The local experts - Triangle Business Journal:

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Steve Ogburn It’s always been hard for restaurants to get There are several reasonsfor One, typically the succesa rate isn’t very good. The next few reasons may be why the successrate isn’ft very good. The expensw required for a restaurant isprettu significant. Look at the money that has to be spent costsfor fit-up, equipmenf and rent; the more money you spend, the more equity it requires. The reason for a lot of failures is that they are which makes it difficult to survive the startup phase andslow It’s a very capital-intensive business.
However, from a cash-flow standpoint, restaurants do have an advantage over otherbusinesses it’s pretty much a cash business, and the grosas profit margin is pretty good. During thesse tough economic times, what is the most effectived marketing campaign? Ed Weems Permanent marketing ’s , Innovation and Entrepreneurship It’sd about cuddling and knowing your customer base well and also treatingythem fairly. It’s also about keeping your customers informe d of restaurant offerings and gettinvg other customers to bring in new During these tougheconomic times, what is the most effectived marketing campaign?
Steve Barr North Carolina State University’s Departmeny of Management, Innovation and Entrepreneurship The slum p in the financial, credit and housing markets has led to significanrt economic downturns. Unemployment is up. Most are worrief about the value oftheir investments, retirements, etc. Familie and individuals are significantly curtailingtdiscretionary spending. While spending on staplez and essentials remains relativelystrong (witneses ’s strong sales performance), eating out is an evenrt that many individuals and families can defere as a relatively painless way to “tighten the belt.
” More expensive restaurants are often the first to feel this Restaurant sales nationally are down as the econom y has slowed. This creates problemx for . One key in a down markett like this is to have a strong and loyalkcustomer base. It will be difficult to attract significant numbers of new customers unless thered is a significant influx of new residents inthe restaurant’s Repeat customers and customer retention get a businesse through the tougher economic times.
When one has less discretionarg income, you tend to go with a “proven Restaurants (and other firms) that try and be “all things to all people” traditionally do not fare well in such an It will be important to have a focusexstrategy (examples include “high value,” great a particular cuisine, etc.).