Sometimes, the reason why entrepreneurs open restaurants is to share their passion for food and their values with the community and even give a different style that resonates with the audience. Sometimes, that is as important as making financial progress. However, for people to know your food, understand the message, and share the same values, restaurants must market themselves. But marketing is not just about inviting promotions to bring people in. It is, in fact, creating value at every step of the interaction. In fact, we can find a fresh perspective on how restaurant operators can improve engagement and boost profitability in the article published by Anthony Miyazaki’s Distribution Approach to Marketing Exchange (link).
Miyazaki’s Approach Application to Marketing for Restaurants
In essence, Miyazaki’s model identifies the importance of designing and delivering effective flows of information, innovation, and compensation between the seller (restaurant) and the buyer (customer). This approach allows restaurant operators to identify and use marketing as not a one-time effort but an ongoing process. This means that a percentage of their budget needs to be considered and allocated towards this activity as much as payroll, account, or any other segment in their financial records. This way, there is a better chance of achieving the desired marketing and sales goals based on solid and consistent activities.
Let’s take a look at how this approach can help improve sales and ROI.
- How to Improve Information Flow? Use social media, CRM software, email, blogs, and newsletters, and ask for feedback to share new dishes, celebrations, and events and interact with your audience to learn more about what attracts them. This activity ultimately improves the relationship with patrons and brings more customers to try or come back to your restaurant.
- How to Innovate Your Service? As we experience how technology is evolving, so do the demands of customers. Tools that make the experience faster or more enjoyable, effective, and convenient, even if it is more expensive, are some of the innovations that some segments of your customer base are looking for. Entertain the idea of adding these innovations to your operations and promoting them to attract customers who look for them.
- How to Maximize Compensation Flow? Be alert about the nominal compensation. In other words, when you also focus on creating loyalty programs, encouraging reviews, and word-of-mouth, the return on investment can become two-fold. Take advantage of social media platforms and traditional tools that work together well. This will increase ROI as the new and loyal customer rate grows.
Case Scenario: Chipotle’s Pandemic Marketing Success
As mentioned in the article by QSR (link), during the COVID-19 pandemic, Chipotle Mexican Grill’s marketing strategy focused on maintaining customer engagement and improving sales. To do this, Chipotle focused on improving information flow by constantly communicating updates through digital channels like social media and email newsletters. Chipotle also improved its app and partnered with delivery services to feature contactless pickup to meet the demand of concerned customers. To improve its compensation flow, Chipotle worked on its loyalty program to offer more rewards for repeat orders and encourage word-of-mouth through digital referrals. By improving these flows, Chipotle could quickly identify the problem, successfully adapt to the challenges during the pandemic, and create a solid base for future success.
The Final Impact
By understanding and adapting Miyazaki’s approach, restaurant operators can significantly improve factors in their operations, marketing, and revenue. Then, the goal is to go beyond uncoordinated intents to boost single, sporadic promotions. The goal must be to create a more holistic approach to strengthening customer engagement with clear and effective communication. By adopting this model, restaurant operators are one step ahead of the competition and closer to their customers.
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