August 12, 2019 · 3:12 pm

Ball Position

I haven’t bored you with a golf-related screed in a while so let’s try that today. Yes, it relates to business too, of course. As I generally do over the weekend, I played golf. If you’ve been a reader for any amount of time you know that I find a great number of life lessons (and business lessons) on the links. Of course, given how badly I played the last few rounds, the only learning of which I became convinced was that I was really terrible at this game.

This morning, with my head a little more clear I went to the driving range. For those of you who are golfers, I thought that my problem was that I needed to shallow out (make a little flatter) my swing because I was digging very deep divots and not striking the ball particularly well. From time to time, especially when I was off the fairway (it happens), I was spraying the ball right because I couldn’t get the clubface back to square due, I thought, to the steepness of my swing.

None of that technical stuff matters, however. I had diagnosed the issue and thought I knew the answer so I went to the range to make a swing change. As with anything, big changes take time and I wanted to get going. You with me so far?

Well, as I was warming up to begin practice, an odd thing happened. I hit a ball with it positioned farther forward (think closer to my left foot) in my stance. The result was an absolutely pure shot – straight, high, and far. No real divot either, just a nice scrape along the ground. I tried it again – the same result. OMG – I don’t stink – the ball was just too far back (toward my right foot) in my stance and I had to come at it too steeply to hit it. With it forward everything else was fine. The club pro was on the range giving a lesson and he wandered over when he was done. He confirmed my swing looked pretty good. and that yes, something as simple as moving the ball forward 3 inches could change everything. Which is, of course, the business point.

How many times have things not been going well and someone – the boss, the management team, maybe you – rants that wholesale changes are needed? This usually starts a chain of events that paralyzes the enterprise. Here is the thing – it’s rare that a business loses its mojo overnight. It’s usually a gradual process of tiny changes, much like me having the ball slide further back in my stance little by little until I became used to playing it too far back which was making it difficult to play well. Businesses let things “slide back” too until they can’t operate well.

Much like my fix, it’s rare that major changes are needed in a business. It’s usually just a matter of paying attention to what had become different over time. It may require some outside eyes to help with that, but usually, the folks with good institutional memory can provide answers (yet another reason why you don’t get rid of all us older employees!).

Wholesale swing changes? Nah – just a tweak in ball position. Think about that the next time you’re contemplating a major change in your business. Yes, that might be needed but isn’t starting with some simple changes much easier and cost-effective?

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August 9, 2019 · 1:43 pm

A New Food Hall?

This Foodie Friday I’m doing something way out of the ordinary for this space: I’m going to quote heavily from a press release. Yes, that’s right – I finally got one that interests me because I think it makes a point that will be of interest to you. That said, I’m going to edit this to make a point in a second.

The Local Culinary, an all-new innovative (EDIT) restaurant concept led by seasoned European restaurant industry veteran and entrepreneurial visionary Alp Franko, today celebrated its official launch, with the opening of its first location in downtown Miami. With a (EDIT) kitchen located on South Miami Avenue, The Local Culinary operates eight individual concepts where chefs produce a range of creative, inspired menus.  Catering to both evergreen fare and timely dining trends, The Local Culinary is dedicated to serving modern, chef-driven food (EDIT) options inspired by global cuisine. From Mexican, Italian and Asian cuisines to burgers, fried chicken, healthy bowls, gourmet salads and more, the company’s (EDIT) restaurant fare is available to Miami residents (EDIT).

OK, so why would an announcement of what sounds very much like a food hall (8 restaurants under one roof) be particularly interesting? I mean you can’t go more than a few miles in many major cities without finding one, so what’s the big deal? I’ll give you a hint. According to a recent survey on Upserve.com, 60 percent of U.S. consumers order delivery or takeout once a week, and 31 percent say they use these third-party delivery services at least twice a week. Orders placed via smartphone and mobile apps are expected to become a $38 billion industry by 2020, with millennials as a driving force.

Did you guess? This is a virtual restaurant or restaurants. Everything I edited out mentioned that fact and that the food is only available via delivery. There is no physical dining room and all 8 operate out of a common kitchen. It’s a food hall without a hall and it caters specifically to the demand for meals delivered. Why I find this interesting, no matter which business you’re in, is that it is a reminder that consumer preferences change constantly and those changes can be devastating if you’re not anticipating them. Think about the landlords who own prime street locations for a restaurant. What happens when “restaurants” can be located in a warehouse with no real parking or storefront? What about the paper companies who haven’t geared up to fulfill orders for a huge takeout market? It doesn’t take a lot of thinking to figure out how many other sectors, from servers to bartenders to furniture to glassware this trend could impact.

Legacy thinking does nothing but gets you left behind. Look at the issues (since it’s Foodie Friday) that Kraft-Heinz is having. Big brands like Oscar Mayer and Maxwell House are out of step with modern consumers’ tastes and even though they were smart enough to buy an early plant-based “burger” company (Boca), they have been left behind by the newer companies such as Beyond Meat.

How far down the road are you looking? What are you doing about what you see?

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August 7, 2019 · 10:09 am

Looking In The Horse’s Mouth

As you might have read the other day, I had a birthday. It was lovely, thank you, and in addition to numerous phone calls, texts, and social media shout-outs, I received a bunch of emails from companies sending me “gifts.” Yes, in quotes.

I’ve written before (in fact, just a couple of months ago) about the gifts many companies “give” us. I also wrote about how nothing is free several years ago, so my rant today isn’t exactly new ground. However, I think it’s an important enough thought for those of us in business that it bears repeating. I also am happy to point out how two companies got it right.

The vast majority of the emailed birthday greetings contained an offer that generally read “Happy Birthday! He’s a gift of $15 off on your next order.” Sometimes it was a percentage discount but you get the idea. I had to spend money to take advantage of the offer, and I had a limited window in which to do so, generally 30 days.

Let’s unpack that. First, what if I don’t need your product or service in the next month? I mean, a discount on an oil change is fine but I just had my oil changed (at your shop, by the way – you should know that). You’re revoking my gift because I was just in? Second, what if my typical order is a lot more than your general average order value, something else you should know if you’re actually on top of your data and not just auto sending something based on a birthday you have on file. Shouldn’t I get a bigger “gift” since I’m a more valuable customer? I got one restaurant that I go to infrequently sending me a $15 “reward” on my birthday that I could redeem only by installing and using their app and dining there. That would be in the next 30 days, of course. To which party is that a gift?

I’m a believer that gifts need to be unconditional. You should be giving because you want to and not because you expect something in return. Two offers I received actually met this criterion. The good folks at the Alamo Drafthouse Cinema sent me a free movie ticket. That’s it. I’m not obligated to buy food or drinks, I don’t have to bring a friend. I can redeem it via their app but I don’t have to – just present some ID and my account information at the box office. The gas chain I use frequently sent me a coupon for 200 bonus rewards points. I just have to have it scanned the next time I visit and they will be added to my account. I can redeem those points along with the others in my account for free stuff – gift cards, food, etc. And 200 points is significant – it’s what you’d get from spending about $25 with them. No strings attached. Happy Birthday!

It’s nice (and important) that we surprise our customers with gifts, whether that’s content, discounts, or something else. We need to do so without strings because those strings are quite visible and will harm the customer’s opinion of us, not enhance it. As I wrote in June, A gift involves altruism. If there is an ulterior motive lying within, it’s not a gift, right?

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