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September 2009
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NYC Restaurant Drops Cash From Their Menu
September 11, 2009
Commerce, a restaurant in Greenwich Village, has actually stopped taking cash. Only credit and debit card are now offered at this restaurant just like some of the airlines who sell food and liquor on board using only plastic.
While some have called the move "insane" others are suggesting that it is the wave of the future.
For the complete story in the Wall Street Journal, click on the link below.
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Like Our Ideas or Want to Share Some
The Z Report is looking for comments, ideas and suggestions about how we can help our customers better utilize technology.
Please contact us as often as you would like at:
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Greetings!
Welcome to our latest edition of The Z Report.
Since our last issue, we conducted a reader survey to help determine what subject areas our newsletter should focus on in order to provide the most value for our restaurant operators.
It was clear that Revenue Generating Ideas ranked as the most important category followed by Loss Prevention including scams and security issues. Given our current economy, it is not surprising that these two subjects ranked at the top of the list. Labor and Inventory Controls ranked close behind followed by Credit Card Security, Leveraging Existing Technology, and Industry News. Further down the list, but still important, were Loyalty/Gift Card Programs and Web Marketing for Restaurants.
Based on the reader responses, we will focus on Revenue Generating Ideas and change the highlights in future issues to respond to the input we receive from you.
As always, we will continue to provide the support and solutions to help improve your restaurant's performance in today's economy. Contact us at any time. We want to share our ideas and implement yours.
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We hope our newsletter sheds some new light and you will forward it on to others on your staff.
Sincerely,
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Increase Your Revenue Today and Tomorrow
 With industry projections indicating a 1% sales drop according to the NRA, most restaurant operators are trying to figure how to increase sales and market share in this downturn. Certainly, the idea of just waiting for the economy to turn around is not a valid strategy.
While not every marketing initiative will work for every restaurant, we thought it would be useful to compile a short list of different kinds of strategies that might help your restaurant improve sales.
1) Create a Facebook Page- Social marketing has absolutely made a mark in the restaurant sector. Thousands of restaurants have their own Facebook page including popular chain operators like IHOP, Denny's, and Quiznos. This is so effective, we have devoted an entire article to it in this issue of The Z Report. With 71 million people in the US using Facebook today, this is not an initiative you can afford to ignore. 2) Make Menu Changes- Comfort food as a value meal has soared in demand with many restaurant operators offering lower priced entrees that feature chicken, beans, and pasta. In addition, offering best seller entrees as an appetizer or a two person platter to be shared is a way of keeping customers coming back for their favorite dishes without breaking the bank and maintaining frequency. And finally, try offering "free" food with specific entrees on specific days while all appetizers, sides, drinks, are sold at regular price. A pair of restaurants in Texas increased revenue 300% on Mondays...of course, there was an increase in food cost but because the "free" entrees were low food cost items with a smaller portions with a la carte sides, the impact was limited. Learn more..... How Restauants Can Survive The Economic Downturn
3) Use "Psychology" When Taking Orders- Your servers should be able to determine the "lead buyer" for each table soon after they greet the party. By focusing on the right person for "upselling", the rest of the table will "follow the leader". Getting the "lead buyer" to order an appetizer, second drink, or dessert, will help sway others to do the same. Watch this short video to get an idea of how this concept works... Increase Restauant Revenue by Finding "Lead" Buyer 4) Track Results- With any new marketing initiative, tracking results is key. Your POS system will measure any of the results achieved after implementing these initiatives. Contact us to discuss these ideas and how we can help you implement them and track results.
Matt Kramer or Matt Patterson
314-739-6666
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Facebook For Restaurants...Why Your Restaurant Should Consider Social Marketing
First of all, it is probably more important to learn how you should use Facebook for restaurant marketing in addition to knowing why. Let's first get to some facts and then you can decide for yourself whether your restaurant should become part of the fastest growing marketing opportunities since the web was launched in the 1990's.
- Over 71 million people use Facebook in the US... an increase of 70% since January, 2009
- Over 43 million using Facebook in the US are over 25 (and we thought they were all teenagers)
- The fastest growing segment of Facebook users is age 55+ with a growth rate of 513% since January, 2009, which now is almost 6 million older Americans.
- The next fastest growing segment is aged 35-54 which numbers over 20 million (probably a lot of your current customers)
- Thousands of Restaurants already use Facebook especially the chains (click this link to see for yourself ...Facebook Restaurants)
So it is obvious that this tool is working but certainly it requires effort, creativity, and follow through. The results can make it more than worth it.
Here are the basics for getting started and ideas to consider:
1) Create a Facebook Account- A Business Account is a better tool for your restaurant than a personal account. A personal account may be appropriate for your chef. Creating A Facebook Page
2) Engage Facebook "Fans" with other Applications- It is easy to add graphics, links, and useful tools to your Facebook page for your customers. For example, link to Zagat's, your reservations system, or even to a video clip of your chef describing some aspect of your restaurant or menu, are just a few of an endless list of possibilities that can be included.
3) Enhance Your Page- Special announcements, events, menu specials, wine tastings, in addition to links or listings for your website, menus, maps, hours of operation, phone numbers, are all useful items for customers that should be part of your Facebook Page. Here is link to help you learn more....Facebook for Restaurants
4) Promote Your Page- This is probably the most important aspect of a successful Facebook inititative. You must market your Facebook online and offline. Put a link on your web page, mention it on your menus, table tents, etc. Get your staff on board with it. Create special deals just for your Facebook Fans...give them a reason to use it. Launch a Facebook blog but only if you are willing to keep up with it.
5) Measure Results- All the way from your web page to your Facebook page, there are ways to measure results. Of course, you will want your POS system to track your Facebook promotions as well.
Contact our office for help in this area.
Matt Kramer or Matt Patterson
314-739-6666
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Scams....Credit Card Fraud Persists
Restaurants Struggle to "Clear" Their Names
From Washington, DC to Henry County, GA, to Tampa, FL, credit card scams are continuing to plague restaurants around the country in 2009.  While most scams are perpetuated by waiters or cashiers using a "skimmer" device to collect information, hackers are still attempting to "break" into restaurant computer systems to steal card holder information. In Washington, DC, a group of five waiters passed on credit card information to three men who paid servers $20 a piece for each stolen credit card. Over $700,000 in merchandise was purchased with stolen cards. The waiters have since pleaded guilty in federal court to using skimming devices.
In a second incident, a Maryland man, was arrested and charged with stealing twenty account numbers that were used by co-conspirators to purchase $12,000 in goods. In other incidents, hackers have "broken" into systems using a variety of methods including "sniffing" the wireless connections.
Now the restaurants involved have been faced with a major public relations issue and spending thousands of dollars to convince their customers that is safe to use a credit cards in their restaurants. Obviously, in times like these, credit card issues are adding to the problems already created by the current economic downturn in the restaurant industry.
There is good news and help available to limit fraudulent activity, protect your customers, and your restaurant. Our company can help yours by performing a "security audit" which help uncover weaknesses that may exist in your restaurant today. It starts with checking to make sure your POS software, operating system, and hardware meet current standards and are up to date. There are also certain administrative procedures your restaurant should be following which our company can help you understand.
In addition, there are solutions available that may work with your existing POS system to provide "Pay At The Table" devices that virtually eliminate the possibility of waiter skimming because your customer can swipe their card themselves and it never leaves their hand.
Contact us to learn more about protecting your customers and your restaurant from a costly and embarrassing "scam" incident that is becoming more prevalent.
Contact us:
Jay Jordan
314-739-6666
dcrsnews@dcrs.com
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