I’d like us to think about David and Goliath this Foodie Friday. In the food service world, there are a few Goliaths – McDonald’s, Burger King, and Starbucks to name a few. There are far more Davids – everything from mom and pop restaurants competing in the same quick-service space to regional chains. It’s interesting to see how the little guys try to compete with the big ones and there is a lesson in that for any of us in business.
I’m often surprised at how some Davids think they can just “me too” their way into success by following the strategies and tactics of the big guys. I guess the thinking is that one wouldn’t have to grab a whole lot of share from a big guy to have a wildly successful business. They drop pretty large crumbs.
I was reading something recently that reinforced my surprise. It’s a study by Sense360, a restaurant consultancy. It found:
McDonald’s has been admired for its value-oriented strategy that’s led to its market dominance and resurgence. Many QSRs have tried to replicate McDonald’s winning strategy, with little success. That’s because they’re copying the wrong things and not taking away the key lessons that would lead to a better result.
What McDonald’s and other Goliaths do is to formulate very detailed customer personas. They identify key consumer attributes and build their strategy around attracting the core customers they’ve profiled again and again. Those personas are NOT the same across different brands, so trying to use strategies designed to attract them may not fit your customer profile at all. For example, the quality of food at McDonald’s is, according to the study, a very minor reason why their customers go. Advertising the quality of your food as a way to grab a McDonald’s customer is going to fall on deaf ears.
Obviously, the Starbucks customer has different concerns and priorities than the McDonald’s customer, which is exactly what the study found. Therein lies the lesson for any of us. What we all need to be doing is looking internally and see what we can do well that is different from what our competitors are doing and which resonates with OUR customers, not theirs. What will give my business and my brand an opportunity rather than going head-to-head with someone who has more resources than me, often moves faster to adapt to market changes, and has a different customer anyway.
David beat Goliath because he managed to hit him in a weak spot and not because he went after his strength or waited for him to tire. That’s the sort of thinking we need to incorporate in our business planning, don’t you think?