Category: Strategy

5 Key Reasons To Franchise Your Restaurant Concept

Posted on by Franchise Strategist

As a Franchisor, your income is not derived from the operation of a restaurant. The Franchisor’s primary revenue source is a royalty payment made by the franchisee to the parent company. Also, this royalty is paid on top-line sales, not bottom-line profit. As a Franchisor, your role is to help franchisees increase their sales and increase the number of operating units.

5 Key Reasons To Franchise A Restaurant Concept
By Gary Occhiogrosso Managing Partner – Franchise Growth Solutions

Suppose you have a proven restaurant concept with a successful business system. Think McDonald’s, Panera Bread, Applebee’s, or Halal Guys. In that case, your next move may be to open additional locations. Franchising your restaurant and awarding others’ the rights to use your brand name, recipes, and procedures is a great way to expand. Why do restaurant owners choose to franchise their business? For the most part, it comes down to capital, time, people, and geography.

Lower Investment To Grow Your Brand

You can add additional restaurants while at the same time, you minimize your capital investment. Becoming a Franchisor and using franchising as the method to grow means other individuals (franchisees) will pay a franchise fee to gain access to your brand. Also, the franchisee will fund building the restaurant and assume the location’s financial responsibility. According to Harold Kestenbaum, a Partner with Spadea Lignana Franchise Attorneys: “Building out company units can get very expensive. Having a franchisee invest their own funds not only saves the franchisor money but allows the franchisee to have skin in the game. This is crucial for the success of a franchise system.”

Exponential Growth

Building corporate restaurants is limited to your capital, human resources, and, in many cases, geography. However, when you franchise, your brand may be growing more rapidly and in multiple markets. Once ramped up, some franchisors open as many as 20, 50, or more than 100 new restaurants a year. Michael Einbinder, founding Partner of Einbinder & Dunn, states: “Franchising restaurant concepts allows for fast growth. If you expand your brand through franchising, the investment in new outlets come from franchisees. Critically, franchising gives you an opportunity to grow in multiple markets simultaneously.”

Owners vs. Employees

In many cases, the most challenging aspect of running a restaurant is; recruiting, training, and maintaining good employees. As the Franchisor, that effort rests with the franchise owner of the individual location. Unlike owning and operating corporate locations, it’s the franchisees that have “skin in the game,” and unlike employees, they usually do a better job. Also, they can’t just quit at will because they have a vested interest in the business, usually in the form of personal cash and loan commitments. Franchisor, Charles Watson, CEO of Tropical Smoothie Cafe says: “Having franchisees who are aligned with your mission and willing to invest in their own success are critical for quality growth. You may not always have the same level of commitment from employees because their work does not impact their bottom line. Dedicated franchisees are often eager to execute the new initiatives that the franchisor rolls out systemwide to their local markets, which inevitably inspires guests to keep coming back to your concept, no matter what location is nearby. The franchisee/franchisor relationship is always evolving and is typically mutually beneficial.”

Residual, Royalty-Driven Income

As a Franchisor, your income is not derived from the operation of a restaurant. The Franchisor’s primary revenue source is a royalty payment made by the franchisee to the parent company. Also, this royalty is paid on top-line sales, not bottom-line profit. As a Franchisor, your role is to help franchisees increase their sales and increase the number of operating units. When done correctly, the Franchisor benefits, and the franchisee’s chances of higher profit through better operations and broader brand recognition are increased. The general public loves and trusts “Name Brands” and can sometimes be skeptical of the one-off mom & pop operations.

Better Selling Price At Exit

Suppose you’ve built your franchise company with reliable franchisees, a tight operating model, and strict enforcement of brand standards. In that case, the chance is a potential buyer will pay a higher price based on a multiple on your profits. All too often, non-franchised restaurant owners sell their corporate-owned restaurant chain at a price based on two or three times multiple of their bottom line profit. However, many investors, particularly private equity firms, are attracted to franchise companies whose revenue is driven by royalties.

According to Michael Einbinder: “Many franchisors build their concepts with the ultimate goal of creating value in the long term for an exit. In the last several years as private equity firms have become more involved in franchising, the trend has been that the multiples paid on franchisor EBITDA are higher than on company operations.”

Investment firms are often willing to buy based on a multiple double and sometimes triple that of an independent restaurant chain. Why? Because unlike profit earned by restaurant operations, royalty driven profit is virtually endlessly scalable. Franchisors usually have a lower operating cost with less overall risk compared to corporate-owned chain restaurant companies.

Closing Thought

Although each owner has their own reasons to franchise a business, these are the key motivators why restaurant owners franchise their concept. However, franchise companies are not without unique challenges. There are numerous other considerations, such as the cost to set up and maintain legal compliance, marketing & the cost of recruiting new franchisees, franchisee relations, and developing a unique skill set as a Franchisor. We’ll cover that other side of franchising in another article.

LEARN ABOUT FRANCHISING YOUR BUSINESS, check out our website: www.franchisegrowthsolutions.com

ABOUT THE AUTHOR:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City and the founder of FranchiseMoneyMaker.com Read Less

What You Need to Consider Before Opening Your Own Restaurant

Posted on by Franchise Strategist

The amount of work it takes to not only survive but also make an impact with a restaurant is massive. According to FSR Magazine, 60 percent of all restaurants fail in the first year. A restaurant that lasts for years takes humility. You must acknowledge daily how bad you are at restauranting, until one day you’re not bad anymore.

What You Need to Consider Before Opening Your Own Restaurant
The following is adapted from Unsliced.
By Mike Bausch

Opening a restaurant is a huge decision—one of the biggest decisions you’ll ever make. It’s hard work, full of risk and failure, and can be disappointing and frustrating. It can also be rewarding and fun, and if you do it correctly, can be profitable.

But you may have a 9-to-5 job right now that brings in steady income. How do you trade that for the uncertainty of the restaurant business? For most people, it’s not a trade they’re willing to make. To know whether you’re one of those people—or the type of person who should try their hand at restaurant ownership—here are few important considerations.

Two Types of People: Which One Are You?
First, look at the two statements below. Which one best fits you?

I am a person who tries hard, and the effort is what counts.
I am a person who likes setting my mind to things and accomplishing them.

At first glance, both seem like positive, motivational statements. But the second statement is actually better because the mindset is results-oriented. You’re focusing on a goal, and just trying hard and giving it an effort isn’t enough.

This means that when things get bad, you enjoy finding a way out of it. I’m pretty sure that being a glutton for punishment isn’t necessarily normal or healthy. However, it’s an essential trait of anyone looking to own their own business—especially a restaurant.

Owning a Restaurant for the Right Reasons
You may have decided to own your own restaurant hoping to become a celebrity chef. Or maybe you just don’t like your job and think owning a restaurant will be fun. If these are your reasons, then forget it. A restaurant is not the answer to your problems. It’s asking for a lot of new problems—problems you’ve never encountered or imagined.

The amount of work it takes to not only survive but also make an impact with a restaurant is massive. According to FSR Magazine, 60 percent of all restaurants fail in the first year. A restaurant that lasts for years takes humility. You must acknowledge daily how bad you are at restauranting, until one day you’re not bad anymore. That’s a lot for the average person to absorb.

Asking Yourself the Big Question
The restaurant life will affect your home life drastically. Restaurants sometimes destroy relationships and consume your mental health and quality of life. This life choice is a gamble—a gamble you might succeed in, in your hope to serve people food in an industry with a meager financial return rate and as I said, an extremely high failure rate.

If you haven’t committed to a restaurant yet, please pause and say this out loud:

“I need this; I need to own a restaurant. I don’t just want to own a restaurant. I absolutely need to do this. This is my calling. I got this, and nothing else will suffice.”

If that statement sounded stupid when you said it out loud, restaurant ownership isn’t for you. If you don’t believe what you said, you aren’t ready to do this. If you’ve never even operated or worked in a restaurant, then don’t assume for a second that you know anything. In fact, your best move is to concede you know nothing so you can be a blank canvas ready for paint.
Make the Best Decision for You

So what’s it going to be? Safety or risk? The same old routine or unpredictability? Don’t feel bad if you choose to opt for that cubicle job. It usually offers a lot less stress and heartbreak than opening your own restaurant. The world needs people in those office chairs.

But if you choose to be a restaurant owner, be ready for a roller coaster ride. Be ready for long days and nights, unexpected changes, and some lean times. But you knew that, or you wouldn’t have made that decision, would you?

For more advice on deciding to open a restaurant, you can find Unsliced on Amazon.

About the Author:
Mike Bausch is an industry leader whose restaurant, Andolini’s Pizzeria, is a top ten pizzeria in the US, as named by TripAdvisor, BuzzFeed, CNN, and USA Today. Andolini’s began in 2005 and has grown to five pizzerias, two gelaterias, two food hall concepts, a food truck, and a fine dining restaurant by 2019. Mike is a World Pizza Champion, a Guinness Book world record holder, and a writer for Pizza Today. Mike is part of a Marine Corps family who has lived across America from New York to California. Mike calls Tulsa home and lives with his wife, Michelle, and son, Henry.

Restaurant Marketing for the Upcoming 2021 Recovery

Posted on by Franchise Strategist

Restaurant owners are infamous for being callous with their marketing decisions, this is partly because the research process in the restaurant industry itself can be quite tricky. Gathering insightful data within a small or slightly larger community will be tricky as it is. This is precisely where digital surveys, restaurant management software, etc play a huge role.

MARKETING YOUR RESTAURANT THROUGH 2020-’21
Business Articles | November 19, 2020
BY KEVIN JOSEPH

Although it may seem rather glamorous at first glance, starting a restaurant is no easy feat. In fact, the restaurant & food business, in general, is one that is extremely time-consuming, high overheads, razor-thin margins & a manager’s nightmare.

But, it is also one that is central to our society and the eating-out culture in every country is the cornerstone of its culinary heritage. This is precisely why, especially during the light of the lockdowns, restaurants, in particular, are facing a very uncertain & grim future which, if left unchecked, can turn into a disaster for the industry.

There are a few things that we as consumers can do in order to help the restaurant industry and the entire hospitality industry in general, but more than anything else, this post is aimed at a few marketing strategies that restaurants can easily adopt.

1. Understanding Their Audience

Restaurant owners are infamous for being callous with their marketing decisions, this is partly because the research process in the restaurant industry itself can be quite tricky. Gathering insightful data within a small or slightly larger community will be tricky as it is. This is precisely where digital surveys, restaurant management software, etc play a huge role.

But more than anything that a machine can do, understanding what the consumers themselves experience while at the restaurant is something priceless in itself. For this, employees & busboys must be trained to ask the right questions and keep an eye out for understanding the consumer experience.

This practice is so conspicuous in its absence that several suppliers & marketing companies for restaurants have taken birth for a study that would probably best be done by the restaurant owner himself. For Instance: folks over at FurnitureRoots, a Jodhpur based manufacturer of restaurant furniture, on several occasions has recommended styling themes depending on the clientele. For a clientele that largely comprises of the youth, industrial style furniture happens to be the best option.

You may visit FurnitureRoots at Plot No 58/2, Jodhpur-Pali Highway, Sangariya, Basni Baghelao, Jodhpur, Rajasthan. 342013

Rustic style furniture is another great option for restaurants that see customers visit with their families.

2. Adapt With The Changing Times

Most non-western countries have more or less been out of the eating out trend in the past. However, many countries have seen a drastic change in this trend. Countries like India are at the forefront of these shifts in trends.

Several cafes in India have seen a rise in environmentally friendly themes. Cognizant of this fact, Prithvi Cafe in Bombay began manifesting an eco-friendly establishment replete with cups and saucers made with disposable leaves, 4 different cans for recycling different types of materials & of course, greenery all around the place.

Naturally, Prithvi Cafe did understand its market’s shifting needs and adapted to it accordingly.

3. Spatial Strategies

These happen to be the strategies that are short term in nature (hoping the pandemic won’t be around for long).

Spatial strategies during these times are to ensure that the image of the restaurant reflects trustworthiness and safety. Although this does involve a bit of mental, time & a minor cost investment, it will forever instill a sense of trust among the local & regular customers.

Spatial strategies are the ones that aim to maximize the seating area while ensuring the social distancing norms for restaurants are maintained and are intact as well. This can also include moving to temporary outdoor seating as has been advocated by several governments across the world to curb the spread of the virus.

4. Go Digital

I bet most of you must be tired of hearing this every now and then but the fact remains that the digital landscape is no longer some sort of a novel initiative that one must undertake. It has become the staple of a business and several businesses are almost exclusively reliant on their digital strategies.

For restaurants, however, this does not mean simply enlisting themselves on food aggregating platforms. Several restaurants suffer from a lack of long term thinking, they fail to realize that the aggregating platforms own the customers and not the restaurants themselves.

Making an app or a website nowadays has become a complete breeze & it is also a sound business practice. Small wonder that Dominos, Burger KindHealth Fitness Articles, Mcdonalds have all invested heavily on their own platform to ensure loyal customers don’t have to purchase from them via a third party.

This is no less true for any other restaurant.

We hope all businesses in hospitality a speedy recovery after this dreaded misfortune of a virus.

Stay Safe!

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR

Kevin is the Marketing & Content Lead at FurnitureRoots.com, a hospitality furniture manufacturer, supplier & wholesaler

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Franchise, Restaurant, Profit
Franchise Your Business Here: www.franchisegrowthsolutions.com

How Do You Write A Good Brand Story

Posted on by Franchise Strategist

How Do You Write A Good Brand Story
By Jon Allo  

Your brand story differentiates you from everyone else. Otherwise, you’re just one more solution for the same old problem that customers can choose from, and usually without a standout differentiator they’ll base their choice on price. Most of the time, you do not want customers to choose you based on price alone. You want them to choose you because you’re you.
Telling your unique story starts with these questions:

When, Why and How Did You Start?
The best way to show authenticity is to be able to tell your audience when, why and you started doing what it is that you do. If you can tell your story in a way that your audience relates to you, and even roots for your success – even better.

How Do You Want Customers to View You?
As you write your story, it’s important to convey your values and ideals in a no-nonsense way. While you may be frightened of turning off some people, you really don’t need to worry about that. Those people aren’t your audience. Your audience consists of the people who can relate to your story, share your values, and want to be part of it.

Where Do You See Your Business Down the Line?
This is where you’ll try to dream big, and let your audience know where you see your business in the future. It also gives you the opportunity to refine consumer expectations toward what you offer rather than what the competition offers.

How you answer these questions is important.
You’re going to have many opportunities to do so via every communication you have with your audience – be it your blog, social media or even through the types of products you offer.

With the answers to these questions you can start to form your story and weave it throughout everything you do.

Share through Story Telling
Using an honest, no-holds-barred communication style to tell your story, your customers’ stories, and the story of your products is a good start. Use case studies, interviews, and in-depth relatable blog posts to accomplish this.

Share through Doing Good
Get involved with your community to give back something that is noticeable. You don’t want to do this just to get noticed, but you do want to pick something that helps people understand who you are as a business owner and what your business stands for.

Share through Experiences
You and your audience likely share common experiences that should be discussed. The more ways you can relate to them, the more ways they’ll see your offerings as unique and different.

Share with the Truth
Don’t hype, and don’t “blow smoke”. Consumers are smart today. They want the black and white truth of the matter. If it takes 20 hours a week to do what you do, and you’re teaching them, tell them the truth. If you’ve had to stay up overnight to work around children’s schedules, say so.

Share Everywhere
Don’t just “tell” your story on your blog in the “about” section. Tell your story everyplace. Use infographics, memes, blog posts, guest blog posts, articles, testimonials, good deeds and every possible way to spread your story. Be your story by your actions.

Branding is important for small business owners as well as large ones. If you have a limited budget, smart branding is perhaps the most inexpensive business tool you can create. To learn more about how to make you and your business stand out, download my free checklist, Branding For Small Businesses at https://jonallo.com/branding

Article Source: https://EzineArticles.com/expert/Jon_Allo/1079948

What Are Common Area Maintenance Charges In A Commercial Lease?

Posted on by Franchise Strategist

What Are Common Area Maintenance Charges In A Commercial Lease?
Posted with Permission from Spadea Lignana Franchise Attorneys


What Are Common Area Maintenance Charges In A Commercial Lease?
Most commercial retail leases are triple net leases. The “triple” stands for (i) taxes (ii) insurance and (iii) maintenance.

Taxes: This is pretty straightforward, as the landlord will simply pass on to the tenant the real estate taxes proportionately based on the size of the overall property and the size of the tenant’s location.
Insurance: This is calculated in a similar manner based on the landlord’s insurance cost for the overall property, not the tenant’s specific insurance.

Maintenance: This is the big variable and is also called CAM or “common area maintenance.”
Basically, under a triple net lease, the landlord will pass through all of the expenses to maintain the property including landscaping, cleanup, snow removal and minor repairs to each tenant on a pro-rata basis. The CAM charges in a commercial lease are typically added on to base rent as additional rent (in addition to the taxes and insurance cost). This is an area fraught with danger for the unwary tenant. A landlord typically will try to pass through as much of their expenses as possible through CAM charges, and if not negotiated upfront, these expenses can grow and grow over the life of the lease.

CAM charges to be wary of are:

Administrative & Maintenance Fees
Roof Repair & Replacement
Capital Improvements
Lighting
Plumbing
Electrical Wiring
HVAC

Many of these charges should be considered capital expenses or general overhead of the landlord and should be excluded from CAM.

READ THE ENTIRE ARTICLE HERE:https://www.spadealaw.com/blog/what-are-common-area-maintenance-charges-commercial-lease

A New Magic Cup Franchise Is Coming To McKinney, Texas

Posted on by Franchise Strategist

Experienced investors with degrees in finance and biology respectively, Chi and Tam already had an impressive portfolio in the beauty industry (and two luxury spa locations to their credit) before they decided to investigate their next business venture. Self-confessed boba, tea, and coffee addicts, Chi and Tam were always drawn to the beverage industry but knew they’d need a franchisor with both the patience and the resources to steer them toward success.

A NEW MAGIC CUP FRANCHISE IS COMING TO MCKINNEY, TEXAS
By re:verb Marketers

Big news for Texas tea lovers: After a solid 5 years of hard work and dedication, Magic Cup Cafe is excited to announce that our business is expanding to a new location!

Our new cafe will soon be opening in McKinney, TX, allowing even more tea and coffee drinkers to enjoy Magic Cup’s unique and delicious beverages in-store or on the go. Our Vietnamese-American-owned company’s innovative east-meets-west menu and its friendly community atmosphere have made us a local favorite for residents of both Richardson and Houston, and soon the citizens of McKinney will have a chance to experience our refreshing take on boba, tea, and coffee firsthand.

The move from beloved mom-and-pop cafe to the full-on franchise was a labor of love for our co-founder My Lynn Nguyen, whose expertise in both boba and coffee helped build Magic Cup into a top contender in a highly competitive industry. Beyond 5 years of work, it took 14 months to put together our franchise program. My Lynn notes: “The new Magic Cup franchise opening has been, and will continue to be, a massive collaborative effort, involving lots of careful preparation and consultation with experienced franchise programmers as well as an enthusiastic commitment from Tam T Trinh and Chi Tran, Magic Cup’s newly-obtained franchisees.”

Experienced investors with degrees in finance and biology respectively, Chi and Tam already had an impressive portfolio in the beauty industry (and two luxury spa locations to their credit) before they decided to investigate their next business venture. Self-confessed boba, tea, and coffee addicts, Chi and Tam were always drawn to the beverage industry but knew they’d need a franchisor with both the patience and the resources to steer them toward success.

#bubbletea #franchises #Texas #Dallas #dallastexas #houstontexas #franchisedevelopment #franchise #franchising #frachisee #restaurantnetwork #Houston #sanantonio #entrepreneurlife #profit #coffee #smallbusinessowners #restaurantmastermind #smoothies #juice #investors #sales #innovation #restauantmanagement, #profitfirst #therestaurantprofits, #howtofranchise, #franchisemybusiness #career, #motivation #money #IFA #IFPG #franchiseinfo #FranchiseOwner #franchisegrowthsolutionss, #innovation #Subway, #Houston #investment #AHOA #Vietnam #salon #Nails, #jobs #business #franchisemybusiness #boba
Magic Cup Franchisees

Once they met with My Lynn and our Magic Cup franchise consultants, Chi and Tam knew their search for the perfect franchisor was over. “We instantly felt the strong passion they have for the brand,” Tam says, adding that Magic Cup’s vision, core values, and comprehensive training program were precisely the right fit for her and Chi.

When Chi, Tam, and their new Magic Cup family were scouting for locations, they saw massive potential in McKinney, which has seen a remarkable development in recent years. The team is currently working with real estate developers in the area to finalize the location as soon as possible.

When doors open at Chi and Tam’s Magic Cup Cafe location, they hope visitors will experience the same welcoming feeling and thirst-quenching satisfaction they’ve come to expect from our Magic Cup brand. Whatever the future brings, Chi and Tam know that My Lynn will offer them ongoing support every step of the way.
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Franchise Money Maker
Franchise Growth Solutions is the Exclusive developer of Magic Cup Cafe franchises. For information on becoming a franchise partner please contact: [email protected]

Tips On Raising Capital to Expand Through a Private Placement

Posted on by Franchise Strategist

Today’s article by our friends at the Law Office of Spadea Lignana touches on some of the tips to know when attempting to rise money through Private Equity Placement. Tom Spadea and his staff well versed and fully equipped to advise and guide you through the process. Franchise Growth Solutions assists in the process by working with brands seeking to expand their business.

Raising Capital to Expand Through a Private Placement Raising Capital to Expand Through a Private Placement
By Staff Writer at Spadea-Lignana Law Office

Even a Deal with Friends and Family Needs Proper Documentation
If you are an entrepreneur looking to raise capital by selling shares of your company to an individual that won’t be an active partner in your business, you have to be sure you are compliant with federal and state securities laws. If you are selling a portion of your company to an investor, you are subject to securities regulations. That is, UNLESS you fall under an exemption and you properly document, and in some cases, file for an exemption. This is a trap for many unwary entrepreneurs, who think they don’t have to worry about formal documentation of their deal because they are just offering shares of their company to a few friends and family.

While the offering they are contemplating may very well qualify for an exemption, if they don’t follow the laws and regulations by drafting a formal private placement memorandum (PPM) and complying with certain filing requirements, they run the risk of personal liability. This liability could include accusations of fraud and potential civil and criminal penalties for failure to properly register securities with federal and state agencies.


Drafting the PPM
The rules and regulations are designed to avoid Ponzi schemes and other fraudulent investing activities by making the transaction transparent and well documented. The creation of a PPM is not as difficult as many law firms and pundits may make it sound. We are not talking about an initial public offering with a six figure legal cost. Our experienced securities lawyers can walk you through the process and help you evaluate your project as suitable for a PPM. In many instances we can give you a flat fee project cost for documenting your deal. We have drafted PPMs ranging in size from a startup, fast casual restaurant to a multi-million-dollar alternative energy project.

Minimizing Personal Risk
Raising equity capital from outsiders is typically done to avoid personal debt, risk and liabilities while sharing the upside with those equity investors. If the deal is not properly documented, you are potentially erasing all of those protections and neutralizing the purpose of raising private money in the first place. Put another way, a poorly documented deal leaves the entrepreneur with all of the downside risk personally, with a portion of the upside sold off to investors. That is not a good business deal.

Seek Professional Guidance
Let us help you understand the cost, time and effort that it will take to draft a private placement memorandum for your deal. Call us at 215-774-3331 for more information. Visit https://www.spadealaw.com/

How do you strategically get your brand’s voice out there in a unique way?

Posted on by Franchise Strategist

PR firms specialize in acquiring earned print and digital media coverage. They also employ other digital marketing methods, such as influencers and popular hospitality reviewers, to pique the interest of the new and returning clientele. It’s this third party, “validation” that sets you apart from basic self-serving advertising.

Using PR For Restaurant Marketing
BY GARY OCCHIOGROSSO – CONTRIBUTOR TO FORBES
Photo by Campaign Creators on Unsplash

Living in the New York City market, I have grown accustomed to the noisy chatter that restaurateurs make attempting to lure guests into their restaurants. While the restaurant business has always been demanding, it’s become more so as a result of COVID -19. The urgency to get the word out has never been stronger than it is today. In my opinion, many restaurateurs have not yet embraced a new way of distributing their message. Traditional forms of advertising restrict the amount of content delivered to the consumer in any one message. I’m convinced that’s one reason why much of the restaurant advertising I hear and see is limited to the safety measures restaurant owners are taking to protect guests and employees. Of course, in this extraordinary time, safety is a tremendous concern for many consumers. However, it’s critical to get more information about your business out to attract customers. It is vital you don’t get lost in the monotony that has become restaurant advertising. Let’s not lose sight of the fact that restaurants provide an essential service and well as an enjoyable experience for their guest. People returning to dine-in restaurants certainly want safety. Still, they also expect great food, service, and a feeling of returning to normalcy.

So, how do you strategically get your brand’s voice out there in a unique way? My recommendation to my clients is to use Public Relations as the method to tell their stories. PR firms specialize in acquiring earned print and digital media coverage. They also employ other digital marketing methods, such as influencers and popular hospitality reviewers, to pique the interest of the new and returning clientele. It’s this third party, “validation” that sets you apart from basic self-serving advertising.

Earned Media Increases Visibility

Debra Vilchis, Chief Operating Officer of Fishman Public Relations puts it this way: “A TV segment or online news article where a restaurant owner is interviewed about safety and hygiene measures, including photos or video of the protocols in action, go a long way in calming people’s fears about going out to eat again. The story and video then get posted on the news channel’s website and social media. People head to the restaurant’s website or social media profiles where they find reassuring updates on what the restaurant is doing to keep employees and patrons safe. Our PR agency has been working non-stop reaching out to media on behalf of our restaurant clients since early March about all of these things.”

Whether you hire a PR firm or not, there are many steps a restaurateur can take to increase their visibility. Large franchised restaurant chains and independent operators can look to PR as an alternative or additional tool in their overall marketing strategy. I included a shortlist of methods to consider when using public relations and social media to promote your restaurant or franchise. Addressing customer concerns regarding Covid-19 while creating compelling reasons to visit your restaurant should be the goal when developing a marketing plan.

Add Your Personal Story To The Message

It all begins with telling your story. Every restaurateur, as well as the founder or franchisee of a franchised restaurant, has one. Telling your story can be as simple as talking about what inspired your menu. Are you starting a franchise that serves some of your grandmother’s recipes? Did you decide that you wanted to be a chef or a restaurant owner at a young age? These intriguing memories help you connect with potential customers by making you relatable. Telling your story through an active social media account or press release gives newspapers, websites, and other platforms a starting point. It attracts reporters who may want to put together an article or review about your restaurant. [1]

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Take Advantage Of Social Media Outlets

When it comes to connecting with customers, nothing works quite like social media. Your restaurant needs to have a complete and active profile on all the platforms, including Facebook, Twitter, and Instagram. Plus, you need to ensure that your Google profile is accurate and compelling. The first thing many customers will do upon learning about your restaurant is to check out your social media presence. They’ll expect to see reviews, sample menus, pictures, and more. Social media is the most influential type of message distribution because it allows you to attract new customers with very little time, effort, and money.

Make Sure You Have News To Share

Another essential public relations method involves staying relevant and continuously having news to share. People like to be “in the know!” Wondering what’s deemed newsworthy and what isn’t? Well, are you opening a new location or franchising your restaurant? That’s news! Are you donating a portion of your proceeds to a specific charity, like a local food bank? That’s news! Are you sending out some of your wait staff or line cooks to help serve meals in a homeless shelter?.[2]

Regarding newsworthy and engaging customer information, Vilchis added: “If you think about it, consumers had little else to do than consume media 24/7, especially during the early stages of the pandemic. Smart restaurant brands and operators leveraged the opportunity to get the word out about their delivery & takeout options, safety measures they were taking, and their reopening plans. Some also did a great job of promoting goodwill to help frontline workers with free meals. Those acts of kindness went a long way with their customers. Some of our restaurant clients used PR during the pandemic to offer cooking tips or recipes – any way they could remain connected with their customers. Or they offered expertise on eating habits during the pandemic. The idea was they became a resource that news outlets wanted to turn to for information while mentioning their restaurant name on air or in print/online. It became a win-win for everyone.”

Use Influencers And Reviewers To Your Advantage

When it comes to advertising and public relations, there’s nothing quite like a 5-star review posted on social media by a local influencer. So, where do you start? Compose a list of these essential influencers and local restaurant reviewers, whom you can invite to your restaurant for a special “influencer night.” Influencers love to be wined, dined, and recognized. This event gives you a chance to ensure they receive impeccable service, an exclusive interior look, and savory food. In exchange, your restaurant will end up trending on social media, drawing in the highly coveted attention of potential customers.[3]

PR Builds Trust And Success

It should be clear that there are plenty of ways to utilize public relations and social media to build trust and attract loyal customers. Credibility, authenticity, and creativity are essential to the restaurant industry’s survival and future success, using public relations strategies to keep your restaurant’s name in the media will set you apart from the steady, mundane drumbeat of traditional advertising.

Sources:

THE RESTAURANT TIMES
‍PR for Restaurants: How To Publicize Your Restaurants

PR for Restaurants: How To Publicize Your Restaurant

GOURMET MARKETING
Utilizing PR in The Restaurant Industry |https://www.gourmetmarketing.net/utilizing-pr-restaurant-industry/‍PR for Restaurants: Top Tips and Tricks to use Public Relations to Drive Restaurant Growth

PR for Restaurants: Top Tips and Tricks to use Public Relations to Drive Restaurant Growth

The Human Resource: Engaging the workforce in a crisis

Posted on by Franchise Strategist

As business leaders, it is more critical now to demonstrate strong leadership values and ethics in how you treat your employees and how you create and maintain a life-work balance. That includes the safety and protection of the workforce while building sustainable processes and practices that enable you to continue providing your products and services to your customers and clients.

The Human Resource: Engaging the workforce in a crisis

WARREN COOK

By Warren Cook -President and co-founder of SymbianceHR

The COVID-19 crisis has impacted us all in ways that may take years or a lifetime to reflect upon and understand. As businesses begin to reopen and emerge from the shutdown, our workforce — the employees we value and need to succeed — are emerging from a stay at home lockdown that can be a traumatic experience.

The myriad challenges today include returning to a new normal work environment with changes to working conditions. Those changes include moving from remote locations back to the regular physical office and dealing with the stress of civil unrest, protests or riots, on top of a Covid-19 virus that has no cure, and the risk of death. They all combine to create a traumatic situation for many of the people in our community.

As business leaders, it is more critical now to demonstrate strong leadership values and ethics in how you treat your employees and how you create and maintain a life-work balance. That includes the safety and protection of the workforce while building sustainable processes and practices that enable you to continue providing your products and services to your customers and clients.

Three important considerations as we emerge from the stay-at-home lockdown to support your strategy for success.

Employees will have genuine, valid, and realistic fears and concerns when asked to return to a physical work location. Do not demonstrate a disrespectful attitude or communication style by “ordering” people to return to the work location. Instead, develop a communication strategy and alternative working conditions that allow these concerns to be addressed and resolved collaboratively. Treat all employees fairly and collaborate with them through an interactive process to determine how to achieve a win-win situation for the employee and the business.
The employer, as always, has a legal obligation to provide a safe workplace for their employees. This means following all local, state, and federal guidelines and regulations to meet safety standards in the workplace. This includes but is not limited to social distancing, remote work when possible, disinfecting the worksite, monitoring the health of the staff, and communicating timely and honestly about positive test results in the workforce that require quarantine or migration back to remote working conditions to avoid the spread of the virus.
Establish policies to handle the new work processes and practices and provide training to all people leaders and the employees. Failure to communicate consistently, transparently, and timely with trust, respect and engagement could lead to employee relations issues that you don’t need right now on top of all the other challenges your business is facing.
Remember your obligations to keep certain matters confidential, to protect the rights of your employees, and to ensure their safety while under your management. The more effective you can be as leaders during this crisis, the more evident it will be that you become an employer of choice who treats people with dignity and respect, which leads to community approval and sustainable business success.

Wishing you all good health and safety during these challenging times.
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About Warren Cook
Warren is the President and co-founder of SymbianceHR and provides strategic oversight for service delivery, business operations, and technical guidance on consulting engagements. He is a human resources subject matter expert with over 25 years of experience as a strategic human resources business partner, project manager, and people leader across private and public sectors organizations. Warren is responsible for the strategic planning of all client consulting engagements from initial needs assessment and compliance review through delivery of customized strategic solutions that meet the client’s business goals. He has a proven track record of providing executive coaching and guidance to business leaders and human resource professionals at all levels including the C-Suite of Fortune 100 companies. Warren is also the Chief Talent Officer and cofounder of SymbianceHiRe, a Symbiance company dedicated to providing direct placement talent acquisition services and temporary and contract staffing solutions to the business community. Warren holds a B.S. in Human Resource Management, an MBA in Project Management, and a M.S. in Industrial and Organizational Psychology. Warren is the author of “Applicant Interview Preparation – Practical Coaching for Today.”

Pandemic Spurs Innovation for Small- to Mid-Sized Businesses

Posted on by Franchise Strategist

Set up your business in the right entity and state. Mistakes in formation or taxation can have a lasting negative impact on business growth and viability. Before starting a new business, consider the best structure for asset protection and tax minimization. For example, a limited liability company (LLC) gives business owners time to operate at a loss for the first few months and write off the loss on their individual 1040 forms against other forms of income.

Pandemic spurs innovation for small- to mid-sized businesses

By Brandpoint

(BPT) – As COVID-19 continues to disrupt normal day-to-day operations of small- to mid-sized businesses and nearly half of the U.S. workforce hangs in the balance, employers are taking creative measures to reset their go-to-market strategies and offerings. By changing their operations to meet the demands of their customers, businesses can not only stay relevant but keep their staff employed and thrive in the new economy.

This pandemic offers business owners, investors and solopreneurs the opportunity to take a critical look at their overall business model, offerings and operations and reset the entire business structure, creating new opportunities to serve and prevail. This is the perfect time to explore new legal solutions to the most common business obstacles to help companies preserve and protect their brands and prosper for generations to come. There are great examples of resets happening within many industries.

With the pandemic closing summer camps throughout the country, ACA-accredited Adventure Links, a 23-year-old summer camp in Virginia, has found a way to replace its usual summer adventure camp programs with

The CampCloud(TM) , an experiential online alternative. The company is now offering its virtual camping programs to individuals and employers to assist employees working from home by keeping their kids engaged, learning and delighted all day from virtually anywhere. The program is being offered to other camps as a customizable, online option for their campers.

Ensuring the health and safety of employers when stay-at-home orders are lifted, and business resumes, is critical. Thanks to a team of entrepreneurs, Disinfect & Shield(TM), an FDA-registered, EPA-approved and eco-friendly disinfectant used in surgical suites for the last decade, is now available to businesses worldwide to kill SARS-CoV-2, the virus that causes COVID-19 and other dangerous organisms. It works by creating a permanent anti-microbial shield, preventing the virus from attaching to surfaces where it has been applied without risk to humans, animals or crops. With Disinfect & Shield(TM), employees, customers and visitors can feel safe knowing that their space has been properly disinfected and treated for optimum health and safety.

Clint Coons, founder of Anderson Business Advisors, offers 5 financing and entity creation tips to help entrepreneurs and small business owners:

  1. Know how to use loans: CARES Act loans have specific guidelines like having to use at least 60% of the loan within 24 weeks of receipt for payroll expenses. Concerned that money would dry up, many small business owners applied with no way of utilizing them because their business cannot reopen under the strict guidelines imposed on the industry.
  2. Alternate cash sources: Borrow from a 401(k) or IRA to keep businesses afloat, as it does not need to be paid back for at least 3-6 years. However, pulling money out of a retirement plan comes with some risk, such as if the business does not see profitability, then retirement funds were wasted on a failed business venture.
  3. Beware of increasing liabilities: Because insurance will not cover claims brought under COVID, reopening comes with risk and business owners are wondering how they will operate under strict COVID-19 related guidelines and still make a profit. Now is the time to pivot and reset.
  4. Consider restructuring: Set up your business in the right entity and state. Mistakes in formation or taxation can have a lasting negative impact on business growth and viability. Before starting a new business, consider the best structure for asset protection and tax minimization. For example, a limited liability company (LLC) gives business owners time to operate at a loss for the first few months and write off the loss on their individual 1040 forms against other forms of income. There are different entity funding options with protection ramifications.
  5. Utilize Privacy Shield Protection by creating anonymity with trusts.

COVID-19 has shown that many businesses aren’t prepared for worst-case scenarios and make common mistakes that can affect their ability to grow and borrow money. If approached strategically, small- to medium-sized businesses can take this time to implement changes and help their operations succeed and thrive.