Instill a Sales Building Mentality to Increase Sales
Q: Our quarterly sales are short of budget and prior year. We’re doing a good job inside the four walls, but what can be done to stimulate sales beyond doing a good job?
A: Flat sales have been an issue since the Great Recession for many restaurants. Dining habits have changed, and as long as there is uncertainty in the economy, sales will be in limbo. Though flat sales have been the norm, many operators have enjoyed success in building sales during the last few years. Those that have increased sales keep a focus on the top line to drive the bottom line. One of the best action steps you can take is to build a sales mentality with the entire staff. Sales building is everyone’s responsibility—not just that of the owner and management team. Here are some ideas to consider and implement:
1. Go to the entire staff and congratulate them on their new job—building sales. Hold an all-staff meeting to rally the team around sales building, and show them why it’s important and how they benefit. When I was a server long ago, my average wage was $27/hour. On an annualized basis I would have made $54,000 per year waiting tables had I worked full time. What was expected of me? Do a good job serving the guest and complete my side work. Not much has changed. Here I was making the equivalent of more than $50,000 per year on a full time, annualized basis, and the expectations for me to build sales were nil. Make sales building everyone’s responsibility. Expect each staff member to represent the business wherever they go, and invite people to come to the restaurant.
2. Meet with the leadership team weekly, and discuss sales building ideas and techniques. One good idea per week is 52 good ideas in one year. Imagine if even half worked? Set aside time to discuss the four ways to build sales—increase check average, increase frequency, increase party size and acquire new guests. Charge each person to read, think and see what’s happening in other restaurants, and bring at least one idea per week to the team. Make sales building conversations an expectation and a standard of every leadership team meeting.
3. Use social media actively. Recently, one restaurant company was having trouble making the bills. The owner sent a letter to the community stating, “Unless there is a miracle the restaurant is going to close.” The letter was posted to Facebook and the community rallied, the restaurant received an enormous outpouring of support, especially through social media, and sales tripled overnight. Sales increases were substantial enough for a long enough period of time that the restaurant was saved. That’s powerful. The lesson learned is to get serious about using social media to tell stories and build relationships, increase traffic, create brand awareness and guest loyalty. Make your messages interesting, intriguing and stir the emotion of those receiving your message. Mix up your messaging, and give people a reason to be involved. Simply listing what’s on special today doesn’t instill loyalty; emotion does.
4. Get out in the community. Let the community know the restaurant is active, what’s going on within the restaurant and why dining there is a great idea. In working with some of the best brands and restaurants in the United States, it’s surprising how many potential consumers still don’t know about their restaurants. This is a chronic problem due to the constant churn of local residents, and the only solution is to beat the streets, meet with those who touch many in the community, get involved with area charities and schools and be socially active. Work the community as though your very life and wellbeing depends on it, because it does.
Sales building takes dedicated time, effort and focus. The load is too heavy for one person or small team to carry. Empower the entire team with sales building messages, hold leaders accountable for increasing sales, market smartly through social media and be active in the community; and you’ll see struggling sales become a thing of the past.
For more information on improving profitability and driving performance, contact AMP Services at [email protected]. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm that specializes in helping companies grow profitability.