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Who Are Your Restaurant's Best Friends?

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Who are your restaurant's best friends? Knowing this can help
you boost your restaurant's profits. 


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539 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2007-12-27 10:24:00

Written By:     Rudy Vener
Copyright:      2007
Contact Email:  mailto:[EMAIL PROTECTED]


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Who Are Your Restaurant's Best Friends?
Copyright (c) 2007 Rudy Vener
Pizza Galaxy
http://www.pizzagalaxy.com



Have you taken a good look at your customers lately? Look around
your restaurant's dining room and take out counter tonight. How
many people do you recognize? Are there many new faces? Do you
know how many have been here once before, twice before, or are
old friends who come back again and again?

Knowing how many of your guests are frequent, occasional or first
timers is important. Why? Because this knowledge can help you
increase your profits.

One of my clients, a Pennsylvania restaurant, has 224 customers
who have ordered online 894 times in the past 10 months, and
spent $18,326.

Let's take a closer look at those customers.

134 of them placed only one order during the 10 month period.
They accounted for $2,393 in online sales.

That's 60 percent of the customers who generated only 13 percent
of the sales. At the other extreme, the top 44 customers placed
637 orders totaling $13,232.

That's 20 percent of the customers generating 72 percent of the
sales.

Looking even closer, we found that only 10 of those customers
ordered more than 20 times during the 10 month period. Their
frequency ranged from 21 to 60 times.

Those top 10 customers were responsible for 40 percent of all
online sales. That's 4 percent of the customers who made 40
percent of sales! This pattern repeats itself over and over again
with different restaurants.

A very small subset of customers provide the bulk of revenue.
These very frequent customers are your restaurant's best
friends. With this in mind, ask yourself just two questions: 

1. How hard is it to bring someone to your restaurant for the
first time?

2. How hard is it to bring a customer back for the 10th time?

If you answered Very Hard and Very Easy in that order, give
yourself 100 percent.

A customer who has visited you 9 times already, obviously likes
your food, your service and feels comfortable visiting your
restaurant. So what? Many restaurants focus only on attracting
new customers.

It is at least as important to bring customers back again and
again. Some of your marketing budget should be reserved for just
this purpose.

Providing top quality food, friendly service and a congenial
atmosphere will certainly help bring customers back. But is that
enough? No! In reality people need to be reminded, they need to
be encouraged, they need just that slightest nudge to help them
recall what a great meal they had from your restaurant and to
give them some excuse to repeat the experience.

That's what marketing is all about. That's why restaurants with
an active marketing program that reaches out to existing
customers do so well. Your mission, should you decide to accept
it. is to convert as many first time customers into occasional or
frequent customers as you possibly can.

Get one of your 60 first timers to come back a second time, then
a third, then a fourth.

And remember, every time you see a new face sitting at one of
your tables or collecting takeout from your counter, keep in mind
that this may be the one in a hundred customer who is going to
dine with you six times a month, and treat him accordingly.




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Rudy Vener is the president and founder of Pizza Galaxy. fFind 
out how  your restaurant can increase profits and reduce costs 
with online ordering and Internet marketing, get this free 
report: The Top 7 Ways for Restaurants to get Customers Online. 
It is available at http://www.pizzagalaxy.com/free-report.html


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