Category Archives: food

Caught In The Storm (Part 1)

I know it’s Thursday, but we’re going to begin our Foodie Friday Fun today. This is actually a two-part post about my dinner experience the other night and there are some instructive business points I took away.

I’ve been traveling this week on business. A fellow has to eat, so I had made a reservation via Open Table a week or so ago. It’s a place I had been before and liked a lot. Upon arrival, there was a note on the door that the place was closed for a private party and all non-party seating would be outside. I’m not a huge fan of dining al fresco and given there was a massive storm about 2 minutes away (no exaggeration – thunder, lightning, heavy rain, and extreme winds), outdoors was no option. There was no one from the restaurant at the host stand to provide further detail. I flagged down a waiter, explained that I had a reservation, and asked if there a table someplace away from the party where I could dine? He went to find a manager and came back with a polite but firm “no”.

Under normal circumstances, I might be a little angry and very disappointed. Given that leaving the area was a non-starter (by this time it was a deluge), I was mad. The place is in an indoor complex with other restaurants but most were fast food places that held no appeal. I ended up in a faux Irish Pub and we’ll continue the tale there in a minute.

What could have been done differently? First, if the party was booked prior to last week (I’m willing to bet it was), the times should have been blocked in Open Table. The manager must have been counting on outdoor seating being available and thought he could double-dip – have a big party and serve a bunch of covers as well.  It was not possible due to the weather, but even if it had been, anyone making a reservation (me) should have been informed they must eat outside. Second, they should have reviewed the day’s reservations as they opened up and reached out – my contact information is in the reservation – and said there was a problem. In a perfect world, they’d offer a suggestion of a comparable place and maybe even make the reservation for me. Third, someone should have been greeting the diners they were turning away. There was a table greeting the party goers but it wasn’t staffed by restaurant employees.  In short, this place put their own needs – the party, maximize revenues – ahead of the needs of their customers.  There were a few others who showed up when I did and who seemed equally disappointed.  There actually were a few tables being served outside – I didn’t stick around to see what happened to their food when the storm hit – I don’t imagine they were allowed inside by the invisible management.

As we all know, unhappy customers make a lot more noise than happy ones.  Tomorrow, I’ll tell you about what became a happy ending and more business points learned as two other businesses get it right.

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The Hole Truth

This Foodie Friday, let’s delve into the world of food mysteries.  I hadn’t really noticed but apparently the holes in swiss cheese have been shrinking and no one quite knew why.  A cynical commentator (who me?) might speculate that the opposite ought to be true, as margins rise when you’re selling empty space.  Be that as it may, it was really a problem and scientists did some investigating.  The answer is instructive for anyone in business.

You know that cheese is made by the interplay of bacteria and milk.  The bacteria is added and the differences in the milk (sheep, cow, goat, etc.) and the strain of bacteria are what make different cheeses.  Swiss cheese is cow’s milk and three unpronounceable strains of bacteria, none of which had been changed;  yet over the last hundred years, and very much over the last fifteen, the holes have been shrinking.  Why?

Turns out it had to do with improved cleanliness.  Better sanitation resulted in a safer product but also removed microscopic bits of hay from the milk.  Those hay bits were critical in the formation of the holes.  That solves our mystery but also raises the business point.

We’re all familiar with the law of unintended consequences but how many of us take the time with our team to think through the effects that law might bring with every new action?  Product changes, a new marketing plan, or any other change has the potential to bring about changes that aren’t readily foreseen unless we spend the extra time to think about them.  It’s nice to tie executive compensation to our stock price but maybe that has the unintended consequence of focusing on the short-term or good financial results at the expense of better customer service.  Maybe we cut the price to get a deal but then realize we’re losing money.  Maybe we reduce quality to save on costs and watch as a competitor steals share.

Making the milk cleaner was a great idea – who wants customers getting sick and dying?  The unintended consequence was a big change to one of the product’s signature features.  After all, without the holes, Swiss Cheese is just Emmental and Appenzell.  That mystery took 100 years to solve – hopefully the mysteries inherent in your business won’t take that long.

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Watching Out For Cannibals

It’s Foodie Friday, and this week our topic is an announcement made by Whole Foods the other day.  If you’ve ever shopped there you know that the “Whole Paycheck” nickname the chain has acquired is accurate.  The products there are generally first-rate and are priced as such.  With the growth of lower cost competitors such as Trader Joe’s that offer an almost equal level of quality at more reasonable prices, Whole Foods decided to fight back:

“Today, we are excited to announce the launch of a new, uniquely-branded store concept unlike anything that currently exists in the marketplace,” said Walter Robb, co-chief executive officer of Whole Foods Market. “Offering our industry leading standards at value prices, this new format will feature a modern, streamlined design, innovative technology and a curated selection. It will deliver a convenient, transparent, and values-oriented experience geared toward millennial shoppers, while appealing to anyone looking for high-quality fresh food at great prices.”

I guess he never heard of Trader Joe’s but let’s put that aside.  The store will be called 365 by Whole Foods which is their store-branded line.  This move raises the question (not a food question!) of cannibalization.  You see, according to the folks at Harvard, history shows us that most of these lower-cost brands are created explicitly to win back customers that have switched to a low-price rival. Unfortunately, once deployed, many have an annoying tendency to also acquire customers from a company’s own premium offering. To prevent cannibalization, a company must deliberately lessen the value, appeal, and accessibility of its lower-cost brand to its premium brand’s target segments.  That means you’re knowingly offering an inferior product, and in my mind that always bears the risk of tainting the premium product.

Whole Foods isn’t going to put Trader Joe’s out of business.  I’m willing to bet that they’re going to take some serious losses (new stores aren’t cheap) as they start up and if all customers are doing to going to the new place to buy the same goods they would have bought (along with some of the higher-priced stuff), you’ve reduced margins even if you’ve maintained sales.

I guess the lesson in my mind is one I’ve put out there before.  Be who you are as a brand.  Embrace those who love you and create new fans every day by explaining cost and value aren’t the same and why you’re the best solution to a customer’s problem.  It’s worked for a lot of high-end brands.  Why not Whole Foods?

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