Expectation = Actual Experience

It is a simple formula for success that many concepts forget in the hospitality or what we call the "people pleasing business". When developing a new restaurant, hotel, casino, or nightclub the formula of Expectation= Actual Experience will determine consumer return visits which is the key performance indicator for survival. Let me explain. All of your advertising, marketing, internal decor, food, service, training, labor etc. must work together to deliver what the consumer expects when they walk in the door so they have a positive experience. If the consumers expectations aren't in line with their actual experience then confusion enters into the consumers mind and they typically will not return. This happens when the value of the experience is lower than their initial expectation. This rule of thumb works for any type of hospitality concept. Unfortunately, if their expectations aren't met they typically tell 10-12 other people who never even become a patron.

Example. If you are delivering a high end 5 star restaurant. All of your advertising, web, staff, food, decor must be 5 star. Anything short and the consumer will be disappointed. Their expectations are high before they even walk into your establishment. If they experience anything other than what they perceive as 5 star, more times than not, they will not return. Like any business you will not be able to survive if this is the case. Return consumer visits is what will make or break your business.

All of the this can be resolved with proper planning. You first must understand who your target market is. Ask " what are they wanting, or what do they demand". Look at your concept through their eyes. This will help you deliver a message that is consistent all away through the the busboy, bell boy, and hostess at the front door. It also will help you determine where your money is better spent to ensure your target markets experience meets their initial expectations.
A poorly planned concept that doesn't understand who their patrons will be will miss the mark and under deliver what they demand. Do your homework before you invest and make sure you understand what your customers will want.

Keep it simple. Deliver on what consumers expect and you have just increased your chances of your concept making it over your competitors.

Recession, Hospitality, Outsourcing....

Recently Careerbuilder released the best recession proof careers. Luckly for us at Leap Hospitality at the top of the list were consultants and the liesure/hospitality sector. The article explains that more companies are moving to outsourcing to eliminate fixed overhead to more effectively manage costs on a project by project basis. The "outsourced" business model helps small and large businesses grow more effecitvely and manage their costs in line with revenues without a large investement. Its a theory we believe in if you can find the right strategic partners to grow with you.

The article continues to mention that liesure and hospitality remain strong in metro areas because less vacations "away from home" are being taken and even though discretionary income isn't as great as it used to be more peoples dollars are spent closer to home. Food for thought as you evaluate your concepts and provide entertainment value inside to cater to your target markets.

How can an F&B concept survive in an uncertain economy?

Well. We never thought it would be here, but unfortunately it is. I have to say I have lived so far in some great economic times the past 15 years. These times prove to be challenging yet not devastating. If you are entrepreneur or someone who has some existing concepts stay tough and see your plan through. Take this time to reevaluate your overhead. Go through your headcounts and expense and look to trim the fat. You will be glad you did when the economy comes back. Remember... there is only two ways to grow. Increase sales or reduce expenses. If sales have grow stagnant or single digits same store sales than its time to evaluate all expenses. Look at your advertising, food costs, liquor costs, overhead, service costs, and utilities. I bet you can find at least 10% you will save to the bottom line. Who wouldn't want to grow 10% in a downturn economy if sales stayed the same? Keep the faith and control the controllables.

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