How can independent restaurants compete with corporations?

Question

I am trying to determine whether self-employed restaurateurs can outperform the corporate-owned chain restaurants despite the competative advantages that they have (ie. consistent menus, labor policies, and management structure, etc.)

Answer 1

By serving different food, good wait staff, atmosphere, and you can have an adult beverage.

Answer 2

I own a country club with a restaurant and bar. I have to say that the number one advantage that the chain restaurants have is a large advertising budget. The ads for these chains are always on TV and make a huge impact. The other advantage the chains have is consistency. Much of the food for these restaurant chains comes pre-prepared from a commissary which contributes to quality control. The other big advantage the chains have is a good location. Typically they are located in or around a shopping mall or major shopping area with good traffic flow.

The restaurant business is a very tough business. The profit margins are low, the customers are fickle and controlling employee theft is a challenge.

If you are thinking about getting into this business....think really hard. If I didn't have the country club with large functions for our F&B operation, my restaurant would not be able to survive on its own.

If you already have a restaurant, here are some ideas to try and develop a loyal customer base....

Have a lost leader....like Prime Rib dinner for $16.95...get them in the door and upsell.

Become known for a particular dish. Maybe having Turkey Dinner on the menu every evening. You want your specialty to be a dish that people will typically not prepare at home.

Have a concept or theme and stick with it. If it's family dining with children or more elegant dining for adults, find a concept and promote it.

Offer a complete meal including dessert at a reasonable price

Offer a $2.00 glass of wine or beer with the purchase of a dinner entree.

Give out loyalty cards...like buy 5 dinners, get one free.

Have theme nights that involve alcohol...for example, German Oktoberfest Buffet and Beer Bash, Irish Beer Festival, Cinqo De Maio Tequila Festival, etc.

Advertise a free glass of champagne with an anniversary or birthday celebration (and buy the inexpensive brand!)

I hope these ideas help. I think I have tried them all! The most successful for us has been the theme nights with alcohol....I guess that's no surprise!!

Answer 3

McDonald's succeeded by providing convenience in a consistent product at a reasonable price, quickly; not great food. Independent restaurants always win by providing better tasting food and personalized service if their price is reasonable.

Look at the independent restaurants in you area. Why do people frequent them? Why haven't all of them gone belly up? They offer something unique or tastier or friendlier than the big boys do. They can't always complete on the price-point, but customers are willing to pay more for a better product.

Running a restaurant is a tough business, but it can be profitable. You should talk to your local independents to get some tips and war stories.

Good luck!

Answer 4

The food. Its all about the food. If the fod taste great then the small restaurantwins. Nobody is goig to outperform MC donalds money wise but would you rather go there or to a nice stake meal?

So you need 2 things. Great tasting food and a good atmosphere. The food is the key.

Answer 5

1- excellent food.
2- excellen service.
3- excellent prices.
4- mouth to mouth publicity.
5- easy parking.
Suggestion: offer new dishes with the same ingredients. In Brazil, we have the manyoke roll, the cheese bread or the potato bread that people go crazy. Few Americans know these delights but some of my American friends do and enjoy so much! To get the recipees, you might try browsing these:
receita pao de queijo
receita pao de batata
receita bolinho de aipim
They will be eaten with regular dinner... and you might try finding also our soda pop, the guarana (there are several brands, Kuat by Coca-Cola, and Antarctica or Brahma), that are fully drank when my friends fly down to Rio.

Answer 6

The business classification of a company, corporation, S corp., partnership, etc., should not and most likely will not determine your success.

A successful business model and providing good service and product will be the true factor in determining success.

See what your competition does well, regardless of their IRS status. Why do they succeed? What can you do to benchmark their success?

Answer 7

money wise probably not but if you have a small restaurant to make a living you, with great food you can probably do it. We would rather go to the small restaurants with great food than the chains because their food, even though it is higher priced sometimes, is usually way better. I would rather pay more for better tasting food.