With all the talk of doom and gloom over the past year I was surprised when, a few weeks ago, a local art gallery had a sign in the window saying, “Closed for Refurbishment”. ‘What a time to choose to spend your cash on a refurb – for an art gallery’, I thought to myself. Slowly but surely it dawned on me that it was not a refurb for the art gallery but one for the expansion of the neighbouring bistro/cafe. It got me thinking about what makes one business do so well it expands, in a recession, whilst others struggle or close down?
I went in the other day and all was revealed. I nearly fell over when a normally more reserved waiter announced, in excited tones, that the expansion was complete and would I like to go in and take a look. I duly obliged and, equally enthusiastically, said I thought it was great.
This bistro is busy (mostly full), quite literally, morning, noon and night. The clientele are from all life stages; local business owners, young mothers, retired seniors; men, women and children. It is in a leafy suburb with a village feel.
It opens in the morning for breakfast and, until recently, had a very expensive lunch menu. At the start of the downturn the owner acted quickly and started to open at night offering a special menu deal of two courses and a glass of wine for €20 per head. The menu offers enough choice to the customer but is narrow enough to be manageable to accommodate two sittings 7 nights a week. Recently, he added a special lunch offer thereby appealing to more customers and helping to pay for the expansion no doubt.
Meanwhile, over the road just a few streets away, another restaurant offers mediocre food, grumpy staff and higher prices. It’s empty most of the day and offers three courses for €30 but who wants three courses most of the time they go out especially during the week? I and a few friends have, independently I might add, given it one last chance ages ago! The last time I was there I complained about the food and they just shrugged. Verdict: Lovely surroundings, poor food, poor price point and poor service.
So why is the former business expanding without any marketing or website, whilst the latter (part of a small, well known group) is losing customers hand over fist?
Well, in my opinion it’s this (and it applies to any business, product or service). It offers:
• Superior and consistent customer service, delivery and presentation
• The right price point for the various clientele at the right time of day
• The right/most appropriate menus for the time of day
• The wisdom to invest in the business in a way that engages both the customers and the staff so that it feel like a pleasant, positive place to be
The customers will pay for the extension, whilst the staff is willing and happy to serve. The owner, meanwhile, seems to be behind the cash register less and out talking to his customers more. So it’s a win/win for everyone.
In your business or workplace you don’t necessarily need to build an extension or spend enormous amounts of your budget to make improvements that can have a long-term effect. Sometimes it can be as simple as standing back and looking at what you are cutting, spending and the impact it will have on your customers, staff and long-term prospects.
Wishing you all Season’s Greetings and a Peaceful and Prosperous 2010.