Entrepreneur

A Tale of Four Failed Restaurants

A Tale of Four Failed Restaurants
What is the most compelling thing about your business from your customers' perspective? Is it remarkable?

I visited my home town recently and noticed that four, fairly-new restaurants were out of business. Restaurants going out of business is certainly not news--it happens all the time--but these four should have survived and thrived, but didn't.

Case #1: Joe's Crab Shack. Located at perhaps the busiest intersection in the area, Joe's opened just two or three years ago. Joe's is a chain of restaurants. As the name suggests, they serve crab and other seafood in a fish camp atmosphere.

Case #2: Lucky Buns. I believe this was a local entrepreneur's project. Built a beautiful building (see picture) on a nice busy street near a freeway off-ramp. The food was hamburgers and ice cream.

Case #3: Chevy's. Also seemed to have a great location and built a nice building. Chevy's is part of a chain and serves Mexican food.

Case #4: Juanita's. Another Mexican restaurant. Pretty good location in a busy commercial center. They built a very nice building to provide that "old Mexico" feel.

All four restaurants opened with great fanfare and significant crowds. Within a few years they were all closed. Why? I have no inside information. I haven't talked to the owners or any one else, but I have a hunch. In addition to remarkable facilities, good locations, and plenty of publicity they all had one significant thing in common: mediocre food.

I lived in the area when all four restaurants opened. I ate at three of the four exactly once. I never ate at the fourth because I had friends that did and told me it wasn't that great. In the restaurant business location and atmosphere may bring them in, but it is the food that brings them back.

How does it apply if you are not in the restaurant business? Make sure you know what will bring your customers back and then focus on making that aspect of your business remarkable, the rest will take care of itself.

Get customer feedback, generate referrals, and increase repeat sales for as little as $150 a month. Learn more

Will Your Customers Carry a Cello?

Will Your Customers Carry a Cello?

I read recently about a musician--a cello player to be exact--that moved to New York City. She didn't know anyone in the city and was looking for opportunities to play her cello. Her solution? She carried her cello around the streets of New York with her wherever she went--whether she needed it or not. It didn't take long before other musicians introduced themselves and she was given opportunities to play.

That got me to thinking, what could I carry around to let people know what I do? Even more powerful, what would my promoting customers be willing to carry around to let others know how they feel about my business?

You work hard to make sure your customers are happy. Don't waste happy customers. How easy is it for your customers to share with their friends? Learn more

Come to the Carnival this summer and win 12 free months of PromoterZ™!

Come to the Carnival this summer and win 12 free months of PromoterZ™!

What says summer more than traveling carnivals? Cotton candy, hot dogs, rides that go around and around until you puke! Does life get any better than that? I submit that it cannot!

The blog world has a few traveling carnivals of their own and over the next few months we've been asked to host several. We haven't figured out how to deliver cotton candy online yet, but to make it interesting we're going to include a chance to win--remember the baseball throw, the ring toss, and the shooting gallery? So step right up Ladies and Gentleman! A winner at every carnival!

Here's how it works. Each time we host a carnival (see schedule below) we will choose a visitor to win 12 free months of PromoterZ™ service ($600 value). To participate, click on this link and then come to the carnival. We'll announce the PromoterZ™ winner along with the posts chosen to be in the carnival.

Don't know what a blog carnival is? It's like a traveling roadshow. The host chooses what they consider to be the best posts of the week from the blogs that submit posts and include a few editorial remarks. For the reader it is a great way to see the latest and greatest without having to hit every blog. For bloggers, it is a good way to increase exposure. Here are the Carnivals we've been asked to host:

Carnival of Entrepreneurship July 6th
Carnival of Business July 24th
Carnival of Marketing August 6th and 13th

Don't forget to sign up and submit your posts. Bring your friends and remember it is BYOCF.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

The Power of Staying in Touch

The Power of Staying in Touch

In the cluttered marketplace we compete in, I don't think the power (and necessity) of staying in touch can be overemphasized. I learned the lesson again last week--thankfully in a good way. It had been a while since I had heard from one of our clients at PromoterZ and so I sent him an email and invited him to go to lunch. We had a nice chat, I asked for feedback on our service and he had a few suggestions (I'm happy to note that we followed through on them). I ran a new idea we're working on past him. He liked the idea and agreed to let us test it with his customers. Then he mentioned that their franchising operation is taking off (looking for a good franchise opportunity? Check out Entrees Made Easy) and there might be an opportunity for me to tell some of their new franchisees about PromoterZ. Turns out the timing was perfect, and I'm scheduled to present to some of their new franchisees next week on how to turn customers into promoters.

So what did I get for my $30? Our product, PromoterZ, is now better thanks to his feedback, we have a place to test our new concept (more on that in future posts), and I have the opportunity to tell new franchise owners how much PromoterZ has helped Entrees Made Easy. Where else could I have got that kind of return on my money? Thanks Brandon!

They say it costs 5 to 10 times more to sell to new customers than it does to sell more to current customers, and yet what percent of our effort is spent looking for new customers vs. pleasing and staying in touch with our current customers? I was able to take Brandon to lunch, but that is not always geographically possible. A phone call works great. It can be as simple as, "how are things going?" Use technology where you can. Without exception, each time we send out our newsletter we get one or two phone calls from customers--they had been meaning to call but never got around to it until the newsletter arrived in their inbox. Here are a few other ideas:

• Send 1st timer customers a special thank you
• Send birthday greetings
• Send a newsletter
• Send Holiday greetings (Did you know today is Chocolate Eclair Day?)
• Send thank you notes

Finding new customers is tough and expensive. Once you've got a customer, hold on to them by staying in touch. I can guarantee you if you don't, somebody else will.

Are You Holding Your Bathroom for Ransom?

Are You Holding Your Bathroom for Ransom?

I was on the road over the weekend and found the stupid business idea of the week--no make that century. Driving on the interstate to Flagstaff, Arizona (beautiful place if you have never been there) and needed to stop for a bio break. Sign on the business establishment's front door: "Our Bathrooms are for Paying Customers Only!"

Now I know exactly where that sign came from. An employee, maybe the manager, maybe even the owner got tired of trying to keep the bathroom clean and seeing people walk in and out without buying anything. Simple conclusion and solution: "No more free loaders! The bathroom is a benefit reserved only for those people that buy! Toilet paper doesn't grow on trees! Let's get a sign up, that will save us some money and some time!" So up goes the sign telling potential customers that they are an annoyance and if they want relief, they've got to pay.

I would love to compete with the guy that made that decision. I'd make my bathrooms glisten and smell of sweet things. I'd hire a teenager to stand outside the bathroom door and hand road-weary travelers a warm towelette to refresh themselves. I'd invest in some big signs on the interstate that say "Come use our sweet smelling bathrooms--absolutely free!" Then I'd sit back and watch my suppliers try to keep up with the demand.

Would some travelers come and go without buying anything? Sure, but I would smile and thank them for using my bathroom. Why? Because I know there is no way they are going to be able to keep my remarkable bathroom a secret. When a person asks how their trip went, they are going to say, "It was long, but we found the greatest place to stop. They actually give you a warm towlette and then they thanked us for using their bathroom--and we didn't even buy anything!" And when it is time to make the return trip, where do you think they are going to stop? At my remarkable sweet-smelling bathroom and chances are this time they are going to buy a tank of gas, a bag of jerky, and a 32 oz soda!

Here is the point, whether your business is on the interstate, the internet or any location in between, the name of the game is traffic. The more people that walk through your door, the more you are going to sell. The best way to build traffic is not to hold free services for ransom. Have you ever seen anyone happy after paying a ransom--even if they get what was promised? No! More likely they feel violated and manipulated. So don't do it! Be the good guy and make more money at the same time. If you've got something free and remarkable you can offer, don't hold it ransom, get it out in front and use it to get more customers to walk through your door then make sure they have a remarkable experience. Soon your sweet-smelling bathroom will be world famous...

You work hard to make sure your customers are happy. Don't waste happy customers. How easy is it for your customers to share with their friends? Learn more
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