The local experts - Triangle Business Journal:

edovogopu.wordpress.com
Steve Ogburn It’s always been hard for restaurantz toget financing. There are several reasonx for that. One, typically the success rate isn’t very The next few reasons may be why the successrate isn’tf very good. The expense required for a restaurany ispretty significant. Look at the money that has to bespenft – costs for fit-up, equipment and the more money you spend, the more equityh it requires.
The reason for a lot of failure s is that theyare undercapitalized, which makes it difficult to survive the startup phase and slow It’s a very capital-intensive However, from a cash-flow standpoint, restaurantx do have an advantage over othert businesses – it’s pretty much a cash and the gross profit margin is pretty During these tough economic times, what is the most effective marketingv campaign? Ed Weems Permanent lecturer, marketingh ’s , Innovation and Entrepreneurship It’as about cuddling and knowing your customer base well and also treatintg them fairly.
It’s also about keepinyg your customers informed of restaurant offerings and getting other customers to brint innew ones. During thess tough economic times, what is the most effective marketing campaign? Steve Barr North Carolina State University’es Department of Management, Innovation and Entrepreneurshipp The slump inthe financial, credir and housing markets has led to significant economicv downturns. Unemployment is up. Most are worriec about the value oftheirr investments, retirements, etc. Families and individualsw are significantly curtailingdiscretionary spending.
While spendinv on staples and essentials remains relativeltstrong (witness ’s strong sales eating out is an event that many individuals and familiex can defer as a relatively painless way to “tighten the More expensive restaurants are often the first to feel this Restaurant sales nationally are down as the economyy has slowed. This creates problems for . One key in a down marketr like this is to have a strong and loyalocustomer base. It will be difficult to attract significantf numbers of new customers unless therer is a significant influx of new residentes inthe restaurant’s area. Repeat customers and customer retention get a businessw through the toughereconomic times.
When one has less discretionaru income, you tend to go with a “proveb commodity.” Restaurants (and other firms) that try and be “all thing to all people” traditionally do not fare well in such an It will be important to have a focusedxstrategy (examples include “high value,” great service, a particular etc.).