Driving Restaurants into the Future

The key factors driving restaurants down the road were shared by Technomic at its legendary “Restaurant Trends & Directions” conference and through Winsight’s RESTAURANT BUSINESS magazine this week.

Here’s the article:

http://www.restaurantbusinessonline.com/…/what-will-drive-r…

Great insights from the authority in all things foodservice, for sure. However, in my humble opinion, the list felt short for this complex world of ours and I began to wonder if there are a few other macro drivers that were overlooked in the article. And I think there are.

My list of other meaningful includes these factors:

– Government influence into everything from cost of labor to menu labeling to food safety/tracking requirements

– Social media impact on marketing, brand image and reputation management

– Demographic shifts as boomers age and millennials of various ethinic/cultural backgrounds and tastes gain economic power

– Technological changes that will affect customer experiences and operations, including people-less ordering systems or universal wifi or more automated prep

– The general “foodie culture” bloom, with rising expectations on quality, the cult of culinary personality that needs to be nurtured and the growing abundance of culinary talent in the market

– Continued consolidation into multi-unit chains that require a different sort of financial and managerial skill to organize and operate

– Emergence of entrepreneurial food and beverage manufacturers who are ready, willing and able to partner with ever smaller restaurant groups to bring custom, differentiated products

Everyone will have a different list of drivers for the future of the restaurants, so it’s no surprise I have mine. These, including Technomic’s outstanding insights, are worthy of due consideration and provide fodder for a SWOT analysis of most any restaurant.

But are there more? Are there any others that are missing? And what sort of future restaurant do these foretell?

Chipotle: What’s the cure for food poisoning?

Chipotle has a brand problem. It made significant mistakes executing a core principle of any restaurant: Don’t make your customers sick.  The distress its customers suffered immediately bounced right back onto Chipotle — and down, down, down went its customer traffic, its income and its stock. That’s one ill brand.

With the sickening news and bad consequences, the executives had to do something, and they have set forth a “comeback plan.” They “revealed” it recently to the financial community, it all its splendor.

Here’s the Restaurant Business story: http://bit.ly/1Ok8X03

It just might work, not because it’s so great, but because Americans can move on. The same hectic social pace and demand for convenience that gave birth to fast casual restaurants such as Chipotle can help it through this mess. We are forgiving and forgetful. We are short-termers with short attention spans. If we’re hungry and have a hankering for a burrito and a Chiptole’s nearby, we’re there.

But that doesn’t really make the plan that great — because it isn’t. It strikes me as a bit of a “pat answer” to a crisis issue.  It’s what you’d expect from a corporation: They have acknowledged the error. They have vowed to solve it. They are going heavy on advertising to “reassure” the public the food is safe. They assure us our trust is valid and bait us with offers.

But does that befit Chipotle?  Has Chipotle ever been what it could have been — franchised assembly-line chain-restaurant food? Isn’t it about fresh, delicious and “healthy” foods matched to convenience and individual choice? Hasn’t its positioning been hip, anti-establishment and a wee sarcastic — which lends itself to a cool, sloppy mess of a righteous, right-on burrito?

What Chipotle really should have done was something hip, honest and transparent that tied back to its brand traditions and meaning. Without being flip or dismissive, they could have explained how their ingredients are sourced and handled, what risks that presented and how those risks played out, how they conducted themselves in discovering and addressing the problem, and exactly what are they going to do to make sure it doesn’t happen in the future — all in an visual, engaging and participatory way. Let’s see the executives and the workers, let’s hear their voices and see their faces and let’s visit the fields and the back-of-house where the food is handled.

This would have been more true, more authentic and hence more effective than what they did.  This would have reminded people that Chipotle’s heart has always been in the right place and its food and dining experience will remain fresh and for-you. This would have provided a human connection — which is what restaurants in general and Chipotle in particular provide beyond their food.  None of that changes — not the fine ingredients, not the interaction with the food prep people, not the wonderful burrito you love to eat — except one thing does change: attention to specific details that ensure customer safety.

But, instead, you get ads and a website with a corporate letter from cool rich guy Steve Ells.  It’s a lot of reading of a lot of words that have gone through a lot of editing by a lot of lawyers who make a lot of money off of cool rich guys.  It’s devoid of soul, emotion or connection, and makes you wonder if the same brand team that handles Volkswagen handles Chipotle.

Thinking, for sure, that transparency is important, Chipotle also posts a recap of the events and how they handled them.  Again, in the sterile, matter-of-fact approach of grey suited lawyers and PR writers that does not fit the brand.  It’s more of the soulless same, because “transparency” delivered as this is shows no soul.

The beauty here, though, is that things could work out just fine for Chipotle. Perhaps boring copy-heavy ads are the best way to sweep an issue aside. Perhaps showing more would create some legal crack for regulators or product liability lawyers to weasel through. Perhaps the Chipotle brand had enough intrinsic equity that people are willing to forgive and forget the bad news. Perhaps it doesn’t ultimately matter because people like Chipotle burritos, people get hungry and Chipotle’s quick and easy and hits the spot.

Perhaps the soul of this brand never mattered, after all.  That’d be my guess if I were asked what the people were thinking when they created this “comeback plan.”

Who’s your customer?

Who’s your customer?

Customers are central to any business.  After all, without them, you have no business.

Understanding them is critical to any business plan. The more you know about your customers, their behaviors, their preferences and needs the more successful you will be in positioning your brand, reaching them efficiently and innovating value-added features.  Knowing your most valuable customers can help identify adjacent segments to sell, as well as set in motion loyalty programming to keep them.

But many B2B operations, it can be tricky business.  Take a B2B food & beverage business that markets salad dressing.  They make the dressing, the distributor buys the dressing.  The distributor resells it to a restaurant.  The restaurant puts it on a salad that sells as a side dish to a patron.

Who’s the customer here?  Is it the distributor that the food maker sells and invoices?  Is it the restaurant that demands the distributor carry that dressing brand and flavor?  Is the consumer who orders the salad and enjoys that dressing on it?

In today’s B2B2C world, you would argue all three and be right. Without delivering a meaningful value to everyone in the channel, you haven’t got much.

But this can be troubling to the data-driven marketer. Yes, you can track the distributor customers quite well, through their purchases and invoices.  But information on from there can get sketchy.  Who is buying that dressing sold to that distributor?  Who are the restaurant guests ordering that salad?

Hence, marketers need to dig deep to identify and profile their valued customers and prospects beyond the large national accounts. To varying degrees of sophistication and dedication, these B2B2C marketers tap and organize the findings from several key resources, including:

  • CRM Databases
  • Broker partners
  • Distributor partners
  • Buying group data
  • Promotional redemptions
  • Syndicated databases
  • Proprietary research
  • Secondary research, media reports

 

For key channel players, the buying types, considerations and processes are important to understand:

  • Who are the big buyers in the category?  Who are the big buyers of our products?
  • What role does our product play in their business?  What are the primary and secondary uses?
  • Who makes the decision and who influences it?  Do certain titles make all the decisions, while others are a source of ideas or input?
  • Can we segment them — the businesses or the people — in any way?  What defines buyer’s styles, attitudes, beliefs or needs?
  • What are their buying habits?  Is it a considered purchase with a lengthy review or a routine purchase that’s more or less an auto-order?  Are they brand loyal or brand apathetic?  How do they learn about new products?  When do they buy?
  • What rational needs does it fulfill and what emotional factors are at play?  Is price all that matters or is trust or some social status involved?

 

A target profile for each channel participant falls out of this effort to guide growth strategy and programming.  Now it’s possible to create a comprehensive and integrated plan for developing new customers, enhancing sales to existing segments and creating innovative new products to meet the customers needs.

On a more granular level, you’ll also put within arms reach your most valued customers.  Here, you can go even further with customer-specific strategies to fortify the relationship, build loyalty and cultivate advocates.  These customers may provide the testimonials and endorsements needed to grow elsewhere.  Also, because they purchase the most or deliver the highest margin or profit to you, these are evidently the customers that derive the greatest value from you. As a marketer, you need to understand the shape, source and delivery of this brand value so that you can showcase or replicate it elsewhere.

So who is your customer?  It’s not a trick question.  It’s just a tricky answer sometimes.