Restaurants and Entrepreneurs Surviving in this Economy

Hi everyone.

I hope you are doing fabulous today.

There are a couple of news articles dealing with the current economic climate outlook for the restaurant business that I think are worth your time in reading if you are a restaurant owner or managers.

The first is from The Wall Street Journal and shows how an entrepreneur can succeed in reshaping his or her business.

Recipe for Success

What's on David Burke's fine-dining menu? A lot of in-your-face discounts.

Mr. Burke, it seems, has figured out a way to navigate the downturn. His strategy is to throw out the high-end-dining playbook that says discounting should be subtle. Instead, he is offering dramatic, attention-getting and significant discounts. By engineering the menu carefully and keeping labor costs in check, he is able to slash prices without losing money, he says.

The other article that I believe you will find of interest if you are considering starting a restaurant is from USNews:

Yes, You Can Start a Restaurant in a Down Economy

So you're thinking about opening a restaurant. The allure of fame and fortune seduces you, your love of food drives you, and you want to heat up your life in an exciting industry. That's all fine and well--just as long as you make sure the flame isn't turned up too high. Even in a healthy economy, the restaurant failure rate tells a grim tale, but in a recession, the industry is even more unforgiving. Expensive food spoils, labor costs are high, restaurant-goers are harder to come by, restaurants close and life goes on.

Lastly, here is what I think is one of the best articles because it details the power of cultivating your local customers loyalty.

JUST LIKE HOME: Some neighborhood restaurants thrive despite poor economy 

Omelet House co-owner Kevin Mills said the location at 2160 W. Charleston Blvd., which is about to celebrate its 30th anniversary, has been in his family "since the beginning," and responds as if by instinct when asked to define a neighborhood restaurant.

"Someplace that knows your seating preference when you walk in and knows what you want to drink without having to ask, and has your special jelly or sauce in the little cabinet for you," Mills said. "More along the line of mom and pop."

One customer, he said, comes in every weekday; they've asked him "if he's not going to make it in by noon to let us know so we don't worry about him," Mills said. Las Vegas Mayor Oscar Goodman is another regular, coming in a couple of times a week, Mills said.

Read the full article, and you'll see how the worth in getting to know your customers.

If you haven't yet, be sure to check out our website and the video at SellMoreMeals.com for how we can help cultivate your loyal customers and reward them. The results will show in your business.