Restaurant Case Study with Agnes- Business Killer 4: Non-traditional Competitors Cont'd:
Posted by Ryan Volberg at March 12, 2008 11:00 AM
A Recap of Agnes’s Competitive Strategy
Over the past few months, we've been following Agnes, the restaurateur who was slowly watching her sales spiral downward, and with it, her lifestyle.
We've seen her transform from victim to victor as she came to the conclusion that the reason her sales were dropping had less to do with her competitors and more to do with her own value proposition to her customers.
While her realizations did not make her competitors any less threatening, it was interesting to see Agnes as she used those competitors to provide the clues to what her customers really wanted. Combining those astute observations with her own experiences and desires gave her the ability to compete with companies that had much more in terms of marketing resources.
Agnes used a disciplined approach to draw in customers and, at the same time, to drive more profits to her bottom line.
Each month, she focused on a single aspect to improve her odds against much larger competitors.
Month 1 – The Menu- One simple change that created instant favorites with both her staff and customers.
Month 2 – Service standards - How attention to the smallest of details made the biggest difference.
Month 3 – Delivery - Paying attention to the convenience factor essentially added the equivalent of 40 extra seats.
Month 4 – Minor renovation - Marrying restaurant design and branding gave her restaurant a distinctive, yet timeless feel and breathed new excitement into a mature concept.
Month 5 – Advertising and Promotion - How creating an anchor to tie all of her marketing, resulted in priceless word of mouth in her community.
In the end, Agnes was successful. But more than that, Agnes has come to a new conclusion about the level that she must compete at in order to continue to thrive.
It simply isn't enough anymore to stand still. If you're not moving ahead in this economy, then you're losing ground.
As we say goodbye to Agnes, take from her the lessons of accountability, focus and execution and be brave enough to apply them in your own business.
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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