| 1. Successful Independents work ON not IN their | | | | themselves if they are already doing all they can |
| BusinessesAlmost without exception, highly | | | | to maximize the sales and profitability in their |
| successful independent restaurants today are | | | | existing operation. |
| owned by people who spend most of their time | | | | 7. Successful Independents Keep a Running |
| managing their business versus running the | | | | Inventory on Key Products |
| restaurant. This trait can be summed up by one | | | | There are endless ways to lose money in the |
| successful operator who said "I don't cook. It's | | | | restaurant business and one of the most |
| my job to work on the systems." | | | | vulnerable areas for squandering big dollars is in |
| 2. Successful Independents Build a Customer | | | | dealing with food. Potential profits are lost due to |
| Database and Use it for MarketingRestaurants | | | | spoilage, theft, over-portioning, waste, unrecorded |
| today – even ones with outstanding food and | | | | sales and a host of other reasons. Most highly |
| service – must actively market their | | | | successful restaurants recognize this and are very |
| restaurants to be successful. Many highly | | | | deliberate and diligent in making the most of their |
| successful operators market using a customer | | | | food cost dollars, and one of the best ways to do |
| database. Then they use this database to | | | | this is by maintaining a perpetual, running inventory |
| promote many different types of events and | | | | of certain, key products. |
| offers to their guests. | | | | 8. Successful Independents Engage in a Prime |
| 3. Successful Independents Send out a Customer | | | | Vendor Relationship |
| Newsletter Every MonthThis marketing activity is | | | | Research has shown that prime vendor |
| related to the use of a customer database | | | | programs, the practice of buying a large portion |
| discussed above. Many operators claim that the | | | | of food and certain supplies from one broad line |
| most effective way consistently to increase their | | | | supplier, is much more common in more highly |
| guest counts, sales and profit has been through a | | | | profitable restaurants than it is in marginally |
| monthly, mailed customer newsletter. Sending out | | | | successful ones. While one-stop shopping, as it's |
| a physical newsletter each month appears to | | | | sometimes referred to, is no panacea, in most |
| increase the odds that a restaurant stays "top of | | | | cases consolidating the majority of purchases with |
| mind" and gets remembered and therefore | | | | one supplier tends to offer the opportunity to |
| chosen more often. Customer newsletters not | | | | lower ‘overall' food prices and costs, among |
| only keep a restaurant's name in front of its | | | | other things. |
| customers, but it can help create personal | | | | 9. Successful Independents Make Hospitality the |
| connections with them, too. | | | | Goal, Not Just Good ServiceCustomer service |
| 4. Successful Independents Know Their Numbers | | | | deals primarily with the mechanical aspects of |
| Almost without exception, the most successful | | | | getting customers what they want. Instead of |
| independent operators today not only deliver a | | | | just delivering good customer service, your goal |
| quality dining experiences for their customers, but | | | | should be to provide "hospitality." As one |
| also keep a constant watch on the financial | | | | successful operator put it, "You can get serviced |
| performance of their restaurant. In other words, | | | | from a vending machine, but only caring people |
| "If you don't know your numbers, you don't know | | | | can deliver hospitality." |
| your business." Stated another way, one operator | | | | 10. Successful Independents Don't Compete on |
| said "If I waited until the end of the month to | | | | PriceThe best run restaurants typically don't |
| know how my restaurant was doing it would be | | | | compete on price, they compete on quality and |
| too late." | | | | value. While most operator are sensitive to their |
| 5. Successful Independents are Good BossesWhile | | | | customers' desire for a good deal and value, the |
| operating a restaurant is about dealing with food, | | | | most successful realize that price is rarely the No. |
| finances, marketing and a host of other factors, | | | | 1 criteria people use to choose a restaurant. After |
| fundamentally, the business – like many – | | | | customers leave your restaurant, they rarely |
| is about people. In restaurants, the frontline staff | | | | remember exactly what they spent, but they do |
| has 99 percent of the customer contacts and | | | | remember whether they liked it. |
| performs 99 percent of the functions that cause | | | | Excerpted from Jim Laube, The 10 Common |
| a guest to either have a great dining experience | | | | Practices of Highly Successful Independent |
| or a lousy one. Sharp operators recognize this | | | | Restaurants |
| fact and many go out of their way to create a | | | | If you are a restaurateur thinking about ways to |
| positive working environment in which everyone is | | | | increase sales, increasing marketing, making capital |
| respected and employees feel good not just | | | | expenditures, or otherwise investing in your |
| about their jobs but about the people they work | | | | business and looking for a restaurant loan, try |
| for, too. | | | | Advance Restaurant Finance, LLC (ARF). ARF has |
| 6. Successful Independents Grow Profits Before | | | | been making short term business loans to |
| Growing UnitsOne of the most seductive | | | | restaurants for almost a decade. Despite the |
| occupational hazards of owning one successful | | | | economy, ARF never stopped making business |
| restaurant is to assume that the easiest way to | | | | loans to restaurants, and ARF makes restaurant |
| double your income is to simply open a second | | | | loans up to $1,000,000 per location. If you are |
| one. While this isn't always the case, premature or | | | | looking for a restaurant loan, ARF is one of the |
| ill-conceived growth has led to the downfall of | | | | first calls you should make. ARF is made up of |
| many successful single-unit independent | | | | hospitality experts with financial products tailored |
| restaurants that began to struggle or even fail | | | | to fit your needs delivered by your own personal |
| after opening a second restaurant. When you | | | | banking team with no surprises and with over 10 |
| consider the time, resources and financial | | | | years in business, you know we will be here when |
| exposure that comes with opening a second | | | | you need us. |
| restaurant, many operators should first ask | | | | |