ELECTRONIC HOUSE CALL - September 2, 2005

The concern of the moment is the situation on the Gulf Coast and what we can do to help the thousands whose lives have been torn apart by Hurricane Katrina. In times of strife, Americans have always risen to the cause, pulled together and come up with a solution. This time it will take all our ingenuity and resolve.

If you can get past the politics -- and isn't it sad that everything seems to be so political these days? - - you are left with people in serious need and a proud and historic city that will likely never be quite the same again.

What happens is just what happens. The measure of your humanity, skill and compassion is how you respond to what happens.

DISASTER PLANNING
Watching the television coverage of the aftermath of Hurricane Katrina reminds me that you cannot wait until disaster strikes to figure out how you are going to deal with it. Since the topic is current again, let me recycle an article that originally ran in EHC #350 back in mid-October. If you did not take action when I first suggested it, what are you waiting for?

No matter where you are in the world, you are likely to see a local calamity at some point, whether that is hurricane, tornado, blizzard, fire, flood, earthquake or the plague of locusts. In the same ways that fire drills help control panic in the event of a real fire, advance planning of how you would deal with a catastrophic event will help you weather the storm with less trauma ... and less financial loss.

Will you close? Who makes the call? When do you send the staff home? Will they be paid? What needs to be done to secure the building? What do you do about perishable supplies? Who has keys to the building? Is emergency contact information posted where first responders can easily find it?

What services could you offer to help others in the community? Will you do anything special for first responders (police, fire, EMT, etc.)? What emergency supplies should you have on hand? Have you reviewed your insurance coverages lately to be sure they are adequate? How about business interruption insurance? And so on ... and so on ... and so on.

Bear in mind that you may not be anywhere around when disaster strikes and one of your staff members may have to take charge. Spending a little time now to discuss possibilities, set priorities and establish policies can save you thousands of dollars ... and perhaps your business ... if the unthinkable comes to pass.

In the meantime, pray for our friends and colleagues in New Orleans and all along the Gulf Coast. They have a rough few months ahead.

HURRICANE RELIEF
It should be obvious that the Red Cross and other relief agencies are going to need a lot of help in the weeks and months ahead. While the troubles on the Gulf Coast are still in the news and the need is so obvious, you can gain visibility (and help a good cause) by holding a fundraising event for hurricane relief, perhaps in cooperation with a local radio or TV station who can help you get the word out or in concert with your state restaurant association.

Not up to creating an event? I just got an email from United Airlines offering 500 frequent flyer miles for a contribution to the Red Cross -- just fax them the receipt. Surely you could adapt an idea like this. Even if you only offer a free dessert in exchange for a contribution, you will be encouraging the community to donate to the cause.

Does this sound opportunistic? Perhaps ... but the smart marketer taps into events that are already being heavily promoted by someone else ... and the conditions along the Gulf Coast still lead the nightly news. It is just smart (and responsible citizenship) to use the vehicle of your business to raise money that will do some good for those who need it.

The important thing in any promotion tied to disaster relief is that you not be seen as trying to profit from the misfortune of others. You must also make sure that donors are confident that the money generated from their support of your project will actually go to legitimate relief efforts. That's the advantage of programs (like United's) that reward people for making their contributions directly to the aid agencies.

Regardless of what route you take, your safest course of action is to keep the focus on the cause. Do some role-play with your guest contact staff to help them become comfortable at explaining the program to your guests and making them feel good about raising money to help.

I also suggest that you resist the urge to try to sign every new diner up for your database -- it could easily be misinterpreted. Instead, give those who support you a gift coupon that they can redeem on a future visit ... and sign them up when they return.

Not up for any of this? At least take a second to contribute generously to the Red Cross.

OPPORTUNITIES EVERYWHERE
Here is a promotion that takes advantage of another newsworthy situation: the increases in gasoline prices.

During the month of September, Umami Cafe, a small restaurant in Croton-on-Hudson, New York will reward the dinner guest who travels from the furthest distance with a $25 Sunoco gift card. They will promote it as an incentive/reward for people to "stomach" the rising cost of gasoline.

Their slogan for this mini-promotion is " Eat here and get gas" OK, it's not original, and has a bit of sophomoric humor about it ... but who said a promotion can't be fun?

A Note from the Doc:
If it were me, I would make a minor adjustment to this terrific idea. The weakness as I see it is that the idea may have less appeal to those guests who live close to the restaurant because they know they are not likely to win ... and it is expensive to promote it to diners who live farther away.

Instead of one $25 certificate for the month, why not offer a certificate a week? Offer an entry in the drawing each time a person comes in and draw for the prize once a week.

And while we are re-inventing the promotion, why be cheap? Give away a $50 gas coupon each time! That still comes to just $200 for the month, pretty cheap for a promotion that could increase frequency from existing guests and add a bunch of new names to your database. (And yes, you can sign them up the first time with this sort of promotion!)

THE SEPTEMBER SURVEY
Every day brings news of another increase in gas prices and after Hurricane Katrina, a station in Atlanta posted prices of over $6.00 a gallon! Where will it end ... and what does it mean for your business?

Some economists suggest that every one-cent increase in the price of gas takes $1.5 billion out of the country's disposable income, surely an ominous statistic for the restaurant industry. The media is talking about a reduction in discretionary spending on such things as restaurant meals as prices continue to climb.

This month we look at the impact of rising gasoline prices and how you are addressing the issue.

I will provide a compilation of all the responses to everyone who contributes to this project ... as long as you provide an e-mail address. Click here to add your thoughts to the September survey.

THE PERPETUAL QUESTION
What did you learn from your staff today?

Today, after many weeks of hands on training, I gave two new employees (16 year old girls) our Espresso 101 video test. I learned that their brightness transferred to me as manager/instructor. They taught me that I hired well this time and this is reflected upon their test scores, amongst other things. -- Joe Wagner, Jackson Java, Jackson, MS

The better you become as a listener, the more people will open up to you. When they do, you will usually be pleasantly impressed with the caliber of your crew. In short, the most critical skill you can develop as a manager is your ability to listen.

The answers you get do not have to be life- changing, but just the fact that you ask ... and really listen ... will do more to improve the climate in your operation than anything else I can think of. If you have ever worked for someone who didn't listen, you know what I mean. Now just don't turn into someone like that yourself!

I will continue to collect your answers to this important question ... and you can add comments as often as you want. Just click on the link below and contribute your insights for the common good (and your own as well!)

What did YOU learn from YOUR staff today?

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