Happy Foodie Friday! It’s an especially good one as we head into Memorial Day Weekend, the unofficial start of Summer and the grilling season for many of you. I have a friend who will be a lot more circumspect about what she is grilling this weekend because she found out the other day that she has a bunch of food intolerances. What are they and what do they have to do with business?
Food intolerances are different from food allergies. You’re not going to die from the former while you just might from the latter. Instead, your symptoms develop over time as you keep eating things for which you have an intolerance. Maybe you get headaches or stomach aches. Maybe you retain fluids. Maybe you develop a cough that won’t go away or hives or a runny nose. All can be symptoms of a food intolerance.
They’re caused by several things, one of which can be a chemical – caffeine, amines, salicylate – which occur naturally but to which your body is sensitive. The ones you hear about most often are gluten intolerance and lactose intolerance but there are as many intolerances as there are foods, it seems. Fortunately, it’s not difficult to live with a food intolerance as long as you’re willing to adjust your diet and avoid things that you’ve identified as problematic. It’s less easy to fix an intolerance in business.
I’m sure that every manager has a story or two of employees who can’t get along. I certainly do. It can be a huge problem for a business, especially if the employees are managers themselves. There are a lot of reasons why two adults can’t tolerate one another. One feels the other isn’t pulling his or her weight. One gossips. There is a perceived inequity in titles or salary or responsibility. I’ve run into each of those along with the most basic reason for a business intolerance: they just don’t like one another due to some perceived slight that was never corrected.
You cannot let this situation fester, and the key to fixing it is to identify the real problem. Telling them to “grow up” won’t fix anything nor will telling them to “work it out.” You need to speak with the parties involved individually and together and you must follow up your discussions with action. You can’t have a chat and assume the matter is solved. Like a food intolerance that won’t kill you, two employees who can’t tolerate one another won’t destroy a business but they can make things pretty miserable. Also as with food, identifying the source of the problem and following it up with action and monitoring is how you make the problem go away.
Foodie Friday, and I’ll bet that a number of you will be going out this weekend. We’ve all had the problem of placing a food or drink order and what you ordered isn’t what you get. It’s really a problem when you’ve ordered delivery. What’s more frustrating than your vegetarian pizza showing up with pepperoni or your steamed dumplings arriving fried?
Mistakes happen. I used to run an online store that fulfilled tens of thousands of orders each year. Mathematically speaking, if we performed perfectly 99.9% of the time, there are still 100 screwed up orders out of every 100,000 (and we did way more orders than that). What I used to ask my folks was to listen to the customer (and put aside their heated and often unpleasant language), apologize for the problem (even if we didn’t cause it), and solve it. Maybe they clicked on a wrong key or maybe our inventory system didn’t react in real time, telling them that something was in stock when it wasn’t. It doesn’t matter. They are customers, and it’s easier to retain a customer than it is to find a new one.
Let’s go back to our delivery example (since today is food-related!). Suppose the cook forgot to pack the drinks ordered with the pizza. How can you catch this before the customer even knows there’s an issue? Make every person in the chain responsible for checking the order. Does it match the ticket? As an aside, I always ask the restaurant to read me back my order when I place it and I’m always surprised when they don’t ask to do that themselves. If the ticket isn’t right, no matter what steps are taken along the way, the order is wrong.
But let’s suppose there is a failure and the food goes out without the sodas. When the customer asks where they are, you have a few options. Send out a second delivery person (if you have one), make a second trip (if you don’t), or empower the delivery person to hit a store near the customer and buy what’s missing. My guess is that this is the fattest, least expensive solution since it minimizes the time to correct the mistake. Another option when the customer calls to complain might be to credit back the missing items as well as some or all of what was delivered. The reality is if they care enough to call you need to care enough to keep them.
Any business is a team effort. No one can think, much less say, it’s not my job to take responsibility for making a customer happy. Whether you’re a food business or not, read back what a customer is asking. Say something if the order is right but something seems off (“oh, you DON’T want chocolate on the pizza, you want chocolate cake!”). Most importantly, be prepared for mistakes. They’re going to happen. The real challenge, beyond preventing them as best you can, is making a customer happy when they occur. How are you doing with that?
Foodie Friday and my question for you today is have you ever been to a ghost restaurant? I’d say probably not, because the entire point of a ghost restaurant is that there is no restaurant there. Huh?
(Photo credit: Wikipedia)
Here is one explanation I read:
A ghost restaurant is a “restaurant” that people can’t actually physically visit. For us, it involves using our existing space, kitchen equipment, and staffing to execute a menu that’s not served in our normal restaurant. Customers place their orders and we deliver.
The key is the different menu. A normal takeout order from someplace would be the same food. Many of the “takeout” places I’ve patronized have a table or three even if the business is focused on preparing orders to go or for delivery. You probably would think of many Chinese or pizza places. Ghosts, however, don’t have to worry about decor or servers per se. Front of house is non-existent. Imagine a sit-down steakhouse that was also delivering pizza out of the same kitchen but not serving it in the restaurant other than as the odd special. Two restaurants, one of which is virtual operating our of one kitchen.
The beauty of this model is that it can overcome bad weather (which might keep people at home and not dining out) as well as maximizing the use of the kitchen, perhaps with the addition of a few more kitchen staff. You can close one restaurant at 9 while continuing to deliver from the other until midnight. Like on-demand grocery delivery, on-demand food service is a growing business and a ghost restaurant opened in an existing place can tap into that demand by formulating a menu that is delivery-friendly even if it doesn’t align with the base restaurant at all. I would never order eggs or a steak or pretty much anything fried because they generally don’t travel well (soggy fried food is gross).
Why do I bring this up and what does it have to do with your business? It’s a great example of out of the box thinking. How can you expand what you’re doing without major capital expenditures? What’s the worst, least efficient part of your business? In this case, while there is a nice margin in serving customers drinks, they tie up tables and require servers. What happens if you keep the customers but eliminate the need to have them linger or be served? A ghost restaurant eliminates the inefficiencies while retaining the base business and it doesn’t compete with it because it’s a different menu. What about your business can be “ghosted”?
It’s Foodie Friday and today we’re going to raise a glass to chewing gum. Well, not to the gum itself, but to the founder of the Wrigley Chewing Gum Company, Mr. William Wrigley. While he made his fortune selling gum, he started out to do something quite different and therein lies the thought I have for us today.
(Photo credit: Wikipedia)
Mr. Wrigley began selling soap. Like many of us in business, he tried to distinguish his brand by giving his customers a little something extra which would help distinguish him and his product from the competition. In his case, he would give away baking powder. After a time, he figured out that his customers liked the baking powder more than the soap and so he started to sell baking powder. Along with the baking powder, he gave away two packages of gum. You can guess what happened next.
There are two things in his story that I think are relevant to any of us in business. First, giving the customers what my Creole friends call a “lagniappe” – a little something extra – always pays dividends and sometimes they’re huge. I don’t know if Mr. Wrigley’s soap (or baking powder) were premium-priced to cover the cost of the extras he gave away, but the outcome certainly negated any cost. Always ask yourself how you can do more for the customer.
At some point, Wrigley realized that he had to pivot his business because his sideline was more successful and popular than his main business. He’s not alone in this. WeWork grew out of a baby clothes business renting unused space in their building. Instagram was something that grew out of the users of a whiskey lover’s app posting photos. The founders recognized that the photo sharing was more important to the users than the whiskey information. When Justin.Tv began letting users stream videos, (having started as just one guy streaming his own life) the “gaming” channel blew up and Twitch was born.
We need to keep an open mind when we see opportunities. Yes, we can’t always be chasing the new shiny new thing, but when one aspect of our business is screaming to be given a lot more attention, we need not be afraid of making a pivot. Mr. Wrigley pivoted (twice) a century ago, and while technology has changed, the basic business acumen he displayed hasn’t. Ruminate about that!
Filed under Consulting, food
This Foodie Friday we’re contemplating the field of endeavor known as copycat recipes. If you read any food sites, at some point you come across recipes which attempt to replicate some of the more popular dishes from chain restaurants. Yes, you too can have unlimited Red Lobster Cheddar Bay biscuits and Chick-Fil-A sandwiches at the same time!
There are books of these recipes and I’ll admit to having tried a couple over the years. While I’ve come close to duplicating a few dishes I’ve enjoyed in restaurants, the results were not exactly the same. One wouldn’t expect that though. I’m not using the same ingredients (the bacon I buy may not be what McDonald’s uses) nor do I have a commercial convection oven or deep fryer. Still, they were enjoyable enough and in a couple of cases, the experience inspired me to create my own variation that I liked even better.
I think these recipes can be fun for some but they miss a fundamental point. Making Girl Scout Samoas at home, besides being incredibly time-consuming, doesn’t support the Girl Scouts. When I want a “hot now” Krispy Kreme, I don’t want to wait a few hours for my homemade versions to rise and fry. What makes some of these dishes so good, in part, is that you don’t have to cook them. They’re risk-free, they’re ready when you want them, they’re always available, and they’re consistent. And of course, that’s the point today.
It’s quite possible that someone will try to copy what it is you’re doing if you’re doing it well. In the case of recipes, the cook can’t turn to the copyright law to protect the dish. Recipes aren’t subject to copyright. Mp3 players had been around for several years before Apple “copied” the recipe and improved it. One could argue that Apple was the victim when Microsoft “copied” the graphical interface that became Windows from Apple, who had “copied” it from Xerox. Sure, you can file a patent to protect you but that immediately makes how you’re doing what you’re doing available to anyone. They can then produce a variant on what you’re doing. Each of the folks in my examples made the recipe their own. That’s the point. You protect your secret recipe in either of two ways and the law has little to do with either.
The first is never to make the product public so no one has a chance to duplicate what you’ve got. Obviously, that’s not a great solution. The other way is to make sure that you produce the end-result to a consistently high standard which is risk-free for the customer, and that you provide that customer with an unrivaled level of support and service. That’s why copycat recipes will never be as good as what you get when you dine out. You copy?
(Photo credit: Wikipedia)
Our topic this Foodie Friday is the plight of The New England Confectionary Company, makers of NECCO wafers (did you know the name was an acronym?), Sky Bars, and Sweethearts, among other well-known candy brands. There is a fair chance that the 120-year-old company will soon be out of business. Their factory was sold and the company is actively looking for a buyer. The company has notified the city and state that layoffs may soon be coming. The situation is pretty dire.
Even though most of their brands are not really great candies (Sky Bar being the exception in my book), panic has ensued among fans of NECCO wafers. An article on Grubstreet highlights how fans have responded to one candy-selling website:
The site says that during the month of March, after the panic began, it received 253 emails and 167 phone calls from customers looking for Necco-brand candies. Twenty-nine people offered to pay at least double the going bulk rate, and three reportedly said they’d perform free labor in exchange for priority treatment. One woman wanted 100 pounds of Necco’s glorified Tums, which she planned to vacuum-seal to keep her prepper stash fresh “for years.” (A standard 24-wafer roll weighs 2.02 ounces, so she was requesting about 800 packs.) Another woman said she’d trade her late-model Honda Accord for all of CandyStore.com’s remaining Necco candy.
There is a lesson in this for any business since these hard-core fans seem to be preparing for a funeral rather than figuring out how to cure the disease. All of their panic buying is misplaced effort since what they should be doing is trying to get the company the capital it needs to continue operations. While 420 people may have asked how to buy candy, only 73 people have donated to a GoFundMe campaign the CEO has organized. He, by the way, is apparently clueless about the difference between donation crowdfunding and equity crowdfunding since he had to amend his campaign to say he can’t offer stock:
We have been informed by several people that we cannot offer shares in the company in return for your donations. We are sorry, we do not know if they are right or wrong but we can’t take the chance . If you would like us to return your donation just let us know.
He is apparently in panic mode too and hasn’t sought advice from anyone who is familiar with equity crowdfunding or maybe even an initial coin offering. Running scared will do that to you, although I know $20 million isn’t just laying around the street anyplace. I’d rather find customers than investors.
Worrying about the symptoms instead of the disease is generally a futile exercise in the long-term. I recognize that when someone is bleeding out you have to staunch the flow before you can worry about what caused it, but in this case, the efforts that have been made by fans of the company (buying up all the product) won’t be as effective as sending the money directly to the company. The company, for its part, hasn’t been very proactive. The factory was sold a year ago and this situation has been coming ever since. I don’t know how they involved their supply chain and their customers in stabilizing the situation, but the fact that they’re down to asking for money on GoFundMe (and it would be among the largest non-blockchain crowdfunding projects if it works) tells me that a lot of time was wasted.
It’s Foodie Friday and our fun this week derives from some things I took away from an article on pizzeria menus. I know – what is a guy whose consulting practice focuses on strategy and media doing reading an article on how to write a best-selling pizza menu? Well, as I’ve often mentioned, one never knows from where a great insight will spring and so it’s incumbent upon us to look under every rock and (pizza) stone, don’t you think?
The article, from Pizza Today, talks about a number of things that can drive more sales from the same menu. I think a number of those things are applicable to most businesses, food-related or not. First, there is such a thing as TMI – too much information. If the menu details every bit of information about each ingredient in the pizza (local mushrooms grown in special caves, organic, non-GMO cheese from a particular type of cow, etc.) it’s likely that the customer‘s eyes will glaze over and they’ll stop reading. I don’t need to tell you about information overload – most of us suffer from it and despite the often-cited false information that our attention spans are now shorter than those of a goldfish, I do believe our tolerance for excessive information has vanished. We’re all too time-challenged, so respect your customer by providing enough detail so that they can make an informed decision (it’s pecorino cheese) but know that too much and they turn off (it’s pecorino, a hard, salty sheep’s milk cheese from Lazio).
The piece also talks about changing the menu a few times a year. One owner mentions that he
changes 25 to 30 percent of the menu about four times a year, “which we need to do as a neighborhood restaurant. It gives us a story to tell customers — why we have changed it up. That keeps customers excited and chefs stimulated and allows us to serve seasonal food.”
That’s a good thought regardless of your business. It’s imperative that you keep in touch with your customers but to do so you really need to have something to say. A new product or service or the fact that something that customers are used to seeing in your offerings will be discontinued is news. Too many businesses post what amounts to spam and make their user bases less like to engage when they really do have something to say.
Finally, the article mentions how the menu should call out information that is important such as gluten-free and dairy-free items along with upcharges. Recognizing that some customers have special needs and that most customers aren’t happy when they get it with fees they weren’t expecting is just common sense for anyone in business. We’ve been over the mess the airlines have made of doing fare-comparisons because almost no airline sells you a ticket without some sort of extra fee. The same is true of concert tickets, hotel rooms (those resort fees!), rental cars, and many other businesses. Are you happy when they pop up on your bill? Neither are your customers.
That’s what I learned from a pizza menu. You?