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Entrepreneurship

How to Open a $140K/Month Restaurant Business [Video]

For our regular viewers, Don Lucho’s Restaurant and its owner, Carlo Calisea, are familiar names. Today, we’re following up with this popular restaurant to get more of his insights into how to start a restaurant business—and keep it thriving and growing through unexpected challenges.This video is sponsored by Trademark Factory. Get your trademark approved—or get a full refund! Visit: https://trademarkfactory.com/advisors/upflipCarlo started Don Lucho’s as a food truck in 2013, the first Peruvian restaurant business in Seattle. In 2019, they added a brick-and-mortar restaurant and pisco bar. Opening a restaurant is difficult in the best of times and the start of the pandemic in 2020 only added to that, but Carlo and Don Lucho’s rose to the challenge, adding outdoor seating that let them keep growing their revenue. In today’s episode, we’ll dig in deeper with Carlo’s advice on how to open a restaurant that’s built to withstand whatever life throws at it. We’ll learn what he included in his restaurant business plan, and how he’s revised that in the years since opening. Of course, even the best-planned restaurant experiences setbacks. We’ll hear what Carlo is struggling with today and how he’s responding to those to keep his business growing. Rising costs and staffing problems have been consistent concerns across the food industry over the past 2 years, and Carlo will share his strategies for coping with those issues, along with his other tips for starting a restaurant that’s resilient enough to roll with the punches. Anyone wondering how to start a restaurant (and keep it open long-term) will want to hear Carlo’s advice! You can find out more about Don Lucho’s online at https://www.donluchosinseattle.com/.Looking for more advice on starting a business? You’ll find it on the UpFlip blog: https://www.upflip.com/blog.Check out our podcast https://www.upflip.com/podcast, where you get to unravel how great businesses are built.And make sure you check out our past interviews with Carlo:From Food Truck to Restaurant Business (A Recipe for Success) https://www.youtube.com/watch?v=8MPTE67PYcYA Day in the Life of an Entrepreneur (Behind the Scenes Look) https://www.youtube.com/watch?v=2idW6fSfvIQTimestamps:0:00 Intro0:31 Meeting the Owner1:34 Tips on Revamping Your Business2:53 Breaking Down Revenue3:50 The Key To Balancing Quality4:41 How To Avoid These Business Mistakes5:47 Why You Need A Soft Opening7:35 Social Media Tips and Tricks9:35 The Importance of Branding10:36 System and Processes for Online Ordering11:46 How To Get FREE Advertising13:10 How To Build A Reliable Team14:30 Crucial System & Processes Before You Start16:00 How To Quickly Resolve Issues17:03 How To Keep Employees Happy18:13 When To Grow Your Team19:03 Blitz Time With Carlo!!21:56 How To Keep Track of Inventory22:50 When To Use Paid Advertising24:09 How To Not Lose Money25:15 Switching Up Your Menu26:22 How To Deal With Inflation27:11 Where To Focus Your Time28:35 Creating The Best Content Possible#restaurant #restaurantbusiness #howtoopenarestaurant

Categories
Entrepreneurship

Branding and Marketing Series Mini Course Part 3 [Video]

It is said that if you can’t get your product to the customers when, where, and how they want it, they will simply buy a competing product. This is increasingly true especially in the service business where there are a lot of competitors. There is a restaurant open on every corner of the street and in order to differentiate your restaurant from the crowd, you need to have different marketing channels. The first benefit of having marketing channels is that it saves time and money. You will be able to attract the right type of customer in an efficient way. Rather than letting them find your restaurant by luck, you create an excellent image/brand of the restaurant so that the customers can associate themselves with that brand. Another benefit is that it helps in rapid distribution of products and easy access to new customers. Having the knowledge to understand the needs of the customers, predicting the inflow of customers on a certain day; supply chain management would be easy if those things are in place. The factors of channel selections are the type of customers, the type of products, channel partner capabilities, business environment as well as competing product’s marketing channels.Everyone knows that in order for a restaurant to be successful, the location has to be great, the food has to be great, the customer service has to be great and so on. However, the owners often miss out on the most important aspect of running a restaurant i.e. consistency. No matter how great the restaurant is, if the chef is switched every single week, the taste of the food won’t be consistent. Similarly, no matter how great the marketing strategy is, if the marketing message is not consistent on all advertising platforms, it creates confusion within the customers. There will be a mismatch between what the customer sees and what they get afterwards. Therefore, it is necessary to have a solid integrated marketing communication (IMC). In this modern world, customers check your restaurant online before even thinking of entering into the restaurant. Therefore, your restaurant needs to be updated consistently on new offers, new deals, loyalty membership cards, interesting menus, BOGOF and so on. If the marketing message is not tempting enough, people will not enter your restaurant. People think psychology and consumer behaviour has nothing to do with business but this is farther from the truth. It is important especially for a business to understand the consumer’s buying behaviour. We have already discussed how to segment target markets and create a USP for that target market. So, now we need to go one step deeper. Does our restaurant attract those types of customers and their buying decision? This question needs to be answered. If a restaurant is opened in a high-class location and targets people with higher socio-economic status, are you creating that type of environment inside the restaurant? If there is no car parking, then those target customers will not bother to come to your restaurant.In order to understand these concepts, there are several factors that influence consumer’s buying behaviour. First are situational factors such as social situation, time, reason for the purchase and mood. Second is personal factors which include personality, gender, age, stage of life, attitude and lifestyle. Moving along, there are psychological factors such as motivation, perception, learning and mental positioning. Last but not the least, there are societal factors that include culture, social class, opinion leaders and friends/families. There is a difference between a famous, well-established restaurant and an independent restaurant that have just opened weeks ago. That difference is in terms of brand awareness. People do not know about the recently opened restaurant. So, the question is how do we go from a newly established restaurant to a restaurant that is filled with people who love the food, the customer service, the location and everything.There are mainly four stages of customer experience. First is the pre-consumption phase where people do not know about your restaurant. We need to communicate our value proposition through brand awareness. We let them know about the type of restaurant, the types of food we serve, the location we are in, the opening and closing hours, the ambience and everything in between. Basically, we are trying to make the potential customers aware that we are in business and you are welcome to visit us in our restaurant.

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Entrepreneurship

Branding & Marketing Series for Restaurant Episode 19 [Video]

Pricing is always a tricky subject. If we price our products too high, we risk losing customer demand whereas if we price them too low, we risk not making a profit at all. Therefore, there needs to be a fine line when it comes to pricing anything. That being said, there are specific steps that you can follow in order to help in your pricing framework. First is setting price objectives. Why are you pricing a product the way you are pricing it? In other words, what is the objective behind that pricing decision? Is it profit-oriented, sales-oriented, status quo and prestige oriented? Similarly, the second step is to estimate the demand accordingly. Establishing a premium restaurant with higher prices would mean that the demand will be less than that of a medium restaurant. Conversely, fast food restaurants will have a high demand due to the nature of the business. Then, we move on to determining the cost. What are the expenses like? Expenses include fixed assets such as furniture and kitchen supplies and interior decors as well as variable expenses like rent, salary, marketing cost and so on. Understanding the cost and then putting a profit margin on that cost is a better way to see whether the price will be competitive in the market or not. Then we also need to determine the pricing strategies that we want to use. We could either use a price skimming strategy where we raise the price from the start to cover up the investment cost or price penetration strategy which allows us to capture a lot of market share. Using cost plus pricing, leader pricing, price bundling and so on are all part of giving an incentive to the people in order to capture their attention. We can later give them offer and make price adjustments as needed. Follow me on social media:Facebook – https://www.facebook.com/hospitalityexpert101/Instagram – https://www.instagram.com/hospitalityexpert101/YouTube – https://www.youtube.com/channel/UC4_1lKKUNWebsite – https://www.hospitalityexpert101.com/

Categories
Entrepreneurship

Branding & Marketing Series for Restaurant Episode 15 [Video]

People think psychology and consumer behaviour has nothing to do with business but this is farther from the truth. It is important especially for a business to understand the consumer’s buying behaviour. We have already discussed how to segment target markets and create a USP for that target market. So, now we need to go one step deeper. Does our restaurant attract those types of customers and their buying decision? This question needs to be answered. If a restaurant is opened in a high-class location and targets people with higher socio-economic status, are you creating that type of environment inside the restaurant? If there is no car parking, then those target customers will not bother to come to your restaurant. In order to understand these concepts, there are several factors that influence consumer’s buying behaviour. First are situational factors such as social situation, time, reason for the purchase and mood. Second is personal factors which include personality, gender, age, stage of life, attitude and lifestyle. Moving along, there are psychological factors such as motivation, perception, learning and mental positioning. Last but not the least, there are societal factors that include culture, social class, opinion leaders and friends/families. Follow me on social media:Facebook – https://www.facebook.com/hospitalityexpert101/Instagram – https://www.instagram.com/hospitalityexpert101/YouTube – https://www.youtube.com/channel/UC4_1lKKUNWebsite – https://www.hospitalityexpert101.com/

Categories
Entrepreneurship

Branding & Marketing Series for Restaurant Episode 13 [Video]

It is said that if you can’t get your product to the customers when, where, and how they want it, they will simply buy a competing product. This is increasingly true especially in the service business where there are a lot of competitors. There is a restaurant open on every corner of the street and in order to differentiate your restaurant from the crowd, you need to have different marketing channels. The first benefit of having marketing channels is that it saves time and money. You will be able to attract the right type of customer in an efficient way. Rather than letting them find your restaurant by luck, you create an excellent image/brand of the restaurant so that the customers can associate themselves with that brand. Another benefit is that it helps in rapid distribution of products and easy access to new customers. Having the knowledge to understand the needs of the customers, predicting the inflow of customers on a certain day; supply chain management would be easy if those things are in place. The factors of channel selections are the type of customers, the type of products, channel partner capabilities, business environment as well as competing product’s marketing channels. Follow me on social media:Facebook – https://www.facebook.com/hospitalityexpert101/Instagram – https://www.instagram.com/hospitalityexpert101/YouTube – https://www.youtube.com/channel/UC4_1lKKUNWebsite – https://www.hospitalityexpert101.com/

Categories
Entrepreneurship

Branding & Marketing Series for Restaurant Episode 12 [Video]

Positioning is an expression of how a product with differentiation fills the need of a particular customer segment. If your restaurant does not stand out from the rest, it means that you do not have any positioning advantage. People have the freedom to go to any restaurant and the probability that they will come to you will be based purely on luck. Whereas, on the other hand, if we flip the scenario and your restaurant is one of a kind that serves authentic and special handmade Italian pizza with thin crust and flavorful toppings. Pizza lovers will definitely want to come to your restaurant for this experience and this is how you can position your restaurant as the best pizza restaurant in the town. Without positioning, people will lack the top-of-mind awareness of your restaurant. Even if they had seen an ad on social media or the billboard, people are not going to remember about that for very long. Customers don’t know how your product is different from others, and what needs should be fulfilled. Without positioning, your restaurant has to compete with every other restaurant in the town.Follow me on social media:Facebook – https://www.facebook.com/hospitalityexpert101/Instagram – https://www.instagram.com/hospitalityexpert101/YouTube – https://www.youtube.com/channel/UC4_1lKKUNWebsite – https://www.hospitalityexpert101.com/

Categories
Entrepreneurship

Branding & Marketing Series for Restaurants Episode 9 [Video]

Market segmentation analysis is basically the process of grouping customers into segments who share similar needs. It can be done in basically two approaches – either through common sense segmentation or data driven segmentation. One leans more towards being intuitive and another leaning towards customer survey and analytics. The step-by-step process of MS analysis goes like this:First step is to decide what not to segment. We might think like our restaurant is for everyone and that might even be the case. However, let me give you an example. If your restaurant is a family theme restaurant and the food is prepared accordingly, the seating is arranged accordingly, the music and the ambience is set accordingly. If in this restaurant, youngsters and college students start to hang out more, the whole restaurant will fall apart. This could mean two things. Either the area that the restaurant is opened has a lot of foot traffic from students which means there are colleges and universities nearby. Or, maybe the restaurant attracts more younger people as opposed to the customers we are targeting. Second step is to sketch your ideal segment. Whom do you want to target? Make a detailed customer profile which describes their age, gender, hobbies, income level, preferences and so on. The more precise it is, the easier it is to find those types of customers for the restaurant. Once you have an idea on whom to target, you should start collecting data.You can either hire a sales team to gather information around the locality or do it yourself. Prepare a questionnaire which contains questions which ends in Yes/No answer or rating from 1 to 5 scale. Have specific questions which will help you to understand the customers and their preferences. Then you start to go through that data and see whether there is a market for your target audience. For example: If you have a question on whether they prefer family restaurants over other restaurants, and the majority answered No. You might have to avoid opening a family theme restaurant as there isn’t much market for it. You can also decide to go against the data and open a family style restaurant that challenges the traditional notion.Moving on, we now have our hypothesis on what we want and also what the customers want. We will try to overlap the common theme and then work for the remaining ones. Suppose your target audience is office workers and a lot of office workers actually love the idea of having a restaurant which caters to them, this is a plus sign. You have just proven your hypothesis and now you can focus on other aspects such as lighting and seating and so on.Once you have selected the target segment, we start developing a marketing mix for that target segment. Marketing mix, commonly known as 4P’s, focuses around price, place, promotion and product. Having a target segment will make it easier to build upon these marketing mixes. For example: Knowing that our target market is office workers and business people, we can increase the prices of the food since they are willing to pay more than the average consumers. We can open restaurants near offices and corporations to increase foot traffic. We can promote our restaurants by introducing special offers and packages for office people. We can sell healthy food items knowing that office people need to work longer hours and need carbs. Follow me on social media:Facebook – https://www.facebook.com/hospitalityexpert101/Instagram – https://www.instagram.com/hospitalityexpert101/YouTube – https://www.youtube.com/channel/UC4_1lKKUNWebsite – https://www.hospitalityexpert101.com/