How restaurants can increase sales in their existing locations
The advice from two restaurant managers, meeting in Salt Lake City, points to consistency and customer experience rather than discounts.
“You have to be careful with discounting because that’s not value. Value these days is portion size, quality, do I feel good about what I’m spending for what I’m getting? It’s not how cheap I can get it,”
Comparable sales in the sector have been uneven, particularly in an environment dominated by low prices. Rob Ertmann, CEO of Mo'Bettahs, sums it up this way: "You don't need to be clever, you just need to execute." His chain has achieved 18 consecutive years of comparable sales growth.
These tips emerged from a panel at the Restaurantology event in Salt Lake City, organized by the Savory Fund, with Clay Dover, CEO of Savory, and Arjun Sen, CEO of ZenMango.
Sen focuses on differentiating the restaurant's concept and offering a clearly superior experience, and on communicating this to customers. Ertmann points to consistency, good value for money, and an exceptional experience. "The key to attracting the next customer is winning over the last one who was at your restaurant," Ertmann said.
More and more stores are resorting to discounts, but Sen and Ertmann warn against aggressive ones, except to encourage product trials. "You have to be careful with discounts, because that's not value," Ertmann stated. Sen suggests, for example, discounting $5 from a $50 purchase so the customer sees the full-price product's value. He cautions, however, that if this is done regularly, it becomes difficult to break the cycle.
Mo'Bettahs encourages repeat visits with its loyalty program, but the key lies in the customer experience. "Inconsistency is what kills regular customers," said Ertmann. Sen recommends reminding employees that their work is based on emotions: "If I can create that emotional connection with a customer, they'll come back tomorrow."
Growing up, both executives have seen their relationships shift from knowing all the general managers and their families to becoming less connected. Ertmann believes the challenge is for each team member to pass on the brand's spirit to the next group. Dover compares it to children: when you lose the people who care as much as you do, that's when the challenge begins.
Sen insists on getting out into the field: "Everything gets resolved in restaurants. Nothing's going to get resolved in the boardroom."
When asked about the next quarter, Ertmann warns that quick-fix strategies often rely on discounts or gimmicks that don't lead to long-term growth. "Invest in people so they can provide the expertise that will deliver long-term benefits."
