finding is that restaurateurs must not be so rigid in their strategy that they fail to see
opportunities as they appear. As an example, one of the successful restaurateurs continued
to adjust his operations as the neighborhood evolved, and his place became a popular hangout for college students. He gradually changed the menu to add value offerings and to remove the expensive items that his new customers could not or would not order. Thus, the restaurant, which began
as a small, family-style restaurant, became a large, value-centered, full-service, coffeeshop-style
restaurant for college students.
7. Awareness of specific competitors did not seem to be critical to restaurant success.
Most of the owners defined their competition as any dining establishment; one even went so far as to define the competition for dining dollars as “any entertainment during the dinner hours.” Competition was viewed by most of the owners to be a tool for self measurement but not necessarily something to use to develop strategic defenses.
8. Having a defined target market was not critical to success. Not only was a defined target
market not mentioned by any of the owners as a critical factor, but it was not obvious from the interviews that successful owners could define their target market. We found successful owners who could not determine a demographic or psychographic segment that they appeal to, and, more to the point, some failed owners could demographically pinpoint the target market that they had missed.
9. Likewise, marketing strategy did not seem to be critical to a restaurant’s success. The
owners whom we interviewed rarely used advertising or promotions. One owner mentioned marketing as a critical factor but went on to discuss the target-market awareness, at the same time stating specifically that advertising is not necessary. On the other hand, public relations, community involvement, and customer relations were all considered important to their business operations.
The successful owners, when asked about marketing, all discussed these types of relationships in the community over advertising or promotions. In fact, the most successful owners all stated a strong belief in not advertising and not using promotions. In that regard, one owner stated, “If you
have to give something away then you shouldn’t be in business.”
10. The owner’s skills and knowledge are critical factors. “One should not rely on others,
but should be knowledgeable in all areas of the business.”