According to The National Restaurant Association, the foodservice industry is on target to reach $1 Trillion dollars in sales this year. And when asked what stands out in the industry, here’s what they had to say (and what HotOperator recommends for taking advantage of those trends).

But before we get to that. Keep in mind, a strong message became clear: People want human contact when dinning out. You know, people helping people. So, take note before you try to tighten staff with computers.

The Key findings:   

1. Sales are up: The foodservice industry is forecast to reach $1 trillion in sales in 2024.

Is this sales in more people going out to eat? Nope. It’s mostly higher prices. To offset this, make sure you are mental anchoring your restaurant menu. Have comparative prices that show the guest just how little they are spending.

2. Restaurants are hiring: The industry workforce is projected to grow by 200,000 jobs, for total industry employment of 15.7M by the end of 2024. 45% of operators need more employees to meet customer demand.

Which is great. But it also offers another problem. Many operators are struggling to find workers (and keep them). A strong brand marketing campaign will help your restaurant stay top-of-mind. And that makes your restaurant more attractive to employees along with consumers.

3. Competition is strong: In 2024, 45% of operators expect competition to be more intense than last year.

This is difficult for most independent operators. Chain restaurants are taking a larger and larger portion of the market. To combat this, independent operators will need to use guerrilla marketing programs to stay in front of chains moving into their market. Try things like local bonuses. Special menu items that only local guests know about. And treat guests like royalty. 

4. Costs are up: 98% of operators say higher labor costs are an issue for their restaurant. 97% cite higher food costs. 38% say their restaurants were not profitable last year.

This points to a lack of marketing which puts stress on any restaurant. Simply put, a weak brand will not push their value up in the eyes of local guests. Our recommendation? Do a brand analysis along with a menu matrix to find out what your guests really think of your business. Every day you have a focus group going on in your restaurant. People are voting for your business with their pocket books and their feet. They are telling you if they like your business, and they are telling you what they like most about dinning with you (and what they don’t like)

But don’t do this on your own. You need an objective view. You need an expert to look at your business and offer advice. It might be painful, but it is necessary.

5. Consumers are value conscious: Nearly half of consumers are taking a wait-and-see stance when it comes to spending. Operators who offer a solid value proposition for dining out can nudge customers out of their holding pattern.

This is not a deep thinking thing to say. That’s because consumers are always value conscious. Where most people make a mistake is thinking that value conscious is all about price. But it’s not just about price. It’s about price and function together. A product can have a higher price only if you offer reasons that will support that higher price. Most operators get this wrong in their business and never think to support each item with the proper description and highlight.

6. Consumers love restaurants: 9 in 10 adults say they enjoy going to restaurants. Restaurants allow them to enjoy a favorite meal that has flavor and taste sensations they can’t easily replicate at home.

So it’s not all bad news. Of course people want to eat out. It’s fun. In fact, it’s a mini vacation. So, you need to nurture those feelings with your guests. That means you have to train your staff on how to work with guests so they make better choices when they order from you. And how to get your servers to leave their own struggles at the door when they come to work.

If you’re looking for help to build a better brand in your restaurant, give Mark a call. He’s an expert in restaurant branding, menu development, social media and content development. He’s been doing this stuff for nearly 4 decades, and has worked with more than 200 restaurants across the country. This gives him a unique ability to learn from other independent operators what’s working and what isn’t.

Hey, the first 15 minutes are free. To take advantage, call 800-316-3198 and leave a message. Mark will get back to you.

The post 6 Restaurant Trends and What They Mean (number 4 is essential) appeared first on HotOperator.

Here’s my question: Are Facebook ads ineffective, or do you just suck at it?

*https://www.inc.com/marla-tabaka/62-of-small-business-owners-say-facebook-ads-dont-work-experts-disagree.html

A Couple Statistics Might Help Find An Answer

Facebook has 2.80 billion monthly active users (Facebook, 2021). If that number doesn’t wet your appetite, it also has 1.84 billion users that are visiting the social networking site on a daily basis. This means that actual human beings are visiting at least one of Facebook’s core products – which includes Facebook, WhatsApp, Instagram, and Messenger, every, single, day.

Think about that. These are your current and potential customers. Every day, on their phone, scrolling through Facebook, Instagram, et al. This is a huge opportunity to get in front of your customers. Maybe there is another reason why 62% of Small Business Owners Say Facebook Ads Don’t Work.

I Hate Wasting Money, But Social Media Ain’t Free, My Friend

In the fourth quarter of 2020, Facebook (Meta?) brought in $27.2 billion in ad revenue (Facebook, 2021). That puts its average revenue per user at $10.14. Not only does its ad revenue make up nearly all (96.8 percent) of its $28.1 billion revenue for the entire quarter, it’s also a 31% year-over-year increase.

Here’s the thing, Mark Zuckerberg is no fool. He is in it to make money, but he realizes that he has to offer something of value to his customers in return. In other words, he’s not just asking you for cash without offering you something. But you do need to know what you’re doing to get the most for your money.

The reason 62% of Small Business Owners Say Facebook Ads Don’t Work might be because small business owners don’t know what they’re doing.

With Social Media Marketing, Admit it, You Need Help

Seriously, you need help with your social media program. I may not have looked at what you’re doing specifically, but I can already tell, more than half of you reading this are not getting the social media program you need. Your guests are seeing your social media posts once in a great while, and they are probably not seeing your social media advertising at all.

And when they do see your posts and advertising, are they seeing something worth looking at? Probably not. I haven’t even looked at your social media and I already know this.

Out of the U.S. population aged 12 and above, 63 percent claim they use Facebook (Edison Research and Triton Digital, 2020). That’s an estimated 178 million Americans.

These are the questions we can help you answer. Your social media marketing depends on the answers to these questions.

When you are thinking about running an ad for your social media, you need to ask some serious questions about your target audience. Here is a list of questions we ask and answer when we work on an ad for our clients:

1. What is the perfect demographic for our business? (Example: age, gender, location, income, marital status, education level.)
2. Find the most popular entertainment (authors, movies, events, etc.) that appeal to my style of customer?
3. Where do my best customers shop, what retailers or vendors do my potential customers buy from? Think of clothes, drinks, cars, sports teams, they might follow that would appeal to them.
4. Understand customers better, what hobbies do they have, do they have kids and do they spend time with those kids?
5. Learn what other Facebook pages are liked by my potential customers?
6. Discover Facebook groups your perfect customers belong to if any?
7. Who are my toughest competitors and what are they doing on social media?

It’s not just the cool kids. It’s everybody.

Facebook is also the most widely-known social media platform available. In fact, 95 percent of the U.S. population know what Facebook is, meaning that it’s more well-known than its closest competitors like Instagram, Twitter, Snapchat, and Pinterest, some of which are owned by Facebook (Meta). 

Here’s something else you should know: 74% of Facebook users in the U.S. are between 35 and 54 years old. About 64% for those between the ages of 12 and 34 years old, and just over half of those 55 and older use Facebook on a regular basis. This should be important to you because those people between the ages of 34 and 55 are your potential customers. They have discretionary income, they love going out to eat, and they are on Facebook every day.

Let Mark Zuckerbeg Introduce You To Thousands Of People (every day)

Facebook is connecting people to businesses all the time. In fact, 78% of American consumers have discovered retail products to buy via Facebook (Kleiner Perkins, 2018). The survey suggests that more than half of the people have used Facebook to actively look for products, with the majority of them discovering new products on Facebook’s News Feed, Pages, and Groups. Further, nearly 3 in 4 customers (72%) have used Facebook to make restaurant or retail decisions, based on comments and images that have been shared by other users.

Again, Get Help

According to Statista, it was calculated that the total advertising expenditure in North America in 2020 amounted to 249.8 billion U.S. dollars. Due to the impact of the coronavirus on the industry, the spending decreased by 1.4% that year, however it is expected to rebound to 282.8 billion dollars by the end of 2021.

Advertising works. It will get conversations started, get people to think about you, and ultimately get people into your business. But it will only do this if you know what you’re doing. Advertising, even on social media, is a skill that takes knowledge, practice, creative technique and research. While you’re at work selling food, our team is developing posts, ads, and promotions for social media. What I’m saying is, we’re experts.

It’s An Investment, Not An Expense

Too many businesses look at social media as an expense rather than an investment. If you see your social media program as an expense, you will probably not invest much in making it successful.

On the other hand, if you see your marketing program as an investment in developing future business, then you will probably be much more successful with your marketing efforts. There is only one way to learn more about social media marketing. And that’s to have a conversation with HotOperator. The initial phone call costs you nothing, and at the very least you will know more about social media potential for your business.

Follow the link to set up an introductory call: Contact HotOperator®

The post 62% of Small Business Owners Say Facebook Ads Don’t Work.* appeared first on HotOperator.