Challenges of Specials

So if specials are so great, why isn't every shop out there doing them? I mean, Starbucks might change their menu boards often enough to drive me crazy (their way of pushing customers towards certain products) but they don't offer promo pricing or even advertise. McDonald's and Wendy's have their special sandwiches, but no special pricing. Why is this?

Specials are a lot of work, and can backfire horribly if you don't get it right. Think about the Papa John's 23 cent pizza give away. It was a spur of the moment decision that did not have the logistic support necessary to even come close to meeting demand. There were understaffing issues, customer flow issues, store size issues. There was violence outside some stores, inability to operate anywhere close to normally, and a plethora of pissed off customers who didn't get their cheap pizza (since stores were out of product by about 2pm in nearly all cases). Absolute nightmare.

Another problem is if no one knows about a promotion. Unless you're able to get the word out, either with advertising or relaying directly to a customer ("...and here's your free scone. We're giving them away all week to let you try our new recipe") you'll never be able to accomplish your goals with the promotion. A classic example of this is a local coffee shop I know that offers a significant discount on coffee when you bring your own cup. I had no idea about this until I saw a another customer get the special rate and asked about it. If they're trying to cut down on paper cup use, they're failing pretty hard.

To recap:

• Make your customers--current and potential, depending on the goal of your special--aware of the offer. Make it clear, define it well, and get the word out. A special no one is aware of is not very special.
• Be operationally ready for it. For the love of everything just and righteous, be ready for the increase in demand/volume/product/everything. If the special takes off, you'll anger customers and stress out employees...not good goals for a promo.

The most brilliant special in the world will only hurt your business if the execution isn't dead-on. Don't design a promotion around what you could do, design it around what you can do.

Value of Specials

"Specials," as in a special price for a particular item, are a key business practice in the food industry. You'll also hear these called "promotions," "sales," and "events." Whether it's a special product (McDonald's McRib or the Wendy's Fish Sandwich that only come by once in a while) or special pricing (Pizza Hut's $10 any pizza deal) a special can do several good things for a company, oftentimes at the same time.

Some of the goals of a special...

• Bring in new customers. Whether it's a new product a customer isn't used to seeing from your business, or they perceive you're typically too expensive a special can convince a person to give your business a try.
• Lure back old customers. Maybe a customer had a bad experience and hasn't been around lately. Or maybe they've just been enticed away by some other chain. Either way, a cheap deal or a novel product could bring them back to the fold.
• Push volume. Maybe I only get coffee from a shop three times a week, but if 20oz of coffee is only $.25 if I bring in my own cup during April (Earth Day is in April, mind you), I'll prolly drop in much more often.
• Alternately, push product count. Buy 3 scones, get a 4th free. Free bread sticks with every large pizza. Each BBQ sandwich only $2 instead of $4 (might see plenty of people buy a 2nd sandwich now).
• Help a struggling line. If sales have dropped on muffins, maybe your customers have forgotten how yummy they are. Give one away with each coffee for a week Changed the recipe on your bagels? Sell them at a discount to lessen buyer wariness.
• Expose a new service or product. If you're trying to encourage a new delivery service, maybe all delivery customer's get a free 2 liter of soda. New dine-in service includes free dessert. Decided to share that new lasagna with the world? Start offering samples or even giveaways for a limited time (with or without purchase).

When the bottom line needs a kick in the pants, a special can do the trick when advertised and operationally supported. Strategic goals, such as expanding menu and services, can benefit just as much if not more from a well-executed promotion. The key there is well-executed.

Rapid Turnover...?

Sorry its a day late...I didn't realize I had only saved the post, not published it!

I'm pondering what to do when you lose two key employees on the same night, a situation my sister is indirectly coping with. It's a simple issue...what are you gonna do when you have to fill slots on the schedule? You can only ask the remaining employees to cover so much, so you gotta hire new people soon as possible.

That often means hiring someone crappy though...someone you don't vette properly because of the time crunch.

This is a two fold issue, since as an owner/operator you sabotage the culture, the efficiency, maybe even the safety and security of your business. As one of the new person's coworkers, you have to directly put up with someone who you have to train, who might have attitude or ability problems.

It's a cycle that means the rest of your key people lose their value as they become demoralized, or even quit. And if you have no key people, you have no culture. If you have no culture (or a culture of "It's just a job") you won't be able to retain employees OR customers.

Death spin! Oh noes.

How do you deal with the issue then? How do you avoid the death spiral of bandaid hiring?

You, as an owner/operator, have to get on line for a few days and fill the spot. Or get buy in from the team, pay out overtime or other perks for people picking up shifts. Bandaid moves...but bandaids that are sterile, and won't infect the wound.

I'm also a big believer in always hiring...so in my shop, I'd have a few people I'd just interviewed not long ago I could call up and get started. Somewhere in all of these options, the shop would weather the storm, with a stronger sense of self. It's more art than science...but I'll try and keep exploring this topic, since good human resource management is hard to find.

Thoughts?

The Culture

Recently, I took it upon myself to stick around my day job an extra fifteen minutes and show a new guy a couple things. Nothing serious...just where the store-use tools are, how to mark down damaged stuff, whom to pay attention to.

It was enough to remind me of the days when I did orientations for Wendy's. Orientations were probably the best part of my job, with training a close second. When you bring a new person into an organization, the first couple days are the key. It sets the tone for their entire experience. Its when you set the standard a person will measure other input against.

It's re-creating part of the organization. Making what you have better (or ensuring its continued success) simply by taking the time to set someone up properly. I think about a startup, a cafe or restaurant from scratch where one doesn't have to inocculate against staff with the wrong idea or attitude...and it makes me happy.

My sister has worked in a coffee shop off and on for the past few years. She's also worked in a small restaurant, closely with the owner/operators. Her opinion is that I romanticize the start up process, creating that culture. Her opinion is that the initial training wave is great, it goes just as you expect...but, after successive waves of new employees, things get less and less shiny. There's more drama, more disappointment.

I think there's a lot of truth to that. I never said it'd be easy to create a culture of excellence, to maintain it, to get buy in from the employees. If it was easy, we'd never complain about the crap service at McDonalds. We'd never wonder why Starbucks can't get our drink right. We'd never hate our boss. I've come close a few times, but I've always been sabotaged by the company. The GM won't buy in, or the company wouldn't allow enough labor hours for training, or the pay is too low for anyone to give a rat's ass.

Starting from scratch, with a blank slate to draw on? I could do a heck of a lot more than try to make a guy feel valued by showing him where to find a wrench, while warning him that Jimbob is full of shit. The possibility is what excites me, the idea of no outside limits on what I want to accomplish.

Mugs

Call me crazy...but I think what holds the coffee is important. Not as important as the coffee inside...oh no no. But when I'm at home, I gravitate towards certain mugs. Whether because it's a style, or a color, or a message. I like my Billy Joel 2008 mug, for instance, because I love the hell outta that guy and got to see him in concert this year. I also have a half-size mug I picked up when my grandmother moved, and it's just so small and unusual looking I can't help but use it.

Most coffee shops give you a disposable cup by default. My one complaint about Dunkin Donuts is they use styrofoam cups...I mean, c'mon now. That stuff will be puzzling the archaelogists for eaons. I think the paper cups that White Castle use really are part of the flavor...you can't help but pick up some of it as the coffee flows through the mouthpiece. Paper is also nice because you can recycle it, and make the cups themselves out of recycled material (watch for that when I open my shop).

Something that just tickles me pink when I go to a coffee shop is when they offer a mug to their dine-in customers. Caribou does this (I believe...though now that I've typed it I'm 2nd guessing myself). Lookout Joe's does for sure. I've even seen Starbucks do it. It makes the shop that much more like home, makes my Wednesday night date or meeting that much more like Saturday morning at home.

So...I think...when I open my shop, there will be an emphasis on providing mugs. Not some standard set from Sysco. Maybe thrift store mugs. A mismatched set. Odd looking ones. Different sizes. Something to provide character, because character brings in repeat business:

Cafe Hound Joe: "Man, I really want some coffee, but...no idea where I want it from."
Cafe Hound John: "What about that place with all the crazy mugs?"
Cafe Hound Joe: *Floors accelerator*

Or something like that. Joe and I were much better at remembering the names of places, for one thing.

More about the selection process, later. But for now, think about it. Do you like a place for coffee because of their cups? Do you hate a place because of their cups? Are you more or less indifferent?

Why I DO Go to Coffee Shops

The main reason I go to a coffee shop is the fact it offers something I don't have. I've broken that down into several areas below.

• Coffee:

Usually, that means espresso. I DO have an espresso maker, but it's the $25 Mr. Coffee version. It makes some yummy stuff...but simple stuff. It's not really good at pulling shots. The steamer is sketchy sometimes and my foaming attachment broken. I can make a latte, sometimes a cappucino, but that's it.

And that's assuming I have espresso beans handy. Not usually the case with my budget.

I also don't keep the same level of flavor syrup, mocha powder, etc etc that your average Starbucks does. If I want something sweet and jolty, I usually have to go out for it.

• Atmosphere

Coffee shops are typically hip, y'know? Places of activity. People around, nice music playing. It typically beats the pants off whatever I have going on at home. It's a nice place to get my think on, because the people and the noises around are vaguely stimulating, but easy to tune out. A nice background noise if I'm planning on writing or reading.

• Friendship

Just read the last few posts about different coffee shops. I was at nearly all of them to meet someone or hang out with someone. Some people think about hanging with friends and go, "Let's hit a bar." Me? I say, "Where can we get a cup of coffee?"

• It's a Treat

Just the other morning, I realized I hadn't had a cup of Dunkin Donuts coffee for over a month. There's one down the road...sort of on the way to work. I could leave a few minutes early and have myself a nice lil treat. I thought that'd be a good thing, since I've been so careful with my money since vacation. I ended up not doing it, but just thinking about how I could get some yummy coffee was a bit of a pick me up.

So while you have all those things against going to a coffee shop...there's some key things you just can't get at home. That's what a successful coffee shop needs to bank on: providing what the customer doesn't have and can't easily get themselves.