Two of my favorite restaurant chains have fallen victim to the economy and possibly disconnected marketing. Bennigan’s and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors.

The news appeared to be a shock to most of the company’s employees, but some may have had an inkling that the company was not doing well. Steve, a Bennigan’s waiter in Plano Texas, said he recently went from making $30 on a good lunch shift to only $10. “Business has been slow,” said Steve, who said he relies on tips. “I went from making a lot of money on a shift to making very little.

I’ve shared many a laugh and a meal within the walls of these two restaurants and I’m sad to see them go. I fear this is just the beginning for the restaurant industry unless a major marketing mind shift takes place.

At first glance the closing of these two casual dining mainstays seems to be indicative of the economy. Sure the economy has something to do with it but I’m not 100% convinced all the blame lies on the economic downturn.

I have been a keynote speaker for the New Jersey Restaurant Association numerous times and my Internet marketing company has prominent restaurant clients such as Charlie Browns Steak House, The Palm Restaurant, Glen Rock Inn and New Brunswick, New Jersey’s historic Frog and The Peach, I’ve been privy to conversations about the economic outlook and its effect on the restaurant industry, casual dining specifically.

Yes people are not dining out as much and when they are they are either going somewhere quick and cheap or making it special by going somewhere a bit more high end and memorable. Diners have literally cut out the middle man! Casual dining has taken a huge hit while their gourmet and fast food counterparts also feeling the effects of a slow economy are able to survive and even thrive.

Take my Internet marketing client The Frog and The Peach for example. It is one of the best restaurants in NJ and saw the economic writing on the wall. Its management began to shift marketing efforts from offline marketing to online marketing in order to target diners looking for, “something special” on which spend their hard earned money .

In a few not- so- easy steps (nothing good ever comes easy) they were able to take advantage of an opportunity that came from the economic fallout.

Step One
Create a new and improved professional website development strategy that let diners looking for that special experience know that the Frog and The Peach atmosphere, customer service and cuisine is exactly what they are looking for. A place where they can satisfy their appetite and their need to feel their money was well spent.

Step Two
Use search engine optimization strategies to target core search phrases hungry diners are searching for when they want the best. Type (without quotes) “Best Restaurants in NJ” into Google and you’ll see The Frog and The Peach on page one.

Step Three
Keep a strict diet of regular fresh content, delicious events and scrumptious news to entice previous diners and keep the site intriguing to search engines that are driving valuable dining masses.

These steps illustrate how a high end restaurant is working harder and smarter to stay ahead of economic failure. But what about the struggling middle market, the casual dining restaurant? After all, they are the ones that are hurting and in need of an Internet marketing strategy.

Charlie Browns’ sister establishment, The Office is hoping to attract new and existing clients by leveraging the informal social atmosphere of their brew pub while at the same time touting their affordable but delectable menu to patrons at their exact time of need. Here are the steps they have planed to incorporate in order to avoid the effects of the economic slump .

Step One
Create a professional website development strategy that allows diners to take advantage of the social interaction the Internet is becoming known for. Patrons will be able to upload pictures of their friends enjoying a drink at the brew pub right from their cell phones. Allowing friends to comment on these images on the restaurant’s website when they get home will help to create a much needed viral component for the restaurant.

Step Two
A mobile version of the restaurant’s website will allow a potential customer to use their mobile phone not only to search for an area restaurant, but peruse restaurant specials and events. This is a great feature for those leaving a movie looking for a local hot spot to grab a bite with friends.

Yes the economy is terrible and there seems to be no end in sight but the companies that have succeeded in tough times historically were the ones that sought out opportunity while their competitors whined about how tough things were.

The Frog and the Peach and The Office Restaurant are two restaurants that are hungry enough to make a change and prove that they have something to offer no matter what the economy throws at them.

Happy marketing and Bonappetit.

This entry was posted on Tuesday, August 12th, 2008 at 9:12 pm and is filed under Converting Customers, Customer Service, Search Engines, Viral Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.