A cautionary tale: How LEKR's tenets of restaurant success could have saved Straw Valley

Prosciutto with cantaloupe, parmagiano and vin cotto at Straw Valley Recently, I learned that Straw Valley, a restaurant we reviewed on this blog, had closed. Honestly, I am saddened but not surprised. Straw Valley failed to execute on the three tenets of a successful restaurant: identity, consistency and hospitality. At LEKR we reinforce these concepts with our clients every day. In fact, prior to engaging with a client we confirm that they apply these tenets to their business or will work to fix the weak spots. If your business falls short on any one of these principles, your long-term prospects are dim. The demise may not be immediate, but it will come. Let’s use Straw Valley as a cautionary tale to illustrate the wrong turns that can doom your restaurant venture. And product vendors, they apply to you too.

Identitygraphic jpgWe work with restaurants of all types and sizes, from local casual joints to elegant, destination dining establishments.   What do the successful ones have in common? A strong identity. Identity is more than the name on the door or the chosen décor. Identity is the essence of your restaurant. At its core, your identity is your brand, but also your excellence. What do you do better than anyone else? When a prospective diner thinks of a specific cuisine, your restaurant should be the only one that comes to mind.

Straw Valley suffered from an identity crisis from the beginning. First, there was Straw Valley, then Black House at Straw Valley, the fine dining outlet of the complex. There was an oyster bar, a coffee bar, a beer garden, yoga classes in the courtyard, DJs on weekend evenings. Was it cruise ship or a restaurant?

I say this as a supporter of the restaurant. The space, awkwardly placed on the frontage road behind 15-501 in Durham, is gorgeous. Once inside the gate, you feel like you are in a very sophisticated island location, far away from Durham. However, I feel like the plan may have been overwhelmed by the challenges of the space. Perhaps the chef really wanted a small fine dining restaurant, perfect for the Black House, but needed to monetize the rest of the space to make ends meet. So arose the coffee/oyster bar which benefited from a pretty patio in nice weather, but the narrow interior bar and few tables, were not really conducive to long visits. And then there’s the beer garden/dining patio which never quite found its footing. Casual cocktailers were interspersed with tables of Black House diners enjoying multicourse meals. And the beer garden music and atmosphere had to be tempered to accommodate the diners.

We visited the oyster bar, the Black House for lunch and dinner, and the beer garden for a DJ event. Any of these concepts might have stood well on their own, but the lack of focus would be a challenge for any chef and management team, and clearly pushed this team to its limit.

image33This leads to the next principle: consistency. Whatever you decide to serve, it needs to be the same every time. This is not an unattainable dream, but a requirement for any successful restaurant. Consistency converts casual guests into regulars who will provide the foundation for your restaurant and enables a renewable greenfield of new customers who will keep your business growing.

In the age of social media and self-appointed food critics, consistency is more important than ever. What if a Yelp guest stops by on an “off night?” Those reviews live forever and can damage your reputation in a click. While you may not put much stock in the quality or credibility of those reviews, the general public does. The moral of the story is that you cannot afford to be off on any day.

Straw Valley unfortunately suffered from inconsistency. Our first visit to Black House was amazing. The next visit, I ordered the same oysters with the citrus sorbet and the melting sorbet drowned the oysters. Not good. The fried whole fish could be delicious or incredibly salty.

Many chefs scoff at fast food restaurants, but the best are worth looking at for their ability to produce consistent food at a high volume. Yes, much of that food may be processed, but chains like In-and-Out Burger manage to create a cult following with a limited menu that is executed perfectly. People crave it because they know that the burger and fries will provide the same tasty bite every time. In-and-Out has carved out a strong identity in a crowded burger market and maintains that identity with consistency. People know that there will be few choices. Burgers with or without cheese, fries and shakes. Single or Double, Large or Small. That’s it.

One of my pet peeves is a restaurant that has a menu that seems to criss-cross all the continents. You may consider yourself an expert in many cuisines, but the people you hire are less likely to be so. And they will be charged with cooking your recipes day in and day out. Consistency is in their hands. So focus your menu, hire the best, pay them well, and you will be rewarded.

image18And now, the last, but in many ways most important, pillar of a successful restaurant: hospitality. I feel that many restaurants pay lip service to hospitality, but don’t understand what it means and how crucial it is to their business.   Unprofessional service, indifferent kitchens, and lackluster maintenance tell your customers that you don’t care about them. And then you expect them to return? Would you?

Somewhere along the line, restaurant service in the US changed into a friend-making endeavor to the detriment of the dining public. Instead of focusing on the fundamentals of service and the customer’s needs, we are treated to an introduction worthy of online dating, complete with name, favorite dishes on the menu, and even recently, the type of car that the server’s father drives. Really? Shouldn’t it be about the guest who has chosen your establishment for an evening out? In real life (as opposed to restaurant life), interrupting people’s conversations, sticking your hand in their plate and putting your hands on the rim of the glass would be faux pas, but we see this regularly.

The kitchen should pay attention to detail and the staff should quickly and cheerfully rectify any mistakes. This is closely tied to consistency. If I get a salad with pieces of brown lettuce, I know that the kitchen is not on point. Clearly they don’t care about me and whether I return. This has happened to me more than once and no, I didn’t return. And yes I told the server, who offered a lackluster apology. As anyone who has watched Top Chef knows, you need to taste your food before you serve it and make sure the plates look great before they leave your kitchen.

Lastly, how your restaurant looks and feels is as important as what you serve. This is part of hospitality. You are welcoming me into your restaurant “home” and want me to enjoy my experience.

Hostesses need to understand the meaning of their title. They are often the first impression of restaurant and a nonchalant attitude can turn off a diner. If the host staff cannot even muster a smile, it does not bode well for the rest of the meal. And don’t even get me started on the bathrooms. I have stopped eating at certain restaurants because of the restroom situation.

As with anything, the devil is in the details. Servers need to understand that side work is not something you do when you get bored chatting with your co-workers. It shows you care! Sticky tables, dirty condiment bottles, and spotty wine glasses are all signs of a restaurant that doesn’t care about you.

At Straw Valley, the staff was friendly and solicitous for the most part, if not completely professional. One evening, we rented a cabana with a group of friends for the DJ event. We settled in and ordered wine. The waiter came back with wine in plastic cups. Where were the wine glasses? Being “saved” for the dining room. They were a “little short.” Well when I pay for a place to sit, and a $12 glass of wine, I want a proper glass. Go to the WalMart across the parking lot and buy some glasses if you’re running out.

We often hear restaurant owners lament their ability to hire good staff. It takes commitment on both sides. Hire people who want to learn the business, give them clear direction on their role, and hold them accountable. That wine glass situation? I know our server did not offer plastic cups of his own accord.   The manager who told him what to do is responsible for the lapse in service.

As the old song says, “Little things mean a lot.” I have eaten at thousands of restaurants and the ones that I go back to again and again pay close attention to LEKR’s three tenets of the restaurant business. Whether you are just starting out, or have been in business for years, it’s always a good idea to check yourself and your employees against these criteria. The payoff is increased business, guaranteed.

Reinventing The Food Business, Part One

Cook it and they will come is the modus operandi of most food businesses today. A reason why so many do not reach their full potential. Just add some advertising and social media marketing if guests don't show up in droves, is the advice many a money-grubbing agency will eagerly sell as the remedy to underperformance. Kind of like a chef adding more and more salt to get food to taste good.

A hopeless tactic.

 

Back It Up

Building a business is not easy. Building a food business is even harder. Without consistency of quality and appeal, a food business is doomed to fail. As a four-time CEO, I know all about how success begins with a great product, yet success requires so much more.

The best way to look at a business is as an ecosystem, a set of cohesive activities in which each activity plays a critical role in the ultimate success. To succeed, the best food is important but so is a nice location, an inviting ambiance, an attentive and well-trained wait-staff, great drinks and reasonable prices. In other words the complete experience is what keeps customers coming back.

You think.

The reality is that the landscape of options for guests is constantly shifting and even when you provide the ultimate dining experience, new dining options appear on the horizon to lure your customers away for a swanky night in another restaurant's bosom. Therefore, as a chef you cannot rest on the laurels of the initial menu. You must change and reinvent yourself while keeping regulars appeased with the staples of their fancy.

You think that does it? Think again.

Even when you meet the aforementioned critical success factors with flying colors, you can still lose traction quickly, simply because people are transient and move around. In certain areas they relocate as much as every two to three years. Or they simply forget about you. So even a sizable base of loyal customers, regardless of how you roped them in or how you leaned on your stature as a celebrity chef, will atrophy relatively quickly. Examples abound.

 

Greenfield Access

The key to running a successful food business is one few restauranteurs pay any serious attention to. It is a customer acquisition strategy and a customized set of tactics we at LEKR refer to as access and conversion from greenfield. Let me try to explain in detail using non-technical terms.

The term greenfield is derived from the dairy farm, named after the distinct bright color of pastures on which the cows have not yet grazed and thus the grass grows a beautiful lush green color. A strikingly different color grass from the color of a pasture the cows have been grazing on for weeks. For cows to remain healthy and produce a lot of milk they must be regularly exposed to a greenfield pasture they will then chow down, and in a timeframe that allows the previous patch to replenish itself. Cows are then placed in the next available fresh pasture and the cycle of renewal repeats itself, indefinitely.

Now replace the cow with a restaurant and pretend the grass is people. Like a cow needs fresh grass on a regular basis, a restaurant must regularly be exposed to greenfield customers to keep producing viable returns and remain financially healthy. Why? Simply because the existing base of customers will erode for any or all of the reasons mentioned in the previous section, just like the grass does for cows. A cow will become unhealthy without access to fresh green grass, and so will a restaurant without renewable access to a greenfield of customers.

 

Technology

Technology plays a significant role in a well-defined greenfield access strategy. And while much hyped social media platforms are viable mechanisms to maintain and inform the existing customer base, a base that has already decided to like the food or product based on a past visit or usage, social media provides little to no value to build greenfield access.

Social media is not a viable greenfield access strategy. We should know, because we see and monitor the conversion metrics. Remember: technology can be a tool to achieve a business objective, technology by itself does not constitute the objective.

 

Heads Up

We have spoken with a lot of restauranteurs and producers of food products, and the single common denominator was their lack of renewable greenfield access. Not just because they had not looked at the restaurant from that perspective, but more often because as chef/owner they were heads down in the kitchen, primarily tasked with the nourishment of tonight's customer base.

Be forewarned: running a restaurant without renewable greenfield access is like riding a bike without pedals. A launch with an exhilarating initial push-off will get you little farther than downhill (a honeymoon period in the restaurant business usually lasting 2-3 years).

LEKR's growth strategies help food entrepreneurs install the proverbial pedals to your bike, so the business keeps moving in the direction you want to take it. No bike should be ridden without pedals. No restaurant should be driven without renewable greenfield access.

 

A New Path

LEKR's greenfield access strategy is just the start of how we infuse proven growth strategies to ensure the artistic creativity of food entrepreneurs comes to fruition and blossoms.

We developed a three-staged process to take graduating entrepreneurs along the path to the moon-shot they deserve, maximizing growth along every step of the way. Not by using a cookie-cutter plan, but understanding and implementing the triggers that make your business unique.

LEKR turns the traditional agency model on its head by focusing solely on building growth. And step one is to consistently drive new customers to grow your base, fill seats and buy product.