You’re Not in the Restaurant Business
Posted by estiator at 6 September, at 07 : 27 AM Print
MANAGING FOR SUCCESS
By CONSTANTINE N. KOLITSAS Business Coach
COVID-19 or no COVID-19, you’re no longer in the restaurant business. You may run a restaurant, but if you want to optimize your earnings, you need to come to the realization that the primary business you are in is not food. Sure, you serve food, but you sellsomething very different.
The most successful chains (as well as the most successful independents) know that they are first and foremost brand-ing companies with the goal of creating a lasting image that will draw customers consistently over time, or marketing companies whose primary objective is to continually keep the business in the public consciousness. Some chains have pivoted to become technology companies—and here, please note that Domino’s, which arguably serves the worst pizza on the planet, is outpacing most major technology stocks in terms of stock price appreciation (nearly double the growth of Alphabet, the company that owns Google). If you still think that Domino’s is in the restaurant business, think again. In the past several years, Domino’s has invested heavily into online technology that enables the company to attract and process orders from a growing list of platforms and devices. Also, it is currently among the companies most highly invested in the technology surrounding self-driving vehicles—vehicles that will have onboard ovens operated robotically and will be capable of delivering pizzas pulled fresh from said ovens just as the vehicles reach their delivery destinations.
McDonald’s, of course, is the gold standard of chain restaurants, again, in spite of the fact that it serves famously horrible food. So, how is it so successful? It markets and markets and markets. Flipping burgers is secondary.
Companies like Domino’s and McDonald’s put their best efforts into creating a presence that consumers can easily find, and an experience for consumers to easily place and receive their orders. They don’t have to be good; they only have to be consistent. Anyone going to McDonald’s or ordering a Domino’s delivery knows exactly what they’re getting. These companies don’t have to impress guests with every bite, and they seldom, if ever, do. Their brands are about low prices and convenience. Their job is to make sure that their services are continually in the public consciousness.
Success is a function of branding and marketing.
So, let’s spin it to your business. What’s your brand? If you look at the Mount Kisco Diner in Westchester County, NY (about 40 minutes north of Manhattan), you’ll get an idea of how a tried-and-true classic Greek diner has reinvented itself through a contemporary brand reboot and a wildly successful marketing campaign. Its Instagram page is filled with colorful, oozing, gooey, mile-high concoctions that make viewers salivate. Mega Shakes piled with ice cream and topped with things like a full slice of pumpkin pie or a mini cake laced with confetti sprinkles jump off the screen. In the meantime, the diner’s menu is a mix of classic fare and extravagant takes on comfort food. And while the food is good, and the menu fun, success for the operation is to a large extent a function of its rebranding and the manner in which the management has gone about marketing that brand.
I personally own and operate a more upscale eatery, Greca Mediterranean Kitchen + Bar in Litchfield County, CT. When creating the concept, I understood that the restaurant’s brand lies in the redemption of Greek cuisine for suburban markets. Taking cues from the growing upscale Greek eateries of places like Manhattan, Chicago, L.A. and Miami, Greca’s mission is to bring upscale rustic and reimagined Greek fare to the masses that live outside of the big cities. The task is to break the impression of mass-produced, frozen, or cheaply made Greek specialties by focusing on homemade, beautifully crafted foods while at the same time educating our public about the cuisine—from the ingredients used to the multisyllabic tongue-twisting names of the dishes. Toward that end, the restaurant maintains an extremely dynamic Facebook and Instagram presence while regularly posting YouTube videos (“What’s Dino Eating”) that feature me explaining and enjoying one of our menu items or specials.
I spend several hours each day creating posts, crafting the brand, and shaping the restaurant’s image and message. Yes, we sell food at Greca, but that’s just a part of what we do. First and foremost, we sell an experience (of which food and hos-pitality are crucial components). Every facet of the operation speaks to the brand, which informs that experience. Plate pres-entation, glassware, and the design of the space all take their cues from the brand. Inside, we don’t have blue-and-white; we don’t have tourist posters or wall murals of islands. Instead, we have a concrete floor that’s stained and techniqued, lots of barnwood, wrought-iron fixtures, and subway tile. The use of natural components is a conscious reflection of the kitchen, our use of fresh, natural ingredients to craft amazing meals.
So far, the response has been overwhelmingly positive.
Constantine Kolitsas is the president of CNK Consulting, a restaurant consultant and coaching business. he can be reached at 203-947-6234 or at ckolitsas@gmail.com.
