Guerrilla Marketing for Restaurants

Independent restaurant operators represent the American Dream to its finest core. The individual distinction and character the independent restaurant operator brings to the American consumer, should never be outwit by the chains that daunt them. In the 1970’s the independent restaurant held a commanding 85% of the market share. During the 1980’s, chains perfected their strategies through their own survival, and mastered their ability to identify with consumer demand. Today, chains now hold 88% of the market share, leaving independents scrambling to find their voice in the industry.

Traditionally, chains were not considered a major threat to independent restaurant operators because they were always considered to be fast food. Everyone knew exactly what they were going to eat before they got to the restaurant, and had a good idea of what they were going to spend. The drive-thru windows became symbolic landmarks that people lined up for (which is still the case), but radically different. Chains are now very prevalent in the fast-casual market, and continue to grow into the middle price range of demographics. Restaurant “rows” are confining metro diners in many parts of the country, causing chains to cannibalize their own markets to gain market presence.

The independent restaurant guerrilla is left with little to compromise. They must turn to what instinctively draws them to the business, define the unique characteristics, and set a new competitive agenda. Independent restaurants can easily modify their prices and standards to meet local demand, which works in their favor. While chains tend to provide “manufactured” products (both quality and presentation), they are much less flexible for adjusting to local consumer demand. It’s the difference between the cookie-cutter. One uses it, the other doesn’t.

It’s widely viewed that if an independent operator has made it past the five-year mark in a community, his chances of survival (even with chains as primary competition) are much better. In spite of this, the independent operator is usually forced into changing his patterns not just because of the fierce competition, but also for the sake of retaining his staff and his customer base. In the long run it can weigh the balance of consistency and making money, which is not a position most independent operators would ever want to be in. This motivates the independent operator in different ways:

• First, it causes the independent operator to be more aware of their customer base. Learning and listening to customer demand and meeting those demands, is something that the independent restaurant operator has at his disposal.
• Second, it causes the independent operator to coordinate with his staff unique incentives to enhance the customer’s experience. Adjusting the mechanics of your front and back of the house routines can be a huge advantage over chains.
• Lastly, it causes the independent operator to review his fixed and variable operating costs which previously may not have been considered.

Three principles provide an advantage to independents:

• Ambience
• Menu
• Staff
   

The staff to an independent restaurant guerrilla is a primary concern to the nature of their establishment. While the competition for skilled, experienced and honed labor is fierce and competitive, both sides seek to obtain the best employees to appease the customers’ experience. Picking off key employees from one restaurant to another, between the independents and chains is not uncommon. There are three parts to any restaurant staff:

• Front of the House (FOH)
• Back of the House (BOH)
• Management

Your back of the house (BOH) is the most essential organ to an independent restaurant guerrilla. The kitchen is where it all begins. Chains have been successful in developing fail proof mechanisms to control the consistency of food products. Large commissaries provide large quantities of food and distribute it out to the units. Its mechanization is so large that when McDonald’s recently changed their chicken nuggets from dark meat to white meat, the entire chicken market in the United States felt the change. Independent restaurant guerrillas are then forced to absorb the price structures that can be set by chains. If a chain as large as McDonald’s (with 30,000 units) makes a change to their menu, the entire foodservice industry can feel the impact of that demand.

Management is the binding factor for an independent restaurant guerrilla. It is the trifocal responsibility of management to bring the BOH, FOH and the customer together. There is no such thing as a natural ability to bind these three together, creating a daily challenge to find comfort and happiness with all three. The most effective managers understand their customer base, their community, their staff and their operations. If any of these components are missing, one can expect weaknesses in the overall performance of their establishment. However, finding this composition is not always an easy chore for either a chain or an independent. Having management that can articulate, analyze and be responsive to both the needs of the establishment and customer simultaneously is pivotal to any business.

To summarize, it’s important to remember that independent restaurant guerrillas (as we have defined them here) have unique capabilities that distinctly separate them from corporate chains. Finding those capabilities and capitalizing on them will enhance the survival rates of independent restaurant operators. Utilizing theses characteristics and modifying them in creative and unique ways will bring customers to the door, dollars to the till, and satisfaction to your employees. You don’t have to do as the Romans do to compete, rather let the Romans do as you do to identify their audience. Keeping your product quality high, your staff well-trained and knowledgeable of your menu, and keeping your service methods high will cause the chains to fight for every inch of the market share.