By: David DeLorenzo
Just like the theme for the beloved TV show “Cheers” says, everyone wants to go where everybody knows their name. Customers feel good when they are acknowledged, when their favorite drink order is remembered and simply when they are treated like a regular at their favorite bar, winery or brewery.
But developing client rapport is about so much more than ensuring your customers will come back again and again… it can actually impact of safety of your business, protecting you and your staff in the long run.
Overall, your goal as a business owner is to do just that—stay in business. Running a profitable and responsible establishment is all about being present while serving those that are guests in your restaurant.
And something as little as taking a few extra minutes to get to know your regular customers, at least on a surface level, can help you avoid getting hit by a large lawsuit due to potentially overserving someone. This could have simply been avoided by taking a little time to engage with customers, especially ones who come in regularly.
Every establishment is different, and depending on the type of business, each will have a unique dynamic, whether it’s a coffee shop a nightclub or a neighborhood tavern. However, most business owners who have been in this industry for some time have developed an understanding of the mechanisms they need from a safety precautions standpoint. They know how to hire the right people and instill the right protocols to keep people safe and keep their establishment out of trouble.
If you’re doing something right, the same people will return, and return often. Establishments that get their fair share of regulars can leverage this to their advantage in multiple ways. Owners have the opportunity to really get to know their regulars, to welcome them into their establishment and make them feel at home by remembering their name or their favorite beverage order. This is a great way to make your customers feel valued, which will likely encourage them to return.
This isn’t just a feel-good tactic, retaining regular customers is great for your bottom line. Even a 5% increase in improved customer loyalty can increase your profits by 75-95%. Your regular customers are walking advertisements—they will not only come back, they will bring their friends and tell others about your place, too. Regular customers also typically spend more. All these factors are major green flags for why you, and your staff, should focus on developing a personal connection with your regulars. You can even incentivize return customers with loyalty programs, specials and discounts.
But if you operate an establishment that serves alcohol, one of the most crucial reasons you should get to know your customers is so you can determine if they have had too much to drink on any given occasion.
When you get to know your regular customers, you’ll not only become familiar with their favorite appetizer or drink order, you’ll get to know their jokes, their mannerisms as well as how they act when they are completely sober—and how they act after they have had a little too much to drink.
Their demeanor may change once they have had an alcoholic beverage or two. And this is important to pay attention to. This is why it is particularly important to train staff on how to detect whether someone has been drinking before they enter your establishment.
If a regular comes in completely sober to your knowledge, you and your staff can then watch for those cues once they start ordering some drinks. This is not only for the safety and protection of your establishment, but it’s the ethical common practice of taking care of your customers and ensuring they don’t put themselves into a dangerous situation after having some drinks at your bar—such as behind the wheel of their vehicle.
As bar and restaurant owners, of course you’re in the business to make money, to create a place of community for people to come eat, drink and be social. But you must also take on the responsibility of ensuring, to the best of your ability, that your customers can get to their next destination safely once they walk out the door.
It’s also important to conduct your establishment according to the law… particularly in the face of the trend wherein lawsuits are getting funded like businesses.
This trend involves private equity money going to help fund lawsuits for people that get into accidents and want to fight the insurance companies. With more capital, attorneys are able to stretch out their cases, and they are able to take on more cases.
In cases like this against an establishment such as a bar or brewery, you have a more sympathetic jury and social inflation working against you. From a social standpoint, people look at the establishment, whether it’s a bar or tavern, as the corporate bad guy. Regardless of the facts and characteristics of the case or what actually happened, this can become a bad situation for the establishment and the defense attorneys that are representing them. It becomes more and more difficult to fight it off when the plaintiff’s attorney is being funded by a lot more money through private equity.
This, in particular, is why it is more important than ever for bars and establishments that serve alcohol to have air-tight protocols, solid and ongoing staff training and other safety practices in place. Training employees on the necessary rules regarding serving alcohol should be coupled with training them on how to determine whether someone may be inebriated, or on their way to that point.
I cannot stress enough the importance of timestamped video surveillance in and around your establishment. Have it, and hold onto it for at least 30 days.
Depending on the type of establishment you operate, having security personnel outside your facility, such as in the parking lot, as well as at the door, is also essential. Having proper documentation in place, and having it easily accessible, is also important. Having the right documentation is only half the battle—you have to be able to prove you have it when the time comes.
Overall, developing personal relationships with your customers is primarily about enjoyment from everyone’s perspectives. Hopefully, in the course of your business, a lawsuit will be a non-issue. But something as simple as awareness of your customers—who they are, what they order and how they act based on that order—can be an undervalued safety tool that you and your employees should all take into consideration.
Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona.
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