I know, I know – SORRY for the horrific photos of my body and condition.  I am only trying to be authentic (despite the embarrassment) of what it was like to experience Hong Kong head-first.

Hong Kong is not China.  As an American I thought they were the same.  It’s like saying New York City is America or Dubai is the Middle East.  The are quite different in culture, cuisine and currency.

As an international restaurant consultant I can say with confidence that Hong Kong is one of those places anyone in the trade should see first hand.  I feel it is just scratching the surface though.  Perhaps one day Mandarin will be as common place as English.  We should all start warming up to the cuisine not just because it’s likely to be a global cuisine in 20 years but because it’s a wonderful cuisine and culture steeped in history, tradition and delightful culinary sensation.

Restaurant Consultant Aaron Allen

November 2009 Cairo Egypt

Cairo is such a unique place in all the world and it was a thrill to at long-last check it off my list of travel goals.  A city with more than 25,000,000 people, Cairo is burstling with energy.  The ancient is juxtaposed against the modern.  The old world pyramids of Giza transport us back to a different time (and then the lazer shows that happen nightly in front of the pyramids bring us crashing back to the modern day).

One rumor I can confirm with certanty is the use of car horns.  As one cabbie put it “Here we can drive a car that has no lights, no radio, no seats, but we would never drive a car without a horn”.  There are few street lights, cars not pedisterians have the right of way, and as a result the honking of a horn is the most dominent and frequent sound throughout the expanses of the city.  You hear honks of anger, honks of hello, honks of “watch out or I’ll run you over”, and honks that seem to be made just as a matter of muscle memory habit like blinking an eye.  The pyramids seem to stand in patient persistance in the noise and commotion all around them.

The food in Egypt is a melting pot of Middle Eastern flavors.  There are approximately 23 dialects of Arabic spoken in the Middle East.  It is hard for an Egyptian to understand the Arabic of a Saudi national.  This creates an interesting dimension for the traveler seeking to go deep into the culture and understanding of the region.  Sadly, many Americans see an Asian and think they are Japanese or Chinese and don’t think much further.  The cultures of Asia are as rich and dierse as can be found anywhere in the world and they can’t be lumped together in such a way.  Similarly, the Middle Eastern Arab nations and cultures have their own uniquenesses of culture, tradition, heritage and beliefs.

While Egypt is on the continent of Africa, it is an important part of the Middle East.  Egypt is not representatie of the entire Middle Eastern experience.  Countries such as the United Arab Emirates, Bahrain, the Kingdom of Saudi Arabia, Jordan, Lebanon, Kuwait and Qatar are all starkly different in many important ways.  A similarity they share is the unique Arab Hospitality that has been passed down for thousands of years by the Bedouin tribes that roamed the Middle East.  Arab Hospitality is about lavish generosity.  There are many stories of families selling their most important and prized possessions to pay the costs of hosting a guest.  In Bedouin tradition, even enemies were given refuge and were hosted graciously.

There are many misconceptions of the Middle East.  There are also many story-lines that are currently going unnoticed.  For instance, while China is leading the world in growth in manufacturing and India is leading in outsourcing, few know that the Middle East is the fastest growing hospitality market in the world.  More posts on that coming soon.

Hope you enjoy the slideshow!

Aaron Allen

Middle East Restaurant Consultant Aaron Allen

The tuna should no more be brown because it is cut from a different part of the fish than beef should be brown because it’s cut from a different part of the cow.  

I had asked a friend of mine to join me at this restaurant.  Being in the business she expected me to have a good recommendation on where to lunch.  This wasn’t the first time I have introduced new customers to this restaurant.  (I wonder if they see the value in that?)

It’s frustrating to me when servers try to belittle customers or fool them by confidently throwing out crap they make up on the fly.  It’s the kind of thing that just shouldn’t happen.  I can easily imagine a customer trying to return a spoiled wine to this waitress and being told “that’s how it’s supposed to taste” and giving one of those “duh!” looks to get a customer to buy it.

I returned the food and decided not to eat or to make a scene.  Once I was away from my guests though I called up the restaurant to discuss.  The waitress answered and no quicker than I had started to explain she interrupts me and gives the phone to the owner (without remarks or apology).

As soon as I started to explain the brown tuna incident to the owner now, he jumped in quickly and talked over me explaining how it is because of the ingredients and use of soy.  “Funny though, it was never brown before”, I say.  “Oh, someone must have used the wrong recipe”, he pounces back.

When I spoke to the owner, it was hard to get a word in edgewise.  It was like a lightening round on a game show.  Remembering “two monologues don’t make a dialogue”, I stopped trying to explain what had happened hoping he’d talk himself out and remember he was supposed to be listening.  It wasn’t until I interrupted him to remind him I’m not with the tuna police or D.E.A. (I’ll explain that in a minute) and my purpose for the call was because I want them to succeed.  “I know that a restaurant owner can’t fix problems unless they are aware of them and so the purpose of my call is to try to help a restaurant I really like”, I said.

He was quiet long enough to let me get out the next part, which was a little uncomfortable to even say.  Since I was talking to the owner though I thought I would bring something else to his attention.  A few weeks earlier – when I was talking up his restaurant to some Tampa locals – one stopped me and exclaimed “Oh, that’ place – I’ll never go back there again.”  She explained a horrific scene that had played out for her party one Friday night while there.  Long and short she said, “All the locals know they have a bad problem with Ecstasy there – lots of the servers do it and I think our waitress was high that night because of how the whole experience went down”, she said.

This image of staff on drugs stuck in my mind but it didn’t deter me.  I hadn’t seen any sign of it and although it was confirmed again by someone else, I kept going back at least twice a week.  It bothered me though so I told the owner I felt he should know that was a response I got back while trying to help refer more business to his restaurant on an earlier occasion.

What kind of response do you think he gave?

He laughed out loud at my explaining there was a rumor about drug use among staff of his restaurant.  He laughed long enough and sarcastically enough that I felt embarrassed for trying to bring it to his attention (I guess he would rather the rumors – or truth of the situation – spread around town).  When he got done laughing he pressed me to tell him who said it.  I didn’t want to reveal my sources.  Eventually I told him simply, I heard it from someone associated with the downtown sports stadium (just a few blocks away).

He then slowed and eventually admitted that he knows some of his staff has gone out with the ballplayers “and who knows what may have happened”.  He conceded that some of his staff may have been doing drugs while out partying but was quick to defend that it didn’t happen at the restaurant and he has no control over it. 

We ended the call in a worse spot than when we started.  He gave me little sense of comfort and I felt a taint on my perception of the restaurant more after talking with the owner than prior.  I had really hoped for a response that would quell my concerns and get me excited about going back.  I don’t really feel that way more, but the experience did remind me of some important lessons in responding to customer complaints.

Reminders in Responding to Customer Complaints:

1. Don’t Interrupt – When a guest calls or voices feedback, you must consider that their motivation isn’t to look important, to get something free, to embarrass or hurt feelings.  It takes a certain amount of guts to ‘complain’ (see Restaurant Complaints).  Most customers decide to just leave and tell their friends, not the restaurant.  But how then can the restaurant address issues if it’s not aware?  Interrupting not only keeps you from hearing important feedback, it is rude and leaves an impression that you’d rather not hear feedback.  It can make an important dialogue with a guest deteriorate.  Let the customer fully explain what went wrong and the situation.  Ask questions to get them to say more rather than interrupt with points of correction along the way.
2. Don’t Get Defensive – Customers do not complain as a personal attack.  Sometimes customers may complain about something that they are in fact totally misinformed about.  As a restaurant manager I once had a customer complain in outrage that there was a whole crab served on his plate and how we must be idiots because everyone knows you don’t serve the whole crab but only the meat.  He had ordered fried soft-shell crab and that’s how it comes typically but he was from another part of the country and didn’t know.  Rather than correct him immediately and show him how he was wrong, I had been trained to let him fully vet and then ask him how he would like us to correct it for him (remove from the check, bring something else on the house, etc).  After we brought him a free steak and things were settled down, I later explained the preparation of soft-shell crab at many local restaurants in the area so he would be aware if he ordered it elsewhere.  His whole family returned the next two nights of their stay and he brought more guests with them on each return.
3. Encourage Feedback – Laughing was rude.  The concerns I expressed of others telling me I am frequenting a place with drug addicts were serious and should have been met with a serious concern.  Instead of a sarcastic laugh and blind defense of his staff, he should have responded by saying the restaurant’s reputation, safety of staff and guests, and commitment to being responsive to such issues are important and that he would personally look into it as the owner.  I originally tried to submit my feedback on the restaurant’s website but the feedback button was broken and the other comment form was just to join their newsletter.  That in itself is sort of telling.
4. Monitor Public Perceptions – It’s often too late to correct negative public perceptions when you notice sales are down.  I had been surprised to see fewer and fewer customers at this restaurant week by week.  Could it be that – despite usually terrific food and atmosphere – the rumors and customer complaints circulating the community are partially to blame?  Maybe, maybe not.  Rather than debate that point though, the owner should recognize that feedback is something he should beg to get.  More though, when rumors start circulating, it should summon curiosity not head-in-the-sand defensiveness.  Why argue whether or not some members of his staff may be frequent Ecstasy users?  Whether it’s true or not, it’s circulating.  It’s impacting his business.  It should be alarming enough to take measures to learn more so he can help correct the perceptions instead of pretending they aren’t there.
5. Consider a Drug Free Workplace Policy – In this instance, the owner may have – at least to himself – pondered moving to a drug free workplace policy.  Even if there is no drug use on his restaurant property by staff, he admits they may be doing it elsewhere and that’s why the rumors are circulating Tampa.  What he didn’t seem to get was that whether the drugs are being consumed on his property or off, his staff is engaged in it and the word is spreading all throughout town.  It impacts his restaurant both in terms of reputation but also in terms of liability.  He thinks the liability is off property with the staff, but the reality is that now he has been made aware of possible illicit drug use by staff and the liability is dragged right back on property.  If there is at some point drug use on his property or a guest or other staff member is hurt or put in jeopardy, liability transfers in part to the owner who had knowledge but did not do anything about it.  Trial lawyers and personal injury attorneys love this sort of thing.
6. Consider the Stakes – We have to address complaints today differently than before due in large part because of the shifts in communication, media and digital dissemination of information. I considered leaving this restaurant anonymous but decided to identify them for two reasons.  One reason is because I feel the restaurant is doing enough wrong that we should all be wary.  When a restaurant owner blindly and so strongly defends against (at first) even the possibility he has staff members on drugs then I have to wonder how seriously he takes other aspects of guest safety.  Secondly, I feel the day has come that restaurant owners stop thinking the complaints they are quietly addressing in their back office are out of the public domain. It used to be that a customer would not tell the restaurant but would tell 10 of their friends.  Today, that customer can tweet 10,000 from their table.  For more on this subject, see Word of Mouth in the Age of Social Media.  Because of the digital revolution, we have to address issues like we are doing so in front of all of our customers, not just one rogue call behind closed doors.

We all make mistakes.  Facing criticism – whether warranted or not – can be painful.  I know that from first-hand experience.  Sometimes I wish we could still respond to criticisms privately and out of the scrutiny of a blogosphere world where everyone has an opinion, right to voice it, and a whole new platform to do so on a scale never before accessible to us everyday people.  Fact is though, the rules have changed, the stakes have grown and we have to respond to customer complaints as if everyone were watching.

Restaurant Marketing Consultant Aaron Allen

The ultimate goal of marketing is to match a company’s products and services to the people who need and want them, thereby ensuring profitability.  Marketing segments targeting kids or Generation Y (also called the Millennial Generation), recognizes children’s roles as consumers, honors their roles as children and acts on this duality across every element of the marketing mix.[1]

Generation Y – born between 1982 and 2002, is reported to be between 72 to 81 million strong and is just as large as the Baby Boomers Generation.  Members of Generation Y are primarily the offspring of the Baby Boomers Generation.  Generation Y, like other generations, has been shaped by the events, leaders, developments and trends of its time.  The rise of instant communication technologies made possible through use of the internet; such as email, texting, IM and newer media used through websites like YouTube and social networking sites like Facebook, MySpace, and Twitter, may explain Generation Y’s reputation for being peer-oriented and for seeking instant gratification. This trend of communication is continuing into Generation Z.  This generation is predicted to make up the bulk of the US population within 20 years. [2]

Kids Marketing in Food Industry

According to Media Awareness Network (MNet), the advertisement industry’s spending on children has exploded in the past decade, increasing from a mere $100 million in 1990 to more than $2 billion in 2000.[3] A report by CBS Corporation says that in the year 1983 companies had spent $100 million marketing to kids and in the year 2007, they’re spending nearly $17 billion annually. [4]

Federal Trade Commission (FTC) report [5] on food/beverage ad spending mentions that the amount spent on food and beverage advertising to children aged 2-17 in 2006 was $1.618 billion.  Approximately $870 million was spent on food marketing directed to children under 12, and a little more than $1 billion on marketing to adolescents ($300 million of these expenditures were addressed to both age groups).

A report from Association of National Advertisers and Grocery Manufacturers of America (GM) [6] found that there was a decline in the effect of ads on children’s TV in 2007 over 2006, with a 25% decline since 2004.  Also, spending for food, beverage and restaurant advertising, adjusted for inflation, is down 6% year-to-year during the period 2007 to 2006.

Nutrition Business Journal (NBJ) Kid’s Nutrition Market Report estimates that the approximately $10.1 billion healthy children’s market is one of the hottest product trends in 2009, and believes that there are still plenty of opportunities for new innovative products to be introduced to the market. [7]

Gen-Y Population and Spending Growth

Generation Y numbers approximately 80 million [8] in population size and makes up 25% [9] of the US population.  It is estimated that Gen-Y population in the US will make up 34% of the population in 2015. [10] As of February 2009, the United States has a total resident population of 305 million.  The following table shows the estimates of the Gen-Y population:

It can be seen that the Gen-Y population has grown by 22.8% in 2007 compared to 2000, whereas the increase was only 7.11% for the total population during this period. It is estimated that the population will grow 21.4% in 2010 compared to 2007 and 44.7% in 2020 compared to 2010.  Similar figures for total population are 5.31% and 10.41% only.  This shows that the Gen-Y has been growing faster compared to the total population, and is estimated to grow faster in the future also.  The following graph shows the pictorial representation of the above facts.

Purchasing Power of Gen-Y

A report from Business Insights mentions that the purchasing power of Gen-Y appears to be increasing as the amount of pocket money received by US children, aged 5-to-9, rose from $4.2 per week in 2001 to $8.2 in 2006. [19] The purchasing influence of children and youth increases with age and is currently estimated at $500 billion for 2–14 year-olds per the report of Institute of Medicine (IOM). [20] According to a report by Mintel International Group, Gen Y spent $175 billion in the US in 2003 and is expected to top $190 billion in the US by 2006.  That’s about $4,000 per kid. [21]

A report from Harris Interactive (2003) suggests that Pre-teens (ages 8-12) spend at a rate of $19.1 billion annually, or $946 per capita. [22] Teens (ages 13-19) spend at a rate of $94.7 billion annually, or $3,309 per capita [23].  The per capita figures of segments under Gen-Y are furnished in the table below:

The report further states that American kids, teenagers, and young adults, aged 8 to 21 years, have annual incomes totaling $211 billion and the group is spending at a rate of approximately $172 billion per year and is saving at a rate of $39 billion per year.

According to a latest report from a study group (2009), Generation Y is estimated to have more than $150 billion in direct purchasing power and another $500 billion in indirect purchasing power. [24] Another report mentions that this group has disposable income because of their parents’ support. [25] Young consumers in the US wield considerable buying power.  Among 13 to 21 year-olds alone, over $120 billion was spent in the year 2007.  The group’s income is predicted to rise through at least 2017, when it will approach $3.5 trillion. [26]

Gen-Y Budget and it’s Growth Forecast

Gen Y’s annual income will rise from $1.89 trillion to $3.48 trillion in the next ten years, growing to near Gen X’s income ($4.2 trillion in 2017) and eclipsing Boomer’s ($2.96 trillion in 2017).  The table below shows the income growth and variation with other demography of population in US. [27]

This table also shows that the annual income growth expected of Gen-Y far exceeds that of Gen-X and Baby Boomers.  The growth rate expected for Gen-Y during 2012-2007 is in the range of 25.4%, and 46.8% during 2017-2012.  The corresponding figures for Gen-X are 6.5% and 7.4%.  The figures are negative for baby boomers at -4.4% and -10% respectively.

Pictorial representation of the above facts is shown below:

A report from Bureau of Labor Statistics – ‘Comparing the Economic Status of Young Singles in 1984-85 and 2004-05’ [28] states that after adjusting for inflation, the average total spending for young singles did not change in a statistically significant way for the period 2004 – 2005 compared to the period 1984 – 85, but are better off than the young singles of 1994 – 95.

A study conducted by National Restaurant Association for the year 1993 reveals that the households headed by persons under the age of 25 spent 42.1% of their food budget on food away from home – the largest proportion among all age groups.  This group typically is unmarried, at the beginning of their careers or attending college.  Persons in this age group may want to dine out, but may be curtailed by financial constraints. [29] In comparison, households headed by persons age 35 to 44 in the same income category spent $627 per capita and allocated 39 percent of their total food budget to food away from home.  Another factor affecting household spending on food away from home is children.  Households with a husband and wife spent $981 per capita on food away from home in 1994; more than 64% higher than the $596 per capita spent by families with children.  Households with children accounted for 37.9% of all dollars spent on food away from home.  Families with children under the age of six spent $1,597, whereas families in which the eldest child is over the age of 18 spent $2,716. [30]

There is a recent report which mentions that the average American household spends up to 40% of its total food spending on food eaten away from the home. [31] Taking into account the report from Bureau of Labor Statistics, we can conclude that the above consumer spending is valid as of now.

The tables and graphs shown below depict the above facts:

Using the increased per-capita forecast for the coming years, we can estimate an increase in the business of restaurants in the near future.  By 2020, as the Baby Boomers start to pass away, Generation Y will take over as the largest adult generational grouping in the United States.  Restaurant income will grow directly as the population growth increases, especially when Generation Y (as since the aging Boomers) population shifts, and changes in family sizes are changing the world.  This literally shows the growth of Gen-Y population in the years to come and thereby their market share on restaurant food spending.

Marketing to Gen Y

To effectively market to Gen Y, marketers have to understand the four areas Gen Y considers before purchasing a product or service: [32]

• Cheap cost
• Good quality
• Fast service
• An experience

Another report says that Gen Y processes information quickly and are especially brand loyal.  Gen Y likes innovative marketing approaches and advertising that uses humor or is “outside the box [33].

Consumer Dining Insights

A research study (2007) done by Restaurants & Institutions(R&I) mentions that 50 percent of New American Diner Study’s Gen Y respondents strongly agree that food tastes better at a restaurant than at home.  Supermarkets are a source for prepared meals for 44.3% of Gen Y, not a warehouse of ingredients.  Gen Y is comparatively more likely to use a drive-thru window or have food delivered for dinner than are other groups. [34] 18% of Gen Y respondents say they had ordered wine in the past year, according to R&I’s 2005 Tastes of America Study, but it may have been because many of its members are under-age. [35] 36% of Gen Y respondents say they ordered a cocktail. That bests the 32% of Baby Boomers who say they ordered spirits. [36]

14% of Gen Y respondents to R&I’s New American Diner Study strongly agree that they are making a sustained effort to eat healthy at restaurants, the lowest of any other age group.  They are the least likely to say that nutrition issues influence their meal selections, although 24% strongly assert that they like menus that provide nutrition information. [37]  Nearly 25% of Gen Y members agree strongly that “Restaurants I choose reflect my personality”; 16% strongly agree that restaurant choices “reflect my social status,” according to R&I’s New American Diner Study.  Both percentages are higher than any other age groups. [38]

25%  of Gen Y respondents say bottled water accompanied their most recent restaurant lunch (versus 8% of Baby Boomers); 12% say they ordered bottled water with their most recent dinner (also highest among all age groups). [39] For Gen Y, coffee may have become a separate-occasion indulgence – at Starbucks or wherever – and less a meal beverage: Only 29% say they have ordered it in a restaurant in the past year, compared with 45% of Gen X and 52% of Baby Boomers. [40] 68% of Gen Y members who frequently eat dinner away from home say that they’re likely to order something different from what they usually eat at home (compared with 58% of their Baby Boomer parents). [41]

Surefire Strategies for Marketing to Generation Y

Generation Y is not difficult or complicated. They are truly unique.  Bea Fields [42], Founder of Five Star Leader Coaching and Training, gives the following tips to win over Gen Y.

1. Respect them as consumers: Members of Generation Y are tech savvy and highly intelligent. Don’t talk “at” or “down to” them.
2. Get to know them: Before they will do business with you, Generation Yers want to know that you care enough to find out what makes them tick.  Find out how they spend their free time, the music they listen to, and what they eat, wear, read, watch, and drive. You might just be surprised by what you learn!
3. Look cool and hip:  Generation Y will buy based on a sleek, beautiful, cool-looking package.
4. Be socially responsible:  Generation Y is incredibly conscious about social causes including the environment, animal rights, and world hunger.  They want to know that your company is aligned with a cause that creates an emotional connection with them.
5. Be real: Be honest and open. Drop the old sales-speak and be sincere when marketing your products and services.
6. Join their networks: Generation Y will not come looking for you.  If you want to attract Generation Y, go where they hang out: social networking sites.
7. Take it to the streets: Today’s youth love experiences.  Today’s smart marketers use street teams and event marketing to reach Generation Y.
8. Give them a chance to win:  Generation Y is wild about winning a contest or receiving a gift, especially if it’s meaningful to them, like an iPod, a trip to a national snowboarding competition, or tickets to a hot concert.
9. Go viral:  Video (vodcast) and audio (podcasts) bits uploaded to your site can spread across the Internet as Generation Yers share their favorites with their friends, who pass it along to their circle, and so on.
10. Text them:  Learn how to integrate mobile technology in your marketing efforts to get into their networks and be seen.

Top 10 Tips for Marketing a Restaurant to Gen Y

The Food Service Warehouse [43] gives the following ten tips for Marketing a Restaurant to Generation Y;

1. Consult a young person:  The best way to determine if the company’s marketing, design and operational strategies appeal to young people is simply to ask teenagers or young adults what they think.
2. Try email and text message marketing:  Young people are communicating with each other digitally.  Implement a direct email and text message marketing campaign.  Just be careful not to annoy young customers.  Make sure they opt to receive the promotions.
3. Maintain a website:  Any restaurant that hopes to attract young people should have a website
4. Focus on value: One do not want to be perceived as cheap, but the menu items need to be a good value.  They want to feel that what they buy is really worth the price.
5. Avoid flagrant sales pitches: Young people today are very independent, and they do not want to feel pressured.  Present the marketing messages in an educational or entertaining form, rather than as a traditional sales pitch.  Be as honest as possible.
6. Implement viral marketing: Enlist a few students or young adults with lots of friends and social networking potential to be part of your marketing team and spread the word about your restaurant.
7. Hold events at the restaurant: By hosting concerts, movies, bar trivia, karaoke or other events, you can attract students and teens and give them a good reason to keep coming back.
8. Do not try too hard to be “cool.”: Marketing to young people is a lot like middle school.  The best way to seem “cool” is to remain “real” and low-key.  Let the restaurant speak for itself.
9. Get onto social networking sites:  If the restaurant has its own Facebook, MySpace or Evite account, it can be used to inform customers of new promotions, special events and any changes in your menu selection or services.
10. Choose the music carefully: With the prevalence of iPods and music sharing in their culture, young people have more independent tastes in music than previous generations.

Channels of Marketing to Gen Y

Print: Choose advertisement target publication carefully.  Dog magazines, cat magazines, nature, nurture, body-building, body art could be some of the media.

Mobile: It might be because 94% of Gen Yers own a cell phone, and comprise a shocking 46% of total iPhone users, according to the 2008 demographics released by Apple.  This makes mobile marketing a prime outlet for reaching these consumers.  Set up a SMS system to send users a certain article when they text you a certain code.

Web: For Gen Y, the web represents a personal connection with the virtual world around them.  Twitter, Facebook, LinkedIn, Mixx, delicious and the social networking list goes on and on.

Outdoor: GenY has trained themselves to ignore billboards and other outdoor advertising.  The exception is innovative, impactful or cultured advertising.  The billboard is meaningful, clever and interesting; all a combination to open the eyes of Generation Y.

SOURCES:

[1] http://www.kidprospect.com/uimages/3191.pdf

[2]http://en.wikipedia.org/wiki/Generation_Y”>http://en.wikipedia.org/wiki/Generation_Y

[3] http://www.media-awareness.ca/english/parents/marketing/marketers_target_kids.cfm

[4] http://www.cbsnews.com/stories/2007/05/14/fyi/main2798401.shtml

[5] http://www.ftc.gov/os/2008/07/P064504foodmktingreport.pdf

[6] www.ana.net/advocacy/getfile/14980

[7] http://nutritionbusinessjournal.com/healthy-foods/market-research/02-26-kids-nutrition-report/

[8] http://www.brandmercenaries.com/generationystats/

[9] http://www.alcatel-lucentbusinessportal.com/private/active_docs/AN_HospitalityTechnologyforGenY_EPG3310090501_EN_May09.pdf

[10] http://www.theventurecatalysts.net/files/Download/TVC_Newsletter_Gen_Y.pdf

[11] http://en.wikipedia.org/wiki/Demographic_history_of_the_United_States

[12] http://www.google.com/url?sa=t&ct=res&cd=11&url=http%3A%2F%2Fwww.mediamanagementcenter.org%2Fblogs%2Fmike%2Fgeny.ppt&ei=JbhpSoOHL4qgkQWckr2cCw&rct=j&q=generation+y+spending+by+2010+and+2020&usg=AFQjCNEiLBWA0ZmtoMpcBy3e0tZKTQW6fg

[13] http://en.wikipedia.org/wiki/Demographic_history_of_the_United_States

[14] http://www.google.com/url?sa=t&ct=res&cd=11&url=http%3A%2F%2Fwww.mediamanagementcenter.org%2Fblogs%2Fmike%2Fgeny.ppt&ei=JbhpSoOHL4qgkQWckr2cCw&rct=j&q=generation+y+spending+by+2010+and+2020&usg=AFQjCNEiLBWA0ZmtoMpcBy3e0tZKTQW6fg

[15] http://en.wikipedia.org/wiki/Demographic_history_of_the_United_States

[16] http://www.theventurecatalysts.net/files/Download/TVC_Newsletter_Gen_Y.pdf

[17] http://www.theventurecatalysts.net/files/Download/TVC_Newsletter_Gen_Y.pdf

[18] http://www.google.com/url?sa=t&ct=res&cd=11&url=http%3A%2F%2Fwww.mediamanagementcenter.org%2Fblogs%2Fmike%2Fgeny.ppt&ei=JbhpSoOHL4qgkQWckr2cCw&rct=j&q=generation+y+spending+by+2010+and+2020&usg=AFQjCNEiLBWA0ZmtoMpcBy3e0tZKTQW6fg

[19] http://www.globalbusinessinsights.com/content/rbcg0192m.pdf

[20] http://www.iom.edu/Object.File/Master/31/337/KFM%20Overview.final.2-9-06.pdf

[21] http://generationy.typepad.com/petersheahan/2005/01/gen_y_spend_up_.html

[22] http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=17669

[23] http://www.harrisinteractive.com/NEWS/allnewsbydate.asp?NewsID=667

[24] http://www.nassm.com/files/conf_abstracts/2009-208.pdf

[25] http://www.entrepreneur.com/marketing/article202334.html#ixzz0MMPMsmSK

[26] http://www.emarketer.com/Article.aspx?R=1006354

[27] http://www.emarketer.com/Article.aspx?R=1006354

[28] http://www.bls.gov/cex/generation.htm

[29] http://www.allbusiness.com/marketing/market-research/592154-1.html

[30] http://www.allbusiness.com/marketing/market-research/592154-1.html

[31] http://www.kpho.com/money/16588883/detail.html

[32] http://www.genybuzz.com/gen-y-buzz-special-report.html

[33] http://www.entrepreneur.com/marketing/article202334.html#ixzz0MMptrCW8

[34] http://www.rimag.com/article/CA6521427.html

[35] http://www.rimag.com/article/CA6521427.html

[36] http://www.rimag.com/article/CA6521427.html

[37] http://www.rimag.com/article/CA6521427.html

[38] http://www.rimag.com/article/CA6521427.html

[39] http://www.rimag.com/article/CA6521427.html

[40] http://www.rimag.com/article/CA6521427.html

[41] http://www.rimag.com/article/CA6521427.html

[42] http://www.4hoteliers.com/4hots_fshw.php?mwi=3557

[43] http://www.foodservicewarehouse.com/education/restaurant-marketing/top-ten-generation-y.aspx

 A recent study found that 63% of American households have a pet.  There are 74.8m dogs in the USA and their collective spending on pets tops $40b per year.  By comparison, estimates are that only between 10% – 25% of Americans smoke.  The number of dog lovers in the country is going up and the number of smokers is going down.  Surprisingly though, it’s often still tougher to find a place to dine with your pooch than for a smoker to find a place to light-up.

We Americans love to pamper our pets.  As I write this I am in a 1,100 square foot four-star suite that is so pet friendly they allow both of my dogs (a Great Dane and Dachshund) and even bring up pillows and food bowls.  Some new doggie day care services charge as much as $120 per night for a luxury kennel (only my dogs get to stay at that rate, not me too).  Collectively, Americans spend $16.1 billion on pet food.  To help put that number in perspective, consider – all of the restaurants in Florida combined will post just $24 billion this year in revenue.  These numbers paint a picture of the buying power of pets.

There are more than 40,000 “doggie diaries” on Dogster.com and the percentage of dog owners who share their bed is 42%.  Americans love to talk about their pets, spend time with them, and increasingly they are looking for hotels and restaurants that are getting with the pet-friendly movement.  Not a bad community to tap into if you’re looking for solid word-of-mouth promotion.

Given how loyal people are to their pets, wouldn’t it make sense to tap into that strong emotional bond and create not just pet-friendly patio dining but to go further and develop marketing campaigns around this untapped market?

Pet Friendly Ideas for Restaurateurs to Consider:

• Water & Treats – You can tell how dog friendly a restaurant is these days by whether or not they bring a water bowl and treats over with the drink order for the table.  People (and their dogs) love it!  Be sure though to let the owner give the treat to their own dog (it is part of training and bonding as well as correct etiquette on behalf of the restaurant).
• Dog Days – A day guests are invited to bring their dogs for social hour.
• Free name tags – Consider offering to imprint a dog tag with the pets name and owner details on one side and your restaurants logo and phone number on the other.
• Dog Photo Walls – Consider taking pictures of guests who bring their pets and post on a bulletin board or on your Facebook or Twitter accounts.  They love it (plus it helps communicate the message of how your establishment is pet friendly).
• Sanitation – Pets are forbidden inside the restaurant because of strict health codes.  They have even started to crackdown on giving treats.  Starbucks used to offer a doggie treat to drive through customers who had a dog in the car but stopped doing it because of the grouchy heath department.  That said, they are still – at least for the time being – allowed outside on the patio.  Encourage your staff to help the pet and owner feel welcome.  Also remind them though to wash their hands and maintain the same standards of sanitation you encourage in other aspects of food and hygiene.

There are a ton of other ideas on ways to communicate a pet-friendly policy and attract a profitable and untapped market.  Please open up the discussion – looking forward to your comments using the form below!

Restaurant Consultant Aaron Allen

The National Restaurant Association (USA) has reported the average restaurant marketing budget is three percent (3%) of total revenues. Critics argue this point and we’ve seen budgets ranging from zero to six percent (6%).  We believe this depends on the brand, operations performance, market conditions and a host of other variables. Yet, while many can generally agree on a reasonable allocation of overall sales, they pay surprisingly little attention to how the money is allocated beyond just falling into the “marketing budget”. Once you have the allocation, where does it go?

The Digital Marketing Toolkit

We recommend that of the three percent (3%) allocated to the marketing/advertising line-item, forty-percent (40%) of that be dedicated to digital marketing and publicity efforts. Going further still though, the budget, the strategy, timelines, the tactics, the messages, must now all be succinctly distilled and then divided among a number of cutting-edge new digital media categories. This list of vehicles is mind-boggling and it only continues to grow and fragment. You’ve got the Internet and Intranet, search engine optimization and Pay Per Click advertising, digital signage, narrowing-casting and Podcasting, RSS feeds, social media and social networks, Wiki’s, Widgets, Mash-ups, Analytics – the list grows and grows. These are sustainable emerging technologies too – not just fly by night digital jargon.

It’s Natural for it to all Seem Overwhelming

The marketing rules have changed in the digital era and the train is moving like a bullet. Yes, the principles of marketing – the four P’s, brand strategy, etc. – these remain as true today as ever.  They are bedrock and all too often marketers chase the latest fad while forgetting proven principles to restaurant branding.  While maintaining a close connection to the fundamentals of restaurant marketing we should also be reaching out to discover the innovative new approaches that will prove to be game-changers.  It all sounding complicated and overwhelming isn’t a good excuse for ignoring the seismic shift that’s afoot.

The Trend Will Pickup Velocity

Digital marketing is has only started to become recognized as a powerful tool in the restaurant marketers toolkit.  Today it represents a tiny fraction of the overall restaurant marketing budget for chains and independents alike.  Given that more than 30% of restaurant customers will visit the restaurants website before visiting the restaurant itself, getting a solid web presence and supporting it with a strong digital marketing and publicity campaign is more important than ever. 

Restaurant Consultant Aaron Allen