"We can be realistic about what is happening in the economy, but we don't have to be pessimistic," said restaurant-branding guru David Dodson. "You don't have to be a victim of the storm." Dodson led a panel of operators in a panel discussion on the topic of being proactive during the downturn, How to Surf the Economic Tsunami and Stay Afloat.
A few key takeaways:
- Now is the perfect time to renegotiate your lease. Check the going rate at comparable, vacant spaces in your area and take advantage of your property owner's desire for long-term security. It may also be a good time to revisit contracts with certain vendors using the same principle.
- One thing this climate is creating is a larger supply of good workers. Above all, find people who have the right attitude for your organization. Training people for restaurant skills is possible, but personality transplants are not.
- Use the loyalty of your best customers, who are often almost as supportive of your restaurant's success as you are, to help raise capital. Ray Villaman, president, Tahoe Restaurant Group, offered an example of something he has seen work recently: charging a premium for VIP treatment for a year for cash now.
- If a competitor goes out of business, make the extra effort to pick up their customers. It helps if you have done your homework and know what it was that customers liked about the competition in the first place.
- Stay true to your core brand proposition. Don't compromise on the things that make your restaurant appealing in the first place.
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