Industry Expert Offers Advice to Restaurateurs Looking to Tap Thriftier Millennials Still Willing to Spend More for Specialty Items
Industry expert Kevin Burke today said restaurateurs struggling with soft guest counts should look to the reasons behind the growing popularity of craft beers for imaginative ways to overcome the challenging economy.
“We know most consumers aren’t feeling the effects of the recent positive economic news – they’re more constrained in their spending and they’re thriftier – nearly half of all U.S. households fall into the ‘value’ consumer set,” said Burke, a trained economist and managing director of the boutique investment banking firm Trinity Capital. “This isn’t a pretty scenario if you’re running a restaurant, where frugal is the new normal.”
And yet, Burke said, the improving economy, higher stock market and the rise of Millennials has resulted in increased spending on specific value propositions and luxury items.
“The continuing and growing popularity of craft beers is an example of this phenomenon, where consumers are willing to pay more for a so-called uniqueness,” Burke said. “With a higher price point, craft beer is an indulgence many see worth the cost, because it’s an affordable luxury. The creative restaurateur should take a hard look at this opportunity.”
For example, he offered these four ideas, common in the sale and marketing of craft beer, as starting points:
- Offer variety and price competitively.
- Don’t forget your regular customer who prefers the familiar.
- Invest wisely in equipment that complements your restaurant and can bring a solid ROI.
- Leverage social media to creatively tell your customers about your offerings.
“Millenials see craft beer as part of a locally grown authentic experience, and by catering to this desire, restaurants can increase visits and check,” added Burke.
Trinity Capital provides financial advice to middle market businesses regarding mergers and acquisitions, leveraged and management buyouts, debt restructuring and private placements of debt and equity. The firm, a FINRA-regulated financial advisor, combines Wall Street experience and investor relationships with boutique client service and has deep sector expertise in restaurants, consumer/retail, food and beverage, and other industries. Trinity is headquartered in Los Angeles with offices in Boston. For more information visit http://www.trinitycapitalllc.com.