Know-How Exchange : Advertising/PR

I think there are many things you can do. I'm sure many of us would love to stop by, to get a sense of the ambiance and the friendliness of the service. You need an unbiased opinion, since you are close to a university, could you place an ad for some "mystery shopper" types? With a bit of work on the internet, I'm sure you can come up with a good form for them to provide feedback.

You say that your brother in law owns the franchise. Is this the same Pizza Express as the one in Bloominton (from googling the name)? If not, can you give us the URL of the parent company, or your URL if you have one? (If you don't have a web site, and sell pizzas near a college town, you are in trouble). We can learn lots from the franchise site, for example, that particular site does not seem to be open at lunch, and so they don't seem to be targeting the "office going crowd".

If you are not a part of a national franchise, then you certainly have a bit more flexibility in your choices. Personally, if I owned a Pizza place, I'd figure out a way to produce and sell a low-carb pizza.

I'd also find out who some of my loyal customer are, and try to get a sense of what it is they like about the place. And when you consider who your real customers are, this may give you ideas for other ways to bring similar folk in (e.g. music).

One more thought - to me, one of the big hassles of going to restaurants is the wait. I don't know about you, but I just seem to have too much to do in a day. Since you are not so busy, it seems to me that one of your key advantages to a potential patron is that they could be served quickly.

The situation is dramatic. Hundreds of people daily are choosing to not even come in to the restaurant.

This problem isn't necessarily a positioning problem (although someone might say "everything's a positioning problem"...:).

You said "...the patrons felt that the place was over-priced. "

How do you know this? Was there a survey? Over priced compared to what? The other restaurant. They have the same food quality, similar service, and they're cheaper with a more desirable view... where's the mystery? The customers' experience of the value failed the test in the first incarnation.

Ultimately, a survey of the publics is precisely the next step. You've got to know where you really stand, so that expensive "guesses" aren't driving the remodeling budget and marketing campaign.

Survey people that do come in and eat. Survey people on the street coming out of other restaurants. Hire professional surveys quickly. Include survey questions that ask about the physical location as well as the restaurant, menu, pricing, reputation, food quality, service quality, etc...

All else is guesswork until he knows. Get some professional market research immediately.

First of all, anytime a restaurant cahnges it's name, but has the same food, menus ,employess, interior, etc, in such a close- nit community, it won't take long for people to figure out.

Another thing people think about is quality of food. If a restaurant has been sitting there with little or no business for a month or so...how fesh is the meat, cheese, vegatables, etc?

In the beginning of your question, you stated the "Pizzaria" has the "same food" at 40% lower costs. ANd al your brother did was slash his prices 20%...he is still 20% more expensive. I know he must think about recover his loss but he never will by serving the same food as a better established restaurant, view an ocean-side view, and prices that beat yours buy almost half.

The name "Pizza Express" is a turn off. Do people want their food fast? Sure! But making it clear in the brand name you strive on making "express" pizzas makes one concern for the quality. But, what's done is done...another change in name would shut the doors forever.

Here are some suggestions that are certainly worth your time:

1. Start surveying the community immediately. Go to the campus administrations and ask if it OK to spend a few days on campus to ask students questions about how they like the restaurant, would they like a lunch buffet? If so how much are they willing to pay? What type of beverages do they prefer (sometimes people will choose one restaurant over another simply be cause one seves Coca-cola or beer and the other doesn't)?, what is there favorite crust? What would it take for them to come to the restaurant more often?

Make sure you give some sort of incentive for them to take the survey like a coupon for a free small pizza, or persanol piza..SOMETHING FREE..not discounted and not a free drink, but FREE FOOD. You want them to come in (most will not come alone) and use the coupon to try you food . Have comment cards on the table with statements on them if they fill them out and drop them in the suggestion box, they will be entered for a free lunch for 2.

2. Make the atmosphere fun! It's a pizza place, not a 5 star restaurant! loose the candles, Open the windows, and brighten it up! Play good music, have a jukebox, get a live band every Friday night, Get some televisions (ONe big screen) and play sports, have happy hours and follow local college game nights and advertise "pizza parties" and "Game night". Offer specails on alcohol during these times.

3. Consider making minor chanes to the decor. IN addtion to making is brighter, take all the local college mascots, posters, team schedules, etc and decorate the restaurant evenly with the each school. When you start to notice more of a particular school coming in, put more of their stuff up! Have a picture board where people can pin up pictures of them having fun at the restaurant...better yet, have someone from the restaurant take pictures and have the people sign them, then pin them on the "Wall of Fame".

3. Consistant send out coupons to all of the dorms and student unions. Don't foret the business people as well. Not only should they be surveyed, but given the same perks. These people are trapped in an office all day...they want an escape, maybe even want to watch a little TV?

4. I spoke of a buffet. Consider a lunchtime, all you can eat buffet for $3.99..pizza, salad, and a drink. Every day from 11-2. If the food really is as good as the other place, and people cen get their "Coke" or beer, maybe watch the news or the game, listen to some "cool" music.

I think I am running out of room...The above sums up the meat of my ideas. I will post more as it comes to me!

I agree with Michele when she says either go cheap or upmarket. In a market, you can only be the price leader or the quality leader. The current strategy isn't either (the competitive pizza place is less expensive, but has better ambiance due to view of ocean and the food is considered to be same quality). You lowered prices, but not to as low or lower than the competitor. You did try adding to quality through the themes, but hasn't seemed to have gained traction.

Because your prices are still higher, I suspect being the price leader will not be viable for you. So, some options going the other way:
- add to service. Ensure that the servers at your place are top notch. Maybe add addition service such as delivery service. Do you offer pizza buy the slice? If not, that could be one way to increase service by providing a faster option (which lunch crowds often want). Some pizza chains offer a 5 minute guarantee for lunches - guaranteeing their food will be out in 5 minutes or it is free.
- try to improve the ambiance again. Perhaps to target the college students, add live bands on some nights.
- have a professional review the menu and recommend changes that are workable with the food staff. Or maybe have the clients recommend pizzas. Maybe eadch school could vote on their favorite options, and you can make a pizza under that school's name.

Hi Manoj,

I can empathize, I can grew up in the pizza restaurant business and my dad was constantly challenged like your brother.

A simple thing he did to keep fresh and differentiated in the face of relentless competition and something experienced restaurateurs/bar owners still do today (really the whole hospitality industry i.e. bars, restaurants, nightclubs, hotels, casinos) is periodically, about every 3-5 years, change the interior design/decor of their establishment.

And as you mentioned this is about the only thing your brother did not do!

The interior design/decor/environment is understated by many restrauteurs because quite simply they don't want to spend the money; it is cheaper to change the menu, pricing and a host of other variables.

But the customer is always looking for the latest and greatest, and by providing them a new "environment", while not really tweaking the menu too much (sure, update some items i.e. now it would be low-carb options) or the pricing, they are delivered a new "dining experience" without changing the food.

Just as people get tired of the same look in their house, but they still love their house, they also get tired of the same look in restaurants.

Now, in your case you mention "changing the décor and the theme of the restaurant as well to remove the old brand perception?"

This would work equally as well in your case.

To talk to one of the "hot" interior design firms that specialize in the hospitality industry in your area, do not attempt to do this yourself, interview and hire a firm that does commercial hospitality interior design.

While you are at it, rework the look of the menu to reflect the updated restaurant design.

Good luck!

Manoj,

I read somewhere that there are more restaurants per capita in Houston than any other US city. Houstonians also eat out more than anybody -- average is something like 5.8 nights per week. (Funny thing, we were also voted Fattest City two years in a row.) I'm no restaurant marketing expert, but I'm a well-fed native Houstonian who has seen plenty of them skyrocket or go down in flames! Let me offer some thoughts on your dilemma.

One phenomenon we see here is the Cursed Location: The place that has seen a dozen different eateries fail in ten years. Even though the spot is surrounded by successful competitors, it seems inexplicable doomed. Did your b-in-law lease his restaurant space where a lousy track record already existed? If so, maybe MOVING is in order, unless you want to try voodoo charms or feng shui there first.

Is he married to the pizza concept? If not, and if he's really bent on having a restaurant, why not look for an untapped food category? Are there enough people hungry for seafood, cajun food, barbecue or whatever else that's hard to find in that area? Or reopen in one of those categories and have specialty pizzas included on the menu. I can see the sign now: "Smokin Tony's -- Home of the grilled salmon pizza."

You described the area as office/college centric. Are there any families who are underserved in the area? Some of the restaurants here that ALWAYS have full parking lots are those that have kid-happy corners. Parents convene over margaritas for hours while their offspring play in the giant sandbox, or draw on the wall, or build lego monoliths with the other kids. I'm NOT talking Chuck E. Cheese or McDonalds, either.

Hope one idea sparks your imagination! Bye now, I'm starving.

- Shelley