Tag Archives: Food

January 29, 2016 · 12:51 pm

The Pimp Of Shrimp

Our Foodie Friday Fun this week comes to us courtesy of “Restaurant Startup“, a show on CNBC. If you’ve never seen it, the people behind two restaurant concepts pitch for an investment. One is selected, given a budget, and has 24 hours to produce a pop-up version of that concept. If all goes well, they receive an investment. This week’s episode featured a fast-casual concept restaurant serving South African food. What struck me as I watched the show is something from which any business can learn. 

The restaurant is called Peli Peli Kitchen and the food was really good according to the people who tried it.  Of course, many people had no idea what the food was as they were ordering it because the menu descriptions of this unfamiliar cuisine (can you name a South African dish off the top of your head?) were terrible.  One dish was described as “the pimp of shrimp”.  Say what?

The issues with the descriptions were pointed out to the guy producing the menu early on.  He did a very smart thing as he was editing.  He had his young son read the menu and tell him what the food was.  Of course, when he asked the kid if he knew what “the pimp of shrimp” was, the kid had no idea.  I’m not sure if the writer was in love with his alliteration, but he didn’t change the description.  Not surprisingly, when the hosts and potential investors asked diners who were waiting in line if they knew what the various dishes were, based on the description, most said no.

The point is pretty obvious.  We can’t do things in business that confuse our customers.  We can’t be so in love with our own clever marketing that we lose sight of that marketing’s main purpose: to inform consumers about the product so that consumers become customers.  I realize that some marketers like to cause confusion – think placing sugary fruit juices near the fresh fruit as an example – but I’m not a fan of that technique.  If we need to cause confusion to sell a product we probably ought to rethink the product.

The menu confusion, in this case, wasn’t a deliberate attempt to mislead.  It was just dumb.  Then again, how many pimps of shrimp are on your marketing materials?

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January 22, 2016 · 11:13 am

Ripe

It’s Foodie Friday and this week’s post is inspired by my breakfast. My weekday breakfast almost always involves a banana, and this morning’s banana looked yummy until I actually bit in. It was not really ripe enough. The texture that too hard for my taste and the flavors hadn’t really matured. In fact, it was kind of tasteless and quite unsatisfying. The banana would definitely have benefited from another day or two of ripening. 

Despite my day not being off to a great start, a business point popped into my head. Many businesses suffer from the same phenomenon as the banana (although honestly I am not blaming the banana for being eaten too soon). We don’t let things ripen and we move overly fast. I see this with some clients who forget the original business plan when a new opportunity presents itself, losing sight of what had got the business to this point. That sort of action – moving too fast away from what was a good idea – does nothing but engender short-term thinking.

Failing to let the business ripen also means you’ve not got enough customer feedback. It takes time to scale, and even if you enjoy explosive growth, it takes time for both the business and your customers to figure out what feedback is meaningful based on repeat engagements, etc. You would much rather hear from a customer who has purchased and used your product several times that a one-time experience.

You need to ripen to assess the right size of your staff. You need to ripen to estimate what your real operating costs are and will be. To the extent scale improves product costs, you need to ripen in order to make that assessment. Finally, you need to ripen to ascertain what your real capital needs are. Early cash flow won’t be as promising as it will become down the road (hopefully) but those needs don’t present themselves right away.

I am all for moving quickly, particularly when a company is young.  Haste, however, can make waste when that speed and a failure to let things ripen means a loss of focus.  Make sense?

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January 15, 2016 · 11:53 am

Cheering Chipotle

I have a question for you this Foodie Friday. Are you paying attention to what’s going on with Chipotle? You should be because I believe the events of the last few months will be studied for years as a terrific example of how to handle what really could have been a crisis that threatened the chain’s entire existence. Lucky us: we get to watch it unfold in real-time!

Español: Restaurant Chipottle Mexican Grill in...

(Photo credit: Wikipedia)

In case you’re not aware, there was an E. coli outbreak at Chipotle stores in the Pacific Northwest. The outbreak widened to include nine states in which 53 people reported being ill. On the other coast, more than 140 people became sick with norovirus in the Boston area after eating at a Chipotle. Most restaurants take a hit when a single person becomes sick because inevitably that person tells the world via social media. A couple of hundred illnesses, the involvement of the CDC, and the mandatory shutting down of restaurants is well beyond your basic bad day at the office.

The good news is that zero customers have reported getting sick from E. Coli since late November and the crisis seems to have abated. What’s been fascinating to watch is how Chipotle management has been handling this. The stock tanked, understandably. Did they deny anything was wrong or blame suppliers? Nope. They have been incredibly transparent and proactive. As one article reported:

The first step of Chipotle’s food safety plan is to analyze every ingredient and all of the restaurant procedures in a “farm-to-fork” risk assessment. High-resolution sampling and new sanitation protocols will prevent contaminants such as E. coli from entering the restaurants. Chipotle is sampling all of its ingredients using DNA-based tests to ensure the quality of its ingredients.

They are also shutting down the entire chain in February so that management can tell employees everything they know about the E. coli outbreak and what they’re doing to ensure it doesn’t recur. They’ll review food safety as procedures as well. And if that’s not enough, they’ll be giving away free food.

This is a chain that built up an enormous amount of goodwill among its customers through its food. They position themselves as using responsibly farmed ingredients and as a healthy, inexpensive alternative to fast food. Any business can learn why keeping customers happy and making deposits in the goodwill checkbook is so critical as you see how customers are reacting during this crisis. They know there has been a problem but the goodwill will get them back in the stores once the crisis has passed.  Another key point has been to recapture consumer trust by being as transparent as this management team has been.  Finally, being proactive and fixing things is way better than just “letting the crisis pass”.

I’ll be back at Chipotle.  You?

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