By Habiba Abubakar, The Profit Diva

Copyright © 2005 by Habiba Abubakar and Emprez. All rights reserved.

Note: You are welcome to republish this article as long as you do so in its entirety and the “about the author” bit at the end is included fully and unaltered.

There are many factors that come into play in order to operate a restaurant profitably - the right location, first-class staff training, organized management team, great chef, irresistible menu, reliable suppliers, structured financial systems and marketing that works.

While all of these factors are very important, the one that plays the most important role during the conception phase, planning stages, start-up stages and for the lifetime of your restaurant business is MARKETING.

Gone are the days when all you needed to do was decide the kind of restaurant to open, hire a great chef and wait for customers to flood in.

You can be the best restaurateur in the world, with the best food and greatest service - but if no one knows that your restaurant exists, then you'll soon be out of business.

Your classy interior design, your well-trained staff, and fanciful cutlery will not bring in the customers. Implementing the right marketing strategies is what will get customers through your doors to try your quality food and great service. And that’s why it’s so important to get your marketing right from the beginning.

Management Guru, Peter Drucker sums it up when he said “Because its purpose is to create a customer, the business has two - and only two - functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are costs.”

The same rules apply whether you’re opening a Pizzeria, or an Italian restaurant or a Noodle Bar.

Doing Market Research Is The First Step To Take Before You Do Anything Else

Before you even begin to plan anything and before you spend any money on marketing your restaurant, you must thoroughly research your market.

The findings of your market research will determine the marketing strategies that suit your kind of restaurant and will help you make the right decision about the other factors that are important to the success of your new establishment.

Below are questions you should ask yourself prior to starting your restaurant business. These questions should also form part of your business plan and marketing plan. For help on your marketing plan, go to http://www.restaurantmarketingstrategy.com/special.htm and choose Special Report #4: Discover The Essential Elements Of A Restaurant Marketing Plan And How To Make Your Plan Work

Who is your target market?
You cannot be all things to all people. While you should not turn business away, your marketing budget and efforts should be focused on your target market. Create the profile of your ideal customer. Consider where they work, what they read, what they earn, which associations they belong to, and what their pastime is. By knowing your ideal customer inside out, you’ll know what marketing strategies to use in order to get them through your doors and back again and again.

Who are your competitors?
Competition is actually a good thing because it shows that there’s a market for your type of restaurant. You need to be clear about who your direct competitors and indirect competitors are. You should also keep a close eye on them - what they charge, what they offer, what their customer service is like, how they market their restaurant and so on. Do not compete on price. A customer whose buying decision is solely based on price is usually not a loyal customer. They’ll go elsewhere once they find another restaurant that has lower prices than yours.

What makes you different from your competitors?
This is about your USP (Unique Selling Proposition). Your USP is the statement that communicates the reason why your target market should dine at your restaurant instead of your competitors. You shouldn’t even sign a lease or buy equipment until you know what your USP is! Domino’s Pizza is an example of a business that built its entire operational success on this phrase: “Fresh, hot pizza, delivered to your door in 30 minutes or less, guaranteed.” Notice that the USP is specific and focuses only on benefits that the customer gets. At the time, people used to wait hours for their pizza so Domino’s was solving a problem in the pizza industry. No other competitor at the time promised the same benefit.

What price will the market pay?
If you try to maintain a competitive edge by being the low price leader then you’ll also be perceived as the low value leader. Understanding your target market is important in pricing your food. For example, customers expect to pay more at an Italian restaurant where they’re greeted and seated by a waiter as opposed to a cafeteria.

Four Low-cost Strategies That Will Bring In Your First Customers