Adaptation

“Obstacles are those frightful things you see when you take your eyes off the goal.” Hannah Moore author and philosopher.

I attended a food show yesterday and spent some time discussing the current state of the industry marketplace with many industry experts, vendors, brokers and successful operators. The most common insight I received from them was that this “down season” was going to end, and that it was important that operators emerge from it in as strong a position as possible. Now is the time to explore how to bring more profit to the bottom line. How they suggested accomplishing this took many forms, some of which I would like to share with you today.

I think that the most important advice of all that I received yesterday was to preserve or improve product integrity. This means that saving money to improve profitability should not start by cheapening the products that you are bringing in the back door. This is a short cut and will eventually lead to bad things for your establishment. Trying to squeeze an extra buck out of your menu by downgrading your ingredients is readily apparent to your regulars and is not putting your best foot forward with your new customers. In this economic environment consumers are still spending, it is just that they are being more judicious about how and where they are spending. The quickest way to alienate your core business and not earn new repeat customers is by sacrificing your food quality in an effort to save a buck. Keep your product integrity and consistency and you will survive.

Another significant piece of advice that I picked up was that we should all be working toward finding new things to offer your customers without departing from your already successful brand. New flavors, new toppings, a new side or a seasonal offering will go a long way towards keeping your customers interested. Don’t necessarily expand your menu, but rather bring in an item or two as a special or offer a variation of an existing menu item as an alternative on your specials (keep the chicken sandwich, but now offer a Chipotle chicken sandwich as a special) – it keeps your inventory dollars under control and adds to your establishment’s allure.

One more that I thought was pretty good was to focus on expanding salads, fish and pork as menu options. Due to the high demand and consequent high costs of wheat and corn, livestock that feed on corn in particular will continue to escalate in price (feed prices increase and are passed on to the market). As it warms up, people will shift their focus to lighter menus and offering salads and fish in particular will strike a chord with consumers. As a result, you will be offering a seasonally popular meal that has less cost volatility for you. You can’t ask for a much better combination in this market!

Last but not least is menu pricing. It is not the same market as it was a year ago….shortening, eggs, flour, milk, cheese, meat, and chicken in particular are priced significantly higher today than they were a year ago. Consumers are being bombarded with news reports that things are more expensive. They expect it. They can’t expect you to try to save the economy by holding your prices steady. You WILL catch flak about raising your prices. The customers will get over it if you continue to provide value for their dollars. Consumers are still spending - they are just being more discerning about where they are spending their money. They will come back if you continue to serve GOOD food at a fair price. If your product is consistent, quality and fairly priced in the market, they will return – you are familiar, they have a relationship with you, and your food is good.

We can no longer afford to sit back and react to movements in the marketplace. We need to be proactive and in front of what is happening out there. To sit back and try and ride it out while doing what you have always done is not a good choice. The market is changing. You must be too!