by RonnieD » Tue Jul 08, 2014 1:50 pm
One of the things I drill into the head of every new owner we train is that in this business it is better to be consistently bad, than inconsistent.
Consistency
A customer's expectation is the most important part of your survival as a restauranteur. Most restaurants are successful because they consistently offer a high quality product at a reasonable price for said product. Even more restaurants are successful (looking at you fast food) because they consistently offer a low quality product at a reasonable price for said product. The key is consistency. The reason many restaurants fail is inconsistency. People do not eat at McDonalds because the food is just so amazing. They eat there because it is the same every single time at every single store. It's mediocre at best, and bad at worst, but it's like that every single time at every single store. There is no risk.
Risk
Customers dining habits are a risk/reward behavior. If a restaurant is always good or always bad that minimizes the risk so the customer always knows what to expect when dining. When you can trust the result you are more likely to spend the money, even on something bad, because you know what you are going to get. But when you cannot trust the result, the risk is higher and therefore you are less likely to gamble your money away on a result that is unknown. I no longer buy from Spinellis. Why? Because 30-40% of the time my pizza is a charred mess on the bottom. If it's not a charred mess, then it is AMAZING, but there is too much risk that it will be charred for me to spend my money on it. The gamble is too high. So, what do I do? I pay $5 at Little Caesars. Is the pizza better there? Hell no, but it is the same pizza every single time. No risk. (same reason I LOVE Clifton's Pizza, I have NEVER had a bad pie from there, not in 12 years. Consistency, no risk)
So customers are more likely to eat at a restaurant that has consistently sub-par food just because it minimizes the risk. Steak n' Shake thrives on this. (those shoestring fries are cold EVERY time).
So if the customer knows what to expect before they even order their meal, you have already won more than half of the battle.
You can't just suck and win.
This doesn't mean the key to being a restaurant mogul is serving terrible slop day in and day out. McDonald's didn't start out selling the squashed "meat and bread" pile that they call a double cheeseburger that you get today. They started out selling a high quality (or at least decent) product, and after gaining lots of loyalty, they gradually decreased the quality of the product and the customer's expectations along with it. And they remained consistent through the transition. It was so gradual you'd never even know it happened.
This is why the Big Chains can get away with it and the smaller guys cannot. Case in point: when J. Gumbo's expanded from 3 stores to 8, our (then) investors farmed the cooking out to an independent commissary (we had been doing our own cooking up to that point) and the quality went right into the dumpster. The backlash was horrible (right here at Hotbytes, no less!) because up to that point we had been serving a high quality product and then we suddenly pulled the rug out from under our loyal customer base. We were never satisfied with that switch and as soon as we could, we bought everything back and opened our own kitchen and have been cooking the food ourselves, our way, ever since. It has taken years to overcome that mistake and we still aren't fully out from under its shadow here locally.
You can't make a big change like this until you have mass loyalty (about 5 years ago Raisin' Canes changed their signature sauce, and not for the better, but it seems like they are now big enough to weather that storm as they continue to grow). There is clearly a threshold. It is hard enough for chains, but for independents it is often make or break.
Sure, there are exceptions to the rule. There are a few local mom and pops that seem to go on forever despite having less than stellar food (in my humble opinion), but the key to survival in this industry is consistency. You will NEVER succeed if you are inconsistent. No way, no how. But if you can be consistently good (or even bad) you have a shot.
Money is the key
The reason people still eat at McDonalds, in addition to them being consistent, is that they are also cheap. Their prices apologize for the quality of their food. A $1 cheeseburger basically says "we're sorry, we know this isn't terribly good, but look, it's very cheap!" Way up above I said that you had to be consistent AND charge a reasonable price. The two are dependent upon each other. If the McDonalds Cheeseburger was $8, you would run, not walk, to Smashburger. But because McDonalds is cheap, they set the expectation low and then meet it every time (consistency). This wins loyalty, even in the face of lackluster food. People may still eat elsewhere, but they know they can depend on McDonalds to serve a low quality burger at a low price, so they are more likely to make McDonalds an option when picking where to eat.
So the key to success is consistency and value. If you can offer both, you have two of the most important tools in the box for being a restaurant kingpin. I speak from experience here, because I grapple with these two issues every single day.
There you have it, Robin, I'll take my million dollar book deal, when do we start touring the country?
Ronnie Dingman
Chef Consultant
The Farm
La Center, KY