Category Archives: food

May 4, 2018 · 9:16 am

Soap To Soda To Gum

It’s Foodie Friday and today we’re going to raise a glass to chewing gum. Well, not to the gum itself, but to the founder of the Wrigley Chewing Gum Company, Mr. William Wrigley. While he made his fortune selling gum, he started out to do something quite different and therein lies the thought I have for us today.

English: Doublemint gum Photo by User:Hephaest...

(Photo credit: Wikipedia)

Mr. Wrigley began selling soap. Like many of us in business, he tried to distinguish his brand by giving his customers a little something extra which would help distinguish him and his product from the competition. In his case, he would give away baking powder. After a time, he figured out that his customers liked the baking powder more than the soap and so he started to sell baking powder. Along with the baking powder, he gave away two packages of gum. You can guess what happened next.

There are two things in his story that I think are relevant to any of us in business. First, giving the customers what my Creole friends call a “lagniappe” – a little something extra – always pays dividends and sometimes they’re huge. I don’t know if Mr. Wrigley’s soap (or baking powder) were premium-priced to cover the cost of the extras he gave away, but the outcome certainly negated any cost. Always ask yourself how you can do more for the customer.

At some point, Wrigley realized that he had to pivot his business because his sideline was more successful and popular than his main business. He’s not alone in this. WeWork grew out of a baby clothes business renting unused space in their building. Instagram was something that grew out of the users of a whiskey lover’s app posting photos. The founders recognized that the photo sharing was more important to the users than the whiskey information. When Justin.Tv began letting users stream videos, (having started as just one guy streaming his own life) the “gaming” channel blew up and Twitch was born.

We need to keep an open mind when we see opportunities. Yes, we can’t always be chasing the new shiny new thing, but when one aspect of our business is screaming to be given a lot more attention, we need not be afraid of making a pivot. Mr. Wrigley pivoted (twice) a century ago, and while technology has changed, the basic business acumen he displayed hasn’t. Ruminate about that!

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April 27, 2018 · 11:01 am

Copycat Recipes

This Foodie Friday we’re contemplating the field of endeavor known as copycat recipes. If you read any food sites, at some point you come across recipes which attempt to replicate some of the more popular dishes from chain restaurants. Yes, you too can have unlimited Red Lobster Cheddar Bay biscuits and Chick-Fil-A sandwiches at the same time!

There are books of these recipes and I’ll admit to having tried a couple over the years. While I’ve come close to duplicating a few dishes I’ve enjoyed in restaurants, the results were not exactly the same. One wouldn’t expect that though. I’m not using the same ingredients (the bacon I buy may not be what McDonald’s uses) nor do I have a commercial convection oven or deep fryer. Still, they were enjoyable enough and in a couple of cases, the experience inspired me to create my own variation that I liked even better.

I think these recipes can be fun for some but they miss a fundamental point. Making Girl Scout Samoas at home, besides being incredibly time-consuming, doesn’t support the Girl Scouts. When I want a “hot now” Krispy Kreme, I don’t want to wait a few hours for my homemade versions to rise and fry. What makes some of these dishes so good, in part, is that you don’t have to cook them. They’re risk-free, they’re ready when you want them, they’re always available, and they’re consistent. And of course, that’s the point today.

It’s quite possible that someone will try to copy what it is you’re doing if you’re doing it well. In the case of recipes, the cook can’t turn to the copyright law to protect the dish. Recipes aren’t subject to copyright. Mp3 players had been around for several years before Apple “copied” the recipe and improved it. One could argue that Apple was the victim when Microsoft “copied” the graphical interface that became Windows from Apple, who had “copied” it from Xerox. Sure, you can file a patent to protect you but that immediately makes how you’re doing what you’re doing available to anyone. They can then produce a variant on what you’re doing. Each of the folks in my examples made the recipe their own. That’s the point. You protect your secret recipe in either of two ways and the law has little to do with either.

The first is never to make the product public so no one has a chance to duplicate what you’ve got. Obviously, that’s not a great solution. The other way is to make sure that you produce the end-result to a consistently high standard which is risk-free for the customer, and that you provide that customer with an unrivaled level of support and service. That’s why copycat recipes will never be as good as what you get when you dine out. You copy?

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April 20, 2018 · 12:22 pm

NECCO Wafers, Sky Bars, And Misplaced Effort

Sky Bar

(Photo credit: Wikipedia)

Our topic this Foodie Friday is the plight of The New England Confectionary Company, makers of NECCO wafers (did you know the name was an acronym?), Sky Bars, and Sweethearts, among other well-known candy brands. There is a fair chance that the 120-year-old company will soon be out of business. Their factory was sold and the company is actively looking for a buyer. The company has notified the city and state that layoffs may soon be coming. The situation is pretty dire.

Even though most of their brands are not really great candies (Sky Bar being the exception in my book), panic has ensued among fans of NECCO wafers. An article on Grubstreet highlights how fans have responded to  one candy-selling website:

The site says that during the month of March, after the panic began, it received 253 emails and 167 phone calls from customers looking for Necco-brand candies. Twenty-nine people offered to pay at least double the going bulk rate, and three reportedly said they’d perform free labor in exchange for priority treatment. One woman wanted 100 pounds of Necco’s glorified Tums, which she planned to vacuum-seal to keep her prepper stash fresh “for years.” (A standard 24-wafer roll weighs 2.02 ounces, so she was requesting about 800 packs.) Another woman said she’d trade her late-model Honda Accord for all of CandyStore.com’s remaining Necco candy.

There is a lesson in this for any business since these hard-core fans seem to be preparing for a funeral rather than figuring out how to cure the disease. All of their panic buying is misplaced effort since what they should be doing is trying to get the company the capital it needs to continue operations. While 420 people may have asked how to buy candy, only 73 people have donated to a GoFundMe campaign the CEO has organized. He, by the way, is apparently clueless about the difference between donation crowdfunding and equity crowdfunding since he had to amend his campaign to say he can’t offer stock:

We have been informed by several people that we cannot offer shares in the company in return for your donations. We are sorry, we do not know if they are right or wrong but we can’t take the chance . If you would like us to return your donation just let us know.

He is apparently in panic mode too and hasn’t sought advice from anyone who is familiar with equity crowdfunding or maybe even an initial coin offering.  Running scared will do that to you, although I know $20 million isn’t just laying around the street anyplace. I’d rather find customers than investors.

Worrying about the symptoms instead of the disease is generally a futile exercise in the long-term. I recognize that when someone is bleeding out you have to staunch the flow before you can worry about what caused it, but in this case, the efforts that have been made by fans of the company (buying up all the product) won’t be as effective as sending the money directly to the company. The company, for its part, hasn’t been very proactive. The factory was sold a year ago and this situation has been coming ever since. I don’t know how they involved their supply chain and their customers in stabilizing the situation, but the fact that they’re down to asking for money on GoFundMe (and it would be among the largest non-blockchain crowdfunding projects if it works) tells me that a lot of time was wasted.

Stay tuned!

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