How to Thrive During the Corona Virus While Other Businesses Struggle to Survive!
Written by Kyle Bergthold on July 15th, 2020
When this is all over 45% of Restaurants won't make it... While that seems depressing at first the silver lining is that the 55% that DO make it stand to gain a HUGE percentage of market share when the 100% of diners start eating out again...
That means right now is the best time to make offers, give incentives and do everything you can to make sure you're in the 55%! Hint: Don't do what everyone else is doing!
The problem is that this style of contrarian investing is super counter intuitive and goes against all logic. When we're in a bear market you should sell like everyone else right? Why would you buy it when it's just gonna be lower tomorrow? Do you want to lose money?
What is everyone else doing? They're cutting their budgets. They're penny pinching every dime. They're scared of how they're going to pay the rent and their employees. They're tightening up and not giving anything away for free because that would be crazy at a time like this, right? Wrong!
Like the Oracle of Omaha Warren Buffet says, "The time to buy is when there's blood in the streets." The original quote I believe comes from Baron Rothschild who said "Buy when there's blood in the streets; even if the blood is your own."
Warren Buffet should know, he's the greatest value investor of all time. He uses what's called "Contrarian Investing" and it's made him one of the richest people in the world.
What is being a contrarian? Just what it sounds like. Doing the opposite of what everyone else is doing. When the stock is crashing into the red, recording lower and lower lows and everyone else is capitulating and selling for a loss; Warren Buffet is buying it all the way down and laughing all the way to the bank.
This strategy in investing is known as "dollar cost averaging." This means you keep buying more the lower the price goes so that you can bring the average cost per unit down.
And it works extremely well.
The problem is that this style of contrarian investing is super counter intuitive and goes against all logic. When we're in a bear market you should sell like everyone else right? Why would you buy it when it's just gonna be lower tomorrow? Do you want to lose money?
While the average investor views the bear market as an opportunity to sell before the price goes lower and they lose more money, the contrarian knows the market and keeps emotions out of it. The contrarian knows that the market will recover and views these low prices as "the stock being on sale."
So instead of viewing it as you've lost 20% of your net worth on paper, view it as a chance to buy at a 20% discount while everyone else is scared, running, selling and capitulating; you are fearless, standing tall, holding and buying more!
While everyone else is running scared screaming, "the world is ending, sell, sell!" the smart contrarian is buying it all the way down while it's on sale because they know it's going to bounce and recover.
"That's interesting Kyle, but what does this have to do with Restaurant Marketing or Surviving and Thriving during the Corona Virus?
Great Question, thanks for asking!
This same strategy should be used right now in the Restaurant Industry. While everyone else is cutting spending, marketing, employees, inventory, offers etc. You should be doing the opposite. Give more offers and spend more on marketing!
"You're just saying that because you're a marketer and you want my money!"
No, I'm saying it because it's never been cheaper to advertise and market digitally. Why?
Because when everyone else cuts their budget and stops spending on marketing and advertising; Facebook, Google, Instagram and the other big companies that provide this service take a big hair cut.
This means that your competitors aren't spending on google and facebook right now, and they're running in the streets, scared and selling. Now is the time to be a contrarian and buy.
It's never been cheaper to buy eyeballs on Facebook. Where a dollar used to buy you 200 impressions it now buys you 400 impressions.
Who do you think is going to gain the most market share when this is all over? Restaurants who were building a list and continuing their marketing efforts to grow sales? Or those who tightened up, quit making offers, quit marketing, quit spending and layed off employees?
Big international brands are being hit hard just like we are. Subway is closing thousands of locations. Starbucks? Over 550 locations closing. Pizza Hut? 450 locations out of business.
You have to be clever. Run promotions and keep marketing because it's more important than ever if you want to make sure your restaurant is in the 55% or so that make it through this.
Here's some examples:
Turn your restaurant into a "Sonic" style drive-in and schedule car hops. What better way to follow social distancing guidelines than running a campaign that brings guests to your restaurant and encourages them to eat in their car?
They even have inflatable screens for around $270 (not an affiliate link, I make no money.) if you're not the "build it yourself type."
Example: Mention "Free App on Us" to get a FREE chips and queso with every take-out order but don't tell everyone, it's a secret!
Then, get a 7000 lumen projector for around $250. (again not an affiliate link I don't make money.)
Then with a Bluetooth audio receiver (do I have to say it again?) like this, for only $50, anyone within 250ft can connect their phones via Bluetooth to the audio and voila, you have a drive-in movie theater for under $600.
They can even use their phone to connect the audio to their car stereo system!
Guests can call in their orders and you can schedule car hops to deliver food to the cars and charge for the movie too!
Just make sure you're not violating "stay at home" orders in your state or the police might show up.
But you can see how clever marketing and thinking outside the box can actually grow sales during this uncertain time so that you're not just surviving the Corona Virus, you're Thriving!
With customers still wary of going out, restaurants can no longer rely on foot traffic to keep their doors open. Instead, restaurant owners, operators and managers need to market their businesses to customers where they are right now: online.
The reality for restaurant owners and operators is that going digital and using the latest technology is no longer a unique competitive advantage. It’s necessary.
How are you going to promote your "new" carhop system complete with "drive-in movie" and "car trays" if your guests aren't coming in for you to tell them?
That's right, online.
That's right, online.
Now is the best time to test different social media channels and features as part of your COVID-19 marketing strategy.
Buying Eyeballs on Facebook has never been cheaper!
You can connect with your regulars and reach new potential guests by experimenting with different social media channels and offers you’ve never tried before.
Ever heard of a "whisper code?" These are "phrases" you use in marketing that let potential guests feel like you've let them in on a little secret that not everyone knows. You can use these to encourage guests to come in and reward them for getting take-out.
Example: Mention "Free App on Us" to get a FREE chips and queso with every take-out order but don't tell everyone, it's a secret!
You can even have fun with the guests and have the "whisper code" be something crazy like "The pink eagle flies low at midnight." The guest will have no idea why they're saying something so ridiculous but they'll come in and say it for a FREE App and laugh while doing it!
As dining restrictions get lifted, we are quickly preparing for reopening. But with capacity limits and new health and safety regulations, the dining out "experience" is going to be quite different from what we, and our guests are used to.
While preparing to reopen be sure to share your story with your guests and potential customers to help them feel more comfortable to return. This can be showing your new floor plan, masked staff with sanitizer bottles, or your new glass pods for guests to eat in.
You can even have fun with this content, like the owner of Trattoria Da Luigi, Luigi Cutraro.
Before reopening his Italian restaurant in Royal Oak, Michigan, he filled several seats with "ghosts" made of white bed sheets as a funny and engaging way to show how they would be keeping diners 6 feet apart.
In a video posted on Facebook, Cutraro introduced each ghost by name and encouraged guests to “please join us for dining with the ghosts.”
Kyle Bergthold
Kyle Bergthold helps companies dominate online with Facebook Ads. He's an expert at helping businesses get customers using online methods and making things super simple to understand. If you're interested in creatives that grab attention, copywriting that sells, funnels that convert, and Facebook Ads that get a high return, then definitely reach out and request a free strategy session today.
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