CHAPTER FOUR: RESTAURANT BUSINESS AND MARKETING PLANS

The Major Elements of a Business Plan • Market Assessments • The 4 P’s • Promotional Ideas CHAPTER FOUR: RESTAURANT BUSINESS AND MARKETING PLANS

BUSINEES PLANS • Improve the chances of operational success • Assist in obtaining financing • Communicate to potential investors

ELEMENTS OF A BUSINESS PLAN • Cover sheet • Description of the business • Description of the concept licenses and lease • Market analysis and strategy • Financial Data • Appendices

MARKETING • Includes sales and merchandising • Determines who will patronize a restaurant and what they want in it • Ongoing effort that matches patron with restaurant • Gets into psyche of present and potential patrons

SALES • Activities that stimulate the patron to want what the restaurant offers • The actions of restaurant employees that influence patrons after they have arrived at the restaurant • Sales mentality exists when seller thinks only of his or her needs and pushes an item on a customer

THE DIFFERENCE BETWEEN MARKETING AND SALES • SALES focuses on the needs of the seller • MARKETING focuses on the needs of the buyer

MARKET ASSESSMENT • Is there a need for a restaurant? • Who are potential customers? • Age, income, sex, ethnic origin, religion? • What are customers’ needs and wants? • Why would people become customers? • What will they like/dislike about the proposed restaurant? • What do they like/dislike about existing restaurants?

MARKET DEMAND • The demand for a restaurant is calculated using two factors • The population in the catchment area • The demographics of the population (nationality, age, race, sex, religion)

MARKET SEGMENTATION • Use limited marketing resources for maximum effectiveness

TYPICAL SEGMENTATIONS • Geographic • Country, state/province, county, city, neighborhood • Demographic • Age, sex, family life cycle, income, occupation, education, religion, race • Behavior • Occasions, benefits sought, user status, usage rates, loyalty status, buyer readiness stage

MARKETING MIX • The cornerstone of marketing • Help meet objectives while leaving reasonable profit margin • The Four P’s • Place • Product • Price • Promotion

PLACE/LOCATION • Major importance • Ingredients for success: • Easy access • Curbside appeal • Parking • Convenience • Visibility

PRODUCT • 3 levels of restaurant product: • Core Product: function part of the product • Relaxing, memorable evening • Formal Product: tangible part of product • Physical aspects and decor • Augmented Product: other services • Valet parking, table reservations • Product development • Product positioning

PRICE • Several factors affect price: • Relationship of demand and supply • Shrinking guest loyalty • Sales mix • Competition’s prices • Overhead costs • Psychological aspects of pricing • Need for profit

PROMOTION • Goals of a promotional campaign: • Increase consumer awareness • Improve customer perceptions of the restaurant • Entice first-time patrons • Gain a higher percentage of repeat customers • Create brand loyalty • Increase average check • Increase sales at a particular meal or time of the day • Introduce new menu items

TYPES OF ADVERTISING In-house Travel guides Yellow pages Mailing lists

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CHAPTER FOUR: RESTAURANT BUSINESS AND MARKETING PLANS