Tag Archives: planning

Eating In The Cafe Car

This will probably be the last original Foodie Friday post of this year (and decade!). I’m writing it whilst barreling north on a train. I’m a fan of train travel. Putting aside the environmental pluses, I think it’s more relaxing and more social than driving or taking the plane.

The train has a cafe car that offers up snacks, drinks, and food. The “food” consists of microwaved stuff – burgers, sausage and egg biscuits, wraps, etc. I think you can probably find most of the items at your local Costco or supermarket. The drinks are generally unhealthy sodas (yes there’s just water) and the snacks consist of candy bars and chips. It’s not the sort of stuff that you would choose if you had a choice, but when you’re on a 9-hour train trip you really don’t have much of one, which explains the line out the door.

Most of the time you would not catch me eating anything that’s offered here. Oh sure, I love me some sausage and egg on an English muffin, but I’ll usually have a multigrain muffin with plenty of fiber, not some white bread masquerading as a muffin. I might put some interesting cheese on mine and not the “cheese product” I’m sure is on this thing. Oh yes, of course, I had one. I’m hungry and they were out of the healthier options

The cafe car got me thinking about what sometimes happens in business. When businesspeople find themselves in an unusual circumstance they often will let their standards slide. I suspect they feel much as I do now – they solved the immediate issue (hunger in my case) but there is guilt and the knowledge that the “solution” they found might have created more problems than it solved.

If I had planned ahead, I’d have packed a decent snack and brought my own beverages. Money isn’t the issue – everything in the cafe car is reasonably priced (except the liquor – $8 for a drink? And I thought the airlines were committing skyway robbery!). The issue is solving my problem without lowering my standards. That takes planning. Is your business doing that?

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Filed under food, Helpful Hints, Reality checks

Am I Hot Or Not?

One question that often comes up as I’m discussing franchise opportunities with people is that of what businesses are “hot.” It’s interesting that “hot” comes up at least as often as “profitable”. I can answer the questions for them (and usually do), but I also add a couple of other thoughts. That’s our topic for today.

For those of you that are curious, what’s currently “hot” in the world of franchises falls into a few broad categories. Within the food sector, breakfast places, juice bars, Mexican food, and healthy bowls are doing well. Restoration services – businesses that clean up after accidents or disasters are hot as well. Some of the other categories that are in demand are childcare, pet services, fitness businesses, and some “alternative” health businesses (cryotherapy, etc.), and beauty/grooming. As an aside, I represent businesses in every one of these categories – let me know if you want to learn more!

I’ll review those categories with interested candidates but then I caution them and I’d like to do the same here. Many of the businesses in those categories are “sexy” but several are not particularly profitable.  When you’re thinking about making a huge life change, which is what many of the folks I speak with are doing, you need to take a step back and look at the big picture. It’s not about what’s hot because what’s hot today may be gone tomorrow. Think about businesses that were all the rage a couple of years ago. Yogurt stores (yes, I have some of those too) seem to be fading away. Most of the “daily deal” sites have consolidated or gone away. Same with many of the subscription box services. The tanning bed business has transitioned into a spray-tan business.

My point to them, and to you, is that focusing on what’s hot isn’t a great criterion as you’re looking at new opportunities. Instead, ask yourself what makes you happy. What can you see yourself doing every day that will have you excited about getting out of bed? The odds are that there is a franchise that will allow you to do that. Some folks are equally concerned (or more concerned) with making money. Many of the businesses that do that aren’t “sexy.” They’re things like home repair or remodeling businesses or they’re businesses that might require a higher level of capital like a senior care business where you might need to “float” a payroll until cash flow grows.

Businesses ebb and flow. Categories run hot and cold, but what makes you happy probably doesn’t. Add profitability to the mix and you’re on the right track, whether it’s hot or not.

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Filed under Consulting, Franchises

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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Filed under food, Helpful Hints, Reality checks