Cover Holiday money-makers
10 money-making
ideas for the holiday season
It’s that time of year again. People are on winter holidays and looking to eat, drink and be merry. But with all the festive cheer going around, what do you do to ensure people frequent your establishment? And once they’re there, how do you drive revenue during the holiday season? We spoke to licensees and industry professionals across the country and compiled 10 ideas to help boost traffic and generate sales this holiday season.
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#1. New twist on old cocktails
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New twist on old cocktails Why mess with a good thing? To increase sales volume, that’s why. Build on the strength of original cocktail favourites like the Caesar, a classic Canadian cocktail or the Manhattan, by giving it a twist. Improve upon the traditional favourite by presenting it differently or adding a new flavour. Christine Howard, partner in Creating Change, a marketing agency for foodservice (among other) clients says ‘new twist’ cocktails are a trend she’s seen during the past 12 months. “People don’t want to drink their grandparents’ drinks anymore,” she says. “They want something new.” Howard suggests creating the Inside Out Caesar. By taking all of the ingredients of the traditional Caesar, with the exception of the vodka, and freezing those ingredients in ice cubes and pouring vodka over it into a martini glass, you create the exact same cocktail with a twist. These ‘new twist’ cocktails create an entirely different revenue stream for licensees and, in some cases, require
Cover Holiday money-makers
minimal effort and no new ingredients. They allow you to build off the strength of the original and charge more for it. For instance, Howard says by incorporating premium brands, mixes and presentation, you could charge at least 30 per cent more than the price of the original. “Customers recognize a fine wine because of its rarity and they’re willing to pay more for it. It’s the same principle with cocktails, but it’s even more profitable in the hard liquor area.” While the twist can be as simple as adding a bitters product or a flavoured Tabasco sauce to change the taste of a Manhattan or Caesar, the twist can also occur in the drink’s presentation. Serving the cocktail in a special glass, using an elaborate garnish or adding a different flavour are all ways to twist the original and create a buzz. It’s an idea that can work in establishments that favour presentation. Howard says creating the cocktail becomes more of a show, and that’s something customers from 20 to 50 will appreciate. “You can charge $12 because you’re providing an experience,” says Howard. “[Customers] get the feeling they’re enjoying something that was specially created instead of just sheer consumption.”
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Giveaways for home-team goals Sports fans can be a gold mine. If you could get loyal sports fans to be as loyal to your establishment as they are to their team, you’d be in good shape. Dean Laderoute, owner of the McKibbin’s Irish Pubs in Montreal says he tried 15-cent wing nights and twofor-one specials with no real payoff. But he scored big with this idea. During the hockey season, he brings in patrons with his Montreal Canadiens
#2. Giveaways for home-team goals promotion. When a party comes in, they randomly pick a card with a Montreal Canadiens’ jersey number on it and they sit at a designated table. He doesn’t give out goalies’ jersey numbers, nor does he give out the jersey numbers of injured players. Each group that comes in thereafter picks a card until all the cards (and players) are doled out. Every time that player scores, he gives that table a round of shots. “It creates a great atmosphere,” says Laderoute. “Discounting or happy hours don’t work because there’s nothing entertaining in the bar. This gets everyone involved in the game, and they’re cheering for their player.”
Of course, there’s a minimal expense to giving out shots on the house. However, if you give away a maximum of five shots per goal, and the home team only scores four times, then you’re only giving out 20 shots a night. That’s half a bottle of Jameson Irish Whiskey, for Laderoute, and about $12 to fill his 300-capacity establishment. He says he’s gone from being half full to virtually packed every game night. “We’ve increased our sales and volume by at least 30 per cent,” he says. While giving away free alcohol isn’t prohibited in all jurisdictions, substituting a round of free shots for appetizer platters is an easy and costeffective adjustment.
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Free Wi-Fi for pubs Cafes and coffee shops have been doing it for years – attracting customers with free internet access for their laptops. It’s a draw for students and businesspeople who want to stop in, have a quick bite to eat and a drink while they get down to work, school or play. So why not introduce the same idea into your pub. It’s cheap and easy to set up and use. It attracts customers and while they’re in your establishment, they’ll likely purchase lunch and drinks. And as Canadians look to escape the chill this winter by spending more time indoors, having Wi-Fi could just give your place the edge over other establishments. Lindsay Carnrite, operations manager at the Unicorn Pub in Calgary, says they’ve had Wi-Fi, a free wireless internet connection, for their customers for about six years. “It’s an added perk for our customers. It draws people in.” It’s a successful model at the Unicorn Pub because of its location. The pub is located in the downtown core, so Carnrite says they get a lot of traffic from local businesspeople nearby. “They can come down, have their lunch, and if they want to do some work as well, the option is there.” Costs are minimal. If you’re not already signed up for an internet
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connection for your pub, you’ll have to do so. That can cost anywhere from $25 to $55 a month, depending on the speed, but most establishments would likely get a $50 a month plan, according to Rogers Communications. Then you need a router. These can range in price from $40 to $150. If you’re currently renting a regular router from your internet provider, you can exchange your current router for a wireless one. The price difference is minimal. At Rogers, you can rent a wireless router for $4.50 a month, compared to $3 a month for a regular router. From start to finish you could have Wi-Fi for your establishment in a week’s time and you’ll give customers an added incentive to visit your pub this holiday season.
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Call brands and ultra-premium spirits Another trend bar chefs and industry experts are seeing is patrons requesting drinks by
brand name. “People are getting bored of drinking vodka cranberries,” says Gavin MacMillan, bar chef and director of operations of BartenderOne Corp. Customers are being specific about what they want. This is especially true with the 30- to 40-year-old demographic. “They want to differentiate themselves from the vodka soda drinkers,” he says. “Now, people are asking for Grey Goose and soda or Bombay and tonic. If someone is going to order a Manhattan, it’s a Crown Manhattan.” Call brands are a result of product and brand awareness. People want good quality products to go into their beverages and they’re willing to pay a little more for a higher level spirit. “They’re drinking to enjoy the drink, not to get drunk,” says MacMillan. “It’s really very simple, better brands make better cocktails,” says Jennifer Long, brand director at the Las Vegasbased Patron Spirits Co. “A high quality tequila like Patron is really an affordable luxury.” According to Nielsen figures, for the first six months of 2008, Patron was posting more than 30 per cent growth in the U.S. And it’s not just ultra-premium tequila that is prospering, so are other white spirits categories, such as vodka, gin and rum. Mirroring the growth felt in the U.S. ultra-premium spirits category, Corby Distilleries has seen premium brands like Absolut vodka and Chivas Regal scotch show solid growth this year.
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Icewine While many consumers and licensees have heard of icewine, not many have tried it. Icewine is a dessert wine known for its intense flavours, rich bouquet and smoothness. It’s produced from grapes that have been left on the vine until after the fall harvest. When temperatures
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Cover Holiday money-makers
dip below -8 C, the frozen grapes are handpicked and pressed to release a thick, rich, yellow-gold liquid, highly concentrated in natural sugars and acidity, according to Wines of Ontario. Icewine can be costly – between $40 and $60 a bottle for consumers – because the production of the low-yield wine is risky and labour intensive. But that doesn’t mean it’s not popular. Paradise Ranch Icewines saw its dessert wine sales double from September to October in Alberta alone. Jim Stewart, President of Paradise Ranch Icewines says while bars and restaurants have not traditionally been a strong area for his business, he expects that to change with the introduction of new options for licensees that will allow them to capitalize on the growing popularity of icewines. Serving smaller 200 ml bottles of icewine on the menu for about $25 or 50 ml bottles for about $8 can ensure restaurants and their customers can enjoy icewine at a lower price point than the traditional 375 ml bottles. Stewart suggests buying icewine in a mixed six-pack as opposed to a larger case for smaller restaurants that don’t want to carry heavy inventory. This year, Stewart says his sales have increased significantly, off-premise and on-premise. He’s seen more interest in icewines because of the size alternatives. By allowing licensees to access smaller bottles and cases of icewine, he says, he’s allowing licensees to capitalize on this growing category. Popular icewines to try are Riesling, Vidal, Chardonnay as well as Cabernet Franc, Merlot and Pinot Noir.
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Fresh-squeezed juice as a bar mix alternative While patrons are demanding a higherlevel spirit, they’re also more conscious of
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#5. e n i w Ice what their drinks are mixed with. Gavin MacMillan, bar chef and director of operations of BartenderOne Corp. says he’s seeing a trend toward consumers requesting fresh-squeezed juice as opposed to bar mixes. “It’s really just a shift away from what we’ve got comfortable doing, which is essentially the bare minimum,” he says. “The way we’re operating now is creating drinks that require almost zero skill set.
Bars only require ice, liquor and some sort of stretching agent and that becomes acceptable, while serving meat, potatoes and a vegetable would never be accepted in the culinary program.” At the patron’s request, bartenders are starting to mix drinks with fresh lime juice as opposed to bar mix. He’s seeing a greater prevalence of citrus presses, or what are sometimes referred to as Mexican lime squeezers, behind bars.
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Cover Holiday money-makers
If juice isn’t squeezed on the spot, it’s squeezed the same day, says MacMillan. Consumers are demanding it because it’s a healthier option than the alternative. “If you’re making a drink that calls for bar mix, chances are it’s 90 per cent corn syrup, something neon green that glows in the dark and consumers are aware.” The costs are relative to bar mix, given the rising price of corn. MacMillan says the price has gone up 20 per cent in the past year. “Soon, it’s not going to be costeffective to use this stuff.” While the cost is higher, you can pass on the premium to your consumer. MacMillan says you can easily charge 15 to 20 per cent more for a cocktail made with a premium mix like freshsqueezed juice. “People are uber-conscious about what they’re putting in their bodies,” he says, adding that while people are well aware of the effects alcohol can have on their bodies, if they have the opportunity to make a better decision for their body, they’ll go that route. As a result, MacMillan says serving premium mixes will soon become a necessity. “I don’t see the level of quality in cocktails in Canada staying this way for very long.”
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#6. Fresh-squeezed juice as a bar m ix alternative
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Market your establishment on Facebook The online social networking site called Facebook is an untapped resource for most bar and restaurant owners. Advertisements can be made in minutes for any size budget. It’s simple. Create a 100-word ad for your establishment’s specific promotion, add in a header, web address, photo and within 12 hours, your advertisement’s up and running. Facebook allows you to target a specific
demographic such as 19- to 22-year-olds for instance. You can be as selective as you like choosing who can see your ad by location, occupation, what organizations they belong to, etc. Like all online advertising, you pay either by impression (the number of times your ad is viewed by your specified demographic) or by the number of clicks your ad receives. For a pub owner in Quebec, it worked wonders. After not seeing results with
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Holiday money-makers
traditional forms of advertising like posters, print and radio, he tried Facebook. He targeted young hockey fans as his pub was in close proximity to an arena. His promotion was simple. Patrons could exchange hockey tickets for a free pint of beer. He tried Facebook and ran the promotion two days before the hockey game. On the night of the game, he had 73 people enter the bar and exchange their tickets for a pint of beer.
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Up-sell sparkling wines While other categories such as beer and spirits are showing more moderate growth, wine sales continue to increase. They’ve grown by an average of 5.8 per cent annually since 2002, according to the Brewers Association of Canada. The major thrust behind wine’s growth is on the import side which grew nine per cent in 2007. Wine guru Neil Fortes says sparkling wines are one of the fastest-growing categories among the 20- to 30-yearold demographic. While many think of wine as part of their parents’ heritage, sparkling wine has a more youthful feel and high-end champagnes, like Dom Perignon are popular with younger moneyed drinkers. While champagnes are expensive, sparkling wines are more reasonably priced, which suits licensees and patrons just fine. Sparkling wines are usually made from Chardonnay or other white varietals; however, there are some sparkling reds from Australia. In order to take advantage of this growth area, ensure sparkling wine is featured prominently on your wine list. Fortes suggests attaching a card to your menu and listing a collection of sparkling wines under the title, ‘Celebration.’ “New Year’s is a time to celebrate,” says Fortes, adding sometimes people need to have that spelled out for them. He underlines the importance of educating wait staff on sparkling wines and getting them to taste it before selling. While the carbonation prevents sparkling wine from being served by the glass, try suggesting a bottle to a larger table. Proper opening and pouring technique should also be discussed with staff to avoid spillage or embarrassment this holiday season. While the profit margins are the same as conventional wine, suggest a bottle as a way to celebrate this season and capitalize on this growing category.
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Cover Holiday money-makers
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Music selections to get patrons in the mood (to spend) National retail chains spend thousands of dollars a year ensuring their music selection is just right for their customer base and atmosphere. Selecting the right tempo and type of music for the season, time of day and demographic is important for all establishments. “Music can put people in the mood to buy,” says Joe Blackmon, president of Chills and Thrills Inc., a Houston-based sound, lighting and video service and installation company. The volume depends on what your establishment is promoting. “We call it background/foreground. Usually a restaurant will promote its food or its atmosphere. If food is what it is highlighting then music should be soothing. If it’s atmosphere, then the music should be louder.” Blackmon says people are programmable and while it’s hard to determine how music selection directly affects sales, Blackmon suggests you
can increase sales 10 to 15 per cent by selecting the right playlist. Custom programming can be costly. The upfront research costs an average of $10,000 and $100 a month to keep the format fresh. The time of day is also important. For instance, your music selection during lunch and happy hour might be very light, but if the atmosphere changes in the evening, so too should your music. If you’re targeting businesspeople and serving martinis, Blackmon suggests focusing on live instrumental or rat-pack music. “There’s got to be more meat to it than just elevator music. [Rat-pack] music makes people think they’re in a classy Las Vegas kind of setting, back when Vegas was classy.” He says music selection is about connecting with customers and tugging people’s heartstrings. “One of the easiest ways to do that is to play holiday music.” The appeal of holiday music is that it stays the same no matter who’s performing it. In addition, there is a finite
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#10. Winter warmers make a profitable holiday menu 36
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amount of music that is universal – that you grew up with and that everyone else grew up with, and once you start playing it, you’ll put people in a generous mood. But playing it too early defeats the purpose. By starting the Christmas music rotation in the first or second week of November, you’re diluting the effect. “You can’t take the Christmas mood and stretch it out over an eight-week period. People will get sick of it.” Alternatively, he suggests starting your holiday music playlist Dec. 1 and removing it promptly Dec. 26. Otherwise, you’ll end up aggravating your customers and your employees. Even if your employees don’t vocalize it, constant droning of the same Christmas music will ultimately put your employees in a bad mood and that’s never good for sales. Winter warmers make a profitable holiday menu When it’s cold outside, festive drinks are one way to warm-up customers. Cognacs and liqueurs are winter favourites. Specialty coffees and liqueurs can be far-reaching if done right. They’re relatively inexpensive to make and if Starbucks has taught us anything it’s that people are willing to pay $5 for coffee and milk. Here are a few ideas to add to your holiday menu. Grand Marnier Hurray: Add an ounce of coffee liqueur, an ounce of Grand Marnier to four to six ounces of coffee and serve. Mulled Wine with Brandy: Simmer three cups of water, one cup of sugar, one lemon peel, one cinnamon stick and 15 cloves in a pot for 10 minutes. Add a bottle of red wine and heat until warm to the touch. Do not boil. Add in one-quarter cup of brandy and let stand. Serve warm. Hot Apple Cider: Heat a half gallon of apple cider. Add 12 cloves, three cinnamon sticks, one cup of orange juice and half cup of lemon juice. Allow mixture to simmer for half hour.
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