Increasing Check Prices - Studies show that guests are spending more money per visit on average
Shift of Focus - Restaurants are concentrating on improving relationships with guests as opposed to soliciting guests
Increased Polarization - Guests are more likely to either eat extravagantly or very frugally
Email Marketing, Loyalty Programs, And Social Media - More and more restaurants are using these tools to develop stronger relationships with repeat customers
Coupons - Some restaurants are opting to use coupons as a marketing tool, while others remain hesitant about the image issues that accompany this marketing method
People Are Hungry - The farmer's markets are getting busier, Whole Foods is expanding, and Michelin starred restaurants are booked for months
Sunday, January 30, 2011
Friday, January 28, 2011
How To Get A Winning Sales Team
Every sensible business owner knows that it is imperative to have a profitable and successful sales team in order for the company to achieve its professional goals. It is well worth your while to asses your salespeople's track history and selling style in order to determine who is making money for your business and who may be wasting your time. Below are the characteristics of eight types of salespeople and the varying levels of their success:
Socializers - Socializers often make a great first impression. Unfortunately, most of the time they will be making you great first impressions in lieu of money. Although their gregarious nature and ability to carry on friendly conversation about things such as children and cars may initially impress clients, they usually don't get past this, and close few deals. Encourage socializers to spend an alloted time on small talk, say less than a minute then focus on business. Let them know that it is important to be taken seriously when it comes to business and consider retraining them on the product details and closing deals.
Aggressors - Aggressors are on the opposite side of the social spectrum of socializers. Although they can score big wins, and tend not to concede too much, clients leave with a bad taste in their mouth from the aggressor's combative approach. Your typical aggressor approaches a sales meeting as a price negotiation, and just that. Consider a training workshop for your aggressors in customer service. Let them know that a happy client is a profitable one, and remind them that clients recommend other clients when they are provided excellent service.
Narrators - A narrator is a salesperson who knows what they are offering and the market well, but they find themselves rattling off the script all too often and buckle under pressure when it comes to answering challenging questions. A narrator will desperately cling to marketing materials and because of this selling doesn't seem to come naturally to them. "What if" exercises where a trainer gives a narrator hypothetical questions that a client may ask for them to answer will help them to improve their skills.
Focusers- Focusers mean well but lack the neccessary confidence to complete a sale and their anxiety causes them to insist on detailing every detail of their product. Because they are so focused on describing what they are selling, they may not hear their customer's needs. Focusers may lack confidence, but they know their products well and believe deeply in them. Extra training and encouragement can serve these salespeople well.
Storytellers - Unlike focusers, storytellers hone their attention on the customers but unfortunately have a tendency to "talk through the sale." They love to provide case studies to support what they are selling, but they may waste time in long meetings that often do not yield any results. Try to work with storytellers to develop a loose schedule for meetings with clients. Tell them to put a cap on the meeting time before it starts and allot a specific amount of time for each part of the sales pitch.
Consultants - Consultants are your salespeople that listen well and respond to your customer's problems. They develop effective solutions that meets their customers needs. Unfortunately, they lack dimension and unlike storytellers, they often forgo valuable case examples that could potentially boost sales. Encourage consultants to study marketing material and to incorporate it more into their method.
Closers - The closers will be your big sellers. Quick thinking and smooth talking, closers can pull off some very big deal but lack when it comes to service sales. Although closers sell big, their smooth talk puts some customers off. Because of this, be choosy with the leads that you give to your closers.
Experts – Experts are easy enough to identify. An expert can make a sale seem effortless. Gregarious and competent, experts are able to land a sale and keep their clients happy and returning back for more. Your experts will be making big sales, and will be consistently outperforming their peers.
Socializers - Socializers often make a great first impression. Unfortunately, most of the time they will be making you great first impressions in lieu of money. Although their gregarious nature and ability to carry on friendly conversation about things such as children and cars may initially impress clients, they usually don't get past this, and close few deals. Encourage socializers to spend an alloted time on small talk, say less than a minute then focus on business. Let them know that it is important to be taken seriously when it comes to business and consider retraining them on the product details and closing deals.
Aggressors - Aggressors are on the opposite side of the social spectrum of socializers. Although they can score big wins, and tend not to concede too much, clients leave with a bad taste in their mouth from the aggressor's combative approach. Your typical aggressor approaches a sales meeting as a price negotiation, and just that. Consider a training workshop for your aggressors in customer service. Let them know that a happy client is a profitable one, and remind them that clients recommend other clients when they are provided excellent service.
Narrators - A narrator is a salesperson who knows what they are offering and the market well, but they find themselves rattling off the script all too often and buckle under pressure when it comes to answering challenging questions. A narrator will desperately cling to marketing materials and because of this selling doesn't seem to come naturally to them. "What if" exercises where a trainer gives a narrator hypothetical questions that a client may ask for them to answer will help them to improve their skills.
Focusers- Focusers mean well but lack the neccessary confidence to complete a sale and their anxiety causes them to insist on detailing every detail of their product. Because they are so focused on describing what they are selling, they may not hear their customer's needs. Focusers may lack confidence, but they know their products well and believe deeply in them. Extra training and encouragement can serve these salespeople well.
Storytellers - Unlike focusers, storytellers hone their attention on the customers but unfortunately have a tendency to "talk through the sale." They love to provide case studies to support what they are selling, but they may waste time in long meetings that often do not yield any results. Try to work with storytellers to develop a loose schedule for meetings with clients. Tell them to put a cap on the meeting time before it starts and allot a specific amount of time for each part of the sales pitch.
Consultants - Consultants are your salespeople that listen well and respond to your customer's problems. They develop effective solutions that meets their customers needs. Unfortunately, they lack dimension and unlike storytellers, they often forgo valuable case examples that could potentially boost sales. Encourage consultants to study marketing material and to incorporate it more into their method.
Closers - The closers will be your big sellers. Quick thinking and smooth talking, closers can pull off some very big deal but lack when it comes to service sales. Although closers sell big, their smooth talk puts some customers off. Because of this, be choosy with the leads that you give to your closers.
Experts – Experts are easy enough to identify. An expert can make a sale seem effortless. Gregarious and competent, experts are able to land a sale and keep their clients happy and returning back for more. Your experts will be making big sales, and will be consistently outperforming their peers.
Wednesday, January 26, 2011
Recipe For Success: What The Most Successful Restaurants Have Been Doing To Stay On Top
When the recession surfaced in late 2008, America's business world took a serious blow and the restaurant industry was no exception. Restaurant owners - particularly independent operators - watched as their guests retreated from their place of business and opted to stay home in the interest of saving money. Many independent operators were forced to shut down due to decrease in sales, while
select restaurants were able to rise to the occasion. What set these elite few aside from the rest?
Practicality
When it came to crunching numbers, the most successful restaurants managed their finances with the greatest amount of expertise and frugality. According to Sandeep Mahotras, project manager for Technomic and expert in the restaurant and hospitality industry, the businesses that focused on stepping up on cost analysis management, price shopping, consolidating purchases and maximizing productivity flourished the most.
Creativity
When it came to acting fast in a bind, the best independent restaurant operators were able to think outside the box. New menus were churned out re-engineered towards their new post-recession clientele. These new menus featured portion and price flexibility as well as more choices when it came to mixing menu items. Even in the world of business, creativity counts. Consider the opinion of Nassim Nicholas Taleb, expert in improbability:
"The next killing in the restaurant industry needs to be an idea that is not conceived easily by guests."
Think about it. If running a successful restaurant was obvious and known, everyone would be doing it. The key is to offer your guests something that no other restaurant can.
Excellent Service
Finally, the most successful restaurants were able to improve their service. When guests come to a place of business to eat, it is an experience for them, not just a meal, and yes, guests DO come back to a friendly, happy staff. The waitstaff of your restaurant is imperative to its success as a business. The service your guests receive will shape your business' reputation and it can be the difference between a repeat customer and an angry, hungry person. Take the time to be choosy with who you hire, train your wait staff thoroughly, and treat your employees well.
Although the restaurant industry is slightly improving in 2011, independent operators aren't ready to get comfortable just yet. Time will tell what the most successful restaurants will be doing this year.
select restaurants were able to rise to the occasion. What set these elite few aside from the rest?
Practicality
When it came to crunching numbers, the most successful restaurants managed their finances with the greatest amount of expertise and frugality. According to Sandeep Mahotras, project manager for Technomic and expert in the restaurant and hospitality industry, the businesses that focused on stepping up on cost analysis management, price shopping, consolidating purchases and maximizing productivity flourished the most.
Creativity
When it came to acting fast in a bind, the best independent restaurant operators were able to think outside the box. New menus were churned out re-engineered towards their new post-recession clientele. These new menus featured portion and price flexibility as well as more choices when it came to mixing menu items. Even in the world of business, creativity counts. Consider the opinion of Nassim Nicholas Taleb, expert in improbability:
"The next killing in the restaurant industry needs to be an idea that is not conceived easily by guests."
Think about it. If running a successful restaurant was obvious and known, everyone would be doing it. The key is to offer your guests something that no other restaurant can.
Excellent Service
Finally, the most successful restaurants were able to improve their service. When guests come to a place of business to eat, it is an experience for them, not just a meal, and yes, guests DO come back to a friendly, happy staff. The waitstaff of your restaurant is imperative to its success as a business. The service your guests receive will shape your business' reputation and it can be the difference between a repeat customer and an angry, hungry person. Take the time to be choosy with who you hire, train your wait staff thoroughly, and treat your employees well.
Although the restaurant industry is slightly improving in 2011, independent operators aren't ready to get comfortable just yet. Time will tell what the most successful restaurants will be doing this year.
Monday, January 24, 2011
Reinsurance Rates Not Expected To Improve Despite Increase In Risk
According to a report released by Moody's Investor Service, reinsurance rates are not likely to improve despite a projected increase in the number of perils in certain risk zones.
Risk Management Solutions released a new hurricane model that may have potential ramifications on reinsurance rates: more risk has been put inland as the modeler considers the interaction of wind and the surface of the sea.
Despite this fact there has been a lack of demand in the reinsurance market due to the poor economy. According to Moody's, property re-insurance rates in the United States have decreased by five to ten percent at January renewals.
Moody's says that rate pricing will continue to decrease despite increase in risk in 2011 and asserts that it may be two or three years until the situation improves.
Source:
Hemenway, Chad, "Moody's: Cat Model Changes Won't Offset Lack Of Reinsurance Demand," Property Casualty 360, January 17, 2011
Risk Management Solutions released a new hurricane model that may have potential ramifications on reinsurance rates: more risk has been put inland as the modeler considers the interaction of wind and the surface of the sea.
Despite this fact there has been a lack of demand in the reinsurance market due to the poor economy. According to Moody's, property re-insurance rates in the United States have decreased by five to ten percent at January renewals.
Moody's says that rate pricing will continue to decrease despite increase in risk in 2011 and asserts that it may be two or three years until the situation improves.
Source:
Hemenway, Chad, "Moody's: Cat Model Changes Won't Offset Lack Of Reinsurance Demand," Property Casualty 360, January 17, 2011
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