SERVICE SPOTLIGHT - CONSUMER TRENDS

Understand What Your Customers Are Willing To Pay

Consumers say they are largely dissatisfied with the price-value equation for dinner meals at casual-dining and midscale operations, according to new data from The NPD Group. However, there is a price point at which they say they are most satisfied and that inspires them to make repeat visits.



And due to the shaky economy, use of discounts and deals are up almost one quarter over last year.



Would like to know more about consumer trends and customer analysis? Contact Emily Durham for more information.

SERVICE SPOTLIGHT - BUDGETING

Tough Economic Times Require Careful Planning

If you fail to plan, you are planning to fail…an old saying I know but one that is quite true for today.  Restaurant owners are facing uncertain economic times and can use all the help they can find to navigate these troubled waters.  A well written annual operating plan can become a restaurants best friend and much like a compass, can be used to help maintain direction.

We have been busy assisting clients with their 2009 operating plans over these past couple of months.  More than simply a budget…an operating plan is more like an annual schedule.  As a busy restaurant operator, you need to know more than “how much” or “how little” is in the forecast but when items are needed that require funding.  Whether next year brings same store sales or a slight reduction…it will be important to have priorities planned.

If you haven’t already done so, meet with your management and key staff to schedule next years priorities (marketing, capital improvements, and other operating needs)…predict your monthly sales and estimate expenses so you have a financial guide to plan by.

May your holiday season be busy and your 2009 a very successful year.

Would like more with the budgeting process? Contact Chris Tripoli for more information.

POST HURRICANE IKE ISSUES

Hurricane Ike Inerrupts Business Operations

By Paige M. Cokinos -Vice President, McGriff, Seibels & Williams

Hurricane Ike devastated the Texas Gulf Coast, causing an economic loss in excess of $20 billion.  Many restaurants suffered both physical damage and the interruption of their operations for days.  Three different scenarios emerged when restaurants submitted their claim to their insurance carrier, who responded to each claim differently, all according to the Terms & Conditions of the policy purchased by each restaurant operator.

• Some carriers paid the loss of income and spoilage of food when the approximate cause of loss was from a covered peril that caused interruption of the electricity from the utility provider, or the utility provider could not repair the power lines to the business.

• Some carriers only paid the loss or spoilage of food from the electricity being interrupted, but did not pay for the loss of income from the interruption of the sales of the restaurant.

• Some carriers did not respond to the claim at all, declining any liability from the loss of power from the electricity provider. 
  How can you be certain your coverage will respond to a loss of income and food when the proximate cause of loss is the interruption of power to your restaurant?  This coverage can be found under the topic of Business Interruption. Read more...