Launch of new Tasmanian Hospitality Association

The Tasmanian Minister for Hospitality, Michelle O’Byrne today officially unveiled the State’s peak hospitality organisation’s new name and logo.

Ms O’Byrne said, “not only was Tasmania the first State to create a new Ministerial portfolio for hospitality, but we are now also the first State to combine the state branches of the AHA and Restaurant and Caterers Association into one body- the new Tasmanian Hospitality Association (THA). The aim of the new THA is to deliver ‘Excellence in Hospitality’ by delivering the best service in Australia to all Tasmanians and tourists.”

“The creation of the new Ministry and the new THA, recognises the vital role this sector plays in Tasmania’s economic, cultural and social future. The State Government looks forward to continuing to work closely with the new THA to deliver appropriate training, careers and policy reforms for this important sector”, she said.

The THA currently represents over 350 hospitality venues throughout the state. The sector also employs more than 23,000 people in Tasmania, and delivers around $1.29 billion in wages to the State’s economy. The new THA structure will operate with three main streams – an accommodation college, a restaurant and catering services college, and a hotel/taverns college. 

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What Matters Now

Seth Godin, the web legend with a cult following, has invited a few others to contribute to his  project What Matters Now.

What Matters Now is the work of more than 60 people with big ideas and something to say. It will inspire you to make some changes in 2010, and to keep doing work that matters. Please download it and share it with your colleagues.

The contributors include the acclaimed Hugh MacLeod, Saul Griffith, Tony Hsieh, Alan M. Webber, Marti Barletta … just to name a few, but there are also some you may not have had the pleasure to meet yet including Joichi Ito, Jay Parkinson, or perhaps Robyn Waters.

The result is a thought inspiring collection of unconventional wisdom.  And it’s available free to for you to download and devour at your leisure. You can download it for free here or view it online at scribd.com here.

It is free to share, post, tweet,etc…. and promotes a very worthy cause.  Thanks Seth for such a wonderful early gift.

When a Good Idea Goes Bad

The Vegemite cream cheese spin-off has yet to hit shelves under its new name almost two months after the public voted to name the product Cheesybite, but Kraft has dismissed claims that slow sales are to blame.

Kraft initially saw strong sales from their spin-off when it was branded ‘Vegemite Name Me’ as part of a competition to come up with a suitable name. Indeed, almost 3 million jars were sold in its first two and a half months. The competition led to the initial choice of iSnack 2.0 as an appropriate name, but backlash from the public saw Kraft backtrack and stop production on the iSnack 2.0 product. But, despite a strong reaction to the iSnack 2.0 due to people viewing it as a collectors item, a large amount of stock of the ‘iSnack 2.0′ and’Name Me’ remains on shelves. Recently an unopened bottle of iSnack 2.0 sold on ebay for almost $200.

So now, the winning name is CheesyBites.  According to my recent research, the initial rationale for the brand extension was aimed to attract younger consumers.  By changing the taste altogether, you’ve vandalised the product.  In my opinion, the poorly developed strategy and executed social media campaign, the brand reputation and architecture has been raped and humbled, left a naked joke in public.  CheesyBites?  Seriously.  Why not just stick with what you had going and call it Version 3.0, or perhaps Gen3-mite?

However, Kraft maintains that sales have not been lacklustre, rather the legal process had slowed progress down with regard to Cheesybite-branded product. “(Cheesybite will) not be out until January because it’s still going through the trademarking process,” spokesman Simon Talbot told News Limited.

Yeah, right.  The jury’s out on this one Kraft, and the buying public have voted with their purchases.

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Restaurant local-store marketing tactics

Image by boutmuet via Flickr

Restaurant chain operators are using local-store marketing tactics to drive traffic and create a connection with customers.

“Local specials drive traffic, and getting customers in seats is what everyone needs right now,” says Susan Franck, vice president of marketing for Atlanta-based family-dining chain Huddle House. “There is a real battle for each guest, and deals are everywhere, so events that offer that added benefit and allow franchisees to connect with consumers in a personal way are what it’s about.” Local specials unit specific marketing tactics include:

• Random Acts – create a carnival atmosphere with a prize wheel, branded merchandise, free chips with any purchase (or similar deal), and the chance to “dine free for a year”.  Store owners can choose a suitable 3-hour window they want to host the promotion, with most opting for the 2 to 5pm slot, but some do it during the lunch rush. According to stats of achievements, restaurants see an average of 10% increases in sales during the Random Acts hours, topping sales on any day in the previous six weeks.  With the event only costing $100 your tactic ROI is extremely high.

• Indie Credibility – Also inexpensive but effective building awareness among a younger demographic with local-band promotions. Some have started hosting hometown rising stars in a biweekly Summer Music Series at select restaurants on Thursday evenings, promoted via Facebook, Twitter and MySpace  with local performers. Feedback indicates that guests felt very comfortable with the live performers, stayed longer and came back up to the counter to order extra food and desserts during the performance making more money during the two-hour Summer Music Series performance than it did all day the prior Thursday.

• Just for You – Sometimes local promotions are meant to make customers feel as if they are getting something just for them. Utilising loyalty club Passport Members extend invitation to special events at local units, eg a tapping party for every seasonal beer introduced as part of the celebration.

• The Power of Free – Whether it’s free pizza handed out,  a lot of businesses agree that free is often key to site-specific-special success.  It never ceases to amaze me how much people love free stuff, even free coffee mugs can be effective.  Once such promotion that I read about, circulated travel branded travel coffee mugs to teachers at nearby schools and other VIPs in the restaurant’s trade area as a way to show their appreciation in each of the communities that support our brand. Simple, inexpensive tactic, but it produced great results.

• Real-Time Marketing – Whatever the promotion or the prize, the power and speed of social media means events can be hatched and happening very quickly. Now, instead of promoting what’s happening in the future, a simple SMS text message to local-store guest can advise them of an activity that is happening in the NOW.  It’s real-time marketing – either planned or spur-of-the-moment.  With technology advances, RTM can be rolled out to cover an entire chain, or individualised for each store.

• Nightly Happenings – Among the most effective local-store events are the Ladies Night Out and ’80s Night promotions it’s been doing for the last several years.  Traditionally Tuesday and Wednesday nights are typically the slowest, so franchisees often feature these promotions on those evenings once or twice a month to boost traffic.  We have all witnessed the success of “Budget Tuesday” or as a friend calls it for his regular pizza night ” Tight Ars* Tuesday” has been.  Smart operators are in on the regular Tuesday cheap petrol day buying behaviour (and weekly expenditure low point) by offering deals for the budget conscious.

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Trend: 2010 – Restaurants to Promote Quality over Price

According to market research by Mintel, restaurants around the world are expected to follow up a trying year led by promotions with a return to focussing on quality and new ingredients.  In 2010 the drive to “get back to basics” will continue moving away from all the so-important-cost-savings of 2009.

“Restaurants are redefining ‘value’ on the menu by incorporating  incorporate high quality ingredients, classic flavour combinations and authentic, old-fashioned preparations,” Maria Caranfa, Registered Dietitian and senior analyst for Mintel Menu Insights, advised.  The top 5 trends to watch out for include:

Trend #1: Classically simple
Simple sells, was a key learning from 2009, so in 2010, Mintel Menu Insights predicts chefs will harness the power of classic combinations and simple, pure ingredients. Look for more nostalgic, decadent pleasures on the menu: bacon, lobster, classic cocktails, milk-and-cookies and donut hole desserts.

Trend #2: Restaurant-grown
The ‘get back to basics’ of 2009 of homegrown will continue in 2010. Chefs will add a homegrown – or rather, restaurant-grown – touch where they can: artisan breads and cheeses, house-infused spirits, locally sourced produce and meats. “Rustic” will be the buzzword that describes imperfectly-shaped pizza crusts and mashed potatoes. Restaurant-grown items are also a great way for restaurants to differentiate themselves.

Trend #3: Dining out in
2010 is the time for restaurants to go to their customers, according to the researchers. Burger King is one of the latest to sell its food (French fries) in retail stores, but expect more retail-restaurant connections in 2010. Additionally, more restaurants will uphold relationships with customers by using iPhone apps for menu changes and online ordering, eg, booking systems and confirmations, will continue to expand and develop the relationship with the customers.

Trend #4:   Health conscious
Nearly 90% of people surveyed think eating healthy is important, but 63% say it’s difficult at restaurants because there aren’t enough healthy choices.  What is marked as a healthy option, may in fact not be.  With a increased global awareness of obesity and health issues, 2010 will see a sharp increase in good-for-you food and drink. Tomorrow’s healthy menus will feature nutritious choices focussing on fibre, omega-3, vitamins and antioxidants … and flavoursome too.

Trend #5: Regional ethnic
Cuisines like Mexican, Chinese and Italian have become so mainstream, that they are so commonplace and almost boring.  The constant search for innovation and flavours continues in 2010 with restaurants increasingly pinpoint specific regions like Tuscany or look to mainstream the cuisine of countries like Brazil or Morocco to develop tomorrow’s ethnic food, Mintel concludes.

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