Restaurant owners – don’t be like Southwest Airlines!
Southwest has decided to start charging fees on top of fares, thinking they’ll make more money that way.
They used to be the only airline out of the big four not to charge for checked bags; now they’ll start charging for checking bags on May 28th – becoming just like their competition rather than differentiating themselves.
These changes destroy the brand they’ve spent 60 years building, taking their number one selling point – which has led in all their marketing – and cancelling it.
Oh yeah, and flight credits that never expire, say goodbye to those, too.
Watch as they throw out pallets and pallets of those bev naps that say, “No one wants crumbs in their keyboard, but they do want ‘two bags fly free.’”
And spend a lot of shareholder money to paint over all those luggage carts on the tarmac decorated with the slogan, “Bags ride free on me.”
Build Guest Count
The best restaurants become more like themselves and less like other brands.
Restaurants succeed by being different than their competition and telling their story to the guests, lapsed users, and non-users.
Economic factors have inflated your top line, so the most important number to watch cannot be found on your P&L. Instead, watch guest count. Improving that is your number one priority.
You can learn what not to do from Southwest because, in the restaurant business (which, when you really know about it, turns out to be the branding business) your work to increase guest count means Southwest’s strategy couldn’t be a worse example for you to follow.
You must make all your moves keeping your guests’ benefit top of mind.
You must make moves that support the branding work you have built your whole life, whether you have known it or not.
I encourage all my clients to think critically about their brands, even if they have never really thought about it formally before.
Truthfully, some people cannot really tell me (or lapsed users or non-users) what their brand stands for.
They must correct that.
Give Guests What They Value
We do that through menu changes, marketing messages, employee education, and taking a realistic view of our competition.
And through understanding what guests want.
I don’t know any restaurants that have too many guests.
In the current economy, success equals increased guest count – and the only places people come from include other restaurants or their kitchens, dining rooms, and sofas where they eat because they don’t see sufficient value in the experience you offer.
Brand development and operational improvement make guest count, revenue, and profit go up.
If you’re missing that piece, address it now.
