Your local paper may boast of a readership of 80,000 – but 99% of those may not even be your target audience. There are many reasons why people buy a paper. How many people do you know who only buy it for the sports pages, or the motor-mart? My experience (depending on the type of establishment) has usually shown a poor return for my pound.
And how much of that readership is really in your catchment area?

Marketing, however, can be very targeted. My last venture, the trade came mainly from people already in town, especially people who work there & buy lunch locally. On 2 occasions I rode around the town centre on a bicycle in the evening with a big carrier full of my professionally printed menu, attached to it- a special offer leaflet with a powerful hook. ‘All Jacket Potatoes Half Price With This Voucher!’
My fillings were varied (offering something different!) & the quality was excellent.

I did a letterbox drop of every business in a 2 or 3 minute walk from my lunch bar. This type of marketing is very effective at drawing in lots of new trade – but the secret is,… you have to be GOOD! There’s no point in give-away’s if people aren’t going to come back & use you ongoing at your usual prices.

The loss in profits from such marketing strategies is a lot less than the cost of an advert in a paper that doesn’t reach your target audience as effectively.
I would hope you would agree – money well spent!?

This type of Direct Marketing costs very little, except labour. At ‘half price’ I’m giving away most of my profits, but it hasn’t cost me anything. As a result, MANY new customers came in to try my food, most of which became regular customers until I sold up. Alternatively, an advert would’ve cost me £100’s- and some new customers may- or may NOT have come in to try me.

On all marketing material, make sure your phone number is prominent, stating clearly that ‘phone orders are welcome!’ If they can phone ahead & only have a half-hour lunch break, it can save them considerable waiting time.

This will rank you highly, as most café’s/lunch bars don’t do it. My lunch trade went up 20% (ongoing!) the first time I launched this marketing campaign.

It is also important to understand that when you do advertise, announcing your presence, you become ‘fresh meat’ to all the marketers in your industry. Including suppliers of groceries & equipment wholesalers & retailers.

It is very important that you understand that they are not experts in how to run your establishment, but just want to sell you everything they possibly can. Be sure about what you really need. Don’t be pushed!

This will also include people trying to sell you advertising. They will all tell you why their publication is The Best for you. None of it is as good as it sounds. Do your own research, & if you do advertise, do so in a way that allows you to monitor it’s success, ie. a voucher system which proves they came from a particular advertisement. If you run ad’s in a number of publications, it clearly shows you which ones work, and which ones are a waste of money. At least that way, you only waste it once.

On the subject of advertising, one avenue worth pursuing, is negotiating a feature story. I have achieved this successfully a number of times.
If you have a worthy story, grand opening, new menu, refurbishment etc, your local press may be interested in running a story, with photographs. (Sometimes insisting you pay for a small advert on the same page.) You’d be surprised at how often they are looking for local news to fill their pages.
Whatever deal they offer, NEVER accept their first price. You can be pleasantly surprised at how negotiable they are. (Not always, but if you don’t try, you’ll never know.)
If you do get a story printed, my advice is to include a readers offer, just another opportunity to attract some more new customers. Just be ready to ‘secondary market’ them. (This is detailed fully in the complete programme.)

 Targeted Marketing in your immediate area for the best return on your pound.
 But there’s no point in give-aways unless you’re sure you’re good enough that some of them will continue to use you at your usual price. How good are you?
 Offer a phone order service – not many do!
 All advertising rep’s will tell you why their publication is the best for you! Be sure about what you need. Monitor results.
 Write an article for local publications. They’re often looking for ‘stories.’
 ALWAYS negotiate a better price.

For more in-depth information on this including full details on how to implement secondary marketing, & how to write an article or press release, apply for the full Café Academy Programme NOW.

How to recession-proof your business

For cafés, restaurants, & other catering businesses, Easter is traditionally seen as the launch of the tourist season, a season on which many are completely reliant, – & in the current economic downturn many have their fingers crossed as they enter a make or break season.

“It doesn’t have to be like that!” says local expert.

Malcolm Harris, director of The Café Academy, a Cornish based company that specialises in turning around struggling or failing small businesses is confident there are many opportunities for the region’s retailers, regardless of the recession. 2011 can be the year you can turn your business around & not just be a surviving minority, but a thriving success.

There has been a lot of negative press of late, about the possible fall-out for not just the South West region, but the whole of the UK regarding the current economy as well as post general election.

But even in this recession, if you look closely there are catering & other retail businesses in most towns that do very well regardless of recessions & bad tourism seasons. What is it that they do, what do they know & what strategies do they employ to enjoy year-round success?

If there are less people dining out, you need to make sure you are grabbing a larger market share of the customers that are. But when people are watching their money more closely, you don’t have to start on a continual downward spiral of cutting corners- & prices. This is commercial suicide! Most people will still spend, they are just much more value driven.

There are a number of strategies they can be put in place to not only make their business recession proof, but also to ensure that they’re not totally reliant on the tourist trade.
These simple strategies will make a substantial difference to their turnover & profit margins.

5 of the ‘essential keys’ where businesses can make a substantial improvement to their turnover & profit margins – all year round are:

1) Direct Marketing. Understand that 90% of your target customers are within 5 minutes of your business. Design a fantastic offer and deliver it to all businesses and homes within a short walk from your premises. This will almost guarantee an immediate hike in trade – but the secret is, you have to be good to ensure some of them continue to use you on an ongoing basis for their lunch- at your usual prices.

2) Secondary Marketing. There are a number of strategies you can use to create loyalty from those new (& current) customers. Including giving them a VIP card as a thank you for responding to your offer & trying you, with a 10-20% discount next time. It is said that getting people to use you three times creates a new habit.

3) What is your USP? (unique selling proposition) What differentiates you from your competitors? Are you ethical, eco-friendly, fair-trade, organic, are your disposables recycled, recyclable, bio degradable? Capitalise on current trends. Do you sell a special theme that no-one else does? Most people like to ‘buy local.’ Is 90% of your produce sourced locally? Do it well and broadcast it clearly.

4) Offer really great service. Choose you staff well, make sure they have the correct attitude; they are the face of your business. Train them well. Customers hate being told ‘I don’t know’ when asking ‘what’s the soup today’ or ‘are the eggs free-range?’
Even if you’re busy, ALWAYS acknowledge your customer. ‘Nice to see you again.”
Everybody likes to feel special. It’s one of the things you have over the formulaic responses of the big chains.
Offer a ‘phone order service.’ If a business person with a half-hour lunch break can phone in
their order, it can be ready when they get there, saving them valuable time.
Most of your competitors don’t do this.

5) Entertain. These days, people don’t just go out to eat. They want the full experience. I don’t necessarily mean live music. A specialist coffee shop that blends its own beans might have a massive display of different styles & roasts of beans. And little packages for sale for home grinding. Grinders will be on show for display & sale. There will be pictures on the wall of the coffee growing process overseas. A ‘Field to Cup’ story on the walls & other coffee memorabilia.
(This is also a USP.)

Another key point is how inviting is your business? Take off your ‘Owners Hat’ & put on your ‘Customer Hat’ & walk past. You’re looking for a coffee, or lunch. Would you instantly walk in yourself? Why? Why not?

To make 2010 the year that you turn your business around and thrive in the recession, you have to think differently & be creative. Standing behind the counter with a smile on your face just isn’t going to cut it anymore. Customers are more discerning & value-driven. You may be a great cook, fantastic host & offer incredible value, but if they don’t know who you are, where you are, or how to find you, how could they possibly know that you sell the best Chicken Caesar Salad in the land?

The Café Academy would be excited to offer a comprehensive FREE REPORT to all Breakfast viewers looking for expert advice in setting up, or improving their current business- ready for the forthcoming season & beyond… Go to www.your-free-report.co.uk & download your copy.

Malcolm Harris the director of The Café Academy Limited is available for comment or interview. Please refer to the contact details at the top of this press release.
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Some of the most… highly trained sales people are from the newspapers & magazines- working on big commissions, that call you up trying to sell you ‘specials’ & ‘bargains.’ Most of which are a waste of money. Although some advertising works, there are many alternative marketing methods that are much cheaper & profitable.

Here’s a few pointers:
• If you’re not testing & measuring your advertising, you should stop it immediately & spend your money elsewhere.
• If you can’t be sure your advertising is working, start to measure it properly – or stop it.
• Many businesses advertise because their competitors do. Don’t assume their ad’s are working. Mostly, they’re not. Your competitors are there- because you are … & so on. This circle of ineffective advertising is one of the foundations of the multi-million pound Ad industry.
• If you do advertise, your ad must be a direct response ad, NOT a brand ad. Brand advertising only works for huge, multi-million pound companies with massive ad budgets. (eg, Coke etc..)
• The most important part of the ad is the headline. Small changes here can increase response by 100’s of %.

If you would like detailed comment on Headlines & Direct Response advertising let me know & I’ll elaborate… (Although I do talk about this in the Café Academy Programme.)

1. Unkempt shop front. Old, faded, tatty awnings, faded, dirty-looking plastic chairs, crumbling paintwork, near-dead pot plants & a badly written A-frame with an almost illegible ‘specials’ offering, then I’m sorry, but I’m not crossing the threshold.
   The establishment may well have a lush, comfortable & atmospheric interior with a great menu, superb service & a great dining experience, but if the approach from the outside is tatty, how would we know? The outside should accurately reflect the inside.
   First impressions count.
2. In-service cleaning. There’s nothing worse than having the service staff interrupting my meal by cleaning the recently vacated table next to me with an aerosol spray cleaner. If I want a fine mist of carcinogenic chemicals drifting over my food, I’ll dine at home on my wife’s spring-cleaning day.
3. Customer service. You walk in, you’re completely ignored. You find a table & sit down. 10 minutes later, you’re not sure they even know you’re there. You become agitated & frustrated. Eventually, they hand you a menu- as if they’re handing over their life-savings. You ask for the Chicken Parmagiana, only to be told “We’ve sold out.” So why is it still on the specials board?
   Good wait staff know when to hold off. When we say, “How are you?” we’re being polite. We don’t want their life story.
4. Inadequate staff training. Bad communication between the kitchen and the wait staff. 5 minutes after taking your order, they return to inform you there’s no Sea Bass left. Surely they should have known this before they took your order? Disappointed, the whole process has to start again. On a table of 2 or more, the meals are brought out 10 minutes apart. Surely, we wanted to eat together? You have to ask for the cutlery, then call them back because the salt shaker is empty. The modern trend of the more ‘casual’ dining experience, has been used by many as an excuse for sloppy & unprofessional service. So often, it’s obvious a student has been give a pad & pen, & just told to go & take an order. And please! Don’t greet me with “Hello luv” or “Alright my darlin?” I swear I’ll force my un-shucked oysters up your nose. Sideways.
   Really Great Service seems to be very hard to come by these days. Offer it, and you’re on to a winner.
5. Badly presented food. Surely, there’s more to a basic side garnish than a torn piece of Iceburg lettuce, & a wedge of semi-ripe tomato? I cannot believe the amount of times this is passed off as acceptable- especially in some pub restaurants.
   If the lasagne is burned dry & splattered around the edges, we know it’s been microwaved. Even less discerning diners aren’t stupid. Greasy fingerprints from at least 3 different people, all around the edge of my plate, doesn’t conjure up the most appetizing of images. If the food is this sloppy, what do you think our image of the kitchen, staff & management is? And in these tough economic times, when most of us are even more value-driven, do you think we’ll be back?

1. Knowledgeable staff. Even if they’re busy, they notice you on arrival. A smile of acknowledgement is all it takes. They know the basics. If you ask what the soup of the day is, or are the eggs free-range, “I don’t know” is not the answer. You expect them to at least know the main ingredients of each dish. When delivering your meals, they don’t call “Who ordered the chicken?” or “Number 59!” like I’m in a bingo hall- and disturbing the conversation. There’s a simple strategy anyone can learn, placing right the meal in front of the right customer. They are able to at least ‘look like’ they’re happy you’ve chosen to dine there.
2. Comfortable seating. So many places make the mistake of choosing their furniture based on ‘trendy’ compromising comfort. Some seating provided has me squirming in 10 minutes, let alone a full evening’s dining. If the owners try out the furniture themselves, with a coffee & newspaper before choosing, they wouldn’t make this mistake. We don’t want to just enjoy our food, we want to relax & enjoy the company.
3. Simplicity. An easy to understand, uncomplicated menu is important. Why some places try to be everything is a beyond me. English fare, mixed with Italian, Indian, Moroccan, Spanish Tapas & French. I don’t want a ‘jack of all trades’ just a single themed menu done very well. So long as there is good variety within that theme; Chicken, beef, pork, duck, game, fish and vegetarian. I’m not a vegetarian myself, but they must be able to offer more than just an omelette or a salad.
4. Entertainment. People don’t just go out to eat anymore, they go out for the whole experience- to be entertained. I don’t necessarily mean a live band or a stage show:
   A specialist coffee shop that grinds it’s own coffee blends w ill have a huge display of all the different roasts of beans with packages for sale, home-grinders for display & for sale. There’s pictures on the walls of the coffee growing process overseas. There might be a printed ‘story’ describing the ‘field to cup’ process of the coffee bean. Other coffee memorabilia will be on display. And there will be soft background music playing, to suit the establishment, helping to create a buzz. All of this adds to the atmosphere & an all-round experience.
5. Personal appearance. It’s always refreshing to see a crisp, professional uniform. Frequently, I see young girls serving, in their uniform colours- but with low hipster trousers & a short top- the whole of their midrift (& piercings) showing. This may be modern & trendy, but if the clientele is mainly mid- to old age, it is more of an offensive turn-off. If the primary trade is students, then it’s probably ok. Otherwise it’s unacceptable. When I see the staff, and even the management in everyday, civilian type clothing, it makes me wonder what the kitchen is like.

What about your contributions to their National Insurance? What about their holiday & sick pay? In a very small operation, where there’s not enough staff to cover someone’s absence, you may have to hire more staff – paying twice fore the same job. These (& other issues) can make a vast difference to your running costs.
Make sure you have budgeted for this in your business plan running costs.

Understanding budgets & margins. Attracting & keeping customers is one thing, but achieving your budgets is critical. Get it wrong and the smallest miscalculation could lead to substantial losses.
40 single dish serves a day undersold by only 10 pence over the course of a year would lose you £1,460 a year. That’s just one dish. Imagine if the same mistake was made across the menu!
A common misconception is that by adding 50% to the food cost gives you a 50% margin. It doesn’t. The Brakes website has a profit calculator which is handy & easy to use. Visit www.brake.co.uk
Make sure you get your pricing right first; you can always lower a price but increasing it once published is very difficult. Your customers would definitely notice.

1) Failing to focus on a specific market because of poor research
2) Failure to control costs ruthlessly
3) Failure to adapt your products to meet customer needs
4) Failing to build a team that’s compatible & has the skills to finance, produce, sell & market
5) Failure to pay taxes (PAYE & vat)
6) Failure to gain new markets
7) Poor sales & marketing Fatal leasing agreements
9) Tougher market conditions
10) Poor management
11) Poor cost control with too many people responsible for purchasing.

For the rest of the 65 reasons visit:
www.businessknowhow.com/startup/business-failure.htm

Over the next few months I’ll focus on 1 of these key issues each month in detail.
Starting with market research.

It means they have created a great local following especially in the winter, so they’re not totally reliant on the tourism trade.

Firstly, it was a ‘sustainable’ project, which means not only was it cheaper, (reclaimed & 2nd hand furniture & equipment) but it also fits with one of the biggest trends of today.
There are at least 6 other key factors that fundamentally drives this café’s success, including:
• A kids play corner with a wooden kitchen- oven, washing machine, sink etc, & numerous other toys & books. Mums can meet for a coffee & let the kids play.
• Their food is sourced with priority to fairtrade, organic & local.
• They hold meal & movie nights.
• Live entertainment evenings are popular with things as diverse as rockabilly, cabaret, soul & funk & 80’s disco.
• The menu is seasonal
• They ensure they appeal to a wide range of ages & genres.
• They’re good at what they do. People may come, but they won’t return if you’re not.
What can you take from this to improve your own business? What is your local demographic? Find out who they are & what they want, and let them know you offer it.

Do you recommend using agency staff?
David P. Somerset.
In the short term, it’s definitely an option. Covering staff absence & any other emergencies. You pay a higher hourly rate, but you have no payroll admin commitments, or holiday /sick pay to consider. And if, for some reason you don’t like their work, you can ask the agency to send you someone else next time. Check the agencies reputation for supplying good quality staff – your own reputation relies on those staff. Allow enough time to familiarise them with your operation & menus etc.
Malc. C.A.

A recent press release from The Café Academy was:
Surviving in the recession is tough. Knowing what the customer wants can make all the difference between surviving- & thriving.

Malcolm Harris from The Café Academy sheds insight on what makes a good – or bad eaterie.

From a recent article in The Times:
The number of shoppers buying local produce has DOUBLED in the last 3 years. This is higher than Fairtrade & high animal welfare standards.
Their reasons are fresher, less road & air miles & supporting local producers & farmers. Even Asda’s sales of ‘locally sourced’ have risen by 300% in the last 3 years, accouting for more than 6000 items.

I can’t emphasise enough the importance of both using & promoting local produce.
Some businesses (like farm shops) may let you advertise at their premises that you use/sell their products in your café/restaurant. A win-win scenario.