Every year, a surprising number of restaurants open (and fail) in the Houston market, which has the second highest number of such establishments per capita in the United States.

Location. Food quality. Service. Atmosphere. All are important ingredients in a successful restaurant, but one of the most important is identifying -- and knowing -- your audience. Too often restauranteurs rely on a "build it, and they will come" mentality.

Typically, because of the success of a single restaurant, the owners believe the concept "will travel" … or they base their location selection on economics, such as the ease in converting an existing, defunct restaurant. Identifying the attributes of the customers of that successful single location -- or better yet analyzing demographics and psychographics before opening that initial restaurant -- would provide a better recipe for success.

Knowledge of the intended customer should be integrated into facility design, décor, menu packaging and content, and even service.

As marketing agency to Saltgrass Steak Houses, Babin Seafood Houses, Lupe Tortilla and many other casual dining restaurants, The Watson Group has learned several valuable marketing lessons:

1) Consumers frequent restaurants not just for food, but to enjoy a dining experience.
2) Restaurants should invest as much in developing guest loyalty as in generating new guest visits.
3) Obtain customer feedback in as many ways as possible (for example: comment cards, face-to-face surveys, written surveys) and do so on a regular, ongoing basis.
4) Making direct offers to generate trial is not the same as couponing, if these offers are made to targeted groups.
5) Opening additional locations requires active pre-opening marketing. The window of opportunity for a new restaurant is narrow.