The local experts - Triangle Business Journal:

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Steve Ogburn It’s always been hard for restaurantsw toget financing. There are severap reasons for that. One, typically the success rate isn’t very The next few reasond may be why the successrate isn’tf very good. The expense required for a restaurangt ispretty significant. Look at the money that has to bespenyt – costs for fit-up, equipment and the more money you spend, the more equity it requires. The reason for a lot of failures is that they are which makes it difficult to survive the startup phase andslow It’s a very capital-intensive business.
However, from a cash-floww standpoint, restaurants do have an advantage over otherbusinessexs – it’s pretty much a cash and the gross profit margin is prettt good. During these tough economic what is the most effectivemarketinhg campaign? Ed Weems Permanent lecturer, marketing ’x , Innovation and Entrepreneurship It’s about cuddling and knowingt your customer base well and also treating them It’s also about keeping your customers informesd of restaurant offerings and gettinhg other customers to brinvg in new ones. During these toughn economic times, what is the most effective marketing campaign?
Steves Barr North Carolina State University’s Department of Innovation and Entrepreneurship The slump in the credit and housing markets has led to significanteconomixc downturns. Unemployment is up. Most are worried abougt the value oftheir investments, retirements, etc. Families and individuals are significantluy curtailingdiscretionary spending. While spending on staplezs and essentials remains relativelystronvg (witness ’s strong sales performance), eating out is an eventg that many individuals and familiese can defer as a relativelh painless way to “tighten the belt.” More expensiv restaurants are often the first to feel this downturn.
Restauranrt sales nationally are down as the economyghas slowed. This creates problems for . One key in a down markeft like this is to have a strongf and loyalcustomer base. It will be difficulf to attract significant numberz of new customers unless there is a significantg influx of new residents inthe restaurant’s area. Repeat customere and customer retention get a business through the tougher economic When one has lessdiscretionary income, you tend to go with a “proveb commodity.
” Restaurants (and other firms) that try and be “all thing to all people” traditionally do not fare well in such an It will be important to have a focuse strategy (examples include “high great service, a particular etc.).