Opinion holder entrepreneur Contributors are their own.
Many people dream of having their own cafe, even if they are not necessarily entrepreneurs. Ideas have an attractive element. In my career, I’ve run into many people who get excited just thinking about the opportunity. Not surprisingly, quite a few have decided to turn that dream into a reality, with significant savings, family money, or disposable income. The hard truth tends to surface months after most of the investment has been put into the project.
When considering this investment, understand that it is common today for brands to be judged by their online presence and number of followers. Prospects are primarily aware of what companies want to see on social media and what influencers are trying to promote. The most ‘Instagrammable’ cafés are often added to many must-visit lists because decor and ambiance affect first impressions. The tendency to splurge on interior design and branding seems somewhat justified.
But how much does it cost?
It’s always a good idea to start promoting on social media before opening, but know that overnight success is a myth. Many new owners tend to get a false sense of security when they find their facility booming during the first few months, and they tend to sag. The consumer is curious enough to join the new cafe hype on at least his one visit, and they come in with high expectations, so be prepared for an enthusiastic follow-through and be prepared for the hype alone. Keep in mind that they are short-lived.
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The clock officially begins when a customer walks through the facility door for the first time. Instant success means that your customers are so impressed with their experience that they leave and want to come back. Conversely, negative feedback is more likely to spread if the overall experience is unsatisfactory.
A 2019 survey on UAE cafe and restaurant trends revealed that only 1 in 12 people post about their positive experiences online without any encouragement from the establishment. However, dissatisfied customers tell an average of eight people about their negative experience. We also found that 1 in 3 of them will post about their negative experiences online. His 82% of regular customers will not return to a cafe or restaurant if customer service is erratic or the quality of food and beverages is inconsistent.
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With all this in mind, it seems prudent to include a cautious and progressive strategy in your launch. We have witnessed the hardships and demise of many aspiring entrepreneurs who underestimated the need to start and maintain a café in the UAE in a market that might be perceived as saturated.
Here are five common mistakes I’ve witnessed first-hand, along with some opinions to consider before embarking on your journey.
1. Overestimate your position
Given the investment to launch a cafe, it’s safe to assume that you’ve done your due diligence and quantified your costs and revenues based on location. Pay close attention to all visible aspects of the property, including noise, local customers, and local competition. If there are many similar facilities nearby, how do they perform throughout the day and how do they stand out in certain locations? Additionally, consider the limitations of your space and future neighborhood development.
Overestimating earnings due to the wrong location of a particular brand can be a costly mistake in terms of time and money.
2. Blatant Carbon Copy Strategy
Customers seem fed up with the constant interior design replicas here, often exact copies of the menu and style of cooking. This open-ended practice encourages customers to compare you directly to your inspiration model.
When it comes to the overall design of the space, we start with the menu at the forefront. This approach helps you plan your equipment and exact space requirements, including the kitchen and behind-the-bar workflow.
Find your niche and establish credibility through offerings or personality while ensuring a highly efficient workflow layout for your space.
3. Ignore staff
Given that customer service is central to hospitality, it’s surprising that the “wrong” staff are in the customer facing role. Due to the need to bring their “A” game to every shift, many staff are not oriented towards hospitality and customers notice it. Many employers prioritize quantity over quantity by hiring subpar staff at lower salaries rather than offering better salaries to attract highly qualified and efficient staff.
Create a comprehensive personnel plan and aim to recruit the right people. In the hospitality business, personalities get repeat customers. An innate desire to learn and core competencies enable staff to steer the business in the right direction.
4. Inappropriate supplier selection
As an owner, you should be involved in the supplier selection process. Get authentic testimonials and references before making any formal commitments. When you’re trying to run your business, there’s nothing worse than premature inventory depletion, late deliveries, and poor raw material receipts. The cheapest option tends to be just that for a reason. This purchasing strategy is not the most sustainable option.
Note that side deals and hustle are an issue. Certain suppliers not only dictate the selection process, but often have ways of intentionally increasing order frequency. I have seen such unethical practices frequently.
Work with suppliers who have achieved integrity through experience and reputation. Identify individual representatives who want to understand your business and who genuinely care about your interests. These suppliers do exist.
5. Initial Contradictions
Appointing the right leadership and team and ensuring strict policies through detailed operating procedures and regular training can limit daily conflicts. A well-organized manager should ensure that detailed checklists and recipes are accessible and diligently followed by all staff.
Customer incidents should be logged and included in daily discussions with the team. Through regular open communication and team encouragement, any shortcoming can be a powerful training tool. Keep your team happy and motivated, and remember that great customer service, product quality, and consistency leave less room for failure.
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final thoughts
An owner’s involvement in one’s business is an invaluable personal touch. Many customers feel a sense of belonging and appreciate the soul of the cafe with its current and active owners. Learn what sells and what doesn’t, based on patrons.
Be aware of your competitors while being ready to evolve and innovate. Adding new items to your menu or replacing non-sellers keeps things fresh and exciting for your guests. We will take detailed measures to
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