Is it possible to run a successful restaurant during tough economic times? Can these restaurants not only survive, but continue to grow?? Absolutely. While it is not always easy, and may take a bit of creative thinking, there are successful restaurants that have managed to improve their profitability in spite of the downturn in the economy. ? These restaurants realized that many people are still working, and that they are still going out to eat, both as a matter of convenience, and for entertainment. The restaurants that have been successful cover the spectrum of restaurant concepts, and are in many aspects very different from each other. ? These businesses do share a few things in common. Value People want to get a good value for their money. ? For some, that means spending as little as possible. ? However, for many others it is feeling that what you get is worth the amount you spent, regardless of what that amount is. ?? The customer could spend $10 in Restaurant A and feel disappointed, and the next night spend $10 in Restaurant B and feel like he had gotten a very good deal. Businesses refer to the concept of ?perceived value. ?? Every customer that walks through the door has a different perception of what is or is not a good value, and they base that perception on different things. ? It could be portion size, or quality of the food, the ambience of the dining room, or even the service they get from their server. ? The bottom line is, if they are going to return to a restaurant they have to feel like the cost of the experience was money well spent. Differentiation There is an old saying that it two things are exactly the same, then one of them in unnecessary. ? The same could be said of restaurants. ? If your restaurant is the same as your competitors, why should a customer choose you? A successful restaurant is one that is clearly different from the other restaurants in their market. ? They are restaurants that when a customer wants a particular experience or type of meal, that restaurants name comes to mind. ? It is about being able to stand out from the rest of the crowd, and to be recognized for what you do better than your competition. Look at the restaurants that you like to go to. ? Why do you choose that particular restaurant over the other restaurants in the area?? It might be because they have the best BBQ around, or it might be the best salad bar, or the best selection of micro-brewed beers. ? It might be something as simple as the fastest service, but there is something that brings you back repeatedly. An example is the top two fast food burger joints; McDonalds and Burger King. ? On the surface they are very similar. ? They both have comparable menu selections, offering burgers, fries, chicken sandwiches, salads, and breakfast items. ? However, each of these two operations has differentiated themselves from the other. ? No one confuses a flame-boiled Whopper with a Quarter Pounder, and BK doesn?t have anything that tastes like a Big Mac. ? Which one is better is a matter of personal choice, but the point is, they are very different in spite of their similarities. Brand Why has McDonalds managed to grow their profits while the local burger drive-thru struggled to survive?? Among other things, it is the power of the brand. ? People recognize the name, and when they are unsure of where they want to go, they will choose what is familiar. Now I?m not suggesting that you should try to compete with McDonald?s popularity, but you don?t have to. ? If your restaurant is located in a small mid-west town, you don?t have to try and convince the people on the west coast that you are good, you just have to be famous in your neighborhood, because that is where your customers are coming from. Building brand power doesn?t happen overnight, but there are a couple of things that you can do to make sure that it does happen for you. The first step is marketing. ? Just because you make the best chicken in town doesn?t mean the customers will come. ? In order to get people through the doors you need to tell them that you are there, and what you can do for them. ? You need to make sure everybody has at least heard of you, and give them a reason to try your restaurant at least once. The second thing is consistency. ? You need to make sure that the second visit to your restaurant is the same great experience they had the first time. ? This is true for both the quality and serving size of the food, and the quality of your customer service. ? People that come back to a restaurant do so because there was something they liked about their first visit. ? If they don?t get what they like on the second visit, there might not be a third visit. If you are consistent, over time you will build a solid customer base, and the good word of your restaurant will spread, and that is how your brand grows. Running a successful restaurant is not a quick road to easy money. ? In fact, it can be very hard work, but it can be a very profitable enterprise, even in tough financial times. ? All it takes is having a solid plan for success, and sticking with it.