Category Archives: food

Hot Dog! It’s Friday!

It’s Foodie Friday! I spent many years working in the sports business and because of that, I was privileged to attend hundreds of sporting events around the world. One of the best parts of those experiences was the food. Inevitably, there was some down time which allowed me to wander about the arena or stadium and sample the food. I am a big believer in what I consider the truism (as the late great Frank Deford wrote) that a hot dog tastes better at the ball park. I’m such a devotee of having a dog (or 3) at the game that I usually have one before I even get to my seat. But why is that, and, more importantly for our purposes here, what does that tell us about our business?

A cooked hot dog garnished with mustard.

(Photo credit: Wikipedia)

You might suppose that it’s the particular brand of dog served. I’ve purchased the identical brands served at various places and they never taste the same when I prepare them at home. I’ve boiled them, steamed them, grilled them, or some combination of methods and yet while the taste is similar, it’s not the same. It’s not the condiments or the bun (steamed, grilled, toasted, or right out of the bag – doesn’t matter!). No, dear readers, it’s the environment.

Many studies have demonstrated the effect that environmental elements have on our perception of food. Obvious things such as lighting and less obvious things such as the music playing have been proven to change how we perceive food tastes. One obvious example is food eaten on an airplane, where the pressure is lower and the noise is higher. Our taste buds don’t function as well at 35,000 feet so airline chefs overseason their dishes (the combination of dryness and low pressure reduces the sensitivity of your taste buds to sweet and salty foods by around 30%, according to a 2010 study conducted by Germany’s Fraunhofer Institute for Building Physics). What does this have to do with your business?

A lot. The environment we create in our offices or stores or even our digital presences can affect how workers and customers “taste” what we’re offering. If we demonstrate a commitment to openness and trust, we create an environment where everyone perceives that things are better than elsewhere even when they’re common events. We can yell and scream while we eat at the ballpark. The food tastes better because we’re having fun. Are you encouraging that kind of fun in your place of business? Most concession stands offer condiments so you can have your food the way you like it. Do you offer the same kind of personalization to your workers or customers? Do you take their personal lives into account and offer some flexibility in hours or remote work?

Think about why the same dog you prepare at home tastes way better at the stadium as you think about how you approach your customers and your business. You’ll be on the way to standing out from your competitors, even if they’re offering a similar product or service.

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Filed under Consulting, food, Thinking Aloud

Supermarket Sweep

It’s Foodie Friday but I want to talk about Thursday. Why Thursday? That’s the day I do my grocery shopping because my preferred supermarket gives a 5% discount to seniors. Stop snickering – I managed to live this long and I deserve the benefit!

One thing I’ve gotten much better about is saving as I shop. Nothing brings joy to me these days like finding a coupon that I can layer on top of an item already on sale. This happened yesterday with Duke’s Mayo and I was nearly brought to tears. In any event, I thought I might pass along a few things I’ve learned, and as it turns out, many of them have a lot of application to your business as well.

First, I try to make some sort of a weekly meal plan. You’d be shocked how much easier shopping is when you know what you’ll be making in advance. I leave myself some flexibility – maybe the rapini looks good and I’ll swap out the asparagus I’d planned to buy. Maybe I’ll just say “beef” as a protein and rely on whatever I can find that’s on sale or, even better, a “yellow tag” special that’s deeply discounted because it’s near its last day of sale. I do look at the circulars that come on Wednesday to help me plan, and the coupons that come the previous Sunday also guide my thinking. The key is that before I step foot into the store I already know why I’m there and what, specifically, I need to buy.

This sort of planning is something I encourage clients to do with their businesses. Chasing the latest shiny object without some sort of a coherent plan rarely works out well. Yes, I’m a believer in just walking to the meat or fish or produce section, buying what looks good on an opportunistic basis, and going from there, but I’ve found that in general, I do better in the long run (and the wallet) by having a plan. Opportunities will always arise but we should only take advantage of the ones that make sense, given our overall plan.

Next, once I have a plan I go through all the coupons, tossing the ones that have expired and matching the ones that haven’t to items that are on sale or in my meal plan. It’s rare that I purchase anything at full price unless there is a pressing need and I can’t find a brand on sale or with a coupon. Like you, I have preferred brands and I’ll stock up on them when they’re on sale. That sort of opportunistic and volume purchasing is something any business can do. Make commitments to providers for a long term in return for a discount. Don’t hesitate to take advantage of lower costs provided that you’re receiving equal value. By the way, this is how your customers think which is why it’s imperative that you emphasize that value you provide to go along with your reasonable costs.

By the way, even if you don’t get a newspaper, most stores post their circulars online, and there are plenty of free online coupons you can print off and take on your trip. As in business, the key is research, planning, and the careful allocation of capital on those things that are in the plan. Make sense?

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Filed under food, Helpful Hints

Generically Speaking

This Foodie Friday, I’ve been thinking about store brands. Some of them – such as the Costco vodka really being Grey Goose at under half the price – are the stuff of legend. Other places – such as Trader Joe’s – have built entire enterprises on top of their own brands which are basically repackaged and rebranded versions of mainstream products. It’s well-known, for example, that TJ’s pita chips are made by Frito-Lay, who puts Stacy’s pita chips in TJ’s packages. Of course, you can buy a  6oz bag of Trader Joe’s Pita Chips for $1.99 whereas a 7.33oz bag of Stacy’s Simply Naked Pita Chips sells for $2.99 or more.

An example of a Trader Joe's storefront.

(Photo credit: Wikipedia)

Many of Walmart‘s Great Value branded products are just name brands rebranded. Most people can’t tell the difference between the name brand and the store brand, although in fairness, every so often the store will have the manufacturer make a minor change (a little less lemon, a little more salt) so they’re not identical products. Still, In 2012, Consumer Reports did a test. They found:

In comparing store-brand and name-brand versions of 19 products, our savings ranged from 5 percent (frozen lasagna) to 60 percent (ice cream). Many of those store brands were also as tasty as the alternative. Our sensory experts found that the store brand and name brand tied in 10 cases, the name brand won in eight cases, and the store brand won once.

So why do people continue to pay more for the same product? The easy answer is marketing. Name brands spend an awful lot of money each year to influence consumers’ perception of their products. Some of it is mistrust, particularly when it comes to store-branded drugs. Even though the law says that generic medication contains the same active ingredient as the name brand (yes, I know generic brands may have different inactive ingredients that can make them behave differently), people spend more for branded pain relievers, antacids, and other types of drugs. It’s interesting that studies show that chefs and pharmacists tend to buy generic food and drugs, respectively.

I think a good chunk of why people tend to spend the extra money has to do with experience. They expect that a brand name will provide a quality, consistent product experience. In instances where others are seeing what products are being used (guests in your home, coworkers in an office), the brand name is more socially acceptable. Finally, over time, brand names build loyalty. Once again, we end up at the cost/value equation, but we always need to remember that value isn’t just measured in dollars and cents.

I buy a lot of generics or store brands. There are, however, some things for which I pay extra because I do perceive a difference. Still, knowing that most of what’s at Trader Joe’s or Walmart or Costco is the same as what’s at the supermarket (but less expensive!) lets me splurge on those things with a clear conscience. The question for those of us that market is how we get consumers to see the value that goes along with our brand.

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Filed under Consulting, food, Thinking Aloud