Restaurant Marketing Plan

Dawan D. Smith

April 22, 2014

Grantham University

Table of Contents
Section 1: Marketing Strategy & Mission Statement
Section 2: Understanding the Customer
Section 3: New Product Development
Section 4: Distribution and Pricing
Section 5: Promotion Strategies and Public Relations
Section 6: Evaluation Plan

Marketing Strategy and Mission Statement

The purpose of this marketing strategy is to provide my neighbors who have inherited a family owned restaurant the tools they need to make this business a successful one. The restaurant is family owned and the owners want to keep it going as a legacy to the family members who left it to them. Since quitting their jobs, they will have to make money immediately. The restaurant has not been doing well over the last few years and has been losing money. Family members have passed away and others are having health issues, so the restaurant as of now is being ran by the chef as well as some of the servers. Getting this restaurant on the right track will require much work and dedication, and with the right tools in place, customers who are looking to have a great dining experience on a budget and enjoy a delicious home-style meal will get just that. This restaurant is in no way one of the regular fast food restaurants. Here you can sit and enjoy friends, family, have a business lunch, dinner party, birthday party, etc. in a family oriented atmosphere and still have money to spare. The restaurant is in a small community with about 6,000 people and has a great reputation. The restaurant will hold about 75 people at full capacity. Being located right off the interstate, it is in a great location where customers can stop by on their way to work, home, school, from a busy day of shopping, or for a business lunch. Whatever you have going on throughout the day, you customers can come on in for a grand experience. This restaurant has been located right off the interstate for over 15 years. The atmosphere is great, the neighborhood is fantastic, and the people are very friendly and caring. There is also a huge catering base that can be built on throughout the community. Some of the things the restaurant is known for includes great coffee and homemade pies. These pies can also be ordered online for the holidays, but many people would like to order online. The restaurant also has a good menu for lunch and dinner opening at 7 a.m. and closing at 7 p.m. The specials for the week are as follows: Monday-meatloaf, Tuesday-Roast Beef, Wednesday- Turkey Breast, Thursday-Pot Pie and Friday-Fish. Although the restaurant is in a great location, there is as Subway, McDonald's, and Sonic's nearby which have specials all week long. There are a few suggestions that I have that will get the restaurant going in the right direction if implemented correctly. Customers should always feel comfortable when dining out to eat a family meal. They want to feel as if they are at home. So, there should be a smoking and non smoking section so that customers who don't smoke won't be uncomfortable. The staff should be given a schedule for breaks where they can either go outside or in a break area. Staff should not be allowed to smoke in between meals and no smoke should be in the dining room whatsoever. A website should also be created to generate business. This website should be created and maintained to allow customers to browse the menu as well as order pies online. With the chef being at this restaurant for over twenty years and to retire within the next three, someone should be trained during this time, so that when the chef leaves someone will already be in place and will already know the ropes. The staff should consist of some younger servers as well. All customers should be required to pay. There should be a day set aside where kids get soda and a slice pie free once a week. Since McDonald's, Subway, and Sonic's are nearby, this restaurant needs some type of incentive to keep customers interested. One idea would be to have Saturday's designated as kid's meals half price and free pie slices with every meal. With the baby boomers leaving and younger generations moving in, the menu needs to change a little. There should be a short order menu as well as the special. Flyers should be printed and posted in local businesses as well as in the local newspaper. This will definitely attract customers. The flyers should include menu, prices, specials, as well as hours of operation. There One way is through other local businesses in the area. Tourists and vacationers are always asking around for the best dining places in the are. To create abuzz, why not wine and done the local hotel employees so that they can promote the restaurant for you. Plan an afternoon reception for all hotel employees in the area. This way you could get to know local individuals. You could keep them informed on special events, give them menus, gift certificates, free desserts, etc. Why not create a whole little family with all the local businesses. This would definitely create a buzz and make not only new comers, but the local community as a whole feel special and welcome. The restaurant is on a great location and can generate a lot of money if the right measures are taken and put into place properly. With the strategies listed above, this restaurant should be headed in the right direction.

Understanding The Customer
Customers in this community are looking for a place to feel at home when dining out. Whether with family, friends, business associates, or dining alone, customers want to feel comfortable. With this restaurant already having a good reputation in the community, the town's people, including the local Sheriff and Highway Patrol are always dining here. Good food in a peaceful, family oriented atmosphere is something that customers are looking for. With McDonald's, Subway, and Sonic nearby, customers have a variety of dining experiences to choose from. Customers want to have a new dining experience other than fast foods, so they are always searching to find possible alternatives. Whether it be searching the internet, checking the yellow pages, or getting information from family and friends, customers are always searching for the best places to eat. This restaurant is open from 11:00 a.m. to 7:00 p.m. Customers would definitely enjoy the lunch specials as well as 15 varieties of home made pies. With the restaurant located right off the interstate it is in an ideal location to attract customers. Not to mention the food is delicious. Customers may choose to dine at this restaurant because of the friendly, home like atmosphere, hours of operation, as well as location.

Marketing Segment
Potential customers for this restaurant include families, local business owners, kids and teens, seniors, local law enforcement, as well as local community leaders. Other potential customers include tourists and other out of town individuals who may be on vacation or on a business trip. The menu consists of daily specials as well as short order items. The menu is as follows.
Specials- $8.00 with your choose of two Sides
The special changes each week
Monday- Meat Loaf
Tuesday- Roast Beef
Wednesday- Turkey Breast
Thursday – Pot Pies
Friday- Fish
Sides are $1.50 each,. They are Macaroni and Cheese, Strings Bean, Corn on the Cob, Coleslaw, French Fries/Onion Rings
The Short Order menu is a follows:
Chicken Nuggets/Strips $3.75
Cheeseburgers- $4.75
Small Salad-$2.50 Chef Salad- $4.00
Grilled or Fried Chicken Salad- $4.50
Ham, Turkey or Club Sandwich- $2.75
Desserts include 15 varieties of home made pies $5.00 each, ice cream $1.00 cone, $1.25 cup, Chips $1.00

Target Market The local community has a population of about 6,000 people. These include the local law enforcement, small businesses and families with young children. Many baby boomers are leaving the area and more and more Generation X individuals with young families are moving into the neighborhoods. The Generation X individuals are between the ages of 28 and 45 years old. Some baby boomers are still around and are caring for their grandchildren, and the restaurant already supports the local little league baseball team, so there are plenty of kids in the community as well. Most of the people in this community are all looking for the same things, a quality family oriented dining experience and a delicious meal, all on a pocket friendly budget. The people in this community are college kids trying to make their way through school, teenagers who are having fun trying to get through their high school years, single parents trying to make ends meet, senior citizens who are on a fixed income, as well as pastor, teachers, lawyers; all ordinary everyday people looking for a great budget friendly place to dine and enjoy themselves in the process. There are several factors that may have an affect on a customers decision to purchase from this restaurant. Personal factors- Things like occupation, lifestyle, age, and personality will play a big role in where customers dine. Some may prefer fast food, while others may enjoy the family oriented atmosphere
Social Factors- Peer pressure, especially among kids and teens has an impact on where a group may decide to shop, eat, etc. Family members may decide as a group where where everyone in that party should dine
Cultural Factors- Not everyone will have the same preferences and tastes..Factors may be based on religion, nationality, upbringing, where you are from, or social class
Price- Customers, especially in this particular area are on a budget, so the higher the price the less demand for product The customers in the community want to dine at a quality, family style restaurant, e njoying time with family and friends while enjoying a delicious home-style meal.

New Product Development

Customers love to dine out and are always looking at something they can afford. So with that in mind, why not give the customers a buffet experience. They don't have to eat and run and they will get a full meal as well. Buffets have become very popular. With the restaurant already opening at 11:00 a.m. and closing at 7:00 p.m. there will be a lunch and dinner buffet. Since this is a family oriented business, the buffet will consist of a variety of soul food dishes. None of the other restaurants in the area offer a buffet style meal, so this would be a great way to attract customers. The design of the buffet will be as follows:
Short Table-Salad Plates and Dinner Plates
Short Table – Salad Bar
Table- Entrees
Table-Drinks, tea, coffee, water
2 Long tables-Main Dishes
Table-Desserts
Table- Napkins and Utensils

The tablecloths for the tables will be bright colors, yellow and white. There will also be chaffing dishes to keep the foods hot during serving. The tables will be decorated with candles and flowers. The serving table will be in the middle of the room, so that customers can access the food on both sides of the table. Since the restaurant has been losing money, the best thing to do would be to purchase items needed to start the buffet from dollar stores and online party supply stores like www.orietaltrading.com.
Shopping at wholesale stores like Sam's Club and Costco's will definitely save money when purchasing the food. Within the next year, the restaurant should have a greater profit margin. Especially with holidays and special occasions, customers will want to enjoy themselves in a family oriented environment. The price of the buffet will depend on what will be served that day, but typically the price will be between $9.00 and $13.00 per person. This is the price of a full meal with drink and dessert. We plan to use word of mouth to make customers aware of the new buffet. We also plan to hand out flyers and put them up in the local businesses in the area. A plan for a grand opening with the new buffet in place is a great way to attract customers. Keeping in mind that customers are looking for a unique dining experience, this new addition to the restaurant is sure to be a crowd pleaser. A family oriented environment, delicious food, and a full meal, what more could you ask for?

Distribution and Pricing

In order to get this restaurant where it needs to be to grow and become successful, much planning must be done and different strategies must be put into place and used. Many customers have asked questions about how to order pies online, especially during the holidays and special occasions, so with that being said there must be a website developed that will allow customers to shop online. They will be able to order pies as well as family meals that can be delivered to the home. Customers will also have the opportunity to place orders for catered meals for wedding, parties, etc. Online sales would definitely boost business. Many customers are so busy with daily duties that they might find online ordering very convenient. There will also be a delivery van available for local delivery. For this restaurant, the pricing level will be at the low end of the scale since most people in the community are on a budget and are always looking for ways to save money. I plan to adjust prices as necessary over time to keep up with customer demand and make a profit. The pricing structure is as follows:
Buffet Price- Lunch-$9.00 Adults 4.75 Kids, Dinner- 12.00 Adults-$6.50 kids
Pies- 12.00 each or 1.00 slice
Daily Special- $6.50 per plate
For online Ordering, pies are $29.00, this price includes pie, packaging, and shipping.
Order two or more pies, at no additional shipping charge. In order to estimate demand, there will be a survey done on a group of people in the local community. The survey will explain the new things coming to the restaurant, the buffet, short order menu, website, etc. This data will help us find out who prefers certain items, age group, etc. Thiss will give a general picture of the demand for the products.
Assets
|Kitchen Equipment |$10,000 |
|Tables, Decorations, etc. |$500.00 |
|Dining Room Items |80.00 |
|Cash Registers, Credit card Machines, Etc. |$500.00 |
|Food Items |$10,000 |

Expenses
|Suppliers |$5,000 |
|Utilities |$500.00 |
|Pay Roll |$3,000.00 |
|Loans |$20,000 |

Although there are no buffet restaurants in the local area, here is a comparison of a few buffet restaurants.
Golden Corral-$10-12 per person http://www.restaurantmealprices.com/golden-corral-prices/
Apple Bee's- $10-20 http://www.restaurantmealprices.com/applebees-prices/
Ruby Tuesday- $15.00-20.00 (http://www.restaurantmealprices.com/ruby-tuesday-prices/

Because there is a great demand for online sales, a website will be designed so that customers can order online. The website will be easy to navigate and very pleasing to the eye. Customers will be very pleased with the up and coming website design. To create a custom designed website for the restaurant, the price will be around $2,999. This information can be found at http://www.restaurantwebdesigners.com/plansandprices
Very colorful, providing great pics, ingredients used, shipping, prices, etc. All pies will be packaged in individual delivery boxes with the restaurant logo. The price to et up online ordering will be $49.00 per month for the standard service and $99.00 per month for the premium service. The website with this information can be found at http://www.opendining.net/pricing.html
Shipping will be as follows:

USPS Priority Mail
$29.00- includes pie, packaging, and shipping

If 1,000 pies were sold to a convenience store instead of website, the price would have to be lowered. The price to sell pies on the street, on ebay, or food fair would be lower to attract more customers. The price would be around $9.00 per pie. Most customers that are shopping at food fairs, ebay, or the streets are browsing for deals. Website sales require extra attention, so the price would be higher. I would have to use place or distribution strategy when deciding what price to charge at these different venues. If the convenience stores are in the local community, customers have easy access to the product. With the proper planning and distribution, this restaurant is definitely on its way to becoming successful.
Promotion Strategies and Public Relations

It does not matter how unique or how great a product may be, if it does not have the proper promotion that will attract the right customers. The purpose of sales promotion for this restaurant is to introduce the new and interesting items being brought into the restaurant to give it a whole new style. Sale promotion is used to attract potential customers. With the new buffet and other items being introduced to this restaurant, we want customers to be interested . Having customers become interested in your product is a great way to promote business and attract more customers. Trade promotions are directed towards the retailer instead of the consumer. The purpose of trade promotions is to persuade resellers to create shelf space or carry your brand in their store. In this case, the restaurant will try to convince the local convenience stores to carry our homemade pies and even place flyers around the store advertising our restaurant. Convenience stores that carry our pies will be given discount price. These stores could have promotional displays featuring our pies in their store. These in store displays draw attention and promote impulse buying. As part of the sales promotion, there will be a grand reopening of the restaurant. Free drinks and pie slices will be given to the first 100 customers. This will be a great way to get people coming in. There could also be coupons given away for buy one get one free on Sundays for family meals. This will encourage customers to tell all their friends and boost publicity. Here is my sales forecast for the next three months. I believe that if sales continue in this way, the restaurant will not only gain, but have a tremendous profit by the end of the fiscal year. With the proper promotional strategies and great publicity, this restaurant has a great potential of becoming a huge success.
Evaluation Plan One the plan has been put into place and the tools suggested have been used, the plan must be evaluated to see if things are going in the right direction and to see if any changes need to be made. The fastest and easiest way to determine whether or not this particular plan is working is by simply looking at sales figures. Sales should definitely be going up. To get an accurate picture of sales you need to see just how many new customers you have gained. You can also see if you made more money than you made last year. The next recommendation would be to make sure you have a positive return on investment (ROI). This means you need to evaluate how cost effective each specific marketing strategy is and check to see if all areas are productive. You may need to go through and eliminate those areas that are not productive. Statistics can be collected basically by asking questions. This can be done in two ways. One way is by having focus groups and the other is by conducting surveys or questionnaires. By doing this you can see just what current customers and potential customers needs and wants are and if these needs and wants are being met. To report this information, you can use lists or tables to display your data. By doing this, you can determine what your plans strengths, weaknesses, as well as other opportunities are. By following this plan, this family restaurant will meet its financial goals and be on the right track towards becoming the successful family owned business it can be. Within the next five years, this restaurant is expected to grow over 50 percent following the outlined projections. This restaurant really does have the potential to go above and beyond the initial expectations.

References http://www.restaurantwebdesigners.com/plansandprices http://www.opendining.net/ http://www.restaurantmealprices.com/ McDaniel, Carl D.. MKTG 7. Student ed. Mason, Ohio: South-Western ;, 2013. Print.

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