Restaurant Chains Keep Guests Coming Back
A panel of restaurant company CEOs at the National Restaurant Association Show in Chicago discusses getting customers in the door and keeping them coming back.
By Adam Kirby, Contributing Editor -- Chain Leader, 5/19/2009 3:30:00 PM
The hardest part about the restaurant business is getting customers in the door. So do whatever it takes to get them there, but just as importantly, do whatever it takes to ensure they come back.
That is the consensus of a panel of restaurant company CEOs at the National Restaurant Association Show in Chicago.
At the fast-casual restaurant chain Go Roma, it is the responsibility of all staff members to make sure the guest gives the restaurants a second chance, says President Jeff Drake. If the dining experience is flawless, which is obviously ideal, then no worries. But if something goes wrong, it is up to servers and mangers alike to engage the guest and make it right.
Appreciation and Communication
The customer-retention philosophy of Jeff Sinelli, CEO of the quick-service sandwich concept Which Wich, centers on a simple two-word phrase: Thank you. Sinelli encourages staff to thank guests at every possible turn, be it as a greeting or as a way to diffuse conflict.
"We live in a real thankless world, and those two words can really change the relationship," Sinelli says. "If a customer complains, thank them for it, because it's a chance for us to improve."
Complaints spurred CEO Steve Carley to put his foot down with franchisees of El Pollo Loco. The quick-service chain employs a lot of Spanish-speaking immigrants, and communication issues were cropping up with English-speaking guests. Carley decreed that any guest complaint that reaches his desk would result in a free order-charged to the appropriate franchisee-whether the total is $6 or $600. "That solved the problem right away," he says.
HOT TOPIC |
Check out the Marketing page for more restaurant chain marketing, advertising and brand-building. |
Customer retention is crucial, but so too is customer creation. The CEOs were split about the merits of menu discounting as a ploy to drive initial guest arrivals.
Go Roma is engaged in both value creation and menu discounting, focusing primarily on delivering value and efficiency for families while also doing core discounting via direct mail, Drake says.
But Sam King, CEO of King's Seafood Inc., cautions against discounting. From a customer's perspective, cheaper menu items are akin to addictive drugs like crack cocaine: "Once you start on it, you can't get off it," King says.
Sinelli is vehemently opposed to discounting at his restaurants. A former nightclub owner, Sinelli recalls the time a neighboring establishment offered beer for $1; rather than dropping his own prices, Sinelli let the competition take on the higher volumes while his club made more profits via higher margins.
"Discounting is just painful," he says.
Talkback
Related Content
Related Content
View All Blogs
