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Research_Project-Paper_Sample-1.pdf
Running Head: EFFECTIVENESS OF MINIMAL MARKETING
Effectiveness of Minimal Marketing
HTM 515 Hospitality Management Internship
Spring 2011
910079396
Dr. Andrew Walls
1
EFFECTIVENESS OF MINIMAL MARKETING 2
Table of Contents
Career Center Workshop Attendance Form ............................................................... .3
Monthly Time Sheets ......................................................................................... .4
Intern Performance Evaluation Form ......................................................................... 8
Executive Summary .......................................................................................... 11
Section I - Introduction/Background ...................................................................... 13
Section II - Statement of the Research Project. .......................................................... 16
Section III - Methodology .................................................................................. 18
Section IV - Findings ....................................................................................... 20
Section V - Conclusions .................................................................................... 25
Section VI - Recommendations ........................................................................... 27
References .................................................... , ................................................ 29
Appendix ...................................................................................................... 30
SAN FRANCISCO STATE UNIVERSITY
Career Center Workshop Attendance Form HTM 515 - Internship
Please be sure to have this form validated at the workshop you attend and turn it in at the end of the semestel' along with the other requirements of the course,
****************************************************************
Student Name: k'1'mnexl j VII lanUeNQ Workshop Name: Resu\j\g W()t~GhOp
Date Attended: Bpn128,2011
****************************************************************
Instructor Name: _.LMo-=-::,-,--n-,-,-I--,--\,\_a,_T_~Vj_f.;_S_' ________ _ ( y\ ,A-n-:, AI ')
InstructOl' Signature: _~ ____ -'-"-''--'-'''---______________ _
3
San Francisco State University HTM 515 - Hospitality & Tourism Management Internship
Monthly Timesheet
(NOTE: Turn in a separate time sheet each month - Make additional copies as necessary)
Name KlnWi1le \f1\\onUe)[O Dates Cover From: --,0:..::2....:-1...:..1 i...:..l '-'11...:..1 ____ _
Employer stot1on \ R(le;1auront
To: 03!\\{11
HOURS FOR 72
Student's signature ______________________ _
San Francisco State University HTM 515 • Hospitality & Tourism Management Internship
Monthly Timesheet
(NOTE: Turn In a separate time sheet each month - Make additional copies as necessary)
Name KI\'YlYl1lf \11\ lonueJlO Dates Cover From: _0:;;..::..-3.:..;11'-'.10...:.1...:..1;...! ____ _
Employer StOhOY1 \ Recrtnuron+ To: Ol1{081\(
TOTAL HOURS
FOR
Supervisor's signature -rZ...,~---,,",--__________________ _ E.
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'-.// I
Student's signature ______________________ _
5
San Francisco State University HTM 515 - Hospitality & Tourism Management Internship
Monthly Timesheet
(NOTE: Turn In a separate time sheet each month - Make additional copies as necessary)
Name KiYnrni(' \)1\ \On\J&J!o,
Dates Cover From: -"O,-,Y..:..;IJ;:::.3,-,11c:.1 ____ _
Employer (~Ollim \ \2,(?grOIXC1VTr
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Or-ilo/il To: ,J ,\
HOURS FOR
MONTH
. 1 !'v\ Supervisor's signature -'Ff~'-.J=---------------------
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Supervisor's phone nu~,L-) ______ E-mall: ____ Date: hi b I II Student's signature ______________________ _
San Francisco State University HTM 515 - Hospitality & Tourism Management Internship
Monthly Timesheet
(NOTE, Turn In a separate tlme sheet each month - Make additlonal copies as necessary)
Name ~\\1W)lle \J 1\ \onutJf(~ Dates Cover From: --,,0:..;.:5...:..' 1..:.:11_1 ,,-!I \ ____ _ To: O~':'II'3111
Employer moho'!" \ P-e~rrolxonl'
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Supervisor's signature -'-(-fc'i,--'~-'-' ____________________ _
Supervisor's phone numf~-+------- E-mall: _____ Date: 'Vj h'i~ ! \ I Student's signature __ '_"'_j ______________________ _
7
SEMESTER/YEAR: Spn'nCj 2011
~ STATE ElNl'>!ERSIJ)¥ ,
San Francisco State University Intern Performance Evaluation
Intern:
Instructions: Evaluate intern's work performance as it pertains to the job requirements. Add comments if necessary. Supervisor and Intern should review evaluation together.
Factors
M-More than Proficient P-Proficient S-SatisfactOlY N-Needs Improvement U-Unsatisfactory (See below for definition of levels of performance)
Evaluation Comments
AVAILABILITY: The degree to which an \, , " '" \)-\ \ ''\11\\ \Vx" l'>".,\_ c'('" t':'f~ rVr G employee follows rules ,-is prompt, \A , <;,\,'..1.>.,'(5 \:. concerning breaks and meal periods ("\M\i \"-0 cl'{J,,,; '(:I"P-t>/ , ("eel
and overall attendance. ADHERENCE TO POLICY: The deg"ee to which an employee follows safety rules and other regulations.
BEHAVIOR PAITERN: The stability, 1'\ .... ,'.,0/, i <, V \. (A, "A>-'i"\ \"J;-, \'" \i"'(',U .. L,-,'_l "::{0', ('" 0~ ~""j <,-~ politeness, and judgment shown on IV\ ,1, ;; 'wJT;':\,~, f\ '", ( ,\J.. \' <-::;:;;~ .-:. the lob. CREATIVITY: The degree to which the
'\'-."., , V. h.;' (),)'.\ 1\'Lt.)y tjy ("''\?(~\~~ intelll suggests ideas, discovers new and better ways of accomplishing ,V1\;a.l?-(" \ <e,'-f '\. \~~>2 \'::£J<>V:- lW \,"'(,w_,," goals. DEPENDABILITY: The degree to which the intern can be relied upon to complete a job. INDEPENDENCE: The degree of work \q'l''''€ 'v",(:\..-\,~ tJV\\ 1 \ \~f\ \,"1 ,,~:~ \\0{,!'~"·;~\..-'~ accomplished with little or no k,,' I,-.j('.;{,. \::., . ,'\\\ ,~VM 1\;,;,> .;\\-<:" C0 ,r1.,,\v '0" ";\\'i.j supervision. LhGL (o'\~'1 (1.z~- <;\'0""';:;' '~\(,1, :;:-{l,,~ INITIATIVE: The degree to which the \~, . ()~I' (1),\,,(: 1'1'> ('),;'"\"'(~ ~\ (l'C;{'A,('''-" ()',,\ ", intern searches out new tasks and
',,-,,-, \'\\ \LXn',i t \>.-\ <>" \l.\l\J\ %"\ \ " f\\;':t) expands abilities professionally and
' . \ ...... )\ '---\.---- t, ;":~.J\;;c- eM?',,-->( -cf\' ,::.,\\ \.'\'-t personally. n:c "1 (> (1):>1'\ 1.:;,e" \1-0'-::
INTERPERSONAL RELATIONSHIPS: The ~" "''''\) _,'),p,,,,,', 'yo \C,'<.\,.:;., <I'V\\?1 \-..;' willingness and ability to /''''~''~'''''-=~,~-~"-,-~-,",,,~,,~~-.
communicate, cooperate, and work with co-workers, supervisors, and customers. KNOWLEDGE OF JOB: Useful technical /"V skills and information used at work. PRODUCTIVITY: The accuracy of work r,\> finished in a specific amount of time. QUALITY: The accuracy, detail, and 'V acceptability of work accomplished. OTHER: OTHER FACTORS/COMMENTS THAT SHOULD BE EVALUATED
1
Definitions of Levels of Performance q
M-More than Proficient: Intern performs job responsibilities at a level better than an average employee with similar experience and length of service. Continually performs at an above-average level of skill and motivation, exceeding the standards of the job. Needs little supervision.
P-Proficlent: Intern performs job responsibilities at an acceptable level, meeting the general requirement of the job. Achieves results, meets conduct standards and contributes as requested. Requires a normal amount of management time, guidance, or instruction.
S-Satisfactory: Intern performs job responsibilities at a level sufficient to meet the requirements. Achieves acceptable results, but requires more than the normal amount of supervision and direction.
N-Needs Improvement: Intern's performance does not consistently meet the standards for the job. Additional experience or specialized instruction may be advised before daily performance in job meets requirements at a level expected for the pOSition and length of service.
U-Unsatisfactory: Intern performs job responsibilities at a level below the general standards for the job. Additional experience or specialized instruction may be advised.
AREAS WHICH NEED IMPROVEMENT:
RECOMMENDATIONS FOR CAREER DEVELOPMENT:
COMMENTS:
DATE OF EVALUATION:
EVALUATOR NAME&TITLE :
THANK YOU fOR YOUR INPUT! SFSU w HOSPITALITY AND TOURISM MANAGEMENT DEPARTMENT
2
I::FFGC'r\\J(NESS OF tv\\NIHAL MAR\cEllNG
SEMESTER/YEAR: S?Il\l5 20 \ \ HTM 515 Internship Questionnaire \
(To be completed by the student)
1. Company name of internship:
2. Department(s) worked in:
3. S~ecific:esponsibilities/~uties: () \;0'1(1 \" C~I2~)c\ r\YI\o%'dc; \jIj or\,pd I' n CAiI soc I ,cd \1wdw OUliQ:,\:;, ::}.Q)JQAOP OOl'lWfJLn1 cords: d +oc\u?:m
'0
4.
5.
6.
\ run bv\pd
7. Did the internship experience result in a job offer? (Circle Yes or No) Yes C1iQ::. (olrp(ld~ J he],,)
8. Did you take the position? (Circle Yes or No) SiJQ (J Yes No
9. If so, what is the name of the company?
If so, Position title:
10. If not, describe your current plans upon graduating? \ p\on nuv r\<::-\ nC1 oh)rnhon \ OIlY 1Yor . OXi'Plc!t\\1\.i.n1tbxIJ .. \ hope 10 tWJ , pI ,yetlp d . Incj I+,(\noqexihu f, I'n Ie*' 10ngJixl"ho n olQ.\~1em ()
\ \ hO\Jp \ u(l':n (lOinplo;\(d C)C1In rill' DOG ("1"
I tvould II i
3
10
EFFECTIVENESS OF MINIMAL MARKETING
Executive Summaty
Parameters oJthe Report
Station 1 Restaurant is a new upscale establishment located in Woodside, CA. The chef
focuses on serving local, sustainable, California cuisine in a warm, unpretentious atmosphere.
Due to its young age, owners do not have an allotted budget to lavishly advertise for this new
restaurant. The purpose of this study is to determine whether minimal and essentially "free"
marketing eff011s have been effective in increasing business and improving the restaurant's
reputation.
Description oj the Problem/Statement oj the Research Project
11
Tllis research project aims to analyze the effects of minimal marketing related to any
increases or decreases in business. This can be quantified in terms of cover count (guests served
per night), nightly net sales, and per person average (total net sales divided by number of guests
served). These numbers will be focused around certain milestone dates in media exposure-in the
restaurant's short history. This includes the two reviews in major print and online newspapers.
This project also aims to create a comment card to distribute to guests at the end of their meal, to
gain insight on the guest's experiences and expectations in and about Station 1 restaurant.
This research study will benetit Station 1 Restauratlt because it will allow managing
partners to understand what types of minimal marketing efforts, like posting content on social
media outlets, have a positive effect on business. It will also measure what types of content from
these methods capture the most positive feedback from guests and potential guests. In addition,
ownership can utilize the figures obtained n'om the chm1s on personal net sales and per person
average to set appropriate standards and goals for how much servers should be selling nightly in
order to acquire a realistic yet beneficial profit.
EFFECTIVENESS OF MINIMAL MARKETING 12
Methodology
Cover count data will be obtained from the restaurant's Open Table reservation software.
Figures regarding net sales and per person averages will be retrieved from personal server
checkout sheets that are required to be completed at the end of each shift. Facebook statistics on
post content, post impressions, and number of active users is made available online to Station l's
Facebook page administrators, which includes myself.
SlImmwy of Findings and Conclusions
In general, minimal marketing efforts have proven to be effective in increasing business.
Overall, business changes around the milestone dates were evident; cover counts on weekdays
increased as well as server's personal nightly net sales. However, the data collected from nightly
per person averages showed no correlation with any increases in minimal marketing around the
milestone dates. Additionally, judging from the insight statistics on Facebook, when actively
marketing via this social media outlet, the number of interactions and active users increased.
Unfortunately, these figures were not consistent around the aforementioned milestone dates.
Recommendations
Since the owners did not implement the comment cards during the process of this
research project, it is highly recommended they stmi distributing them to guests as soon as
possible to gain insight of their opinions on their dining experiences. Utilizing social media
outlets such as Facebook and Twitter more frequently will allow Station I to remain, more
frequently, in the public'S eye. Keeping a computerized database of all the servers' net sales and
per person average each night to determine what benchmarks should be established to achieve
their desired profits will result in a clearer method for setting goals.
EFFECTIVENESS OF MINIMAL MARKETING 13
Section I -IntroductionlBackground
The company where I completed my internship is also my place of employment: Station
1 Restaurant. This fairly-new establishment opened tIllS past September and is located at 2991
Woodside Road in Woodside, California. The owners and managers are Zu Tarazi and his wife,
Kristi Borrone. Key individuals in the kitchen are executive chef Zack Freitas, sous chef Ryan
Harris, and executive pastly chef Paul Shields. The restaurant is open for dilmer Tuesdays
through Saturdays, from 5 pm until 9:30 pm. In new developments, the restaurant will begin
opening for Sunday supper June 12,2011, from 4 pm until 8:30pm.
Chef Freitas and the Station 1 kitchen serve modern California cuisine. There is an
emphasis on the use oflocal, sustainable, and organic product. Much of the produce served
comes from local farms, namely in the Sonoma area. The kitchen staff often forages for
garnishes for the dishes served, as well as grows some garnishes ill theil' home gardens. Also, in
terms of proterns, Chef Freitas seeks product from animals that have been sustainably raised; for
example, the wagyu beef is sourced from Snake River Farms in Idaho because they raise theil'
cows in a much more sustainable manner than farms locally.
The menu available at the restaurant is a tIu'ee-course prix fixe menu, offered at fifty-four
dollars per person. These three courses do not include the complementmy amuse bouche and
intermezzo given to each guest that purchases the prix fixe menu. All of the same prix fixe menu
options are also available a la carte for those seeking a quicker dilmer experience, or those who
are unable to eat three courses. In order to keep the menu as seasonal as possible, Chef Freitas
changes a few menu options on a weekly basis. This is especially beneficial for our regular
customers, who want to be able to try something different each time they return.
EFFECTIVENESS OF MINIMAL MARKETING 14
The menu always consists of five appetizers, three entrees, and t1u'ee desserts. The
appetizer category always offers a salad and an additional cold appetizer, such as the current
razor clam dish served with a twist on a potato salad. There is also always a soup and two hot
appetizers offered, such as nettle risotto and soft-poached farm egg dishes. For entrees, there is
always fish and red meat options, such as Arctic char and Wagyu bavette. The third entree ranges
from either being a type of poultry, such as Muscovy duck breast, or a type of game, such as
lamb or rabbit. In regards to the dessert course, there is always a cheese plate available for those
who prefer to end their meal with this as opposed to a sweet option. For those who do have a
sweet tooth, there are two menu choices for them, one typically containing chocolate, while the
other highlights a seasonal fruit.
Station l's beverage program is just as impressive as the creativity that comes from the
food. While the wine list is modest, there is much variety available for guests. Also just like the
food menu, the wine list changes quite frequently. Zu is a certified sommelier, and hand-selects
the wines on the list. He primarily chooses wine producers with smaller operations; also, he
favors organic and sustainably-cultivated varietals. Many of these wines are especially versatile
and pair well with more than one of the dishes offered. In addition, all wines on the list are
offered by the taste (three ounces), glass (six ounces), and bottle, ensuring that guests can mix
and match their wines at their own discretion.
Not only does the restaurant have a fantastic wine program, but the cocktail program
should not be overlooked. Again, the house cocktail list constantly changes, since bartenders are
always seeking to keep their fresh ingredients seasonal. The cocktail list's theme is pre-
Prohibition era cocktails, one that is simple but still leaves room for ilillovation. One can even
refer to our drinks as "culinary cocktails," since they are made of seasonal fruits and herbs,
EFFECTIVENESS OF MINIMAL MARKETING
house-made syrups, and fresh juices. In addition, rather than holding big name brands such as
Tanqueray gin and Bacardi rum, all of the liquors and spirits tend to be from smaller, more
artisanal companies, ensuring guests are being provided with high-quality drinks.
15
The coffee and tea available to guests are also considered to be integral to ownership's
desire to stay local and sustainable. Taylor Maid Farms provides both coffee and tea, which are
served in French presses. This company is based out of Sonoma County, California. It sources its
product from fair-trade cooperatives and makes sure to offer only products at the peak of their
season. In addition, Taylor Maid Farms mainly packages its coffee beans and teas in recyclable,
reusable, and/or compostable packaging, to maintain its reputation as being environmentally-
conscious.
Besides what type of food and beverage a restaurant serves, atmosphere also plays a
crucial part in a diner's overall experience. At Station 1, the front-of-the-house strives to provide
warm and unpretentious service. While considered an upscale, full-service restaurant, the owners
want all guests to feel at home while dining. In addition to service, the ambiance of the restaurant
itself adds to the warm atmosphere. The restaurant also exhibits support of the local community
through this. All tables are made from two hundred and fifty year old, reclaimed French oak,
sourced from a barn in Petaluma. Also, all of the dishes are served on hand-thrown plates made
by Lisa Neimeth, an artist based out of the Mission district in San Francisco. This philosophy
about atmosphere is closely tied to the mission statement for the restaurant, which is stated in the
Station I Restaurant handbook as follows:
Our mission is to provide a warm, inviting atmosphere for people to gather
regularly to enjoy each other and the food we have prepared with the finest and
freshest seasonal ingredients that are produced sustainably and locally. (p.l)
EFFECTIVENESS OF MINIMAL MARKETING 16
Section II - Statement of the Research Project
There are two main goals of this research paper. One is to develop an effective comment
card for the restaurant, a feedback tool that will be incredibly beneticial to such a new business.
Because of how young this restaurant is, it is vital to determine exactly what guests think of the
establishment in order to effectively compete with successful competing businesses. Without
knowing what aspects of their experience they were satisfied and dissatisfied with, the owners
will not know how to best accommodate them. Rather than simply asking them to rate cel1ain
features of the restaurant on a numerical scale, the plan is to create a comment card with
questions that will draw out descriptive details from the guests' points of view. This will assist
Zu and other key players in the restaurant to make important decisions based on the wants and
needs of guests. Also, with the implementation of the comment card, a database can be created
regarding our guests' birthdays and anniversaries. With spaces at the end of the comment card
where guests can write down these important dates, the service staff can better personalize their
next experience with knowledge of such special occasions.
The second objective of this research paper is to analyze how effective minimal and
essentially free marketing tactics are in relation to the amount of business received. Here, the
term "business" will refer to the amount of covers the restaurant does each night, as well as the
net sales and per person average each night. Specifically, there will be an analysis of changes in
these aspects of business in the time immediately surrounding tlu'ee milestone dates our
restaurant has:
» February 6, 20 II - two great reviews for Station 1 are released in the San
Francisco Chronicle and San Jose Mercury (ratings of two and a half stars and
tlu'ee stars, respectively)
EFFECTIVENESS OF MINIMAL MARKETING 17
~ March 10, 2011 - I begin actively increasing the use of our social media
outlets, specifically Facebook and Twitter; in addition, Station l's Twitter
feed becomes featured in the Twitter "Chefs' Feed" featured on the SF Gate's
Inside Scoop SF website
~ April 3, 2011 - Station 1 is added to Michael Bauer and the SF Clu'onicle's
esteemed "Top 100 Bay Area Restaurants" list
Aside fi'om utilizing nightly cover count, net sales, and per person average, there will be an
analysis of statistical data provided from being an administrator of the Station I Facebook page.
With tllis, changes in interactions from users who "like" the restaurant's page, especially relative
to the milestone dates mentioned above, will be observed.
There are numerous ways in which this research project will benefit the restaurant. First,
it will provide myself and key internal stakeholders with a better understanding of what minimal
marketing methods will continue being effective wllile keeping costs low, or even nonexistent.
Second, since it is a new business, the chalis to be developed based on findings will provide the
owners with tangible resources to analyze progress thus far, especially in terms of nightly cover
count, net sales, and per person average. They can also use these same figures to set appropriate
standards and goals for how much servers should sell per night in order to earn a profit for the
restaurant. Moreover, this research project will assist in providing the company with a better
understanding of what types of post content garners the most attention, alld therefore more free
marketing, tlu'ough social media outlets. In regards to the comment cards, as mentioned earlier,
ownership will be able to gain a better understanding ofthe changing needs and wants of guests.
Finally, with the findings of this paper, we can provide a jumpstart to continue such analyses on
EFFECTIVENESS OF MINIMAL MARKETING
a monthly basis to comprehend and modify our marketing strategies, predict and increase
expected sales, increase the number of covers per night, and gain a return clientele.
Section III - Methodology
18
There were a number of sources that assisted the data collection process for this research
project. To introduce the background of this company, I first turned to my own personal
knowledge of the restaurant. I frequently get asked questions by guests about the names of the
owners, the cuisine served, what days the restaurant is open, and so on. I am expected to know
all this information in case of such an event, so putting them on paper was relatively simple. To
obtain the restaurant's mission and vision, I personally asked the owner Zu to provide a hard
copy of it for me.
Most of the numerical data collected is readily available on a nightly basis at the end of
each shift. To take note of the number of covers achieved each night, I turned to the restaurant's
Open Table reservation system, which takes record of this. I input these numbers in an Excel
spreadsheet so I could apply these figures in a chart. This would supply a better visual
understanding ofthe changes experienced over the last few months, especially around milestone
dates. Furthermore, I recorded the number of covers starting at the date of January 4, 20 II. I
chose this date because it would present data for the month before Station I 's first milestone
date: the day the reviews were made public. This way, the changes in business from before the
date compared to afterwards should be apparent. I continued recording this number until April
23, 20 II, almost a month after the latest milestone date: the amlOuncement of the restaurant's
inclusion in the Top 100 Bay Area Restaurants.
EFFECTIVENESS OF MINIMAL MARKETING 19
In order to obtain the figures for net sales and per person average per night, I recorded
data from the server checkout paperwork each server is required to fill out at the end of each
shift. I was only able to record these numbers from my personal checkout, since the owners did
not think it would be appropriate for me to look at other servers' figures. On this sheet, each
server is required to record the net sales for each of the following categories: food, beer, liquor,
wine, gift cards, and miscellaneous (sparkling water, soda, coffee, etc.). The figures I actually
took record of are the totals for these categories. Then servers must calculate the tax for each of
these categories, followed by gross sales (net sales plus tax). Afterwards, net sales is divided by
method of payment (cash, Mastercard, Visa, AMEX, and redeemed gift cards). The total of these
numbers should equal the net sales calculated earlier. Servers also take note of tips in each of
these payment categories. Then, servers calculate per person average for the night. I input these
numbers in an Excel spreadsheet. I also made charts for these figures per month to visualize any
changes, especially around the milestone dates being observed.
To collect data on which types of post content gain most attention and interaction from
our Facebook "fans," Zu made me an administrator for our Facebook page. Along with this title,
I was able to view statistics available to administrators. The specific statistics I used were as
follows:
~ Weekly active users
~ Monthly active users
~ Total post feedback for the month
~ Post subject posted that month
~ Number of impressions garnered per post subject for the month
EFFECTIVENESS OF MINIMAL MARKETING
For the first three bulletpoints, I made charts for each month to view any changes surrounding
the milestone dates. In addition, I created a pie graph to analyze which types of post content
(food, behind-the-scenes look, press, etc.) received the most impressions from our "fans."
20
Finally, to collect information regarding our guests' opinions and comments, I intended
to utilize the comment card I created for Station I (template found as Figure 1 in Appendix pg.
30). As seen in the template, and as mentioned before, guests are encouraged to write out their
opinions rather than simply rating the restaurant on a scale of one to five. UnfOliunately, this
method of data collection could not be implemented in time for this research paper. While the
owner did edit and print out a template of this conmlent card, he has been so busy with other
aspects of the restaurant that he did not have time to start employing these cards. He fully intends
to begin distributing them to guests; he just chose to delay this until he figures out other elements
of the restaurant, such as the installation of a POS system and opening for Sunday supper.
Section IV - Findings
After analyzing data acquired from the Open Table reservations software, it was clear
that the free marketing attained from the Station 1 periodical reviews increased business in terms
of cover count. In January, the month before the SF Chronicle and SJ Mercury published their
reviews of Station 1, the number of covers on weekdays was relatively low compared to the
number of covers on weekends. On weekends, the restaurant managed to sustain a high number
of guests in relation to the number of guests that can be seated at once (54 maximum). During
this l11onth, the restaurant averaged about 78 guests per Friday and/or Saturday, turning nearly all
of tables each of those nights. However, on weekdays, the average number of guests was 34,
even reaching as low as 19 on one of those evenings (please see Table 1 in Appendix pg. 31).
EFFECTIVENESS OF MINIMAL MARKETING 21
In the month of February, when the restaurant's reviews were released, the number of
weekday covers increased. Starting from the Tuesday after Februmy 6, the first "milestone date"
considered in this research paper, the average weekday number of covers increased to 56 people.
The restaurant managed to do 69 covers on one of those February weekdays. In addition, the
overall average number of covers for that month, including weekdays and weekends, was an
impressive 63, compared to the previous month's 51 people. The number of covers on weekends
remained reasonably constant with the previous month, as it would continue to do for the months
of March and April (the average number of weekend covers for Februmy was 73, March was 78,
and April was 76) (please see Table 2 in Appendix pg. 32).
In the months of March and April, it was clear that the higher number of covers
stemming from the Februaty review day was maintained. This is most likely attributed to the
other milestone dates being considered: when Station 1 's Facebook page became more active,
and the day Station 1 's inclusion in Michael Bauer's Top 100 Bay Area Restaurants was
announced. While they were upheld, they did not increase as anticipated. In terms of the amount
of covers on weekdays, the number was 51 in Mat'ch and 55 in April. Moreover, the overall
average covers done in the month of March was 60, while it was 64 in April (please see Tables
3-4 in Appendix pgs. 33-34).
The data obtained from personal server checkout sheets did not yield as clear of a
correlation with minimal marketing efforts as the cover count data did. In particular, per person
average from the months of January through April showed no specific trend coinciding with the
milestone dates (please see Tables 5-8 in Appendix pgs. 35-38). This is due to the fact that a
range of factors affect per person average besides specific marketing efforts. For example, if a
guest has an appreciation for cocktails and likes ordering them when he dines at restaurants, he
EFFECTIVENESS OF MINIMAL MARKETING 22
would be willing to pay for them, increasing his check by eleven dollars for every cocktail
ordered. Also, if a guest orders a bottle or more of wine whenever dining out, he is willing to pay
anywhere from thirty-two to eighty dollars per bottle of wine, significantly raising the total on
his check. However, if the guest prefers to only have tastes of wine to pair with each course, the
total would only raise the check total to anywhere between four to ten dollars per wine pairing.
Also, since the prix fixe option at Station I is not mandatory, the check total of a guest who only
wants to eat one or two courses will decrease compared to if he chose to spend the fifty four
dollars for the prix fixe menu. These factors, along with others, influence nightly per person
average much more than marketing eff01is would.
Nightly net sales from the server checkout sheets show a little more of a correlation to the
"free" advertising gained from the aforementioned milestone dates. In January, before much of
the minimal marketing eff01is were executed, average net sales were about $1,095.70. In
February, after the restaurant's reviews were released, personal average net sales increased to
$1,321.14. The increased use of social media outlets had no apparent effect on personal net sales,
actually decreasing the average to about $1,262.11. However, with the Top 100 announcement in
April, net sales increased to an average of $1 ,526.43 (please see Tables 9-12 in Appendix pgs.
39-42). Unfortunately, Station I marketing's direct influence on these figures is not for celiain
for the same reasons of why per person averages were not affected by it.
In terms of marketing via social media outlets, Station I has garnered more attention
from the business' supporters, particularly its Facebook "fans." Since I was declared one of the
administrators for Station I 's Facebook page, I started actively using our Facebook and Twitter
accounts. From this, the restaurant's social media pages have been gaining an increasing amount
of interactions from its corresponding users. This was especially apparent right after the Februmy
EFFECTIVENESS OF MINIMAL MARKETING
milestone date, just as it has been shown that this particular day increased business in terms of
number of covers and personal net sales.
23
In January, since the previous Station I Facebook administrators did not frequently post
anything for the "fans," the restaurant's Facebook page only had an average of90 weekly active
users and 243 monthly active users. For reference, Facebook detines an active user as, "[t]he
number of people who have interacted with or viewed your Page or its posts. This includes
interactions from Fans and non-Fans. (Unique Users)" (Facebook, 2011). In February, since I
took more control over the page, the number of weekly active users increased to 131, and the
monthly average increased to 292. Moreover, otheur weekly active users reached a maximum of
213 compared to Januaty's 147, and monthly active users reached 314 versus Janumy's 250
(please see Tables 13-16 in Appendix pgs. 43-46).
After analyzing the Facebook active user statistics for March and April, it seems as if the
review milestone date had much more influence on the number of active users than the other
milestone dates under observation. In fact, during these months, the number of active users
actually decreased slightly, but not drastically. In March, weekly active users decreased to an
average of 133 and a maximum of 195. That same month, monthly active users went down to an
average of276 and a peak of313. In April, the number of active users reduced fmiher. Weekly,
the average amount of active users was 117, with a maximum of 185. Monthly, the average was
278 and the maximum was 286 (please see Tables 17-20 in Appendix pgs. 47-50). This reduction
in the month of April could possibly be attributed to the fact that, with the influx of term papers
and group project deadlines during that month, I spent less time posting content on the Station 1
Facebook page. My diminished use of the restaurant's Facebook in the month of April was
evident in the statistics regarding total post views mld post feedback. In Janumy, the total number
EFFECTIVENESS OF MINIMAL MARKETING 24
of post views was 2,953. In February, after the review milestone date, the number almost
doubled to 5,687 post views. In March, the month I started posting actively on Station 1 's
Facebook, post views went up, reaching 6,268. However, in April, when my Facebook use
slowed down, the number of post views by more than half at 3,005 views (please see Table 21 in
Appendix pg. 51).
The Facebook post feedback statistics show the same trend as the post views data above.
In January, the page only received 9 pieces of post feedback. In February, it shot up
tremendously to 77. In March, it stayed relatively consistent at 79 pieces of post feedback. In
April, when Facebook use, and therefore amount of free marketing through it, went down, post
feedback went down as well, to 35 (please see Table 22 in Appendix pg. 52).
In addition to analyzing the number of Facebook post views and feedback, it is necessary
to determine which types of post content attracted the most attention from Facebook "fans." The
results from this analysis can be seen in the pie graph in the Appendix (please see Graph 1 pg.
53). The top three subjects that garnered the most attention were (1) Food/Menu; (2) Press, such
as reviews or honors received from Open Table users; and (3) Behind-the-Scenes pictures or
videos, such as the kitchen cleaning up after service, or the front-of-the-house staff being silly
before service starts.
There were a few alternate routes I could have gone in order to conduct research for this
paper. For starters, ownership could have implemented the comment cards for guests earlier, in
order to collect data from them for this paper. Tllis would have given first-hand insight on all the
areas covered in the comment card template.
Also, I could have utilized the time I spent talking to my tables as a server more
efficiently by asking them questions that would have given the insight that would have been
EFFECTIVENESS OF MINIMAL MARKETING 25
provided in the comment cards. So, instead of giving the comment card with their check, I could
have asked them specifics about how they enjoyed the variety in the dishes, how the pacing of
their meal was, etc. However, this method of data collection would have been seen as
inappropriate by the owners, and honestly by me. Guests may feel under direct scrutiny and may
not appreciate being forced to answer such questions to a member of the staff. TillS could
potentially cause the restaurant to lose customers. Also, asking these types of questions during
service would take up quite a bit of time, depending on how long the guests' responses would be.
The fast-paced nature of our dinner service would not allow for such time-wasters.
A third alternative to the method of data collection for this research paper would have
been to record the net sales and per person average of all servers for the time frame under
examination. Recording trends in these figures from all the servers would have yielded more
reliable data regarding its trends with our milestone dates. However, as stated before, the owners
did not feel comfortable divulging these numbers, and I understood.
Section V - Conclusion
Overall, the nllnimalmarketing approach has proven to be effective despite the little
funding allotted to put towards such a marketing plan. Although weekends have been
consistently busy since data collection began in January, the number of covers on weekdays has
increased since gaining more attention via reviews, increased social media use, and the
announcement in the Top 100 Bay Area Restaurants list. Personal net sales per night also
increased with these "free" advertisements for the restaurants, which is greatly attributed to the
increase in business volume. Also, the number of active Facebook users and their interactions
with tllls page went up since use of this form of social media public relations increased.
EFFECTIVENESS OF MINIMAL MARKETING 26
It is important to note that not all methods of measuring our minimal marketing's effect
on business supported this notion. The per person average for each night had no apparent
correlation with marketing efforts, being influenced more greatly by how much each guests
typically spends while dining out; that is, whether they are big drinkers or not, and whether they
go for the three-course prix fixe menu or prefer to eat a la cmie. Moreover, nightly net sales'
trend of increasing slightly around the milestone dates is not for certain due to the same factors.
Although it was inadvertent, the slowdown of posting on the Station I Facebook page
actually helped in determining minimal marketing's effect on the restaurant's popularity, besides
through number of covers and sales. When the Facebook page was providing less insight to
"fans" in April, the number of active users, post views, and post feedback significantly went
down in number. Administrators were still posting some items for them to views, such as a
behind-the-scenes video of the front-of-the-house dancing before service, but people were not as
interested in this as they were other posts during previous, more active months. That is, the
number of impressions on posts in April was significantly lower than prior months.
In order to gain more interest from "fans," Facebook administrators should post much
more about subjects they showed most interest in. Specifically, focus should be placed on food,
which is the main motivator behind why people eat out at restaurants. Administrators should also
focus more on posting press releases about the restaurants, such as in news in food blogs, and
behind-the-scenes activities.
EFFECTIVENESS OF MINIMAL MARKETING 27
Section VI - Recommendations
Stennning from the findings and subsequent conclusions of this research paper, there are
a number of recommendations for the owners' of Station I regarding how they should utilize this
paper to their benefit. First, it is highly recommended they begin implementing the comment
cards as soon as possible to gain a first-hand account of how guests heard about the restaurant
and felt about their overall experience. Also, they can stmi keeping a database of guests'
birthdays and anniversaries, better personalizing their dining experiences.
Administrators should utilize the restaurant's Facebook page more. I can assist with this,
since I will remain a Facebook administrator for Station l's page. We should capitalize on what
the most popular post contents have been in the past, and post more things like these for the
"fans" to view. This would likely increase the lltlmber of active users and impressions left by
them. Also, we should post more often on the page since people show most interest in Station I
when administrators post more frequently. This is evident through the number of post views and
feedback received during times we post most. Also, we should post content more on Facebook
since the Twitter account is tied to the Facebook account.
Related to this, owners should utilize Station I's Twitter account more often as well.
Right now, only posts on Facebook are being posted on Twitter. There should be separate posts
available on Twitter. This would give the restaurant much more exposure on SF Gate's Inside
Scoop SF website, perhaps increasing business from first-time diners, where most business has
been coming from lately.
Although the data collected did not yield the clearest of correlations between nightly net
sales and per person average to minimal marketing efforts, owners should still use the data
retrieved from the personal server checkout sheet to set benchmarks for the service staff. I, or if
EFFECTIVENESS OF MINIMAL MARKETING 28
the owners are more comfortable doing it themselves, can create a database recording all of the
servers' figures for net sales and per person average, then determine what overall benchmark
should be established. They can use tillS database to determine what amount of net sales per day
01' week will achieve the their desired profits. This can help ensure that, as business goes on, the
owners know exactly where they stand regarding breaking even and/or being able to afford any
equipment, software, or other resources needed to operate.
EFFECTIVENESS OF MINIMAL MARKETING
References
Facebook. (2011). Facebook insights data export- Station 1 Restallrant- 2011-05-01 [Data
File]. Retrieved from http://www.facebook.com/insights/?sk=po_131678303546336
Station 1 Restaurant. (2010). Station Restaurant 1 Handbook. Woodside, CA: Tarazi.
29
EFFECTIVENESS OF MINIMAL MARKETING 30
Appendix
Figure 1 - Station 1 Comment Card Template
Wo'd (e •• t.o h.", wh,t. Y0U tllb)L Is tllts Y0lll' fi,st. tIp). bob)~ w!t.1l us? ~tlS Jrc wh.t. h,'olli,11t. yeu b,r _______________________________ _ Jiew did yeu [od ,beUL
o 'ill. (,st.o ,"d ~"I.t;y 0[ ollr dlslws?
And just. , hit. lnore b)[m",,,t.Ioll to 'bet. t.o kllmV you bot.t.oL o 'lIlr!,hdgy __________ _ o fbmt\'Jl]l'sgt'Y _________ _
o bj))'U Address ([er $(,t.Ioll 1 llpd,t.g)
L
Table 1 - Cover Count January 2011 100 -,-------------------------------------------
90 - ,
87
82
76
85
76
i I ! I
. ill I
80
89
71 70
I I l' I I 61 61
60 I I I I
r- r I -
I r r-Number of Covers 50 43
41
r-I i 36 ~n i i 39
I i j 35 40
33 32
I I ,-~I I I I I . I
I I " I i 30
22 19 -l
r- r I
I I I I I . 21
I I I II -'I -,- I I I I -I 20
10 I ,- ,- I ,- r- I I I- I I I I I r- II a . I-,- . . . . .,- . . . . l . . I-,- . . L_
y y y y y y y y y y y y y y y y y y y y y y y y y y ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~$~~~~~~~~~~~~~~
Date
tTl -n '""11 en :::; <: en Z en 0) G''') a II
:s: z 3: :p r 3: ::D -p -r:. Cii ::j 2: (:
().J
Number of Covers
Table 2 - Cover Count February 2011 90
85 84
80 80 1--
I !
- I
74 76
71 74
I I 69 -,---- I--
69 l- I-- I--70
65 65 63 62
I-- -sT e- ,..... I-- l- i--- 55 56
I- - I--60 51
49 ., I-- I-- '-- - l- i--- - - i--- I- 49 I-- I-- l-50
40 e- 36
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10 I-- I-- I-- i--- i--- l- I- l- e- l- I- I- I-- l- I- I- 1-1-
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Date
m -n -n en (") -l c: rt1 z: m (j) 0)
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3/7/2011
3/8/2011
3/9/2011 J l
3/10/2011
3/11/2011 J J
.I 3/12/2011
3/13/2011
3/14/2011
3/15/2011 ~ 3/16/2011 .. 111
3/17/2011
3/18/2011
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1 ,
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3/21/2011
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Table 5 - Per Person Average January 2011
80 -// - -- 78.11
71.15 r-------------------- 70
60
PPAin $ 40
30
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Table 12 - Net Sales April 2011
2000 --1934
1800
1627
1600
1400
1200
Net Sales in $ 1000
800
600
400
200
o y y y y y y y y y y y y y y y y y y y y y y y ~~~~~~~~~~~~~~~~~~~~~~~ ~~&~~~~~~~###~~#~~~##~#
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Table 19 - Weekly Active Facebook Users April 2011
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Table 20 - Monthly Active Facebook Users April 2011
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Table 21 - Total Facebook Post Views
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O+-~~~==-= , Jan-ll Feb-ll Apr-ll Mar-ll Month
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