Restaurants and Institutions

Dennis Lombardi

Change Now Rather Than Later
October 15, 2008

These are extraordinary times by any definition of the phrase. Darwin’s theory comes to mind.  The weakest of the (restaurant) species will likely go extinct. In fact, a number of units have already closed and many more may follow. 

I do not anticipate any material turnaround till mid 2010.  Many other economic advisors are not that optimistic!  The lesson to be learned is to adopt--even embrace changes to your operation--before it is too late to change. Changing sooner is better than changing later.

While the first thought would be to find new ways to cut expenses, that simply is no longer a sufficient strategy.  Yes, you must (continue) to find ways to reduce outgoing costs, but you must also find ways of enhancing your operation to retain as many visits as possible. 

Don’t be timid about asking for help.  Talk to your employees and your customers to get their thoughts and suggestions.  Step up your in-store and neighborhood marketing. In fact, double it, and then double it again. 

Don’t be timid about making bold changes, including closing for lunch or even dinner one or two days a week if that makes financial sense. 

Just don’t the sit back and do nothing, hoping that you can just ride out the storm. Remember Darwin.

Posted by Dennis Lombardi on October 15, 2008 | Comments (0)