Two Key Questions For Every New Restaurateur and Retailer

We’ve worked with a lot of people opening restaurants and retail businesses over the years. Through this experience, we’ve been able to zero in on a couple of things that separate the successful folks from the ones that struggle. There are exceptions to every rule, but the following has held true for the vast majority.

Avoid being one of the staggering statistics of restaurant and retail failure rates. Have a clear point of differentiation and be able to simply explain it to a customer. If you can’t state why your restaurant or shop is special, how on earth do you expect a customer to do it? So, build strong answers for these two questions and use them as guides for every decision you make for your business. The result will be a clear message to every customer that walks through your door and simple communication across your website, social media, and marketing efforts. Simply put, write down the recipe for your secret sauce.

 

Question 1:

What’s The One Thing You Want To Be Known For?

First and foremost we have to identify the key ingredient that makes people come back time and again. Maybe it’s a ridiculously good signature product, maybe it’s your over-the-top service, or maybe it’s your unbeatable atmosphere. We can’t create a recipe for your secret sauce until we’ve nailed down the key ingredient.

The important thing here is to focus in on the one thing that really differentiates your restaurant or shop. You can only have one key ingredient. Trying to say you have four different key ingredients will just lead to a watered down and generic message.

People will eat on paper plates if your fried chicken is ridiculously good. People will put up with decent food if your beer list is a beer drinker’s dream. Customers will find a way to drive across town if you have a killer shopping experience they can’t find anywhere else. Put all your focus on having one absolutely awesome ingredient for a winning secret sauce.

Obviously, you can’t say that your food is so good that you can treat people like shit. Use a little common sense here. We’re just saying that you need to have clear focus on what the one thing is that you’re going to be known for as a restaurant or shop and build around that one thing with complimentary flavors. You lead with your one thing and build everything else around it.

Answer It Now:

What’s the one thing you want to be known for?

 

Question 2:

Why Should I Choose Your Restaurant Or Shop Over All My Other Options?

Once you’ve answered number 1, you’ve got a head start on this answer. However, I’m sure you’re not the only one that says they want to be known for ridiculous good fried chicken. You need to be able to verbalize why your fried chicken is better than all of the other fried chicken joints. Again, if you can’t express why your fried chicken joint is the go to for anyone who loves fried chicken, how do you expect a customer to do it? Maybe you’re the only fried chicken specialty that’s totally boneless (I know this is an odd example…who would do boneless fried chicken). Maybe you have a secret recipe that has been in the family for decades. Maybe you have a signature batter that can’t be duplicated. Or, maybe your wait staff wears sexy chicken costumes.

The one key is that the answer can’t be, “Our chicken is the best.”

That’s as generic as it gets. Everyone claims their chicken is the best. What is it that you genuinely do different and/or better than all the other chicken joints and restaurant options? If you don’t have something now, develop something that makes you unique. You must build anticipation and intrigue into your positioning. It’s amazing how much better something tastes if we know the story behind it, or if it’s been built up in our head.

Answer It Now:

Why should I choose your restaurant or shop over all of my other options?

 

Long story short, make it easy for people to understand what you do extremely well and give them a reason to want it.

Answering these two questions can lead to some changes to your business. You may realize that you’re offering a generic experience with no real points of differentiation. If this is the case, take massive action. The surest way to failure is mediocrity. Nobody wants or remembers mediocre. People remember exceptional.

If you’re just getting started, you’re at the perfect point to make sure your message is focused and that you have something exceptional that you’re offering. Sacrifice in one area if needed to make sure that you’re exceptional in another area. Like we discussed earlier, people will overlook some deficiencies in one area if you are truly fantastic in another area.

We spend a lot of time working with our clients to nail down these variables before helping them design their visual identity, their restaurant or store interior, website, and marketing strategy. We want a strong foundation upon which we can build everything. Otherwise, you’re running the severe risk of being just another statistic.

Perception Is Reality In Branding

 

Your brand is not your logo.

Your brand is not what you say it is.

Your brand is what your customers say it is.

Branding is the art of shaping perception. 

This sounds simple enough, but it’s not. Crafting the perception you desire takes research, strategy and precision execution across every form of communication and every customer interaction. Successful branding starts with building a specific ideal customer persona, progresses to a communication strategy around your USP (Unique Selling Proposition) that will act as a company bible, and finishes with consistent execution across:

  • Logo
  • Positioning Statement
  • Website
  • Store/Restaurant Environment
  • Social Media
  • Advertising & Marketing
  • Employee Communication
  • Customer Service

Every point of customer interaction must be aligned to create the desired perception. Consistent execution of the same message and/or experience builds recognition, and from recognition grows perception.

Action Steps:

  1. Build your ideal customer persona. At the end of this you should have a specific person you’re talking to, not a demographic profile. What do they watch? What do they read? What do they eat? What do they drink? Where do they shop? How old are they? What do they do for fun? Do they have a family? What kind of house/apartment do they live in? What’s their name (literally give them a name so you’ve created a person to talk to)?
  2. Define your USP (Unique Selling Proposition). What do you do better than anyone else? What is the one thing you want me to remember about your business? Why should I choose you over the competition? Your USP should be unique. Avoid generic BS that everyone says. Tap into what truly makes you different. If you don’t have anything truly unique about your business, you need to spend some serious time working on your product and/or service to develop a differentiator before taking a step forward. A few examples:
    • Zappos = Customer Service Above All Else
    • Apple = Design Driven (Products, Stores, Packaging)
    • Toms = Giving Back (One for One)
  3. Write your communication strategy. Once you’ve defined your USP you can translate it into a communication strategy that will act as the guide for everyone in your company as well as all of your vendors. This document will precisely spell out what your USP is and how it should be consistently conveyed across all forms of communication. Keep this document extremely simple. The key is for everyone in your company to be able to easily convey the same differentiating points using the same language without having to go back and read it from something.

What’s So Great About You?

Believe it or not, that’s what’s going through every customer’s head who sees your product on the shelf.

I’ve got a lot of choices (no matter what product category). To earn my purchase, you’ve got to make a connection.

This is the purpose of design.

Design is like a megaphone-wielding supermodel standing beside your product calling to each customer.

Following the standard practices of the industry and just doing what everyone else does is silly. How are you possibly going to stand out on the shelf? If you can’t stand out, you’re left to compete on price.

Don’t settle for the standard when you can design something remarkable. Maybe it’s a completely new type of packaging, maybe it’s a drastically different tone and graphical approach on your packaging, or maybe it’s even a change to your product design. There’s an opportunity in every category to do something surprising.

I know it’s difficult to go against what everyone else in the industry is doing. It takes guts to knowingly avoid “best practices” and explore “new practices.”

BUT, there’s a reason that reward comes with risk. People remember the bold. Customers gravitate to design that makes a statement.

Design allows you to make an emotional connection with customers and compete beyond price. Investing in an exceptional brand and design strategy today will be one investment that continually shows return.

Do You Always Pick The Subway Tile

You can play it safe and build a perfectly respectable business. That’s an understandable choice, but nobody will remember you.

On the other hand, you can zig when everyone else is zagging and create something remarkable. It’s the risk takers that build brands that get remembered.

“I can’t stop thinking about that insanely fantastic subway tile,” said nobody.

I’m not knocking subway tile. I love subway tile. Heck, we’ve used it in multiple retail projects, and I’ve used it in home renovations. It’s a safe bet to appeal to most people. Subway tile is just a great example of something that’s good, but it’s not remarkable.

You know why we use subway tile? It’s cheap. The lack of differentiation leads to low prices. There’s no way for a manufacturer to charge a premium for subway tile.

Is your company subway tile?

Could I tell your brand apart from anyone else in the industry?

I know I want to be remembered. To be remembered, I’ll need to stand out. As hard as it is, I’ll have to go for that Moroccan tile.

If you want to build a memorable brand, you’re going to have to join me and make some bold choices.

Use The Pareto Principle For Branding Success

I’d rather be loved by many and hated by some than ignored by all. Building your brand, marketing, and communications to speak to a very specific ideal customer means you’ll inevitably put off some people. That’s great!

You’re probably saying, “Are you nuts? Why on earth would I intentionally ignore, or potentially drive away some people?”

Because you can’t please everyone. Sacrifice the 80% of people that don’t precisely fit your ideal customer profile to build rabid appeal with your perfect 20% who generate the majority of your revenue. I’m sure you’re familiar with the Pareto Principle (80% of results come from 20% of your actions, or in this case, 80% of revenue comes from 20% of clients/customers).

Branding is the ultimate exercise in the Pareto Principle. You’re working to shape the perception of your company with people who are the best fit to purchase your product or service. The entire world is not a good fit for your product. There is no way to please everyone. Go all in on your 20% and ignore the 80% who are just noise.

Take a stand based on what you deliver that is exceptional for your ideal customer. Don’t worry if your positioning is polarizing. Just make sure you are in line with what your ideal customer wants and needs. We are drawn to people and brands that we feel understand us. Trying to speak to everyone will just leave you with a watered down message that gets ignored.

Action Steps:

  1. Define your 80/20 – Who are the 20% of your customers generating 80% of your revenue?
  2. Review all of your current materials. Are you trying to please everyone? Do your website, marketing and other forms of communication come across as generic?
  3. Build a profile of your ideal customer/client. Where do they live, what do they do for fun, what do they read, what do they watch, do they have kids, how many kids do they have, and all of the other aspects of their life to build a personality. We even encourage you to give the ideal customer a name. Make this ideal customer real and measure all of your communication and marketing against the profile. Will it appeal to (Monique)?
  4. What do you offer (Monique) that she can’t get anywhere else?
  5. Connect these pieces together into your USP (unique selling proposition), or your brand position. Make your USP specifically identify who you’re talking to and what you offer that they can’t get anywhere else. Make me understand why I should choose you over the competition.

Your Company’s Most Valuable Assets

I had a brief email exchange with someone interested in working with us earlier this week. I’ll change details to conceal this person’s identity and industry. I’m using this conversation to show a couple of common errors we see people making as they start their business. I don’t share this to embarrass anyone. I’m hopeful that this post will help similar businesses.

Here’s roughly how the conversation started, “I am interested in a logo and a website for our business. We have limited funds (meaning my business partner does not think a logo or website is even important), but I’m getting a quote and going to make him do it!”

I want to focus on two huge mistakes they’re making as they jump into the adventure that is business ownership.

1. Don’t underestimate the value of a well-executed brand. Your brand is one of the biggest assets your company will own. Taking the time to shape the perception you want from the beginning will pay off tenfold. Don’t think of just getting a logo. Think of how you want to be perceived by the world and the visual identity that will help accomplish that goal. The branding process is much more than just a logo.

    1. You should be considering how to position yourself against the competition.
    2. Where is there a unique hole in the market you can exploit?
    3. How can you deliver your product or service in a memorable fashion?
    4. Write a communication strategy to consistently convey what makes you unique.
    5. Build a complete visual identity system to graphically express your desired message.

The logo becomes part of a much larger asset that can be leveraged for decades.

2. Don’t underestimate the importance of your website. The people that inquired are in the construction, design, architecture, etc…industry. A website will be their primary marketing tool. Doing just enough to get something online is a huge mistake. If they’re going to invest in one marketing vehicle as a service business, it should be their website. They should build something remarkable that makes people want to learn more. Every single potential client will visit their website prior to making a purchase decision. Throwing up a cheap site is a terrible reflection of what you can expect to receive as a prospective client. Their website should portray a sense of quality that puts potential clients at ease.

Key takeaways:

  1. Your logo is just one small piece of your brand.
  2. Your brand is one of the most valuable assets your company will own.
  3. Your website is your most important marketing tool.
  4. For nearly all businesses, every purchase decision will require a trip to your website.

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