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Evaluation of Products
Evaluation must consider:
• Features – specific products/services that a
hospitality operation sells.
• Benefits – advantages or desirable
consequences resulting from the purchase of
a product/service.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.1
Restaurant Pre-Advertising “Self-Evaluation”
Restaurant Name ___________________________Evaluated By ________________
1. The cuisine offered in this restaurant could best be described as________________.
2. The percent of guests consuming their meals on-site is approximately __________%.
3. The service style is best described as ______________________________________.
4. The décor in the restaurant is best described as ______________________________.
5. The three most popular items on the menu are: ______________________________,
__________________________________ and ______________________________.
6. Alcoholic beverage sales make up approximately ___________ % of total revenue.
7. In addition to enjoying the food, guests are likely to be most impressed by its
________________________________ and its ______________________________.
8. Guests would describe the restaurant’s menu prices as (choose one):
 Very inexpensive
 Inexpensive
 Moderate
 Expensive
 Very expensive
9. In this community, the combination of menu items, pricing structure and service
style make this restaurant (choose one):
 One-of-a-kind
 Very unique
 Unique
 Relatively common
 Very common
10. Restaurant descriptors (list at least the top ten):
________________
_____________________ _________________________ ________________
_____________________ _________________________ ________________
_____________________ _________________________ ________________
Descriptor examples: healthy, conveniently located, low cost, elegant, fast, casual, authentic,
lively, friendly, high-quality, great value, upscale, relaxed, cozy, home-style, extensive, gourmet
and fun.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.2
SWOT Analysis
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Strengths
Weaknesses
Opportunities
Threats
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.3
Demographics of Restaurant Guests
Age ___________________________ Education __________________________
Income level ____________________
Married (with children) ________________
Size of family ___________________
Married (no children) _________________
Ethnicity _______________________
Single _____________________________
Geographic location ______________
Widowed __________________________
Price-consciousness _____________
Education __________________________
Hobbies _______________________
Event attendance ____________________
Other: _________________________
Other: _____________________________
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.4
Overview of the Restaurant
Marketing Plan
The marketing plan answers several questions:
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What is to be done?
Who will do it?
When should it be done?
What funding will be required?
How will the results be monitored?
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.5
Sample Monthly Marketing Activities Checklist
Restaurant ________________
Month/Year __________________
Activity
1. Attend Chamber of
Commerce monthly social
Assigned To
Completion Date
Assistant Manager
_______________
2. Place Holiday ad in local
newspapers
General Manager
_______________
3. Train new service staff on
details of three recently
introduced menu items
Executive Chef
_______________
4. Attend meeting of local
restaurant association
General Manager
_______________
5. Revise/update employee
dress code
Assistant Manager
_______________
6. Attend Chili Cook-off
General Manager/Chef
_______________
7. Meet with city Mayor
regarding downtown parking
needs
General Manager
_______________
8. Re-print “Two for One”
coupons
Assistant Manager
_______________
9. Decorate dining room
in Holiday theme
Dining Room Manager
_______________
10. Conduct “Guest of the
Month” business card
drawing/ draft letter to winner
Assistant Manager
_______________
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.6
Restaurant Marketing Costs
Menus, Flyers, and Brochures
 Cost of layout/ design
 Type composition
 Photography
 Engraving
 Printing
NOTE: Many properties eliminate all/some of these costs when they utilize desk-top
publishing features of their computer systems
Media Advertising
 Newspaper
 Magazines
 Outdoor signage
 Dining Guides
 Directories
 Radio
Direct Mail
 Design and production of inserts
 Postage
 Letterhead/ envelopes
Web-based
 Internet connectivity charges
 Website design and hosting charges
 E-mail hosting charges
 Computer equipment purchase and maintenance
Miscellaneous
 Trade shows
 Public relations events
 Matches and other in-restaurant logo items
 Other marketing costs specific to the restaurant
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.7
Sample Page from Restaurant Marketing Plan
March, 200X Marketing Activities:
Monthly Activity # 4:
River Front Chili Cook-Off Participation
What is to be done:
Prepare and serve up to 1000 portions of chili in a city park as a participant in a
chili cooking contest designed to raise money for the local community college’s
Hospitality Management program.
Who will do it:
March 15, 200X
1. Registration for event completed by Manager.
2. Chili production by restaurant Chef.
3. Transportation and actual service of chili by Dining Room Manager assisted by
two servers.
4. Chili service area clean-up and equipment return by restaurant’s Night Manager.
When should it be done: 1.
2.
3.
4.
Register to participate: January, 200X
Prepare chili: March 13-14th.
Transport, serve, clean up: March 15th.
Evaluate results: On-going
What funding will be required:
How to monitor the results:
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
1. Registration fee
2. Cost of Chili
3. Cost of dedicated labor
Total to be budgeted
$ 500.00
$ 950.00
$ 2,250.00
$ 3,700.00
1. Hand out “two-for-one” chili coupons at the booth and count the
coupons redeemed within six months of the contest’s completion.
2. If the restaurant wins a prize in any category, consider promoting
the win with a “Stop In For A Free Sample Of Our Award Winning
Chili!” advertisement. Count the number of guests who take
advantage of the offer.
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.9
Analyzing the Productivity of
Advertisements:
• Run the same ad in two print publications with a unique
mark on the ad/coupon; evaluate the number of
redemptions from both sources.
• Offer a special promotion at two different prices in two
different ad media.
• Advertise a special in only one ad (do not promote
otherwise): count the sales/requests for that item.
• Stop the ad regularly used; determine if sales decrease.
• Measure the difference between pre- and post-advertising
sales of an item.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.10
In-House Sales Techniques
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On-site (exterior) signage
Table tents
Interior signage
Menus
Up-selling tactics
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.11
Selling Alcoholic Beverages
• The days of “buy one and get one free” are gone (or, at least,
the message is not a good one!).
• Effective messages promote the attractiveness of the
business as well as the appeal of the beverage.
• Messages should not relate to the “quantity” of alcohol to be
served.
• Low prices in alcohol advertising must be approached
cautiously.
• Ad should not encourage alcohol consumption by under-age
drinkers.
• All ads must be in compliance with state/local liquor
licensing authorities.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.12
Common Media Alternatives
for Restaurants:
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Print
Radio
Television
Internet
Other alternatives
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.13
Print Media
• Most frequently used form of restaurant
advertising.
• Can be used in newspapers, magazines and
telephone yellow pages and other local
publications.
• Graphics and copy are important considerations
when developing print advertisements.
• To be effective, ads must be placed in a print
medium that will be seen by the desired target
audience, and the ads must catch the readers’
attention.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.14
Radio Advertising
• Specific radio stations target their own customers as
programming choices are made.
• Restaurant managers must determine which radio stations
appeal to the restaurant’s target market.
• When considering radio advertising, consider cost relative
to:
– Market size
– Size of listening audience
– Ad length
– Ad frequency
– Extent to which audience is part of restaurant’s target
market
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.15
Television Advertising
• The rapid expansion of channels yields a larger
number of advertising opportunities at lower
costs.
• It is important to assess the extent to which
proposed channels reach the restaurant’s
intended market.
• Standard TV commercials are 30 seconds long.
• There may be a charge for developing TV
commercials.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.16
The Internet and Restaurant
Advertising
There are three significant uses of the internet
available to restaurant managers:
• Websites
• Links to other appropriate websites
• E-mail capabilities
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.17
Other Alternatives for
Restaurant Advertising
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Billboards
Coupons/coupon books
Dining guides
Sponsorships
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.18
Restaurant Ads Follow the “AIDA” Rule
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A
I
D
A
= ATTENTION
= INTEREST
= DESIRE
= ACTION
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.19
What Causes Good Ads
to Be Ineffective?
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It ran on the wrong day
There are barriers to purchasers
The message is too weak
The ad is too infrequent
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.20
Characteristics of Effective Press Releases
An effective press release:
1. Has the words “FOR IMMEDIATE RELEASE”
printed in capital letters as the first line of the document.
2. Clearly indicates the date the press release is being distributed.
3. Begins with an eye-catching headline that is short yet descriptive.
4. Skips one or two lines after the headline then contains an opening paragraph that
answers the questions:
 Who?
 What?
 Where?
 When?
 Why?
5. Includes a body of text (2-3 paragraphs) that is well-written, interesting and factual.
6. Has been carefully proofed for proper spelling, grammar and punctuation.
7. Contains, at the end of the release, the name, title, telephone number, fax number and
e-mail address of a person to contact for more information about its contents.
8. Is preferably one, but not more than two, pages in length.
9. Is sent (via fax, e-mail or postal service) only to news media sources who can reasonably
make use of the information.
10. Is posted on the restaurant’s web site.
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.21
Marketing Pitfalls
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Over-reaching
Marketing the wrong feature
Over-hyping
Over-dependence on printed advertising
Over-dependence on one ad
Misunderstanding special events
advertising
Restaurant Operations Management: Principles and Practices
Ninemeier/Hayes
© 2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
OH – 5.22