Franchise News

Nation’s Restaurant News: How to Address Same-Store Sales Declines
While your brand may be tempted to start offering discounts, there are other strategies to try to implement to grow traffic.

Franchise News

While your brand may be tempted to start offering discounts, there are other strategies to try to implement to grow traffic.

Are consumers really spending less on food or are they starting to spend in other ways? According to a recent Nation’s Restaurant News article, while restaurant year-per-year same-store sales and customer traffic are both down, looking at the reasoning behind the declines can help provide strategies to combat the issue.
Sources in the shift in customer purchasing are being fueled by Millennials and the spending power they now have among consumers. Meal prep delivery services, chef-inspired fast-casual concepts, and grocery stores offering more quality freshly prepared items are all contributing to the declines.
In order to think long term and not make any severe changes to increase customer traffic, there are a few marketing and operational strategies to try implementing first. Try increasing loyal customers' visits with rewards and find out what makes your biggest fans continue to come back.
Convenience is key for most customers these days, and technology can help you provide that to your customers. Can a customer easily find your restaurant, look at the menu, and place and order on a mobile phone? While this kind of improvement can add costs, many brands in the industry have seen this strategy pay off when done right.
Try a more targeted approach with local marketing initiatives. Since every market may have different purchasing behavior, running local coupons based on spending habits in the area may prove to be more effective.
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About the Author
Brigit Larson is an 1851 contributor and a graduate of the University of Wisconsin-Madison