Wednesday, August 25, 2010

Marketing Your Restaurant



Marketing for a restaurant comes in many forms. First there is your “store front” which usually consists of the name and a menu posted near the door. Beyond that there is print advertising such as newspapers, magazines, flyers, etc. Then you have radio and television. Print and media advertising can help a restaurant to get their name in front of a large number of potential customers and can be very effective. However there is a cost that can be a downer on your bottom line and it can be hard to track if you are really getting a return on your investment.



In my experience the absolute best marketing tool a restaurant has (aside from serving great food) is its’ staff. The staff is key to the experience the restaurant provides to its’ customers. For example, my family and I recently dined out while on vacation. At one particular restaurant we had fantastic food, but our server was not the most welcoming person we had ever met. In fact she was kind of intimidating, did not welcome questions about the menu and made us feel like we had ruined her day by coming in. We ate at several restaurants while on vacation, some more than once, but we never did return to that restaurant nor will we.



That server cost that restaurant money. Had she been glad to have customers, been eager to help and been welcoming and friendly, we would definitely have gone back to try other dishes.



On the flip side, I recently enjoyed lunch at a local restaurant where I was greeted by a genuinely friendly young lady who appeared to be very happy that I had come in for lunch. She pointed out menu items in which she thought I would be interested, explained how they were prepared and happily took my order. As I ate, she checked in with me to make sure everything was well and to see if I needed anything else. It did not escape my attention that she treated every other customer the exact same way. Needless to say I will be back and will refer everybody I know to that restaurant.



Having a staff that makes customers feel welcome and is accommodating and honestly friendly will not only turn customers into regular customers, but will create a great source of referrals. Think of your staff as an insurance policy for steady business.



Penny Insurance Agency has been helping restaurant owners design cost effective insurance programs since 1931. www.pennyinsuranceagency.com.

Tuesday, July 27, 2010

What do you tell your customers when your restaurant is full?



What do you tell customers when your restaurant is full? If you simply tell them that you are at capacity and cannot accommodate them then you are missing an outstanding marketing opportunity.



As restaurant owners know all too well, one night you can be at full capacity and the next night you can be dead. Consistently filling your dining room with diners is a challenge. However there is a way to help smooth out the ups and downs. In a way it’s a type of insurance policy.



It is not unusual for one restaurant to be almost empty while another restaurant just down the street is having to turn customers away. Where are those people going to go? Well, if you have developed a good relationship with the other restaurant owner he or she could help you out by sending customers to you. When unable to get a table at their first choice, many people will ask if the host or hostess can suggest another nearby restaurant. By having a good working relationship with that restaurants’ owner the hostess will know that your restaurant is where she should refer customers they could not seat.



A good way to develop such relationships is by dining in the other restaurants. Invite the owners to dine in your restaurant so he or she has an appreciation for the dining experience you provide. By actively supporting the restaurants in your area you can help insure the success of your restaurant through active networking and developing strong relationships. Think of it as an insurance policy you don’t have to buy from an insurance agent.



Penny Insurance Agency has been helping North Carolina restaurant owners design cost effective insurance programs since 1931.

Thursday, July 15, 2010

North Carolina Employment Practices Liability



Restaurants are complex businesses and their insurance issues are complex as well. In my experience an area that gives me great concern for restaurant owners is the issue of Employment Practices Liability. The good news is that you can buy insurance to protect your business although it can be expensive.



What is Employment Practices Liability insurance (EPLI)? EPLI is designed to provide protection for business owners against claims from employees regarding wrongful employment acts. These acts include any actual or alleged wrongful termination, harassment (including sexual harassment and hostile work environments), discrimination, retaliation, wrongful failure to employ or promote, wrongful discipline, failure to provide or enforce adequate or consistent policies or procedures, negligent supervision, or any employment-related misrepresentation, libel, slander, defamation, humiliation, mental anguish, invasion of privacy, or intentional infliction of emotional stress.



In other words; anything you could possibly do or not do and for which an employee can sue you. With that in mind, why would a business owner NOT have Employment Practices Liability insurance?



EPLI can also help protect your restaurant against conflicts that flare up between employees and third parties, such as vendors or customers, if a third-party coverage endorsement is secured as part of the EPLI policy.



Obviously the restaurant owner must weigh risks and costs very carefully. General Liability policies do not normally cover employment-related risks. If such risks are high, buying EPLI may be a wise decision. The life savings of the small business owner are often tied up in the business and need to be protected.



Penny Insurance Agency has been helping North Carolina restaurants and small businesses design cost effective insurance programs since 1931.







Thursday, July 8, 2010

Stealing You Blind-Your employees and Theft



Theft is a concern for all of us and in the restaurant business it can literally bleed you dry. It is a reality that restaurant owners must address and have measures in place to help prevent it.



It’s not uncommon for a restaurant owner to experience employees skimming off supplies, shorting the register or even just over-pouring drinks in the hopes of getting bigger tips. However the threat also comes from people not working for you such as customers, delivery guys and quite frankly, anyone who is breathing.



When you experience theft it not only costs you directly but can also increase your insurance costs. While there is no way to totally prevent theft from occurring, there are steps you can take to reduce the risk….and reduced risk can help reduce insurance premiums.



- Install a security system with cameras


- Lock up your valuables – which in the restaurant business means more than just money. Liquor, prime meats and seafood, wine; all are easily stolen.


- Only make keys available to a very few very trusted employees.


- Keep your staff happy. Being a good boss can go a long way to preventing theft.



In addition to these common sense practices, it is important to make sure that your restaurant insurance program includes the proper coverages for employee dishonesty and for theft.



Penny Insurance Agency has been helping restaurant owners design cost effective insurance programs since 1931. www.pennyinsuranceagency.com.

Help! I’ve Fallen and Can’t Wait Tables!



Restaurant owners know how important it is to keep the risk of an employee getting injured as low as possible. When it comes to restaurant workers’ compensation claims, the most common incidents come from slip and falls. What makes these types of claims so bad is that they can happen so quickly and many times happen out of site such as in the cooler. To make matters worse they often result in long periods of recovery. Claims like slip and falls can have a very negative impact on your insurance rates and on your bottom line.



The good news is that there are some simple changes that a restaurant owner can make that can reduce your risk of a claim and help to save you money on your restaurant insurance.



With often cluttered kitchens and slippery floors, the risk is high. In addition, servers hurriedly carrying trays of food, employees moving inventory and often lifting heavy boxes make attention to risk a critical element of running a restaurant.



Having worked in almost every aspect of the restaurant business, from dish washer to server to cook, I know what can happen. As a Restaurant Insurance Professional, I also know things that can help reduce your risk of having a workers’ compensation claim.



Here are my “Top Ten” simple ways to reduce your risk: (I know they sound like common sense but you’d be surprised.)


1.) Do not allow any running in your restaurant.


2.) Clean up ALL spills immediately.


3.) Have all employees wear non-slip shoes.


4.) Use nonslip floor mats on all floors that are not carpeted and where there could be a spill.


5.) Make sure all items are properly stored and put away. Don’t leave boxes on the floor.


6.) Make sure all carpeting is in good condition; no tears or bulges.


7.) No blind spots – clearly mark kitchen entrance and exit doors and install convex mirrors at blind corners.


8.) Have all power outlets installed on the wall or ceiling so cords are not on the floor.


9.) Keep sidewalks and entrances free of clutter.


10.) Do not allow servers or bus people to overload carrying trays.


Maintaining these simple rules can help to not only reduce injuries to your staff but can also have a very positive impact on your workers’ compensation premiums.



We would love to help you lower your restaurant insurance cost. Check us out at www.pennyinsuranceagency.com.


Saturday, July 3, 2010

North Carolina Restaurant Insurance-Pay For It


Most restaurant owners have had the experience of an employee sustaining a minor injury while on the job. The question the owners ask themselves is if they should file a workers’ compensation claim or just pay for the medical bill out of pocket?



The answer lies in how much risk the restaurant owner is willing to take. It is true that filing small claims on a frequent basis can have a negative impact on your North Carolina workers’ compensation insurance premium. However, having what looks like a minor injury turn into a major injury, or even a disability could prove to be much more costly than an increase in your insurance premium.



As an example let’s say that an employee cuts a finger and needs to have it stitched up. You decide to pay for it out of pocket rather than file a workers’ compensation claim. A week goes by and the “minor” cut has become infected causing severe sickness and permanent damage to the employee’s finger. You now decide that you should file this as a claim. Since you chose not to do so initially, your insurance company could deny the claim if they think your actions led to the injury getting worse. Now you as the restaurant owner are liable for the cost of the damage to your employee.



In our experience we have learned that it is best to always file every workers’ compensation claim within five days of an incident. Yes, you may see your rates increase, but that increase pales in comparison to the potential loss your restaurant could sustain if that minor injury becomes a major injury.



Since 1931 Penny Insurance Agency has been helping restaurant owners design cost effective insurance programs. www.pennyinsuranceagency.com.