MARKETING: 59% of Millennials Quit Loyalty Programs
One of the biggest struggles for any restaurant is creating that stickiness that gets guests coming back and becoming regulars. Some restaurants have turned to loyalty programs to help bridge that gap. But building a good loyalty program is hard. According to one study, 59% of Millennials quit loyalty programs. Yikes! So, should you abandon the idea of loyalty programs? Maybe yes. Maybe no. Let’s delve into why they quit and then figure out how to get them to stick around.
DID YOU KNOWS…
Where to get BK’s Impossible Whopper
Burger King is expanding its availability of the Impossible Whopper, it’s plant-based burger from Impossible Meats. Next on the tour: Miami; Columbus, GA; and Montgomery, AL. And we mean a literal tour. BK’s Impossible Whopper Tour includes a tour bus with “games, music, and free swag” to celebrate the new product. What do you do to celebrate your new menu items?
Did a Student Steal KFC for a Year?
KFC is denying these reports, but it’s quickly turning modern day urban legend. The story goes that a 27-year-old student entered KFC stores in South Africa with “smart” clothing and a clipboard, telling employees he worked for KFC HQ and was testing food quality… aka he got free KFC meals for a year. KFC South Africa says the story is false, but the story has already gone viral. This all stemming from a Daily Mail story that was fueled by a rumor.
Next-Gen eGamers are Over 60
We’re pretty relentless about the important eSports and competitive gaming will be for the sports bar industry. Typically, we talk about players as being Millennials and Gen Zers, younger folks who grew up in a video gaming culture. But the Silver Snipers are looking to change that narrow focus. They’re the world’s first senior eSports team.
Why it matters to you: Is the President’s trade war going to affect your business?
You can’t really look at the news recently and not read about the raging trade war with China. While it all may seem distant, it appears our industry will not be spared an impact from this latest escalation. Business Insider astutely described in December how the Fed’s own Beige Book (a review of the impacts of monetary policy) pointed to restaurants as being impacted by the failed trade negotiations between the US and China. This happens as prices for goods produced in China increase in cost by the imposition of a tariff (essentially an import tax). Much has been made about who pays these tariffs and, according to the Federal Reserve’s analysis, ultimately it might be you.
Think about how many of the products you rely on are made in China. The list is literally too long to recount, but just a quick review of your operations items -- like glassware, carryout containers and cleaning supplies -- and you can see how those tariffs may impact your business. Oh and don’t think it won’t impact food cost as well. Costs associated with farming alone have skyrocketed due to the trade tariffs and we may see those also passed on to you in your consumable costs. While there isn’t much you can do to defer those expenses, you do have a voice. Reach out to your local congressional representative and ask them what they are doing to make sure your restaurant isn’t adversely impacted by a foreign trade war.
[Source: Business Insider]
TO YOUR HEALTH…COSTS
Why it matters to you: Joining the NRA could lower your insurance costs
Health insurance costs have skyrocketed over the past five years as the ACA has settled into a reality for all business owners. If you don’t already know, the ACA (aka Obamacare) requires employers with more than 50 on staff to offer health insurance to their team. However, the fact that few of you have that many team members hasn’t stopped many of you from offering insurance. Unfortunately, that is a very expensive enterprise, especially if you are supplementing those that opt into your insurance plan. The problem is that as an SMB (small to medium business) you don’t have the buying power of a large group or association. But, in fact, you actually do. That buying power is provided by National Restaurant Association (NRA) and their local affiliates.
If you are looking for a cheaper way to provide this powerful benefit to your staff, then you should consider that membership in the NRA will allow you to buy your insurance from their program. Thus, you will reduce your costs and even be able to expand the coverage you make available to your staff.
It’s a simple math problem. If NRA membership doesn’t save you more than the cost of joining then it’s not worth the time. However, as these restaurant operators have observed, you can reduce the cost of insurance for yourself and your team more than joining the NRA, then it’s a no brainer. Isn’t reviewing that possibility worth a few minutes of your time? And no, the NRA doesn’t advertise with us, but we do believe anything that can reduce your expenses merits us alerting you.
[Source: National Restaurant Association]