Restaurant Focused On Customer Value

I came across a great story showing how a restaurant’s thinking is about the customer first leading to repeat customers and more profit.

Here is a link to the story.  I would recommend taking 2 minutes to watch the video of the story.  It is well worth it.

Passing along increased food prices just upsets customers.  I know I have quit going to a few restaurants because the same meal was now $2 more.  Multiple that by a family of four and over time that gets very expensive.

The hidden way a restaurant passes on increased cost is by keeping the price the same but giving the customer smaller portions.  Either way this is an example of Price = Profit Wanted + Cost.

This restaurant (Avenue’s Bistro) is trying not to pass on the increased food prices to its customers.  Instead they are trying to hold their prices steady with a unique strategy.  No.  The restaurant doesn’t buy lower quality food.  Instead, they look for high quality food that is less expensive and can still hit the menu price points their customers come to expect.

The manager talks about giving value to the customers.  Understanding the customers want quality dining experience for a good price.  The customer wants a good meal with generous portions at a reasonable price.  Changing the menu based on what food they can get within their cost range also gives the customer different options of food to try on a regular basis.  They seem to be focusing on the model of Profit = Price – Cost.

The restaurant may not be lean but there seems to be some lean like thinking going on and focusing on the customers is a great practice.

Have you seen any restaurants that seem to be using lean like thinking?


Posted on November 9, 2011, in Customer Focus, Misc, Quality and tagged , , , . Bookmark the permalink. Leave a comment.

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