Restaurant Join Ventures

I was reading today the Wall Street Journal online when I read the news that in a new promotion with TiVo Inc., Domino’s Pizza Inc. will begin taking orders using only a TV set from customers who have broadband TiVo service. For the ones of you who don’t know what TiVo is, you can find more information here: (http://www.tivo.com/whatistivo/tivois/index.html)

This is how it works: When a customer forwards through a commercial for Domino’s, TiVo will flash a pop-up advertisement that asks the customer if she would like to order a pizza, then direct her to a Domino’s ordering screen.

I think that the idea is brilliant. Think about it. Who is the ideal candidate to order pizza? Probably somebody who is hungry and watching TV. Domino’s can target their ads to a hungry multitude eager to get their products and able to buy on the spot!

Both companies will benefit from this deal. TiVo will increase its revenue by allowing their technology to display a Domino’s link to their ordering screen. Domino’s will capture thousands of new customers that otherwise will remain inactive or order some food from some competitors.

This is the power of Join Venture. All parties benefit.

Now think about your restaurant: Is there any company that you could make a deal with to promote your business?

Do you have a local business or company whose employees go to your restaurant for lunch on a regular basis? If so perhaps you can make an agreement with the owners or managers and provide them with customized lunches (pre-packaged and easy to eat) that their employees can order (online or on the phone) and your restaurant will deliver to their premises. Explain to the managers that, in this way, their employees don’t need to spend time and go out for eating. They may save time and the employees may appreciate the convenience.

You can also think about other creative solutions such as doing business with:

  • Local jewelry stores: you can sell them gift certificates for a discounted price so that they can pass them along to their customers
  • Car dealers, beauty saloons, hair saloons, spas… : same concept
  • Other restaurants: yes, you can cross-promote other restaurants with a totally different kind of food. People like variety and will try different foods. For example, if you own an Italian restaurant, you can cross-promote a sushi place or an indian restaurant… And they can do the same with you. It is a win/win proposition. I hope that you get the idea.
  • etc.

The possibilities are unlimited. Just think about a partner that can bring customers to your restaurant and try to make an attractive offer that benefit both of you.

Jose L Riesco
© Riesco Consulting Inc.
www.twitter.com/jlriesco
http://www.myrestaurantmarketing.com

2 thoughts on “Restaurant Join Ventures

  1. Restaurant Job Board

    Jose,

    Great post! So many restaurant owners do not ever think or use JV’s. It’s like leaving a ton of money on the table.

    This one concept could increase a restaurants profits by 10-25% in one year, which is amazing!

    keep up the great content!

  2. AVSB

    Interesting blog post…worth bookmarking! Its true that most small-mid size restaurant owners are so tied up with operations that they are unable to think much beyond the flyers and local news paper ads (which work well but need ongoing expenditure). Just reading your blog can give many new ideas to an owner who wants to increase total sales and sales per customer.

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