Chicken Wings for Plumbing? No, It's Smarter Than That

Trader Stu explores why restaurants should join barter groups as a strategic business move in today's challenging economic climate.

• Restaurants face rising costs, cautious consumer spending, and fierce competition for loyal customers
• Barter offers a creative way to overcome these challenges while preserving cash flow
• Trade unused inventory and empty tables for essential services like cleaning, marketing, and repairs
• Joining a barter group provides an instant business community and built-in clientele
• Barter can help increase foot traffic by introducing new customers to your restaurant
• Trade dollars can be used for employee perks and benefits without increasing payroll costs
• Marketing and advertising opportunities through barter help expand your reach affordably
• Barter credits act as an alternative currency during cash-tight periods
• Some barter networks offer credit lines for significant expenses with interest paid in trade dollars

If you're intrigued, reach out to your local barter network. If you're not in my area, contact me for a referral. Remember, sometimes the best currency isn't cash, it's community.

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Chapters

• 0:00 Introducing Restaurant Barter Benefits
• 1:57 Why Join a Barter Group Now?
• 4:24 Dollars and Cents: Financial Benefits
• 8:59 Building Community and Business Relationships
• 16:05 Employee Benefits Without Cash Outlay
• 21:23 Marketing on Trade and Risk Management
• 24:38 Getting Started and Final Thoughts

Transcript

Speaker 1: 0:02

Hello and welcome to the Trading Post Podcast, where we unlock the secrets of business-to-business trade, dive into powerful networking strategies and share my exciting journey of using a podcast to market my business instead of relying on SEO. I'm your host, trader Stu. Hello and welcome back to Trade Tuesday, the Trading Post podcast brought to you by your host, trader Stu. Today we're talking about why restaurants should join a barter group. Right now, this is your go-to show for all things B2B, sales, marketing, networking and trade and barter. If you're a restaurant owner, manager or even an aspiring entrepreneur in the hospitality industry, today's episode is tailor-made for you. We'll be diving into why a barter group that you could join is one of the smartest moves your restaurant business can make, especially in today's economic climate. But before we dive in, let's thank our amazing sponsors. This episode is brought to you by the Michigan Renaissance Festival, where magic, merriment and history come alive. Metro Trading Association, of course, your premier source for barter, networking and savings. And Press X to Play, your destination for immersive gaming experiences in Metro Detroit. Play, your destination for immersive gaming experiences in Metro Detroit. I'll be in their video game. I can't wait for that. I'll be the trader. So grab your notepad because by the end of this half hour you'll have actionable talking points, new ideas and fresh perspectives on how to lower overhead, boost business, enhance employee benefits and create serious word of mouth, all through the power of barter. So why now? Right? So let's start with the big question why should restaurants look at barter? And why now? So the restaurant industry is recovering from massive disruptions, right, costs are rising, margins are tighter and ever and cash flow is always under pressure consumers are more cautious with spending. I think today they basically announced that we're in a recession. I think we've always been in recession or a depression. I think we've always been in depression, but they just hide it. You know anyway. But there was a big, big release of it today At any rate. So you're more cautious with your money, so people aren't going to go out to eat. And don't forget the competition for loyalty loyal customers is fierce, of course. There's so many.

Speaker 1: 2:37

I'm in Metro Detroit. It's kind of like living in New York City. It's like, not what you want to eat, but like what nationalities food do you want to eat? Everything from Indian and Thai and Vietnamese, and Madison Heights they call little Vietnam, and then you got. You know, it's like Chinatown, right, you got it's.

Speaker 1: 2:57

When I was in New York, living out there in 99, 2000, it was people asked me like hey, what do you want and you want? You know Polish. What do you want and you want? You know Polish food? Do you want you know Chinese food, whatever? So it was.

Speaker 1: 3:10

It was cool coming from Frankenmuth, but now Metro Detroit it's kind of the same thing we're. We got a lot of food and a lot of restaurants around here. So I talked to restaurant owners a lot and they say the competition is just absolutely brutal. It's hard. You got to be like the best of the best to have the best food, the best you know service, of course, to get any kind of repeat customers.

Speaker 1: 3:30

So don't forget also that traditional marketing methods like the Google SEO that is, it's kind of like well, I don't say it's snake oil, it's like snake oil anymore. I mean, let's be honest, it's not working like it used to. From what I hear anyway, ai has, you know, kind of upset the whole SEO game. Of course nothing's forever, but the ROI on that is way less predictable. So people trying to get keyword searches or get the first page of Google and all the other thing, it's kind of like I don't, I heard it's not worth it, no more, anyway, we'll see. But because now I don't ever Google anything anymore, I use perplexity, so I just stay off of the I don't. I'm not saying I'm never on Google, but I'm just saying I use AI to do all my searches for me because it gives me like a quick, easy synopsis on everything I'm looking for, right, quick, easy synopsis on everything I'm looking for, right.

Speaker 1: 4:24

So at the same time that many restaurants have excess capacity, there's of course, off-peak hours, there's unfilled tables and surplus inventory. Then of course, there's the downtime for the staff. So whenever we get like I know in our industry, here in Metro Trade that I work for people will give us a call and say, hey, my staff is sitting around give me some business. And we hit the phones and try and send them some extra business to keep the staff busy, because he's paying them. Might as well do something. And trade is still, you know, barter, dollars, trade, dollars, whatever is still money. So there's that Barter offers a creative, practical way to overcome these challenges while preserving cash flow and unlocking new business opportunities. So keep the cash in your pocket. So let's talk dollars and cents In a barter group, your restaurant can trade unused inventory.

Speaker 1: 5:19

So instead of letting perishable stock go to waste, you can barter it for services or goods you actually need, like cleaning, laundry, marketing and even repairs. We have one hibachi place that uses all their money for cleaning their hoods and he has like six of them, or maybe I think there's seven or eight, because there's the kitchen in the back too. Plus, I think he's got six hibachi grills and each one of those is a hood Very high overhead. He uses all of that to get his hoods clean. It's awesome. Of course, he filled the empty tables so he turned slow nights or unused eating into hard value, not just by discounting but by exchanging those meals for other essentials printing and decor and tech support and legal help.

Speaker 1: 6:02

Now, well, last week I hit up the coupon books or whatever, or the restaurants. We need more restaurants. Actually, in our group I mean every group does. You can never have enough restaurants, but so it's always a game. But I hit up the ones that are like you know, coupons at 10% off, or a free fry and a Coke, or free this or half off this. You know there's always some big coupon and don't forget there, I mean that's a discount, you know a free, you know fry and a Coke is still kind of like money out their pocket, even though it's you know it's. So it's like I say, pay me 6%, I'll send you the business and you don't got to pay me for the advertising that we do until you spend. So I say it's 6% per trade, not the buy and the sale, and they usually like the idea. It's just hard to get to always the decision makers and get everyone to agree on everything. Of course, if there's partners, then you can, of course, reduce supplier costs.

Speaker 1: 7:02

Barter groups often include vendors offering everything from food delivery to kitchen equipment maintenance like I just said, hood cleaning and then meaning that you can acquire the services without dipping into their cash reserves. So you're going to trade your excess time and inventory for hood cleaning, for example. Or we have, like chemical supplies. You got your soaps and your towels and things like that for the restrooms and the kitchen and things you know. So you use that instead of cash. You use it for trade. So, in short, barter reduces the cash you need to run your restaurant, improving your overall profitability.

Speaker 1: 7:38

Don't forget also one of the third value thing that I like that I always talk about people are in networking but they don't tend to do it. So when I that I like that I always talk about people are in networking but they don't tend to do it. So when I talk to people I always say that joining a trade group is kind of like joining a networking group or like a chamber or whatever, but without having to go to the meetings. So your meeting is your buy and your sale, because everyone that has their statements they get the statements. They look and see who came in and see them and a lot of times they want to reciprocate and spend with them as well.

Speaker 1: 8:07

I'm from a small town, from Frankenmuth, and I know that when I would stop into a business and pay them you know some, some clientele or bring them some business or referrals or things like that, I and if they're not there at the business, I always kind of felt disappointed. I mean, don't get me wrong, I'm still going to buy and whatever, but I always like to see them to see that I'm there or so I can say hi to them and you know how's things, how's the kids or whatever, right, how's the dog? And I always was disappointed that they weren't there so they could see that I was in their business spending money with them. So what you get when you join a trade group is that everyone can see who came in to see them. So next month that business could see that I was in and bought whatever you know. So that's I like that part of joining trade groups, the networking value of that. And of course you get instant business community.

Speaker 1: 9:00

So, like I said, I mentioned Detroit, there's not really a big, I guess, community per se, like the old town feel. You know people miss that old town feel, the village situation. But so what trading does or joining a trade group does is it brings that back into sight, so to speak. So everyone kind of does business with each other and I've even heard other people tell their business partners or other members that they refer to get to come in and sign up is basically, you know, like it's just a, they're a whatever company like hey, don't, don't screw anybody in here in the uh, in this group, because they all talk to each other and it's a small party and they all talk to each other. So you know, definitely do right by everyone that's in the group and Otherwise word will get around and you just won't get no more business. And it's very true. It's like we're all part of a party or a group and we have our own money. And if you want in on it, you got to do right by others.

Speaker 1: 11:01

And so joining our barter group isn't just about the trades, it's about joining, it's about relationships. So you have a built-in clientele. Barter group members tend to support one another and they drive bookings and patronage from one network to the other within the network Referral engines. Happy barter partners talk. Your restaurant can create new B2B relationships and tap into their extended networks, leading to more word-of-mouth referrals. And then, of course, you get cross-promotion. You collaborate in events or promotions with other member businesses and share audiences, costs and double your reach. You're not just plugging into new revenue streams, you're joining a collaborative ecosystem where everyone wins as the network grows stronger. That's why referrals are awesome, because you know you're going to bring people in that you think are good and will do right by others.

Speaker 1: 11:50

So make a strong referral and then you'll grow them. They'll love it. Hopefully they tell their buddy, you know, I mean. It goes on and on. So what I say? Except for the quick deposit you make into the trade system the four dollars, then you can spend that right away so you can try it before you buy it, kind of a thing. I mean, I know you're buying but like all you're doing is putting 400 bucks in the system so you can spend it with people and then that gets more business for you faster because, like I said, people will do business with other people who do business with them, especially in the barter groups. You increase foot traffic and tryouts.

Speaker 1: 12:27

That's the big thing that you know a lot of restaurants have issues with is just get them in the door. If I could just get somebody in here, I know they'll love it. You know every business does the same thing. I know you'll love it. You just got to take one bite, try it, taste it, and you know the free samples things, of course. That's how it started out, especially in the mall. I love the Chinese places where they have the toothpicks and they say, hey, you want some orange chicken? Of course you're going to eat more. It's candied meat. You're going to love it, you know. So that's one of the and it always works on me. So one of the best ways, of course, to attract new patrons is to get them to try your place at least once. So there's got the low risk sampling barter group members and their employees Don't forget their employees are more likely to visit because their business is already invested, so they're already in the system and they want to make sure that you do well, so they're going to make sure they go out of their way to do business with you when in the cash economy or the open economy you don't really get that as readily, especially if you're not in a small town.

Speaker 1: 13:27

You get the feedback loop. First-time diners from trade partners can offer feedback, helping you test out new menu items or service ideas, because a lot of times people in the groups become friends, or at least business friends that they might not have otherwise had the potential to create. It's kind of like a warm introduction, like when you're at a party and you get introduced by a friend or their friend like hey, this is whatever you should. You guys both like I don't know hunting, I think you should talk because you have a lot in common kind of a thing. You know, that's what I'm going out with with that. So then of course you get the word them off amplifiers. You get the positive first experiences and shared with friends, family, co-workers, expanding your, your reach organically, incredibly. So that's the big thing.

Speaker 1: 14:14

Of course, you're going to get people coming in there and everyone that they know is probably not a trade member, right. So they're probably the only person that they know that's in the barter group. But when they go to your restaurant and they say, hey, I just tried this place, you should check that place out. They have awesome fried chicken or their meatloaf is phenomenally fabulous. You're going to try it. So you're going to get that, and people are going to trust that that person is also a business owner, or even a restaurant owner. And they say, hey, you got to check out this place's food. It's awesome. And then there's more clout with that, right. So don't forget about that. So the word of mouth business you get isn't just from other trade groups or other trade members.

Speaker 1: 14:58

The other powerful thing that we do is gift certificates. So trading gift cards or meal vouchers as barter can introduce your brand to people who otherwise might have never walked in. Now we do a lot of gift cards with restaurants because, like I have several that are franchises, you know, and like they say, I have 55 employees, dude, like there's no way I can teach everyone how to run a. You know the trade transaction and I get that. So we'll do either $10 off or $20 off or a coupon or you know whatever. So, and then that is the face value. So you don't get the money back on that, the breakage on that. The business gets to keep the breakage on that. So if it's a $10 voucher, you don't get a buck back, they keep the buck. So it's a benefit too.

Speaker 1: 15:48

The only problem is is that gift cards and things like that, the certificates lowers your ability to get the traffic in right, because now people got to think ahead, they got to have that on their hand and they got to have the gift cards in their car, their glove box or in their wallet. So although it's good for businesses to generate some foot traffic, there is a limitation to taking them. So a lot of places will take both. But if the business owner isn't always there or they have multiple locations or a ton of employees and they rifle through management, it's a lot of times management will take the card or know how to run the card and nobody else will. But if at least one manager is on staff at all time, then it's no big deal. You know. So you retain their staff.

Speaker 1: 16:37

Retaining good staff is tough, right? So barter opens creative ways for you to reward them so you can get employee benefits without cash outlay. So employee perks offer staff access to meals or trade or for benefits like massages, fitness club access, cardio detailing, dental care is a big one and without increasing your payroll budget. So a lot of places. We got one that does flowers, you know, like they're a landscape supply company and they have, like, I think, 55 employees that are on the gift card program. So every Christmas time they'll bonus the employees and depending on I don't know how they do it, but some employees get 50 bucks by time how long they've been there, but 50 bucks, 200, 300, 400, 250, whatever, doesn't matter. So the employees will get bonused and then they can use those prepaid barter cards for anything that they want and that's in the association, just like a business owner would. So a lot of times you have to eat with them.

Speaker 1: 17:37

But we also have dentists. I don't know if we have orthodontists anymore I don't think so, but you know we got that teeth cleaning, whatever. We have veterinarians, so take your dog or cat to the vet, get a checkup. You know things like that. Get shots for them If you couldn't afford it on cash. We have an optometrist in the area, get your eye exam, glasses, etc. So you know, employee benefits are awesome. The perks is cool where you can offer that for them, that they kind of earn themselves, because on their downtime they're taking some trade maybe. And then there you go't forget recognition, to host staff parties, recognition events or provide small tokens of appreciation. That are all sourced through barter. So again we have another company that goes to one of our places that's like a bowling alley and they have, I think, laser tag and go carts and arcade batting cages. You know, know they take trade. So this place will rent out one of their rooms for their employee party or whatever, like that right and they pay that all in trade. So it definitely gets used, utilized.

Speaker 1: 18:43

Then you get wellness. So you got barter networks. A lot of them offer wellness services were helping support a healthier, happier team at a fraction of that traditional cost they might offer. So like I just brought on a place up in Grand Blanc that does IV drips, vitamin shots, weight loss. Then you got massage. Therapy is a lot. There's a lot of places that do that. We have acupuncture in Troy, things of that nature. So we also have what do you call it? Physical therapy. We have a place that does that too on trade, and they have, like I think, five or six locations as well.

Speaker 1: 19:17

So there's that aspect that you know don't forget about. So providing all of the extras boosts the morale and retention that sets you apart as an employer, and all without hurting your cash flow. So you know, you got the revolving doors out there with the employees coming and going, so you keep them. You know extra money doesn't always necessarily increase retention. They can make extra money on a side job. It's all about how fun of a workplace maybe it is, or all the benefits and perks that you provide, whatever. Because we don't even have child care on trade. So now that one can run up fast, because it's not like $45 a day or $16 a day for child care right now, so that one can go real quick, but anyway, maybe a day here and there per month just to get the kids away and go play for the day, that's cool too.

Speaker 1: 20:11

Then you got, of course, flexible marketing and advertising that you can get on trade. So marketing dollars are precious, but barter can dramatically expand your toolkit, trade for ad spaces. So many barter groups have media companies, radio, print, digital ads, and they accept barter for advertising. So stretch your marketing budget a little bit further. We do in our association. We have lots of things that are avenues that you can use your trade dollars for to get cash business.

Speaker 1: 20:41

For us I always say trade your excess time capacity, buy this on trade, and then you're going to generate and get in cash by advertising. You know, by using your trade dollars it's perfect. Then you got in-kind sponsorships, often creating or catering our event spaces, exchanged for branding opportunities at trade shows, concerts or community events. Then you got social proof. Barter partners can promote one another by providing authentic testimonials and reviews. Now in our association in Metro Trading, we offer like a review After you go visit a place you can offer, like you know, one to four stars and then a comment section. So we also have that as well within the group. These strategies put your restaurant in front of new, relevant audiences, often far more affordably than cash-based advertising. Then you got risk management and then you get the business agility of that all right.

Speaker 1: 21:36

So a tough business climate calls out for out-of-the-box thinking. So you got non-cash reserves. Barter credits acts as a kind of alternative currency or a safety net, if you will. If cash runs tight. You still have buying power Now in our association. If you're a good person that pays your bills and you pay your fees and we know we can bring you lots of business, we do let you go into a credit dip so you can go into a debt where you pay. The interest rate is 1.5% per month and you pay that in trade dollars.

Speaker 1: 22:10

So I just had one the other day. He's opening up a new location and he needed a attorney to help him out with the liquor license and it was like five grand or 4,500 bucks or something like that. It's crazy. But you know, he only had, I think, I think a thousand bucks or something low in his account. So we let him go negative. We gave him a credit line. He was able to pay the lawyer, save his cash, pay the lawyer on trade and then, boom, now he's got his you know the license he needed to get up and running and I know we can get a business because he's an awesome restaurant Like I go there, my wife goes there, like we refer him out all the time.

Speaker 1: 22:47

He does big like catering things. So I know we can get him out of the hole relatively quickly and I think he's already out of it like halfway there, and that was just like a month ago, because he's got awesome food. So you know, everything goes depends on the business, of course. Of course, but. And then you get market testing so you can use your barter to trial new services or menu items in a low risk way. You got feedback from network members. That's invaluable, don't forget. Then you get the flexibility during downturns, when customers are scarce and cash is thin. Barter helps keep the wheels turning and can lead to cash paying customers down the line.

Speaker 1: 23:28

So if you're intrigued, reach out to your local barter network. If you're not in my area, you can still contact me. I'll give you a referral if I know somebody in your area. We work with everyone across the whole country. We work really closely with one in Lansing, grand Rapids area. He refers me in business. I refer him in business because we don't really compete, we're not really in the same network. We do cross paths a little bit in Genesee County and Flint, but Tennessee County and Flint, but only because he bought the other exchange that was going out of business there. So he bought that up. So there is some members that are there, but it doesn't matter. And then we work with Colorado a lot place in Texas anyway and Pennsylvania. So if I know somebody, I'll maybe hopefully reach out and ask somebody if they know somebody in your area that you might want to join.

Speaker 1: 24:10

Many specialize in serving hospitality and restaurants. Ask about their member roster rules and success stories. Start with a modest commitment Trade a few seats, a set meal or gift cards and track the results. Speak with peers who have joined, learn from their experiences. So anyway, that's it. Barter isn't about trading chicken wings for plumbing. It's about creating meaningful, mutually beneficial partnerships that help your restaurant lower costs, enhance marketing reach, reward your staff and stay resilient, especially in volatile times. So thanks for tuning in to the Trading Post podcast. If you have stories, questions or want to hear and connect with the Barter Network, drop us a note, find us on social media I'm on Linktree and remember, sometimes the best currency isn't cash, it's community. See you next episode.