Yes, we have all seen better days in the economy. People have begun to feel it where it hurts and during the last 2 months, changes in the spending behavior of Americans have been well noted. Gasoline and petroleum reached the highest price ever just a few months ago only to hit a 15 month low today. Who would have thought we would see the day in which gasoline would be below US$ 2.00 a gallon again!

Has that helped boost consumer spending? The answer is not yet. The stocks continue to lower day after day. The housing industry took a heavy hit, lending institutions shut their doors and now the big car manufacturers are asking for much needed help due to the lack of sales. We have large retailers closing their doors as well as just a couple of days ago Circuit City (electronic store) and Harold (clothing retailer) filed for bankruptcy. Casinos and hotels have also been affected. Las Vegas Sands shares slid 34% after construction was suspended to preserve cash.

So, what is there to do if you are in the restaurant business? How long until YOU are affected or until you have to make substantial changes? Face it, if you have not began making chances to your business and operation, you are falling behind the leaders, however it is NOT too late to incorporate some changes on the way you are doing business.

First of all, take good care of your clients. Your clients are by far your most important tool to success. Treat them right and they will return the favor. Everybody is making changes so offer a special, some sort of combo. Entice them to try something new and show them that you care about their opinions. Treat them as you would like to be treated and they shall come back. They will tell others if they are happy, but they will also tell others if they are not. Concentrate in kids – they have been bombarded with a lot of bad news about the economy. Everyone is stressed and worried. Let them know they can be at ease while they are in your locations. Friendly family relaxing atmospheres will put consumers at ease.

Second, take a good look at your product. Yes, everyone is lowering prices in order to bring in clients and everyone is offering those specials I am telling you about. It is imperative that you stand out from the competition. This is the when you need to be focused on improving the quality of your products. There is ALWAYS room for improvement so begin to look at ALL your menu items and see what can be improved. Once you incorporate the changes, show them and be proud of your products; it will show and clients will notice. Kids love new things and love try that new item you will have. They also are very happy about sharing their opinion: give them a chance to speak up through surveys.

Third, concentrate on presentation and hygiene. Happy clients are directly correlated to how clean your bathrooms are, how often employees check for neatness in the restaurant and how well groomed your workers look. If you don’t think these things matter, you have no business owning a restaurant. Seriously, take a close look at what can be improved in this area and make it happen. This is the time when details matter. Consumers are hurting and they will remember all of these little things…and hygiene and presentation are no little things. While you can not be in your restaurants 24 hours a day, trust someone in your staff and put them in charge of this task. Create contests, make it fun and get your employees involved. Give a small bonus or some sort of incentive for the “cleanest, best groomed employee of the week”. Emphasize the importance of presentation, but make it fun.

Fourth and last, do NOT stop investing in marketing. Competition is fierce. Be clear in your marketing message and be even clearer about what they need to accomplish. Find good partners and suppliers that understand YOUR way of doing business and keep an open mind about what they have to offer. You must trust experience and choose wisely, better yet, invest wisely. There are plenty of businesses struggling and they will do or say anything to make some profit from you. Learn who is trying to sell you something and who is trying to listen to your needs and offer you something to help you be more successful. There is a big difference between one and the other.

Now, be patient. You have incorporated a few things into the equation and it will take some time for them to pay off. Things don’t happen overnight. The economy did not go down the drain overnight. It was a constant and progressive (and yes, a lot of people saw it coming) and coming out of it will feel the same. Just trust that things will get better but trust that YOU will do your part to help. Be happy, be energetic and get motivated. You have something great to offer and you have consumers that want it. Go get them!

Kids express their opinion about the new president
In a research study done by Just Kid Inc., it was found that kids ages 8-12 want the new president of the US to focus on:

- 70% - find a way to lower gasoline prices
- 62% - protect the US from terrorism
- 61% - stop the war with Iraq
- 60% - improve their schools
- 50% - better our health system

Krispy Kreme expands internationally:
Krispy Kreme Doughnuts signed a development contract with KKD Lotte Holdings Co. to open 35 units in China. These stores will be opened in the next 4-5 years in Beijing, Tianjin and Shanghai. Krispy Kreme based out of North Carolina, currently operates 494 stores in the US and 15 stores internationally.