Psychology of Service& Sales-Building

HRT 382

Thanks to:E. Jerome McCarthy, author of “Basic Marketing: A Managerial Approach”

William B. Martin, author of “Quality Service: The Restaurant Manager’s Bible”

Raymond J. Goodman, Jr., author of “The Management of Service for the Restaurant Manager”

The Marketing of Service

Marketing BasicsNeedsWantsDemands (a want backed-up with $)

Ability & Willingness

Product vs. Service

SatisfactionWhat is “perceived value”?????

UtilityThe buyer’s estimate of the product’s

capacity to satisfy their particular need

ValueWhat the product offers for the price

SatisfactionThe balance between utility and valueThe most utility per dollar

Meeting & Exceeding Expectations

Where do they come from?

E. Jerome McCarthy, in “Basic Marketing: A Managerial Approach” , popularized “The 4 Ps”ProductPricePlacePromotion

Maslow’s Hierarchy of Needs(In reverse order & in F&B terms!)

Physiological NeedsFood, warmth, health, cleanliness

Safety NeedsJob security, safe working conditions, benefits

Social NeedsBelonging, acceptance, friendship

Psychological NeedsSelf-esteem, responsibility, status, influence

Self-ActualizationInteresting work, involvement, achievement

Service Quality - Two Dimensions

ProceduralThe mechanical or systems “stuff”

ConvivialWarm & caring service – emotional

“stuff”

Procedural Dimension

Accommodation

Anticipation

Timeliness

Organized Flow

Communication

Customer Feedback

Supervision

Convivial Dimension

AttitudeAttentivenessTone of VoiceBody LanguageTactNaming NamesGuidanceSuggestive SellingProblem Solving

“Hospitality Mentality”

It is easy enough to be pleasant

When life flows along like a song,

But the person worthwhile

Is the person who can smile

When everything goes dead wrong.

Anonymous

Sales-Building

A focus on the “top line” of the financial statement

The ultimate goal, of course, is to drop profit dollars to the “bottom line,” but the initial focus is to increase revenue.

Building sales can happen in two BASIC ways -

Sales-Building

More Guestsor

More $ per Guest

More GuestsTo Increase the number of guests Community Marketing (marketing outside the

restaurant) In-House Marketing (marketing inside the

restaurant; get guests back another time) Increase Hours of Operation (open earlier

and/or close later) Add Day Parts (a “day part” is a meal period) Increase the Average “Table Turn” Time (more

guests per hour) Other…

More $ per GuestIncrease the amount each guest spends In-House MerchandisingSuggestive SellingUp-selling (a style of suggestive selling)Raise PricesMenu EngineeringOther…

In-House Marketing PossibilitiesPromotionsMailing or Email Lists“Bounce Backs”Table TentsBannersCheck Presenter (message or inserts)FlyersPostersSpecial MenusOther…

Suggestive SellingMaking a guest aware of an item they might be unaware of

Use “specifics” as you take orders

Would anyone care for a glass of Beringer Chardonnay or, perhaps, a bottle of Sierra Nevada Pale Ale?

Remember to save room for our homemade Fresh Apple Crisp!

Up-SellingUpgrading a guest’s order to a higher quality (and, yes, priced) item

For example:

If a guest orders a glass of white wine, the server mentions the Chardonnay selection

If a guest orders a burger, the server asks, “Would you like to top your burger with apple wood smoked bacon or a thick slice of sharp cheddar cheese?”

Suggestive/Up-SellingThe Power of the…

Personal RecommendationPresenting your favoriteDoing so in a sincere, “heart-felt” mannerWhen you true personal favorite is also the most expensive, back your opinion up and/or offer other alternatives

Raising PricesThis strategy has its’ challenges

Positive: it is quick

Negative: guests, especially frequent diners, notice

If you work for a large organization, you may not be able implement this strategy

Menu Engineering The layout and design of the menu

The use of bullets, flags, and boxes to draw attention to certain items.

The the location and placement of items or item categories

Branding