For a restaurant's success, look to the customer for change

Thomas J. Haas is the president of Thomas J. Haas & Associates Ltd., located in Amelia island, Fla.

Success in the restaurant industry is understanding the customer and always being geared to adjust to altering taste, price points and overall perception of value, This law of the restaurant business never has changed; it is only in some cases forgotten.

This axiom holds for all facets of the business. Part of McDonald's problems stem from customer fatigue and an overemphasis on promotion vs. food, with a menu board that has been almost impossible to understand.

Distinguished dining operations also have to adjust and update their concepts with the thought that they might keep the customer always guessing as to what new experience might be presented along with the standard signature of the establishment.

I had the opportunity to visit the new Smith & Wollensky in Miami Beach, Fla. The expectation was to order a New York strip, hashed browns, tomato, onion and blue cheese salad, or a 50-pound lobster for only a few thousand dollars, and a minimum down payment, which is the standard fare for most steak houses.

When I asked my server for a recommendation, he described his "favorite menu item," which was a giant pork shank that was deep fried and served with killer applesauce.

This item was introduced at Alan Stillman's newest operation, Maloney & Porcelli in Manhattan. The fried ham hock, which was the pork shank's alias, was served on a Rabelaisian platter with a big fork embedded in the surface. Next to the shank was a mason jar brimming with the applesauce, which was flavored with a whole jalapeno pepper floating in the jar. A 1 of this was featured at $22 and was the hottest item - no pun intended on the menu.

History is a very neglected part of understanding the restaurant business. Who is Alan Stiliman, and what are his credentials? Probably the most consistently successful restaurant operator in the business, Stillman owns the ParkAvenue Cafe, Cite, Smith & Wollensky, Maloney & Porcelli, etc., which makes him the major player in multiple restaurant concepts in New York City.

The best exhibit of Stiliman's moxie, or "right stuff," is that he founded T.G.I. Friday's in the mid'60s, which - along with some help from Warner Leroy's Maxwell's Plum in New York launched the casual dining segment of the industry.

The bottom line is that success is a direct result of innovation and creativity, not imitation. Those who achieve constant success do so because they manage their costs and P&L. But first they are attuned to change and have a knack for knowing - not just understanding - their customers. Furthermore, they possess a unique ability to know how to communicate with their targeted consumers.

From McDonald's to Lutece the issues are the same: Customers today have a multitude of dining options. It is up to the restaurateur/retailer to p resent innovations such as the pork shank, converting a commodity product with a less than prestigious image into a new menu feature with a good price point and a more than reasonable food cost.

Menu stagnation creates failure - innovation, imagination and merchandising know-how creates and maintains success that often resembles a greased pig for those fighting change.

COPYRIGHT 1998 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
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