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It’s never been easy to run a profitable pub, restaurant or café. Even in normal times the failure rate of hospitality businesses is around three times higher than most other sectors. Success has always depended upon hard graft, attention to detail and a firm grasp of some important numbers.
As our pubs and restaurants re-open it’s even more of a challenge to make the numbers add up. The income a dining business can generate is limited by the number of customers it can accommodate. So more separation between tables means fewer covers and less potential income. And the restriction to table service will mean higher staff costs, particularly for pubs. Read more
All of us in business know the experience of receiving price complaints. And they can dent our confidence. It could be a raised eyebrow, a potential customer who simply walks away, or maybe a full-blown whinge. But the root cause of price complaints is nearly always around value: the customer doesn’t see the value in what you are offering. Whether it’s an expensive Michelin star meal or my attempt at a plum crumble, potential customers need to see that they’re getting something they value.
Price complaints are about value
And that doesn’t necessarily mean your products or services are over-priced. It could be that this particular customer just happens not to value whatever it is that you sell. He may even give voice to his feelings in a way that assumes everyone else will share his low opinion of the value. But of course that’s nonsense. For me there’s no value in tickets for a Formula 1 Grand Prix (unless I could see an opportunity to sell them on) but opera tickets have a lot of value; other people would see the value very differently.