Adapting to Economic Uncertainties: A Guide for Restaurants

Navigating the unpredictable economic climate as a restaurant can be daunting. However, several fundamental strategies can pave the way to success. Consider these pointers:

• Enhance Customer Experience: Beyond mouth-watering dishes, it's paramount to prioritize a stellar customer experience. This includes outstanding service, a pristine ambiance, personalized touches, and decor that feels welcoming.
• Cultivate a Positive Culture: A constructive work environment is crucial for employee retention and optimum performance. Encourage a sense of teamwork, respect, and a collective drive for excellence.
• Empower Your Team: Let your staff feel valued by encouraging them to take responsibility and be a part of decision-making processes. This can elevate job satisfaction and overall efficiency.
• Connect with the Community: Building strong community ties can foster loyal patronage and amplify word-of-mouth promotions. Engage in local events, support charitable causes, and participate in community festivities.
• Prioritize Food Quality: Ultimately, exceptional food brings customers back. Invest in top-tier ingredients and continually upskill your culinary team.

These tactics can offer a robust foundation during unpredictable economic periods. Yet, it's vital to remain agile, adjusting strategies as needed.

Reflecting on 'The New Normal'

A few years back, sudden lockdowns mandated drastic changes in restaurant operations. Almost instantaneously, sales dropped as dining spaces closed, challenging restaurateurs to innovate or face potential closure.

During this phase, I penned an article titled 'The New Normal '. Drawing from extensive consultations with struggling restaurants, this piece, which garnered attention across industry publications, detailed a proactive plan for restaurant revival.

Fast-forward to now, many restaurants are again grappling with challenges. Revisiting this strategy, we've seen it benefit several of our clients. Interestingly, many ponder why they didn’t uphold these effective practices consistently.

As operations normalized, many reverted to their traditional procedures, sidelining the newfound strategies. Yet, one particular client persisted with the changes, enjoying revenues surpassing pre-pandemic figures and a thriving staff culture. Notably, they transformed from minimal takeout sales to a robust 16% coming from takeout and deliveries.

This restaurateur highlighted new patrons, previously only delivery customers, now dining in, signifying the importance of adaptability. Reverting solely to old methods, without blending new insights, is akin to fitting a square peg in a round hole. The essence lies in staying current, adapting to the prevailing times.

View it from a fresh lens. If you were launching your restaurant now, how would you structure costs, menu pricing, or menu items? Could your menu be leaner or feature more profit-driven dishes?

These questions are vital, demanding honest reflection. The key is to remain adaptive, frequently recalibrating as required.

Upon reviewing 'The New Normal', I believe the 25 recommendations provided remain relevant today. The list highlights the growing significance of take-out, delivery, catering, and community involvement as key drivers for both survival and growth!

One more word of advice: Don't pick and choose. Implement as many of the recommendations as possible… ASAP!

1. Reevaluate your menu. Look to highlight items that travel and heat up well and those that look and taste as good upon delivery as they do when served in-store.
2. Include reheating instructions with all orders.
3. Create value-added specials for families, like a dinner for four specials with an appetizer, salad, entrée, and dessert.
4. Add bottled soda to your drink offerings for delivery and take-out.
5. Stock your restaurant with proper take-out and delivery packaging, including utensils, napkins, and condiments. Do not skimp on bags and boxes.
6. Create a Thank You item (or items) for customers who support you during the slowest weeks, such as a low-amount gift card for a future take-out/delivery order, a higher-amount gift card for to be used for dining in the restaurant, a hand-written note expressing thanks for their business, or small freebies. Be creative, but remember, a little goes a long way!
7. Include a business card from the owner or general manager with a note outlining steps customers can take if they are not satisfied. If, and when contacted, act promptly and courteously.
8. Pay special attention to order taking and checking to ensure accuracy.
9. Ask about special food preparation requirements.
10. Add a personal touch by letting customers know the name of the person taking their order.
11. Phone calls must be answered as promptly as possible and in a professional manner.
12. Pay attention to how menu items are placed in containers to ensure they look attractive when customers receive them.
13. Include extra containers of sauces and dressings. When reheated, certain menu items tend to dry out, and customers appreciate the extra items.
14. Be sure to track all orders and hold delivery drivers accountable.
15. Follow up with customers after they receive their order — later that day or at the latest, the next morning.
16. A good rule of thumb for managing expectations is to under-promise and overdeliver.
17. Include with each delivery a list of future specials and of course, the take-out and delivery menu.
18. Utilize the restaurant’s loyalty program to communicate with and market to your database of loyal customers.
19. Create a simple frequent patron program. For example, every fourth order receives $10 off or a 10-percent discount.
20. Build order tickets by offering a multi-meal discount. For example, place a second or third order at the same time and receive 5 percent or 10 percent off, respectively.
21. Offer an additional entrée with orders over a certain amount. For example, spend $50 and receive an order of spaghetti & meatballs at no additional charge.
22. Market on social media with pictures of menu items and specials. Quality of the images matters!
23. Market on social media with videos of the owner showing cleanliness of the kitchen, food preparation or just offering a personal message of care and thanks. Make it personal!
24. Document all processes and methods regarding take-out and delivery to incorporate into restaurant operations to enhance business when restaurant is open for dine-in customers.
25. Communicate, communicate, communicate with staff on changes and progress. Celebrate small wins!

As you consider different strategies to ensure the vitality and success of your restaurant, I also suggest thinking through the following questions:

How has the changing economic landscape reshaped the core values and mission of your restaurant, and how can you ensure the continuous evolution of the customer experience to meet emerging demands?

When faced with challenges, do you find your restaurant more inclined to revert to traditional practices or integrate new strategies with the old? What are the long-term implications of these choices?

With the understanding that economic uncertainties are cyclical and ever-evolving, what proactive measures can you implement to future-proof your restaurant, ensuring its adaptability and resilience in the face of unexpected challenges?

From the Author, Paul Segreto, CEO & Founder, Acceler8Success Group

The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important.

So, if you hit a wall, for whatever reason, please feel free to reach out to me for assistance or even if you just need to talk and bounce around a few thoughts. Please do not hesitate.

You can reach me on LinkedIn , by email to [email protected] , and by phone or text at (832) 797-9851.

Make it a great day. Make it happen. Make it count!