Tag Archives: Food

Blockheaded?

This Foodie Friday we’re going to have a think about blockchain. If you’re thinking that “food” and “blockchain” don’t relate as well as, say, peanut butter and jelly, apparently you’re underinformed.

If you’re unfamiliar with blockchain, you probably ought to do something to learn about it since it’s weaving its way into everything these days. Basically, it’s a list of records called blocks which are linked to one another cryptographically in a publicly available ledger. It makes tracking things easy and it’s an extremely secure method for doing so.

Applying blockchain to food is happening. Think about a chicken you find at the market. What if you could scan the package and know everything about the contents? When the bird was born and where, what its diet was, if it’s GMO-free, etc., when and where it was processed, packed and shipped, ad infinitum. Cool, right? It’s also possible with food that routinely gets mislabeled as something else: fish. It makes everything traceable, which is a big help with respect to food safety.

I see two issues. One is the cost. Think about what’s happened in digital advertising. We’ve layered on technology to buy and sell ads and at the same time, we’ve added a huge layer of cost. Blockchain in the food area won’t be cheap, I’m sure. We’ve also made the entire industry less transparent, and while blockchain is just arriving in the ad world, it points to the fact that there are a lot of bad actors out there.

This points to the bigger issue which is an old, familiar one: GIGO. Garbage In, Garbage Out. Who is to say that the information in the system is accurate? The data may say one thing while the truth might be quite different. Criminals will learn how to cheat the blockchain just as they have learned how to game the ad business out of billions of dollars every year. While we will be able to trace food we won’t be able to tell if it’s been adulterated without a robust system of inspection.

Do I think this technology belongs in the food business? Probably – the benefits of things such as pinpointing shelf-life or finding the sources of bacterial outbreaks quickly are huge. I guess I wonder about the cost – at what price will this all happen? Will the benefits only accrue to those who can afford to pay for the food that’s blockchain certified? What do you think?

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Filed under food, What's Going On

David And Goliath

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?

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Filed under Consulting, food

Pay What You Want

There is a new kind of restaurant that’s opened here and it’s our topic this Foodie Friday. It’s called A Place at the Table and here is the concept as reported in the local newspaper:

A Place at the Table puts its mission at the counter, inviting patrons to pay what they can afford: the suggested donation, a little extra, pay for someone else’s meal or pay one’s way through volunteering. Volunteer jobs could include sweeping, wiping tables and bringing food to guests.

It’s not fancy and it’s only open for breakfast and lunch, which of course will have the effect of keeping the total bill down anyway. In my mind, that makes it less painful for those of us who can afford it to in essence overpay. It’s an interesting business model, don’t you think? Apparently, they’re doing pretty well as well as doing a lot of good. They’re not the only ones doing this, of course.

As far back as 2014, there were many of these restaurants in business around the world. Now you might think that most people would try to eat for free but the opposite is really true. Most people tend to pay at least the prices listed on the menu and many pay more. In addition, these businesses are often supplemented by grants, donations, and free labor to offset their costs.

The restaurant business isn’t the only one where the pay what you can model is in place. Music has become another one, with several artists releasing albums and asking the public to pay them what they think it’s worth although some folks distinguish between pay what you can and pay what you want. In my mind, anyone who is willing to offer their product up for judgment and to allow the user to asses the value is operating under the same model.

We see it in software and video games. It’s even expanding to fashion and amusement parks. So here is my question for you today. How much would your typical user pay you if they were setting the price? Is it enough to cover the cost of the product? Enough for you to make a profit? Or do they find less value in what it is your offering than you’re currently charging them? If you think the last response is closer to the truth, you had better look around because it won’t be long before a competitor figures that out as well and undercuts you. If you’re already competing on price and you’re still answering with the last response, you had better spend some time on figuring out how to add value so customers will gladly pay what you’re asking.

Make sense?

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Filed under Consulting, food, Helpful Hints

Mageirocophobia

It’s Foodie Friday and today we’re going to address what for some people is a debilitating problem: mageirocophobia. I know – how can I think about something I can’t even pronounce? Well, hopefully, it’s not something you think about at all, but it might just get you thinking about something that goes on in your business life, so read on.

Mageirocophobia is the fear of cooking. Yes, such a thing exists. It can take many forms and even experienced cooks might have a little of it. For some folks, they’re fine cooking for themselves but the thought of cooking for a large group – a party, a large family gathering – can become a problem. Maybe that’s when they opt for a caterer, telling themselves that they’ll be busy preparing the house when in fact they’re afraid of failing. For some people, they’re afraid to cook for others or their children, worried that they’ll poison them by serving undercooked food. In other cases, it’s a simple fear that what they’ll serve will be inedible, or at least bad enough to cause ridicule. Some people are just afraid of the entire process – sharp knives and hot pans can cause cuts and burns (I know that from personal experience!).

As with most fears, a fear of cooking is really a reflection of other things going on such as a strong need for approval or a fear of failure. It can cause people to do odd things such as never serving chicken to guests or insisting on overcooking pork. Some people I know are terrified by sharp knives and the blades in their kitchens are always dull which, as any good cook knows, causes more accidents than sharp knives do.

Some of us do the same thing in business. A decade ago I wrote a post that asked each of us to consider if our fears in business are rational? Fear of failing is not irrational but it can be debilitating. We listen to the negative voice in our head that tells us we can’t do something and we’ll be a laughingstock when we fail. We play it safe. We take the safe route and don’t push to scale quickly, avoiding new markets or products. Ultimately, as with the fearful cook, we miss out on pleasure as we avoid pain.

I’ve made my share of mistakes in both the kitchen and the office. I try to learn from each one and move on. We all have a bit of fear in new and difficult situations – we’d not be human if we didn’t. We need, however, to push through our fears if we’re ever going to achieve our goals, don’t you agree?

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Filed under food, Helpful Hints, Thinking Aloud

Bad Boys And Brands

Happy Foodie Friday! There’s been a food-related story making the headlines this week and I think it reflects something that can be useful to any of us in business. The founder and chairman of Papa Johns Pizza had to step down this week after he admitted to using the N-word in a company conference call. It has sparked a public relations crisis and it’s not the first one his actions have caused. You might remember that he also weighed in on the controversy surrounding NFL players and their kneeling during the national anthem. While he certainly wasn’t the first sponsor to criticize a league, doing so over an issue that went way beyond the league itself resulted in a public relations issue for the brand.

While I’ve never been a fan of Papa John’s pizza, his bad behavior made me all the more certain I’d never eat it again. One person whose food I am a fan of is Mario Batali. Even so, I’ll not be going to any restaurant associated with him. His bad behavior caused him to “step back” from his restaurant empire following the first public allegations of sexual misconduct. That was followed up by a 60 Minutes story. Even so, he hadn’t completely divested himself of a financial interest, and that certainly affected the brand, so much so that three of his restaurants on the Las Vegas Strip are set to close even though they were doing well.  The local partner in these restaurants, Las Vegas Sands Corp., decided to end the relationship with Batali’s organization.

Why do I bring this up? Because every one of us in business is a celebrity on some level. We might be nationally known or maybe it’s just our customers, partners or employees who consider us famous. Our actions can enhance or damage our personal and corporate brands every day and we need to remember that no incident remains quiet or hidden for very long. Nearly every person is holding a camera and a video recorder in their hands and bad behavior rarely goes unnoticed or unpublicized.

There was a restaurant I patronized on a regular basis. The food was OK if unextraordinary, the prices were reasonable but the owner was a great guy. I loved spending a little while with him every time I went and I kept going back because he took great care of me as well as did good things in our community. We are our brands, and how we act can damage that brand as badly as a misplaced ad or a faulty product. Enjoy your weekend!

 

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Filed under food, Reality checks, Helpful Hints

Eating At Mom’s

This Foodie Friday, I’d like you to think of your favorite restaurants. How many of them are national chains and how many of them are family-owned? How many of them serve “fancy” food and how many of them serve great versions of something you might find on your grandmother’s table? I’m willing to bet that most of your favorites are local and cook what your Italian or Chinese or Jewish grandmother might make.

Independent restaurants are growing twice as fast as chains, and there are reasons for this, according to Pentallect a research firm. Consumers rate independent restaurants as more superior on 12 of 15 attributes studied. Consumers see the independents as sharing consumers’ values and offering quality food and better service. They’re special, community-oriented and offering personalized service.

There’s a breakfast joint I go to. It’s a little cafe in the small downtown area here. Yes, there are franchised diners, Waffle Houses, and the breakfast offerings of many chains around, but you’ll find me eating at this place for precisely the reasons found in the study. Two visits and from then on I’ve been greeted as if I’ve lived here forever. I’m asked about my golf game and Michigan Football. The food is quite good but not at all fancy. What does this have to do with your business?

Unless they’re going out for a big, fancy meal, I think people like to feel as if they’re eating at Mom’s. It’s nice when you’re traveling that you can count on a chain to offer you exactly the same experience no matter what but the food is usually bland, a dumbed-down example of the good stuff. Pastrami at Subway? No thanks. You need to convey both the authenticity and good feeling one gets when pulling up a chair at a great local joint. It’s not fancy, it’s just good. You’re welcomed as family and not with some script developed back at corporate. Let your customers take their time. I find I’m rarely rushed at a local place while the chains are focused on “turns.” Would Mom kick you away from the table?

How does your business make customers feel like family? How are your products different from what the big guys offer? How are they better? Those are the things that I’ll bet make the local joint you thought of when I asked the question your favorite. How can you be that for your customers?

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Filed under food, Helpful Hints, Thinking Aloud

Old Bay Bacon

It’s Foodie Friday! A friend of mine made some bacon a while back that might have been the best bacon I’ve ever had. It wasn’t so much that it was a nice thick cut nor that it had been perfectly cooked although both were true. Something had been added to the bacon that enhanced its overall porkiness (bacon fans know what I mean) and threw in some extra flavors for good measure. I was smitten.

I asked what was done and the answer was Old Bay. Yes, that Old Bay, the one you have hiding in the back of your spice rack to add to the shrimp and crabs you never quite get around to boiling. While the chef used the same technique I do for bacon (400-degree oven, bacon on a sheet pan for 20 minutes or so, maybe on a rack if you’re feeling ambitious about clean-up), they had sprinkled the raw bacon with Old Bay. It was transformative.

You might not be familiar with Old Bay if you don’t live here in the eastern U.S. It’s a spice blend long associated with Baltimore. Invented in 1940 by a German immigrant fleeing the Nazis, it became ubiquitous in the Chesapeake area and is one of my favorite spice blends. Celery salt, mustard, pepper, bay leaves, cloves, pimento, ginger, mace, cardamom, cinnamon, and paprika – 18 spices in all – make up this magic dust.

There’s a business point or two to be made here. First, we can’t be afraid to try new uses for old products or people. I would never have thought to put Old Bay on bacon but it’s magic. Maybe you haven’t asked a senior member of your staff to do UX testing on your new digital presence, but why wouldn’t you? If someone who, in theory, is less adept at the digital world can appreciate what you’ve done, odds are that your real target will like it as well. Or take an old product like a tape that was invented to keep ammo cases dry, change the color, and voila! Duct tape. Or maybe a heart medicine that had an unusual side effect in many men and suddenly, Viagra.

Second, to my knowledge, Old Bay’s recipe has never been changed. There’s always a tendency out there to tinker with successful products through line extensions or even wholesale revamps of the product. Resist it. Look at Craig’s List – it’s still pretty much the same as it was when it launched 23 years ago. No bells and whistles, no streaming video, just classifieds and a whole lot of success. Create new things but don’t dilute the brand and don’t ever jeopardize the cash cow. There is Old Bay flavoring in many products, but the core product – the spice blend – has never changed.

Sprinkle a little Old Bay on something – bacon, a Bloody Mary, popcorn, almost anything – and remind yourself that greatness can endure even as we find new ways to incorporate it into our businesses.

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Filed under food, Thinking Aloud