Podcast Summary: "The Connection Between Marketing and Culture (ENCORE)"

Podcast Information

• Title: RESTAURANT STRATEGY
• Host/Author: Chip Klose
• Description: The Restaurant Strategy podcast is dedicated to helping independent restaurant owners increase their profitability. Hosted by industry expert Chip Klose, the focus is split between operations and marketing with two episodes every week, aiming for consistent, predictable 20% returns.
• Episode: The Connection Between Marketing and Culture (ENCORE)
• Release Date: March 6, 2025

Introduction

In the encore episode titled "The Connection Between Marketing and Culture," Chip Klose delves deep into the intertwined relationship between marketing strategies, organizational culture, and behavior change within the restaurant industry. The episode emphasizes how both internal and external marketing efforts are pivotal in driving profitability and operational excellence.

The Core Idea: Behavior Change

Timestamp [05:03] The episode kicks off with a compelling assertion: "A lot of our job, so much of your job... is really about changing behavior, changing consumer behavior and changing employee behavior." This foundational idea sets the stage for exploring how marketing and culture are not just peripheral activities but central to a restaurant's success.

Chip articulates that both employees and diners have behaviors that need to be influenced. For employees, it's about punctuality, uniform standards, and operational efficiency. For diners, it's about attracting them to become regular customers and altering their dining habits to favor the restaurant consistently.

Internal Marketing: Shaping Employee Behavior and Culture

Timestamp [07:09] Chip emphasizes that culture within a restaurant is a reflection of the collective behaviors of its staff. He explains that culture isn't merely about slogans or values stated but is exhibited through daily actions and routines.

Timestamp [07:12] He introduces the concept of "figure eights," a behavioral blueprint used to train entry-level positions like bussers in fine dining establishments. For example:

• Bread: Ensuring all guests have bread and water.
• Clear: Removing any items from the table to prepare for the next course.
• Reset: Setting up the table anew for subsequent guests.
• Help: Assisting colleagues in other areas.

This structured approach ensures that employees consistently exhibit the desired behaviors, fostering a cohesive and efficient work environment.

Notable Quote [07:09] "Culture is not the things we say, but the things we do."

External Marketing: Influencing Customer Behavior

Timestamp [13:26] Transitioning to external marketing, Chip draws parallels between internal team management and customer engagement. He cites Seth Godin's insight: "People like us do things like this." This emphasizes targeting marketing efforts towards demographics that align with the restaurant's culture and operational style.

Timestamp [15:31] Referencing Daniel Pink’s book, "To Sell is Human," Chip explains that selling is inherently about persuasion and moving people from one state to another. For restaurants, this means persuading non-customers to become regular patrons by altering their dining behaviors.

Notable Quote [15:32] "Our job is to move someone from one place to another. Our job is to persuade them to change their behavior."

Practical Examples and Strategies

Figure Eights and Behavior Modeling [05:03 - 10:50] Chip provides practical examples of how specific behaviors and scripts can be ingrained in staff to ensure consistency and excellence. For instance, he discusses training servers to not just take orders but to actively sell by asking follow-up questions like, "How would you like your steak cooked?" This not only enhances the customer experience but also increases the average check size.

Timestamp [10:49] He counters the misconception that servers are merely order-takers by emphasizing the need for active selling: "That's not true. I'm sure you said that to your staff numerous times. He said, yeah, I say it every single week. I said, great."

Atomic Habits Integration [17:26] Drawing from James Clear’s "Atomic Habits," Chip discusses making desired behaviors automatic through repetition and routine, ensuring that both employees and customers adopt beneficial habits effortlessly.

Insights from Thought Leaders

Chip interweaves insights from prominent authors to reinforce his strategies:

• Jim Collins' "Good to Great": Highlights the importance of leadership accountability and taking ownership of outcomes. "A great leader... always looks in the mirror before they look out the window."
• Seth Godin: Focuses on targeting marketing efforts towards those who already align with the restaurant's culture to streamline persuasion efforts.
• Daniel Pink's "To Sell is Human": Defines selling as a fundamental human activity centered around persuasion and behavioral change.
• James Clear's "Atomic Habits": Emphasizes the power of small, consistent habits in driving significant behavior changes over time.

Notable Quote [13:25] "Everything, everything is about culture."

Conclusion

Chip Klose concludes by reiterating that the symbiotic relationship between marketing, culture, and behavior is essential for running a profitable and sustainable restaurant. By effectively managing internal culture to shape employee behavior and employing targeted marketing strategies to influence customer behavior, restaurant owners can achieve consistent, predictable returns.

He underscores the importance of understanding and simplifying the behavior change process: "Make it easy, make it obvious."

By mastering these elements, restaurants can not only survive but thrive in a competitive industry landscape.

Final Thoughts

This episode serves as a valuable blueprint for restaurant owners aiming to enhance profitability through strategic marketing and cultural management. Chip Klose’s integration of behavioral science and practical strategies provides actionable insights that can transform restaurant operations and customer engagement.

Key Takeaways:

• Behavior Change is Central: Both employee and customer behaviors are pivotal to a restaurant's success.
• Culture Drives Action: Establishing a strong, behavior-oriented culture ensures operational consistency and excellence.
• Targeted Marketing: Focus marketing efforts on those aligned with your restaurant’s culture to enhance persuasion effectiveness.
• Consistency is King: Implementing structured routines and scripts ensures uniformity in service and customer experience.
• Continuous Learning: Leveraging insights from thought leaders can refine and enhance strategic approaches.

Notable Quotes Recap:

• "[05:03] Unknown Host: A lot of our job... is really about changing behavior."
• "[07:09] Chip Close: Culture is not the things we say, but the things we do."
• "[13:25] Chip Close: Everything, everything is about culture."
• "[15:32] Unknown Host: Our job is to move someone from one place to another."

For restaurant owners seeking to implement these strategies, exploring the referenced books and integrating the discussed behavioral techniques can pave the way for substantial growth and sustainability.