Washington Restaurant Association » Wise Buy

Merchants Take Swipe at the New Debit Fees

Lex Nepomuceno — Tue, 03 Jan 2012 18:15:12 +0000

The Wall Street Journal has published an eye-opening article about debit card transaction fees, “Merchants Take Swipe At the New Debit Fees” states:

“Heartland Payment Systems Inc., which processes electronic payments for small businesses, says it has passed on $25 million of savings to its customers as a result of the lower debit-card fees.

“I think what we’re doing is the right thing,” says Robert Carr, chief executive of the Princeton, N.J., payment processor, which has set up a website with a running tote board that tallies up the savings so far.”

Generate new regular customers with gift card marketing

Lisa Ellefson — Wed, 26 Oct 2011 21:57:35 +0000

INTRODUCTION
Federico Cardenas, owner of 3 Federico’s Mexican Food restaurants in Albuquerque, NM, chose to go with 100 Heartland Gift Marketing’s Promotional Cards, each loaded with $6—a marketing campaign that has so far generated 53 new, regular customers—and will generate over $45k in profit within a year!

CHALLENGE
For Federico, without his use of Heartland Gift Marketing’s Promotional cards, a lot of these new customers wouldn’t even know that his establishments existed. According to Federico, some customers, upon redeeming their promotional cards
• “said it was a good excuse to try us.”
• “Said, ‘I didn’t even know you were here.’”
Sound a little familiar?
RESULTS?
• Federico tells us that the 100-card campaign has “made regular customers out of 9/10 of all who have redeemed their Promo Cards.”
• (59 cards have been redeemed so far, so 53 customers who redeemed a Promo Card have become one of Federico’s regular customers.)
• A good, regular customer “spends $15 twice a week,” according to Federico
• If we multiply $15 by 2 and by 48 weeks , we see that a solid Federico’s customer spends $1,440 annually
• Multiply the $1,440 a good, regular customer spends by the 53 new customers Federico’s Promo Card campaign has generated, and you have $76,320 revenue driven into his establishments from his Promo-Card campaign
• Federico’s cost of goods sold (COGS) is around 40%; subtract that from the $76,320 and you can see that the Promo-Card campaign has generated $45,792 in potential profit. Subtract the cost of printing those 100 cards (let’s say $100), and then subtract the amount of the cards that were redeemed (53 cards at $6 = $318 X 40% COGS = $127) and you have $45,565.00. In profit.
• Multiply the $1,440 a good, regular customer spends by the 53 new customers Federico’s Promo Card campaign has generated, and you have $76,320 revenue driven into his establishments from his Promo-Card campaign
• Federico’s cost of goods sold (COGS) is around 40%; subtract that from the $76,320 and you can see that the Promo-Card campaign has generated $45,792 in potential profit. Subtract the cost of printing those 100 cards (let’s say $100), and then subtract the amount of the cards that were redeemed (53 cards at $6 = $318 X 40% COGS = $127) and you have $45,565.00. In profit.

Oliver’s Bar & Grill Owner Wins Big with HGM’s Customer-Loyalty Solutions!

Lisa Ellefson — Wed, 12 Oct 2011 21:58:06 +0000

Tom’s Big Win-with HGM

When Tom Les decided he needed to trade in his paper gift certificates for a gift-card program, he never expected that the payoff from utilizing HGM’s solutions would result in a 25% increase in business. But that’s just what he got. The owner of the Oak Forest, Illinois’ Oliver’s Bar & Grill signed on for much more than a simple gift-card program when he became an HGM merchant. By taking advantage of HGM Promotions, he has been able to “get to know [his] customer base better,” and, as a result, reward them for visiting his establishment more frequently. Take a look below at how HGM’s customer-loyalty solutions keep Tom’s “regular” customers coming back more often-and spending much more. It’s easy. It works. It’s getting HGM to work effectively-and effortlessly-for you!

Success Strategy: Promotions

What if you were able to sign up for easy-to-run promotions that “targeted” your customers and enticed them to visit more often-and even during particular hours-and to spend more? That’s what Tom did. He used HGM Promotions to get his key customers to come in to Oliver’s Bar & Grill more frequently, to “properly identify, acknowledge and thank our best returning customers?” What kind of HGM “no-brainer” Promotions did Tom sign up for?

• Spend Promo. Tom set a $30 spend “threshold,” with a resulting reward of $2 added onto a customer’s card. In short, if you spend $30 or more at Tom’s establishment, you receive $2 back on your card.

The good news?

Tom’s sandwiches are around $7 – $11, resulting in a check in the low $20’s. With the Spend Promo, however, customers are “purchasing additional appetizers and maybe another round of drinks” to reach the $30 threshold and receive the $2 back on their cards.That’s a spending increase of 15-20% from this promotion alone! And, as Tom tells us, “In May of 2010 alone, approximately 200 loyalty-card holders spent $30+ per visit.”

• Happy-Hour Promo: This Time-of-Visit Promotion puts $1 onto every card for the first $5 spent during happy hour.

The good news?

Customer visits-and sales-have gone up during the happiest hours of the day!

• Visit Promo: Tom started an HGM Visit Promotion that adds $8 to a customer’s card when they visit 10 times.

The good news?

Tom tells us that “170 loyalty-card holders have visited 10 times in just 4 months.” That’s 1,700 visits from Loyalty members (remember-they’re 25% of Tom’s customers) taking advantage of this particular HGM Promo.

HGM Promotions Keep Your Customers Coming Back-and Spending More.

Other Success Factors

Tom also took the time to do what has probably been the most helpful thing for his business: Educate. He’s trained his staff on the benefits of HGM by doing the following:

Wrote “Promote Loyalty Today” on the kitchen’s dry-erase board. He even gave a cash incentive to the staff member who signed up the most customers.

As a result:

Staff members remind customers to take advantage of the loyalty perks of their HGM cards. (E.g. “You could’ve earned $2 if you were a loyalty customer.”)

Our Recommendations:

• Promotions. They work. They’re easy to start. You’ll love the results.

• Speak to your Heartland RM today about setting up a winning promotion for your business.

• Download the Promotions form from: http://www.heartlandpaymentsystems.com/giftmarketingdownloads/documents/Gift%20Marketing%20Promotions.pdf

• Get details on promotion-types at: http://www.heartlandpaymentsystems.com/giftmarketingdownloads/documents/Completing%20the%20HGM%20Promotions%20Form%20101909.pdf

• Educate your staff. Employees talk to your customers. With a few words, they can help get your regular customers to return-more often . . . and spending more.

• Advertise the program. Use our point-of-purchase (POP) sheets for display in your establishment, freely downloadable at: http://www.heartlandpaymentsystems.com/giftmarketingdownloads/

• Get to Know Your Customers via HGM Registration. In Tom’s words, “I can remember 100 customers; but to try and offer them a loyalty program to benefit them and increase my sales, I needed HGM’s Loyalty Solutions!”

• Encourage your customers to register their cards at: https://heartlandgiftcard.com/

• Set up email marketing campaigns to make special offers to these customers.

Video: Durbin Amendment discussed

Lex Nepomuceno — Thu, 06 Oct 2011 22:12:42 +0000

A special message regarding the Durbin Amendment. (2 minutes length)

Wise Buy October – Gift Cards

Lisa Ellefson — Tue, 04 Oct 2011 00:59:27 +0000

Turn gift cards into powerful marketing tools that increase revenue and promote your restaurant. Sign up with Heartland Payment systems as a new gift marketing client and receive 100 free promotional marketing cards, a $150 value! Call 405.818.0914 or email harry.wagoner@e-hps.com to get started today. Offer good through October 31, 2011.

(must sign up with Heartland as a new gift marketing client and place an initial card order of at least 500 gift cards).

See how it works: http://www.youtube.com/watch?v=gsvtcr1Al1M

Unemployment claims may be costing you

Camille St. Onge — Mon, 02 May 2011 16:41:37 +0000

Managing unemployment claims can be complicated and distract you from growing your business. Hearings and the hidden costs of turnover, amongst other issues, all start to add up when it comes to unemployment claims.

Many operators spend a significant amount of time navigating these waters only at the cost to their business.

Your unemployment tax is one tax that can be controlled and reduced with expert claims management. Depending on your tax rate, costs can range from $194 to $2,939 per employee.

TALX is the leader in unemployment cost cost control and are endorsed by the WRA. TALX helps WRA members just like you save hundreds of thousands of dollars every year.

Save money and time with this month’s Wise Buy. Call 425.413.5842 to sign up for this TALX offer or to learn more.

* Available only to WRA members with a signed 12-month agreement. Must sign up before 5 p.m. on May 28, 2011, to take advantage of this offer.

Tip the scales in your favor

Camille St. Onge — Tue, 26 Apr 2011 19:16:11 +0000

What you don’t know might be hurting your bottom line.

Have you ever heard of the FICA Tip Credit? Don’t worry — you’re not alone. This commonly overlooked tax credit was instituted by the IRS for restaurants that employ individuals who are paid the majority of their income in tips — and it could make a big difference to your bottom line.

What is the FICA Tip Credit?

The FICA Tip Credit was initiated in 1993, prompting business owners to spur tip reporting among their tipped employees. The credit is determined by the amount of Social Security and Medicare taxes paid on tips that fall above the federal minimum wage requirement.

As you know, a tip is a voluntary payment by a customer. Tips totaling more than $20 per month, per employee are subject to federal income taxes — including FICA — and must be reported to the IRS. In an industry like restaurant, many employees who earn tips have a far higher income than their paychecks would indicate — and a low inclination to report those tips for income tax purposes.

Why is it important to my business?

The FICA Tip Credit is equal to the Social Security and Medicare taxes paid on tips reported by tipped employees and it reduces your tax liability so you can offset any regular income tax liability. In other words, the amount you would pay out for the year in income tax is reduced by the amount paid for Social Security and Medicare taxes on tips exceeding the federal minimum wage requirement. That could add up to huge savings!

How is the FICA Tip Credit determined?

Your business must meet two requirements to qualify for the credit:

Employ individuals who received tips from customers for providing, delivering or serving food or beverages for consumption.
Have paid or incurred employer Social Security and Medicare taxes on these tips.
Two forms are required to calculate and claim the credit: IRS Forms 8846 and 8027. IRS form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, helps you determine what the credit will be based on employee tip reporting information. You will complete form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, to report tips to the IRS.

The credit is a percentage of reported tips and wages that exceed the current minimum wage requirement ($5.15/hour for tipped employees). It is calculated by determining an employee’s total earned income (salary + tipped wages), subtracting the minimum wage ($5.15) and multiplying the sum by 7.65%. For example, a tipped employee who earns a total of $9.75/hour between salary and tipped wages would net you a credit of $0.35/hour — or $546 for the year.

If your employees average $7/hour in tips — at a salary of $2.75/hour — your FICA Tip Credit is $0.35/hour, per employee. With 10 employees you’d save more than $5,000 per year!

To learn more about this important tax credit, contact Heartland Payment Systems at 866.941.1HPS (1477).

Wise Buy and Urbanspoon team up to boost your traffic

Lisa Ellefson — Fri, 08 Apr 2011 19:01:37 +0000

Urbanspoon’s Rez online reservation application is designed to make it easier for customers to visit your restaurant. This month’s Wise Buy gives you access to this exciting tool FREE!

Understand and manage your POS system

Camille St. Onge — Wed, 02 Mar 2011 16:05:29 +0000

Point of sale (POS) systems are one of the most critical business tools for restaurant operators like you. They are powerful operating systems — but the functionality, associated fees and contracts can be complex.

WRA members receive $500 custom email template

Lex Nepomuceno — Wed, 19 Jan 2011 00:48:03 +0000

Marketing to your customers via email and creating loyalty programs is a proven strategy for restaurants. With that in mind, the WRA negotiated a stellar offer for members with our email marketing provider.

Fishbowl, the WRA’s only endorsed email marketing partner, is offering WRA members who sign up with Fishbowl by March 31, 2011:

$500 custom email template for your restaurant at no charge when you sign up with Fishbowl
One month free email service
10% discount

Fishbowl’s simple email marketing is designed specifically for independent and small chain operators. It’s a sophisticated program, creating unlimited high quality email campaigns and strategies without having to know HTML.

Take advantage of this special WRA Wise Buy offer. Visit Fishbowl or call 800.836.2818.