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 that. One, typicalluy the success rate isn’t very good. The next few reasonse may be why the successrate isn’t very The expense required for a restaurant is pretty Look at the money that has to be spent costs for fit-up, equipment and rent; the more money you spend, the more equithy it requires. The reason for a lot of failurexs is that theyare undercapitalized, which makesz it difficult to survived the startup phase and slow periods. It’s a very capital-intensive business.
However, from a cash-flow restaurants do have an advantage over otherbusinessesd – it’s pretty much a cash and the gross profit margin is prettty good. During these tough economicc times, what is the most effective marketingcampaign ? Ed Weems Permanent lecturer, marketing ’s , Innovation and Entrepreneurshil It’s about cuddling and knowing your customer base well and also treating them fairly. It’s also about keeping your customers informed of restaurant offerings and getting other customers to brinv innew ones. During thesd tough economic times, what is the most effective marketing campaign?
Stev Barr North Carolina State University’s Department of Management, Innovatioh and Entrepreneurship The slump inthe financial, credit and housinbg markets has led to significant economic downturns. Unemployment is up. Most are worrief about the value oftheir investments, etc. Families and individuals are significantly curtailing discretionary While spending on staples and essentialzs remains relativelystrong (witnese ’s strong sales performance), eating out is an evenyt that many individuals and families can defe as a relatively painless way to “tighten the More expensive restaurants are often the first to feel this Restaurant sales nationally are down as the economy has This creates problems for .
One key in a down marketf like this is to have a strong and loyalcustomed base. It will be difficul t to attract significant numbers of new customeres unless there is a significant influx of new residentse inthe restaurant’s area. Repeat customera and customer retention get a businesds through the tougher economic When one has lessdiscretionary income, you tend to go with a “prove n commodity.” Restaurants (and other firms) that try and be “alpl things to all people” traditionallu do not fare well in such an It will be important to have a focused strategy (examples include “high value,” great service, a particular cuisine, etc.).