Jan 12, 2015 By Jeff Ogden

3 Marketing Lessons From a New York City Steakhouse

Let’s say you want to open a steakhouse in New York City. You sit down with your business partners and start planning things like location, food and payment terms.

What would every restaurant plan?

To be in a busy location, such as Times Square, which is the main tourist area in New York City.
To have good food and a nice menu to hand out to diners.
To make it easy for diners to pay, accepting all credit cards, such as MasterCard, Visa, American Express and Diners Club.

What you and your business partners just discussed is what 99.9 percent of restaurant owners would think before opening a restaurant, but one of the most popular steakhouse in New York City, Peter Luger has none of those.

Rather than setting up shop in a high-traffic area like Times Square, it's in Brooklyn; a nice area, but not the most busy. Additionally, although there is a menu on its website, Peter Luger doesn't present its diners with menus. The waiters talk to patrons and make recommendations. Finally, Peter Luger doesn't accept credit cards so as to avoid bank fees. It's cash only, so you better stop at an ATM before you walk in the door.

All of these things seem to make dining at Peter Luger an inconvenience for customers: off the beaten path, no menu, and no credit cards. But the steakhouse continues to receive high marks. One Yelp reviewer wrote, "Believe the hype."

There are 3 good lessons in marketing that every business can take from this story:

1. Be Unconventional

Unconventional is surprising and attention-getting and sets you apart from competitors. Having waiters who talk to diners rather than handing the diner a menu is certainly unconventional, and it gets people talking. You're much more likely to remember the steakhouse a friend mentions if they say, "and there's no menu!" What can you think of that is unconventional in your business? Find out what makes you stand apart and broadcast it!

2. Be the best at whatever you do

At the end of the day, in order for Peter Luger to be successful as a restaurant, it simply must serve great food. Otherwise the little inconveniences for customers that make Peter Luger unique simply become annoyances. Obviously becoming the best is easier said than done, but it should always be the primary goal, rather than striving to be unique.

3. Break the rules of business

Locating a restaurant off the beaten path and not accepting credit cards would certainly be "breaking the rules" of what makes a successful steakhouse. But clearly it works for Peter Luger — it is always packed with diners. How can you break the rules in your business? Think like this: what do all of our competitors say they offer and how can we be unique?

About the Author

Jeff Ogden, the Fearless Competitor, is an award-winning marketing and sales expert at the sales lead generation company Find New Customers. Creator and host of the popular and syndicated show, Marketing Made Simple TV, he interviews the best and brightest business leaders. Find Jeff @fearlesscomp on Twitter, visit Marketing Made Simple TV on Facebook, or connect with him on LinkedIn. Jeff is also a popular keynote speaker on marketing and social media.