February has ended and the consumer is still feeling the effects of the increase in the payroll tax and rising gasoline prices. the Commerce Department has reported that personal income plunged 3.6 percent in January, the biggest drop since January 1993. That’s a tough nut for any restaurant to handle.
Now the government has signed into effect “Sequestration”. While the percent decrease in spending may appear to be minimal on the surface, it may not be for many business’s who will feel the ripple effect. In the area where I live, there is a military installation that is the largest employer in the county. The impending cuts that are talking about will have a significant impact on the surrounding community in many ways. From loss of jobs, to curtailed spending by consumers all the way down to the potential impact on real estate values. Yes “Sequester” is real in this part of the world.
If your restaurant is in a community that will be impacted by “Sequestration” be prepared for the future. Now is the time for action in stabilizing your business. Outlined below are a five steps to consider.
- Build your customer community. Utilize event marketing to help create activity and drive traffic.
- Consumers are looking for “Value Meals”. The chains are great at the “2 for$20” offers that represent value.
- Make use of Limited Time Offerings (LTO’S) to offer the consumers variety and improve profit margins with special buys.
- Step up your marketing to drive traffic and build loyalty.
- Analyze your POS Data to find opportunities for growth in your dayparts.
The recommendations above are important for any restaurant to follow to profitably grow their business. While some communities will not be impacted by government actions, each of us are affected by the payroll tax and rising gasoline prices.
For more information on “Driving Traffic For Your Restaurant” please download our white paper.