Case Study Highlights: Succeeding in a down economy, connecting with local community, pricing menu items to sell

One independent restaurant and brewery in Ashland, Oregon, is proving that appealing to your community can make your sales transcend the down economy.

These days you can’t turn around without hearing dire statistics about the restaurant and food service industry. Nation’s Restaurant News reports daily on which major restaurant chains are to be shuttered, sold or stripped down. Smaller, independent restaurants seem to be faring slightly better, due to lower overhead, but most still are struggling in today’s down economy. It’s rare to come across a restaurant that is doing as well the Standing Stone Brewing Company in Ashland, Oregon. But a chat with the brewery owner, Alex Amarotico, reveals that Standing Stone’s success isn’t just coincidence.

Amarotico, Standing Stone’s “Everything Man,” according to the restaurant’s website, says that business is going strong. Other than a slight lull in business in November and December 2008—which may be due to the November-February break in Ashland’s main tourist attraction, the Oregon Shakespeare Festival—profits at Standing Stone have been up 7% over last year. When asked to explain the rise in business, Amarotico doesn’t pull out standard answers like “better food” or “cheaper prices.” To him, it’s all about doing well by doing good. “The more you support the community, the more your community supports you,” he says.

With this sentiment in mind, Standing Stone has worked hard in the past couple of years to be an integral member of southern Oregon’s local farming community. Amarotico and new chef Eric Bell changed Standing Stone’s menu to reflect local produce and meats, which has earned the admiration and the business of local producers. “More farmers are coming out to support what we are doing here,” says Amarotico. Learn more about the Popularity of Farm Markets.

Standing Stone also supports and hosts a wide variety of community events, such as the Jefferson Public Radio Wine Tasting, the Taste of Ashland, and Green Drinks, a monthly gathering of those who work in the environmental sustainability field. Amarotico believes that opening up his brewery to the community has made the community more devoted to Standing Stone.

But Standing Stone’s recent success cannot be completely attributed to strong community connections, admits Amarotico. After all, 25% of his customers are tourists. Recent menu changes have contributed to a boost in check averages, up by $1 per bill since the menu’s last revision in December 2008. Steering away from “middle of the road” priced food, Standing Stone added pricier menu options and a slew of $4 appetizers and side dishes. The $7 Standing Stone burger has been a great seller, says Amarotico, because of the dish’s perceived value. Learn more about your best customers.

Another key to Standing Stone’s success—reinforcing the idea of value among its customers—is continuing to offer pints of their handcrafted beers for $4 apiece, at a time when the price of raw materials for beer has skyrocketed.

Amarotico’s advice for restaurants looking to thrive in today’s economy is twofold: meticulously track your inventory and food costs, so you know where your dollars are going, and create buzz. Standing Stone’s buzz is community-created and nurtured by devoted locals. Where is your buzz coming from?

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