A REPLY TO A READER'S COMMENT

FOR ON PREMISE RETAILERS

In a comment to a recent post, a reader said, “All your ideas are good, but they have the effect of lowering the retailer’s operational revenue.” We discussed it here at Ariston and decided a reply was necessary.

Here is part of that previous post:

With this in mind, we offer a few value added ideas for the bar and package store business, to place you ahead of your competition in the New Year. Again, beer is the best item for this (please review all new ideas with your local ABC):

1) Discounted draught specials during specific daily time frames

2) Discounted or free draught beer, tied to meal specials

3) Free draught beer “top-offs” for customers sitting at the bar

4) Free “shorty” samples of newly added draught beers (e.g.: Seasonals)

5) Offering “over-served” customers a discounted, safe trip home. This can be accomplished by establishing a program with a local taxi company. The taxi company will appreciate the incremental, regular business and your customers will feel more confident in having that “one last beer.”

6) Insert an in-store beer coupon into every customer’s bag

7) Insert a beer recipe into every customer’s bag

8) Create a “frequent buyers club” to reward customer loyalty with special programs, discounts and promotions

In attempting to ride out an economic storm, such as we are experiencing today, the intelligent retailer cannot sit back and wait for customers to walk in the door. Marketing ideas must be used to maintain and even increase business.

In dealing with On Premise accounts a great example of the battle faced by the casual dining account today is the Mc Donald’s chain. Mickey D’s just reported its sales for 2008. They were up 80% over 2007! To what did they attribute this huge gain? According to a spokesperson, it was a combination of 3 things. First, the soft economy had customers looking for inexpensive food items. Secondly, Mc Donald’s itself felt they had correctly dialed into the consumer’s head with their newest menu items. Third, and most important to us, they saw customers abandoning the casual dining segment for their restaurants.

The best way to look at fighting a battle in which you are limited in what you can or cannot do is to think exactly about what you do best. Defend your territory.

Draw up a pro beer “Franklin List.” This is a sheet of paper, divided down the middle, listing your strengths on one side with your opponent’s on the other.

In the casual dining / fast food battle, a brief list might look something like this:

Mable’s Bar & Grille……………….Mc Donald’s

Atmosphere……………………………Look-alike stores
Better variety…………………………Consistent, cheap offerings
Comfort………………………………….Quick, in & out
Friendly environment………………Cattle car mentality
Fewer children……………………… Children’s 2nd home
Beer, wine & spirits sold………… Soft drinks only (for the most part)
Open late (serving full menu)……Ronald Mc Donald is the talent
Entertainment available……………Free soda refills (do-it-yourself)
Free “top-off’s” of draught beer

The object is to drill down to see what you can offer that your competition cannot. Also, what can you do better than they? In either scenario, there is always a cost. The idea is to choose the best approach and to spend a reasonable amount executing your plan.

Realistically, any customers you are losing to a Mc Donald’s are probably going there for price and a quick, in & out experience. What can you do to combat them, on your terms? Review the following:

1) You serve beer. A perfect accompaniment for food

2) You have greater variety in your food & drink choices

3) Your customers can sit on real stools and at real, comfortable booths, while being waited on by your staff.

4) You can offer discounted beer tied to a food purchase. While the lower PTC on the beer does cut into your operational revenue, it is compensated for by the food ring and the incremental customer count.

5) Free top-off’s of draught beer, by your people, are a great promotional tool. The cost is minimal and the positive P.R. is over the top. Mc Donald’s free refills must be handled by the customer.

6) Offering entertainment is something Mc Donald’s can’t & won’t fight

Other things can also be done. It just takes some thinking and planning, while evaluating your competition. There will always be an expense of some sort. That’s just a fact of business. You must try to limit your programs to the ones offering the best bang for your buck.

By spending none of your operational revenue on your plans, your future is not in your hands. Using some of that revenue intelligently will keep you ahead of the herd. Choose your battles. Never try to meet the box store’s pricing. Go after them where you have the advantage.

Always remember to invest in beer, plan ahead and think outside the lines.

Our next post will answer this question as it applies to the OFF PREMISE RETAILER.

We invite your comments, questions and/or suggestions. To add one, simply go to the end of any post and click on the word "comment," in the current link to this post. that will take you to a site where you can leave your thought.

Training seminars are available to suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your continued support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net