Tag Archives: Food

What An Egg Roll Tells You About Business

Foodie Friday has arrived at last. This will be the final “new” food-themed screed of the year. Next week’s posts will be the annual review of the most-read posts of the year and the most read food post will be next Friday. While I hope you’ll continue to read next week, thank you for doing so today and throughout the year. Happy 2018!

While I like to think of myself as a fairly worldly person when it comes to knowing about food, I learned of a regional specialty here in the US just the other day. If you’re from the Detroit area you’re going to roll your eyes, but I just found out about Corned Beef Egg Rolls. I’ve lived in and around one of the world’s greatest multicultural food centers (New York City) my entire life until recently and had never encountered such a thing. It’s exactly what you’d think: a pile of thinly-sliced corned beef inside an egg roll wrapper that’s then rolled and fried. There is usually cheese involved (some gooey, white, mild stuff) and sometimes sour cabbage. Apparently, these rolls are quite popular in the Detroit area and they are spreading into adjacent areas. Coming soon to a deli near you?

So what does this have to do with business? It serves as a gentle reminder of a few of the things we’ve discussed this year. First, like many great dishes, this one was born as a sort of happy accident. Just as buffalo wings were the result of using up some food a bar has around, so too was this roll the result of a thrifty employee not wanting to toss out a bunch of corned beef scraps. Begin Vietnamese, he did something very typical in his culture – he made a roll out of them.

This reminds us that if you make content or products, there is no garbage can. Beyond content, if you have an idea that doesn’t quite do what you had planned, don’t toss it. Think about how what you have can serve another purpose. You miay have the right answer to another question you or your customers haven’t asked yet.

Second, it’s a blending of two iconic dishes from very different cultures – Jewish and/or Irish corned beef (see this post on THAT subject) and a Chinese/pan-Asian fried roll. This is a great reminder that the business world has become a very small place. There is a huge value in understanding how to communicate to and with different cultures, both with respect to language, values, and practices. If we isolate ourselves by failing to tailor our messages and products, we’re really going to be missing out. What are we doing in business today if not trying to blend a lot of cultures into a more coherent market?

Finally, I suspect that the Corned Beef Egg Roll will mirror what happened with the Coney Dog which also came from Detroit. There are places all over that serve a hot dog with thin chili and onions (The Roast Grill has been in business here in Raleigh for over 75 years serving just that) even if they’re not called Coneys or Coney Island Hot Dogs or Coney dogs. That product has grown way beyond its origins. Smart entrepreneurs spot trends, assess needs, find openings, and fill them. I did a little digging and while there are a few restaurants with “egg roll” in their name, there really doesn’t seem to be a chain that just serves egg rolls (and the restaurants named Egg Roll Express, despite the name, are regular Chinese restaurants with 2 egg rolls on the menu). Here is your first business idea for 2018 and a franchise opportunity for well beyond.

A few good reminder with which to end the year. I’m looking forward to stepping up to the fryer with you next year!

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Filed under food, Thinking Aloud

Cookies And Caster Sugar

It’s Foodie Friday! I’ve written before that I’m not much of a baker and only do so when a guest is counting on some sort of baked dessert. It’s not because I don’t have a sweet tooth though. One weakness I do have with respect to baked goods is cookies. The blue guy on Sesame Street has nothing on me and I suspect if I didn’t exercise some sort of self-control I’d weigh 300+ pounds.

I love me some cookies and take a vicarious thrill in looking at various cookie recipes even though I will only consume them through my eyes and not my mouth. One thing that I noticed popping up in a number of recipes was caster sugar, and an article on Food52 yesterday helped me understand what it is and why it’s used in baking. This is their very fine explanation:

Caster sugar goes by a variety of names, including castor sugar, baker’s sugar, and superfine sugar, the last of which alludes to what exactly it is: a finer granulated sugar. If a grain of granulated sugar is big and a grain of powdered sugar is tiny, caster sugar would be somewhere in between.

Which of course got me thinking about business, and about data in particular. Just as the more granular nature of caster sugar makes cookies a better product (they’re softer and lighter), so too can refining your data yield much better results. You’ve probably heard about the need to segment your data but if you’ve never done so or have never gone beyond basic age/sex or other large groups, you’re really missing out. Refining your data makes it possible to address each segment in a way that’s meaningful to them. The more personalized you can make your messaging, the more effective it will be. Getting beyond “first name” and into where in a purchase cycle a customer might be as a data segment will make for a better outcome. Special offers by segment only yield great results when the specificity of those segments make the offer truly special.

Caster sugar is more refined but not overly so. That’s a great thing to keep in mind as you analyze and use all the raw data you collect every day. The fact that the data isn’t fattening is a big plus!

 

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Filed under Consulting, digital media, food

The Food Business Isn’t Just Food

It’s Foodie Friday and the topic today is business. I know: that’s pretty much the topic every day, but let me explain. I read an article on one of the restaurant sites I frequent that spurred a thought that goes beyond the restaurant business.

Photo by Helloquence

The piece was all about the financial statistics a good restaurateur needs to watch. I’m always surprised when a place with good food in a great location goes out of business but it seems to happen a lot. Sometimes it’s that the chef leaves and things slide downhill but more often than not it’s because the business part of the food business overtakes the food part of the food business.

One needs only to watch an episode or two of the show Restaurant Startup to see how a food business is not especially different from any other startup. I assume what I’m seeing on the show reflects the new restaurant world at large and today’s article confirms that belief. Many of the contestants have no clue about the first, and maybe the most important statistics any startup needs to grasp: Cost Of Goods Sold. In a restaurant, that’s food. In a service business, we usually call it cost of sales. In either case, it’s the cost of producing whatever it is you’re selling. You’d be surprised how many businesses don’t know this number.

That number is part of a bigger one called overhead, which includes rent, salaries, services such as accounting and legal, and things like keeping the bathroom clean (your restaurant has one; hopefully, so does your office). These numbers are critical because if you charge too little for what you provide you won’t be in business very long, and you can’t figure that out unless you know your monthly nut.

Once you have the Gross Profit (or Gross Income) number, you can subtract your expenses to get Net Income or Net Profit. Divide that by your sales and suddenly you have a profit margin. That’s something you can use to benchmark your results against other businesses of the same type. In the restaurant business, it’s generally not very big, which is all the more reason why a complete grasp of the numbers is critical. There isn’t a lot of room for error.

I spend a lot of time with my clients on their numbers. It’s not just so that they can present themselves well to potential investors either. Like your web traffic or any other piece of data, they can illuminate a lot and help you make critical decisions. Ignore them at your own peril.

By the way, I’m writing this as a sort of thank you to my late brother who was my CPA and who beat accounting into me many years ago. He passed 5 years ago next week and I miss his guidance and the clicking of his calculator every day.

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Filed under Consulting, food, Helpful Hints