Impending economic gloom continues as a lead story in the national media. This will have the effect of talking everyone into a recessionary slump whether or not the economic numbers technically meet the textbook definition of a recession.
My colleague Joel Cohen (The Wizard of WOW) and I predict that many restaurants will try to cope by cutting back expenses. While you should certainly take a hard look at your expenditures and eliminate unnecessary waste, you must be sure you only trim the fat, not the muscle.
That is easy to say, but as pressure on the bottom line increases, your tendency will be to use lower quality ingredients, reduce portions and slash spending. These cutbacks will seem unavoidable, but your business will be headed into its death spiral and you won't be able to see it.
You cannot effectively ride out an economic downturn just by cutting costs. You will only disillusion your present guests, cause irreparable damage to your reputation and ultimately be LESS competitive at a time when you most need an edge.
Yes, some operators will have a recession ... but you don't have to be one of them. In fact, you may be on the brink of the most productive sales-building period in your life ... if you play it right. On March 9-10, Joel and I will will coach 56 savvy independent operators on how to effectively become recession-proof. Will you be one of them?
Click here to find out more about what we have in mind.
PS: Next week I will tell you why you can't save yourself with coupons.
