Will you put the weapon down so we can talk about this? Some
of you are pissed, big time, because of the nuclear option Tom Feltenstein suggested this issue in a roundup of tactics for besting the competition. Okay, in this
instance the projected outcome was the death of a rival restaurant. And that,
you’ve screamed loud and clear, is going too far.
Strangely, the flashpoint isn’t the tactic itself but the
matter-of-fact observation that it could force a competitor to close. Before
publishing the article in our Skills section, we discussed Tom’s recommendation
because it definitely went beyond offering superior food or service. Some might
call it a dirty trick.
He advised restaurateurs who see a sparkling new competitor
open nearby to snuff it right away, not by starving it of business but by
sending too much traffic its way. The idea was to feed the newcomer more volume
than its staff and inventory could handle, leaving customers frustrated and
unlikely to return.
“Let’s say your new neighbor, “Burger Emporium,” is planning
its grand opening a block away from your fast food restaurant,” Tom wrote. “You
take out a full page ad, inviting all the customers who share a the same
trading area to go to the Burger Emporium grand opening. Also run a direct mail
campaign conveying the same message to 10,000 people in the zip codes you share
with your competitor.
“A store that used this incredibly powerful tactic ran its
competitor right out of business shortly after its grand opening.”
Who knew Tom could be so diabolical? (Those of you with your
hands raised can e-mail me at promeo@cspnet.com.)
One of you called to alert the editorial team that we had
one less subscriber. Other love missives were delivered via e-mail. Given the
count of how many people read the story online, we’re likely to get more of
those mash notes in the days to come.
Obviously we don’t regard a potentially lethal marketing
idea to be a sacrilege for the industry. Isn’t generating casualties the blue-sky
objective of any ad campaign, menu revamp or chef change? They’re called killer
ideas for a reason.
And what’s the alternative? Aiming only to make rivals a
little hungrier, not to starve them? To leave them marginally profitable, just
not fat and happy?
That’s our position, though we’re open-minded enough to
reconsider. We know what the First Objectors think. What we’re wondering is the
take of everyone else. Did we let Tom go too far?
In return, we leave you with this quick listing of the Five
Most Controversial Stories in Restaurant Business’ publishing history:
--A cover story that looked at the not-so-subtle prejudice
in some industry quarters against gay employees. One letter written in response
addressed me as Mr. Homeo.
--An editorial insisting that guns have no place in
restaurants, a response to the National Rifle Association’s announcement that
it planned to open a shooting-themed eater-tainment place in Times Square to
teach the world that firearms and foodservice are a wonderful match. We can’t take credit, but the restaurant was
never built.
--A cover story headlined “Bloody Murder,” looking at the
prevalence of shootings in restaurants. The cover was a silhouetted gun, the
tracing of a pistol brought in by a staffer for that purpose, set against a
blood-red background. Many readers thought it was too lurid. Some of us on the
staff agreed.
--A cover story that looked at a statistically proven racial
bias in tipping. New research showed that African-Americans tipped less than
Caucasians, validating a widely held contention among servers. We looked at how
the disparity had prompted full-service chains to avoid black neighborhoods,
and what some people were doing in the industry to resolve the issue. The angle
was, How does the industry address this issue without looking prejudiced? The
reaction we often caught: Just running the story is proof of your bigotry.
--A quote from Lee Iacocca in a story about KooKooRoo, in
which he’d invested something like $10 million after retiring as the head of
Chrysler. To draw dollars from a savant like Iacocca anointed the home-meal
replacement chain as a concept to watch. But to quote Iacocca’s quote, “I don’t
give a fuck about KooKooRoo.”
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