taking them back (almost always a huge mistake)
- You may find it hard to do and it may keep you awake atnight
BUT...
- You may find it the MOST liberating experience of your business life when you finally realize it is YOU that is incontrol, not them.

So, how do you know when the time has come?

If you find they are eating up way more time than theyshould be. Calling throughout the day, insisting on meeting after meeting, saying things that just don't make sense, even putting words in your mouth as to what you promised (contracts in place fix that).

At times, you will have that feeling deep inside the pit of your stomach that tells you this is not a good, healthy relationship.

Having just gone through this process last week, I can sayone thing - ALWAYS listen to your intuition or gut feeling.

In this case, right from day 1, I had a feeling something was amiss... but ignored that feeling. Which was a completely stupid decision on my part... I almost always listen to my gut feeling and it has almost always lead me in the right direction.

This was one of those cases where I thought I would use the facts to out weigh the intuition. A successful businessperson (so they claimed). A fascinating business model. An exciting project. And a decent compensation model for my work (base rate plus residuals from seat sales).

All combined, it seemed like a good thing.

Not.
It was trouble from day 2.

So, I bit the bullet and fired them this week.

Yikes!

True colors get really shown in a situation like this. Now is when you experience what the person it truly like behind locked doors.

You know what else is interesting?

Once they have been fired, chances are good you will also start hearing other people complaining about this same person - even if you never brought their name up.

Other people will somehow sense what is going on and contribute their experiences with that same person - in this case, it happened 3 times without my bringing the persons name up.

If you have a client that is causing you more grief than they are worth, fire them!

It may be a difficult thing at first, but once you get used to it, it will be the most liberating thing you do. Now YOU are back in the drivers seat and you can pick and choose whom you work with.

You will realize that there is no sane reason to put up with a clients abuse - let them drain some other poor souls blood and energy.

Once you gain back control, you will experience a completely different outlook on life, and you will start attracting more of the right type of client.

Don't let these kinds of clients drag you down - it is not worth it at all.
Be like Trump - "You're Fired!"


Or you can be more understated - "I just can't continue towork with you right now"

However you say it, it will open up a new world.

Try it, you'll like it.

http://advertising.ducttapemarketing.com/2006/04/how_when_and_wh.html

The future of pizza delivery?

Make sure your volume is on!

http://www.aclu.org/pizza/images/screen.swf

The coming health crisis!

A long line at the American Airlines counter. Finally, a particularly well-dressed man gets to the front, loudly announcing that he wants to check in for first class.

The harried agent does her best, but there's no room. He starts getting louder and more angry.

He's blathering about his power and authority.

She tries to placate him, but to no avail.

Finally, he yells, "Do you know who I am?"

Without missing a beat, the gate agent grabs the microphone. "Attention in the gate area. We have a medical emergency. The man at gate 11 has just suffered a serious bout of amnesia. If anyone recognizes him, can they please come forward and help him?"

All as a way of telling you that an epidemic of amnesia is sweeping our land. Armed with a blog and a following (I have 2,000 [or 2 million] daily readers... wait till they hear about this!), or with a frequent purchaser card or even just a credit card, millions of customers are now your most powerful customers. And as powerful customers, they want you to know, to recognize and to reward them for their power. If you don't know 'who they are', they're going to hit the road. Angrily.

Watch out for amnesia. It's spreading fast.

Smart marketers are already treating each customer as even more important than she thinks she is (Or aggressively treating all customers the same... well).

http://sethgodin.typepad.com/seths_blog/2006/04/the_coming_heal.html

The Customer is Always Right.

Greg writes in and wants to know if that's really true. What if the customer is an amnesiac, a jerk, a difficult blowhard badmouther? What if the customer is the sort that wears his LL Bean khakis for a year and then sends them back?

In our ultracompetitive markets, how can you possibly have a chance in the face of enormous consumer power?

The answer might surprise you. It's the unwritten rule 3 on Stew Leonard's famous granite rock:

If the customer is wrong, they're not your customer any more.

In other words, if it's not worth making the customer right, fire her.

Successful organizations (and I include churches and political parties on the list) fire the 1% of their constituents that cause 95% of the pain.

Fire them?

Fire them. Politely decline to do business with them. Refer them to your arch competitors.
Take them off the mailing list. Don't make promises you can't keep, don't be rude, just move on.
If you've got something worth paying for, you gain power when you refuse to offer it to every single person who is willing to pay you.

In 1988, my book packaging company had about six weeks worth of payroll in the bank. Yet we fired our biggest customer, someone who accounted for more than half our revenue. I still believe it was the right thing to do. We ended up happier and more successful, making up the business in a few months time.

If you treat a customer like he's wrong, he's going to leave, and probably tell a bunch of other people. Before you take that route, be direct, straightforward, polite and firm, and decline to sell to them.

So yes, the customer is always right. And if they're not, then one way or the other, they're not your customer any more.

http://sethgodin.typepad.com/seths_blog/2006/04/the_customer_is.html

Wednesday, April 26, 2006

FRANCHISING OFFERS FLEXIBILITY, OPTIONS FOR FOODSERVICE OPERATORS SEEKING WORK-LIFE BALANCE

Some women are circumventing the glass ceiling in foodservice by starting their own businesses as franchisees. Eva Gutierrez and her husband, Sergio Gutierrez Sr., became Subway franchisees five years ago. Last month, they became owners of a Taco Del Mar unit in this city's downtown. Being a franchisee requires plenty of hard work and long hours up front, but the payoff is more control over your time and schedule, says Eva Gutierrez, the mother of a 4-year-old girl and 9-year-old boy.

Click on Title to Read Full Story.

U.S. Appetite for Fast Food Grows

Despite criticism of fast-food by consumer advocacy groups and news stories warning about an obesity epidemic, quick-service restaurant usage is up significantly, according to a national study of 2,400 quick-service restaurant users interviewed in 2005.

Read full story >

Tuesday, April 25, 2006

Incremental Raises and Bonuses Suck!

Man, what is a week without a Seth posting? Here is the idea on bonuses I've been peddling for - wow - decades!

Taking a page from the Nissan Playbook!

Carlos Ghosn is world famous. In Japan, he's rockstar famous. He's most famous, of course, for the amazing turnaround of Nissan. That's a very a big thing. But to Carlos Ghosn, the little things are also crucial. In The Ghosn Factor, for example, Miguel Rivas-Micoud recounts how Ghosn made a special effort to painstakingly learn the proper way to use Japanese chopsticks, all while the pressures of the business challenges he faced were building. Says Rivas-Micoud:

http://presentationzen.blogs.com/presentationzen/2006/04/carlos_ghosn_th.html

Monday, April 24, 2006

Moving Up The Wisdom Ladder

If you're an aggregator "harnessing collective intelligence", what are you aggregating? If it's data and information, you're competing with just about everything--Google searches, reference docs both online and printed, the majority of tech books and articles, etc. But if you're aggregating up the hierarchy through knowledge, and especially understanding and wisdom, you're adding huge value to someone's life.

Click here to read the posting in "Creating Passionate Users"

Saturday, April 22, 2006

Leading Ideas: Decisiveness Generates Momentum

"The percentage of mistakes in quick decisions is no greater than in long-drawn-out vacillation, and the effect of decisiveness itself 'makes things go' and creates confidence." -- Anne O'Hare McCormick (1882-1954), First woman to win a Pulitzer prize for journalism

Consider This:
Contrary to popular belief, your decisions don't drive your long term success - your decisiveness does. Said another way, when you reach a crossroads on any issue, the act of choosing creates power, not the choice itself. The issue is momentum. No matter what you choose, when you commit boldly with conviction, you create momentum. When you hesitate you don't. And success is built on momentum.

One of the most common breeding grounds for indecision is to-do lists. One of my clients had over 100 items on his when we first met. He wanted me to help him create systems to get them all done. I told him the most powerful system I know is the 3 D's - Do it, Delegate it, or Delete it. We carved up his list and actually deleted 75% of it in about 30 minutes (including some items that had been on there for 2 years!) The process was painful for him, but ultimately very freeing. "It was cathartic," he later admitted. "Actually making the choice NOT to do all those things took a huge weight off my shoulders and allowed me to focus on things that were truly important."

Try This:
1. Get a copy of your to-do list
2. Be decisive about each item - are you going to Do it, Delegate it, or Delete it
3. Write out steps and a timeline for things you need to do.
4. Do it
5. Recognize that the more decisive you are, the easier the process gets.

http://blog.fastcompany.com/archives/2006/04/18/leading_ideas_decisiveness_generates_momentum.html

Wednesday, April 19, 2006

Women's World!

Posted by Tom Peters

Be sure to catch the Economist, 15 April. Leader, page 14. "Forget China, India and the Internet: Economic Growth Is Driven by Women." (Headline.) "Even today in the modern, developed world, surveys show that parents still prefer to have a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their parents' old age. Yet it is time for parents to think again. Girls may now be a better investment." "Girls get better grades in school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot more than brawn. ... And women are more likely to provide sound advice on investing their parents' nest egg: surveys show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in the last couple of decades. Those women have contributed more to global GDP growth than have either new technology or the new giants, India and China."

Continuing on page 73: "A Guide to Womenomics: The Future of the World Economy Lies Increasingly in Female Hands." (Headline.) More stats: Around the globe since 1980, women have filled "two new jobs for every one taken by a man." "Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers and investors." Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women's increased purchasing power; over the past decade the value of shares in "Goldman's basket has risen by 96%, against the Tokyo stockmarket's rise of 13%." A couple of final assertions: (1) It is now agreed that "the single best investment that can be made in the developing world" is educating girls. (2) Also, surprisingly, nations with the highest female laborforce participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest participation rates, such as Italy and Germany, have the lowest fertility rates.

Quite a story, eh?

One for the Women!

One of the biggest demographics you need to think about getting geared up for starting..oh..yesterday!

According to a new survey conducted by Mirassou Winery with the National Association of Women Business Owners (NAWBO) -- 90 percent of women conduct business over a meal at least once each month and 84 percent personally taste and approve the wine that is ordered for the table.

Tuesday, April 18, 2006

In this case, practice doesn't make perfect!

I was reading one of the better e-newsletters I subscribe to, on the topic of a “restaurant’s life cycle” and how after the opening the greatest challenge is to attain consistency by reducing all repetitive job processes to checklists and procedures. I could not disagree more.

You must do those things BEFORE THE OPENING! This is bad planning plain and simple and not a very good use of limited pre-opening resources. If followed, this will not only place your operation at risk, but will needlessly increase your costs due to inefficiencies, low productivity, chaos and bad guest experiences!

Just because some openings look like clown school does not mean it has to be that way for everyone. The whole point of the New Store Opening planning stage is to get these processes and procedures down, then train staff to execute them so that your service and production models are able to create that “wow” you need to grab momentum. Trying to do this after the opening amounts to nothing more than having two sets of operating rules for your staff – one before opening, and another “real” set of rules afterward. Which means that now you have to retrain your whole staff! As well as force them to “forget” the old habits – which will linger and cause disruption of your new procedures and processes and slow down any chance you have at being able to maintain any momentum coming out of your opening.

After executing nearly 20 very successful new store openings over 24+ years, it still amazes me how little planning is attempted let alone actually done when it comes to some of the most important items that will mean the difference between success and failure. This does not have to be rocket surgery either! But you will have to devote time and resources to it. Remember, success has to be managed – and this involves planning for it - because failure can happen all by itself.

Why Angry People Suck, And Why Happy People Rule!

As if we had any doubt about this too, here now finally is the science!

http://headrush.typepad.com/creating_passionate_users/2006/04/angrynegative_p.html

Monday, April 17, 2006

How many of them sell a chicken sandwich?

WOW! There are now over 400,000 restaurants in the United States of America garnering over $240 BILLION in sales per year!

Think you can still keep doing the same ole thing?

Look at this sales matrix!

How Much More Can You Make Per Year, If You Increase Your Average Check or Shave Costs By Only A Few Pennies Per Guest?

Click here to find out!

Sunday, April 16, 2006

Credit Card Processing Fees...Boo Hiss!

Here is a 4 part series that helps you identify if you are paying too much for the processing of your credit cards. This series is by one of the best people I have heard on a subject that occupies nearly 20% of every conversation I have with owners and operators!

http://www.getgame.biz/Cost%20Controls.htm

Saturday, April 15, 2006

Blog Entry on Passion

You have to wrap your brain around something outside your restaurant once in a awhile in order to look at the world and apply the lessons being learned at the moment. These are not necessarily "Best Practices", I call them best lessons! And like any other lesson in you life it gets molded, reshaped, reformed over and over again based on the intelligence of the moment. Here is one such posting I think you should devour and chew on for a while.

http://brandautopsy.typepad.com/brandautopsy/2006/04/ghosn_gets_it.html

Thursday, April 13, 2006

Radical Mentoring! Quote of the year!

"People don't grow if you're soft with them."
-Candice Carpenter , Cofounder and CEO, iVillage

Mr Restaurant Owner, Your Marketing Stinks! Guess Who Is To Blame?

This piece comes from the blog of John Jantsch, Duct Tape Marketing.

A little tough love today I guess, but the reason so many small businesses struggle is because they are unwilling to change. The marketing strategy, if there is one, is to do what everyone else in the industry seems to be doing. If that's your marketing reality, that little safe place, and it's not working, the first thing you have to come to grips with is that it is your fault.
But, but, but. . .
Okay, I'll cut you some slack, I didn't say that you wanted it this way, I just said that you're the reason it is this way.
So, now I should explain. The only marketing strategy you need to worry about as a small business is to find a way to be unique. To offer something that is different, package a service like nobody thought of, focus on a tiny portion of a market or create an entirely new way of doing something. And then - communicate that and only that.
But there in lies the problem. What I just described means, for most small business owners, that you are going to have to be willing to change almost everything you do, the culture of your entire organization, the manner in which you get in the way and the constant chatter of doubt that is going on inside your head.
Think you can do that? I suggest that your business success depends on it. Create a strategy that allows you to stand out, put every message into communicating it and stick with it fearlessly.

Wednesday, April 12, 2006

Tuesday, April 11, 2006

Restaurant Owner Jailed For Understating Sales Receipts

North Country Gazette

A Brooklyn restaurant owner has pleaded guilty to filing false corporate tax returns and drastically understating his restaurant’s sales receipts.

Read Article

Monday, April 10, 2006

A question about top line performance ratios.

The question: what inefficiencies cannot be determined through overall labor, food and beverage cost ratios?

The answer? All of them!

Your overall labor cost is a wide-angle, aggregate view of all labor. It cannot tell you where the problems lie because it is too general in nature. Secondly, they are historical and after-the-fact. Finally, they are distorted by increases and decrease in sales. For better control you need more focused metrics such as covers per labor hour, labor cost per hour and labor cost per cover.

Labor should also be broken down into more than BOH and FOH. It should be by each area of production. In the BOH it should reflect your operational design - prep, line, steward, dish, etc…and by each daypart! FOH can be broken down by position – Host, Server, Bus, bar, bar back, etc…and per daypart.

As for sales per labor hour, there are several things to consider when using it to analyze productivity.

  • Menu price increases can affect it greatly.
  • Fast-food drive through windows can skew the effect as well.
  • Different average check amounts per daypart.
  • This ratio is used to schedule to sales revenue when you should actually schedule to anticipated transaction volumes.
  • Late night and early morning operations.
  • Experience levels of staff.

For food and beverage costs, there are four metrics that should be utilized: maximum allowable, actual, potential and standard and you need to break them out in categories like produce, dairy, meat, beer, liquor, wine, etc…even further if you have larger volumes.

Cost controls are first and foremost proactive means of preventing losses and maintaining control, not reactive or corrective. Only by categorizing your COGS and utilizing focused metrics in each, can you truly understand where the opportunities lie.

Have Fun Today!
Jeffrey Summers

Sunday, April 09, 2006

Smart discount campaigns!

What is a good offer?
Do not lose your shirt by failing to build a solid ROI into your offer, no matter how many guests show up with your coupon in hand! Your campaign margins should grow simply due to economies of scale as your offer is passed around. If you lose money on the first coupon, you will lose money on the 10,000th. Likewise, if you make money on the first, you will make it no matter how many get passed around. Contrary to popular opinion, a good campaign does not plan to lose money with a single coupon.
Planning is crucial for all offers of this type. I wish I had a nickel for every time I get a call or email about trying to stop the hemorrhaging from coupon fiascos that were poorly planned - or not at all – and afterwards it was necessary to reorganize entire marketing efforts in an attempt to recapture lost ground and momentum.
Knowing the margins of your menu items is critical too. You must use items where the margins are large enough to still be able to make money with your offer. In addition, since these items have a positive ROI also, they will tend to be items that have above average demand and that means the guest sees value in the offer.
Bundling is a good type of offering that works well with this type of event. The chains have used this to great advantage. Choose from 2-5 of your value items from each section of the menu to put together for the guest to have a complete 3 course meal – appetizer, entrée and dessert. Price them appropriately so that the value is clear. If you have items with margins that can be trimmed $1 each, you could run a “Save $3 on a 3 Course Meal!” or some such offering.
If you know the numbers when it comes to your menu, you should be able to plan an offering that has good value for the guest, will create some really good word-of-mouth and give you a good ROI on the effort.

Abuse issues.
If you are concerned about abuse, then expire the offer or place a sign-up notice for the offer on your web page. Also note only one offer per person/per table per visit. We all know the people who will try to ask to get away with whatever. If your codes are displayed properly then there should be no question. These people will always be a small portion of those redeeming the offer and as we all know, you will have these guests no matter what offering you employ.
Require their participation in signing up for your newsletter or whatever, as a prerequisite for the coupon. This will allow you to track people and not allow them to download it more than once. A corollary to this is for people who have already signed up for your free offer and whose name will already be in your database, for them you can simply have them log in or re-direct them to a different page.
This can get complicated fast if you insist on screening 100% of all possible abuses schemes. My suggestion is don’t even try. You have bigger fish to fry than to play coupon police every time you do one of these offerings. Create the best offer you can, put it out there, measure the results, then plan you next one based on your results. Over time you will get really good at it.

Tracking from your website.
Go to SiteMeter sign-up and get an HTML tracking code for free that you can put on your coupon pages and then you will be able to track numbers. Constant Contact also offers several key metrics for your email campaign including noting how may times your email was forwarded and to whom.
If you really want to get creative, send out you offer to you data base list, then offer them a “reward” for forwarding it to as many people they can AND who sign up on your website for the offer. The more people they get for you, the bigger their reward. I have utilized this type of campaign for new store openings and it works really well!

Auto-responders.
If you are looking to send a response to your guests who request the offer, an “autorespoder program” will do what you need. Constant Contact and others, offers this service in their packages and is extremely cheap to utilize. They also have a free 60 day trial program that you can use just to try it out first.

Have Fun Today!
Jeffrey Summers

Saturday, April 08, 2006

More on why discounting sucks!

The scene is a typical "slow period" between rushes in almost any restaurtant. The question is whether or not to offer discounts to just get anyone in to cover the costs of business.

Of course there are many factors at play here, not the least of which is that this scenario leaves the reader with the impression that you only have 2 options – empty seats or discounts. This is totally misleading and doesn’t really show an understanding of how to effectively create a marketing strategy. But to go into all the variables that go into this type of analysis would be exhausting for even the most interested cost information junkie.

Another point is that some businesses who operate during all 3 major dayparts – breakfast, lunch and dinner – have at least 3 distinct “slow periods” as well. This puts dramatic pressure to maintain margins during the peak times to make up for them, and can strain productivities needed to not only service the guest but the operation also.

Suffice it to say that there are many, many options based on the understanding and execution by the operator of what a strategic marketing plan will do for those “slow times” and the business overall.

One option, which I call the “fresh fish” idea (because it basically answers the same question of “why does fresh fish cost the same one day later?”) is to simply have different prices during different day parts. This is not for the sake of masking a discounting strategy, but simply as an ongoing strategic pricing option that takes into consideration the idea that prices do not have to be static during each daypart. Nor anything else for that matter. Different size portions, different cost structures, different menus and the like can be creative answers to the “slow periods”, and can be utilized no matter what size operation you manage.

Another option is to target guests who would normally take advantage of off-peak dining periods. Who ever said that you cannot focus on specific guest demographics for specific dayparts? Business managers, teachers, shoppers, moviegoers, housewives, househusbands, college students, etc…It is done all the time, but independents do not seem to understand this marketing reality. Think “Happy Hour” but better!

How about scheduling larger gatherings (like parties or business meetings) or cooking and wine classes that not only offer some revenue but great marketing as well?

The corollary to the marketing side is of course cost containment. Looking at the eservice needs of the guest and the operation and begin to creatively attack the cost structure of labor, food, menu etc… to help support margin pressures.

The biggest obstacle is that of immediate gratification. Operators want it now and in their rush to “just do something” they limit the effectiveness that a well-planned and executed marketing strategy can make – for the entire business and not just slower periods! If you limit your thinking to something vs. nothing, most of the time you still get nothing because the cost of desperate and deep discounting to simple “pay the bills” always creates more problems than it solves.

Marketing the Basics in 2006

The bigger picture…if you really want to use couponing in your marketing mix (and cannot put together a USP campaign), simply accept your competitions’ coupons! It is that simple. Your ad budget will shrink because you are not printing or distributing but of course your food cost will go up somewhat.

However, coupons do not work for long term success.Study after study has shown they do not. Who they help is the transient guest who goes from place to place because they have coupons. No loyalty there – and loyal, raving fans are who you want! Advertising just for the sake of keeping your name in front of the public is a strategy for disaster. A shotgun approach to marketing will only waste your money and give you little in return. This is the “old advertising” approach that has all but given up the ghost. Your marketing should be focused on keeping your name in front of a those guests who;

  1. Visit you.
  2. Are most likely to visit you.
  3. Fans of those in #1 and #2.

While also remembering the only three ways to increase sales are to;

  1. Increase the number of guests who visit you.
  2. Increase the number of times they frequent you, or
  3. Increase the size of their purchase with you.

Sadly more operators focus on number 1, at the expense of 2 and 3. A study by Marketing Metrics™ tells us that the probability of selling something to a new prospect is only about 5-20%, while the probability of selling something to an existing customer is 60-70%! Wow! Bet on those numbers!

You build volume in our business, one guest at a time and you do this by creating a marketing plan that focuses more on the intrinsic value of what you offer guests versus your competition. Your marketing campaigns should be focused on reminding guests of that value. Even more numbers? Studies also tell that the 80/20 rule is very much alive in our restaurants. 80% of your revenue will come from 20% of your guests. So to which group does it make more sense to focus on? This is the reason for the explosion in rewards programs. It is not new either.

There is more value in a lifetime fan as a guest than chasing new guests every two weeks. It is also less expensive to reward those guests who frequent you than to spend on finding new ones!With couponing you focus on the pricing aspect of your relationship with your guests, when they really want value - YOUR value! or the “What you do best”! Pricing strategies turn your product into a commodity, and you get killed by “sameness” – no differentiation! No Unique Selling Proposition (USP)!

“Everyone coupons so I must also!” I hear it everyday. But then I ask operators, if they do the same thing everyone else does, how do guests pick you out of the multitude of options they have today? How do you sell the guest a better experience than your competition, when everything else you do yells, “I’m just like they are!” You can’t because your brand is now trapped by the “pricing” stereotype. It will take even more work and effort (and ad dollars!) to get out from under it when the sales driver in your market is determined to be value.

My usual question is, “How many places in you market sell a chicken sandwich?” The answer is always high as you can imagine and most of the time the answer as we all know is “everyone”. So the follow-up is, “Why should people buy yours?” This is always followed by large amounts of silence or stuttering or,” because it’s better!”. “Why is it better?” “Because it is made from scratch”…or some such nonsense. The answer lies in the fact that people will buy from you because there is a better value in buying from you than your competition. If you make that value a pricing decision, then he with the best coupon wins that day, but loses in the long run because someone will build a better chicken sandwich experience and now the best value isn’t one based on price – and all your guests have come to know you as the “discount chicken sandwich” King!

You must create a USP based Marketing plan for the long term that “synergizes” and compliments each piece so that a congruent message is communicated to those in the three categories above. The sum of your efforts must therefore exceed the cost of the efforts combined or else you lose money! You only achieve this through a concerted marketing effort towards value for your guest utilizing a USP to create a point of differentiation between you and your competition. Use any marketing effort that encourages a “be all things to all people” approach and you get drowned out by all the noise.