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Restaurant Case Study with Agnes- Business Killer 4: Non-traditional Competitors Cont'd:
Posted by Ryan Volberg at February 25, 2008 4:00 PM
Ask the Right Questions to Establish the Best Solution for your Business
Agnes reviewed her sales levels over the past weeks. While sales had improved dramatically (she would have settled for just stopping the decline), once again she realized that there was still untapped potential in her business.
When Agnes was younger, she worked as a ticket agent for an airline. One comment from an airline executive struck her. “We don’t make any money from an empty seat.” That sentiment was just as true in the restaurant business. Tonight, a Tuesday, she looked around her restaurant and counted the number of empty tables. While the number wasn’t too high, it was enough to cause her to think, “What can I do to fill these tables?”
That was a pretty good question, but experience had taught Agnes that the more specific the question, the better the result.
She refined it, “What can I do to fill empty tables on Tuesday night?”
That was an improvement, but she already had a better one, “What can I do to fill empty tables on Tuesday night between 6:00 and 9:00?”
She could feel that she was close, but something was still missing. While she let the problem simmer in her mind, she began looking at the data from her restaurant POS system. While looking at that information, she posed another very specific question, “Over the last four weeks, how many empty tables do I have between 6:00 and 9:00 on Tuesdays?” This number was critical to determine if any promotion or marketing was effective.
That investigation brought her original question back to the front burner. Finally, she had the right question, “What can I do to fill empty tables on Tuesday night between 6:00 and 9:00 with customers that I normally only see on Saturdays?”
Agnes saw the concept of marketing and promotion very differently. She felt that marketing was something that you did for people that weren’t yet your customers. Promotion, on the other hand, was something that you did for customers you already had. This was clearly an example of a promotion
By spending the time refining the question and establishing a baseline so that results were measurable, Agnes had created the structure for her promotion. “Come back this Tuesday night and get a great deal.”
She really liked the simplicity of offering a guest the opportunity to return again so quickly, but Agnes was concerned about using a discount that might cause her guests to devalue her offering at regular price. She needed something that would be compelling but not harm her business.
Next time, we’ll find out what Agnes did, and how that idea prompted a new anchor for her brand that she, her employees, and her customers could all identify strongly with.
Ryan Volberg is the CEO of Vivonet, a company dedicated to ensuring retail and restaurant success.
 Category: Survival Tips Story of Agnes the Restaurateur
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