MARKETING: 3 Ways a Loyalty Program Can Boost Your Restaurant’s Revenue
While not all loyalty programs are created equal, a well-structured loyalty program can be highly effective in turning your empty tables into full ones. It aims to encourage repeat transactions by rewarding customers for returning time and time again. And, according to the 2018 Bond Brand Loyalty Report, it works. Here’s how.
DID YOU KNOWS…
DirecTV for Sale?
Elliot Management is a hedge fund founded by billionaire Paul Singer and owns a $3.2 billion stake in AT&T. This was revealed along with a length letter in which Singer outlines why AT&T is underperforming and what he’d like to see differently – including selling DirecTV and regional sports networks. But with AT&T such a large company, will Singer’s pleas go unheard?
Where Elementary Teachers Make the Most
In 2017, a U.S. elementary school teacher could expect to earn an average starting salary of $39,138, a rate of pay that's higher than many other developed countries worldwide. That's according to OECD data which shows that 15 years down the line, U.S. elementary school teachers can expect to earn just over $61,000 per year on average. Teachers plying their trade in the small nation of Luxembourg earn the most bucks by far, however, with new staff members taking home just over $70,000 and their more experienced colleagues making an impressive $102,500.
Manchester City Have Their First Billion Euro Squad
New data released by the CIES Football Observatory shows that Manchester City have now become the first soccer team to assemble a billion euro squad. City have been splashing the cash since they were taken over by the Abu Dhabi group back in 2008 and they have now splurged €1.014 billion on a host of players like Sergio Agüero, Kevin De Bruyne, and Raheem Sterling. Paris St-Germain come second in the spending league with a squad value of €913 million. Despite the extravagant spending of both Man City and PSG, both clubs have notably failed to win the Champions League.
Why it matters to you: What would make your entire staff walkout?
A restaurant in upstate New York received the death penalty last week. Not from the state, but from their entire staff finally giving up on the owner and his indifference to their circumstances. This story is a masterclass in how NOT TO treat the people who work for you, especially when the problems are related to their payroll. Yes, you heard that right -- payroll. It turns out that the company employed by Ken Blodgett of The Shop in Troy, NY went out of business. On their way out the door, they did auto-withdrew as many as two payroll checks from the accounts of those serviced via auto-deposit. Now, as an owner, you’d think it might make sense to address this issue, but Blodgett just couldn’t be bothered, a reality made even worse by the fact that he developed and lived in the building where the restaurant resided.
It turns out that not only was he not willing to make his employees whole, but he didn’t even want to interact with them. If you are looking for an example of failed leadership, look no further. Blodgett is endemic to an issue our industry needs to desperately improve upon -- leadership. He could have easily commiserated with them and closed the restaurant in an orderly manner, but instead he hid and the employees finally chose to walk away. We just can’t imagine a less humane or empathetic response. Sure, having enough money to open a restaurant doesn’t mean you are a leader, but if you want to succeed you either learn how or run the risk that your staff will give up on you. It might not lead to a mass walk out, but it will likely result in a poor performing operation that doesn’t every reach its potential.
[Source: Albany Times-Union]
GOLD TO GLASS [Song]
Why it matters to you: If a recession is imminent, then now is the time to act.
We hate to keep harping on this, but the signs in the economy continue to reflect some rough times on the horizon. Starting last week with the Bureau of Labor Statistics jobs report that came in under projection and significantly less than industry expectations, and then add to it a round of tariffs for the Trump Administration’s trade war that are aimed squarely at consumer spending, and it sure doesn’t look any better than our previous observations. A sampling of the tariff items include clothes, shoes, holiday items, and personal care products. If that doesn’t take disposable income directly away from our industry, we can’t imagine what will. As a business person, you must take seriously the consequences of these tariffs to your business and start preparing.
While we don’t have all the answers, this article is decent place to get started. It includes advice on items you should consider addressing as the prospect of less spending by consumers or even a full blow recession bloom. One way to address it is to begin marketing specials and price opportunities for loyal guests. It’s the 80/20 rule and those 20% of your guests that deliver 80% of your profit demand you support them when things get dicey in the economy. You can also start putting away some valuable cash reserves. This is especially true if you are still experiencing growth. Of course, if we do hit a recession there will be hard times, but leaders that anticipate those hard times always seem to fare better than those that stick their heads in the sand and hope it all just goes away.