Good Advice, Bad Advice

You're no stranger to receiving advice from customers, colleagues, family members and even strangers on the street. Everyone seems to have an opinion on how to run your business, from menu items to pricing, hours of operation, and even the concept itself. But how do you distinguish good advice from bad? When should you listen and adjust, and when should you stick to your guns?

Let's consider a hypothetical example. Imagine a restaurant that's consistently posting phenomenal sales numbers, but a significant number of customers are complaining that the prices are too high. Common wisdom dictates that prices should be set based on food cost and overhead, and most customers don't have a clue about the intricacies of restaurant finance. Most operators would take these complaints with a grain of salt, letting the disgruntled customers drift away while retaining the loyal patrons who understand the value proposition.

However, what if these complaints are coming from your regulars? The customers who have been loyal to your brand and have a vested interest in your success? Should you listen to their concerns and adjust your pricing strategy? Perhaps consider shrinking portion sizes or employing shrinkflation tactics to make your menu items appear more affordable?

The answer lies in understanding the motivations and expertise of the advice-givers. In this case, your regular customers may not have a deep understanding of restaurant finance, but they do have a unique perspective on your brand and its value proposition. Their feedback should be taken seriously, but it's essential to consider the context and potential biases.

So, how can you distinguish good advice from bad? Here are some guiding principles to help you navigate the sea of opinions:

1. Take advice from those more successful than you: Seek guidance from industry experts, mentors, or peers who have achieved success in their own businesses. Their advice is likely to be informed by experience and a deep understanding of the industry.
2. Consider the source: Evaluate the motivations and expertise of the advice-giver. Are they trying to sell you something or promote their own agenda? Or are they genuinely invested in your success?
3. Look for patterns: If multiple people are providing similar feedback, it's worth taking notice. However, if the advice is contradictory or inconsistent, it may be a sign that the issue is more complex than initially thought.
4. Evaluate the advice in the context of your business goals: Consider whether the advice aligns with your overall business strategy and goals. If it doesn't, it may not be relevant or useful, regardless of the source.
5. Trust your instincts: As the business owner, you have a unique understanding of your brand and its values. If advice doesn't feel right or aligns with your vision, it's okay to trust your instincts and politely decline.

In the case of the restaurant with high prices, it may be worth considering the feedback from regular customers, but also taking into account the following:

• Food cost and overhead: Ensure that your pricing strategy is based on a solid understanding of your restaurant's financials.
• Value proposition: Consider whether your menu items and overall dining experience provide sufficient value to justify the prices.
• Target market: Evaluate whether your pricing strategy is aligned with your target market's expectations and willingness to pay.

Ultimately, the decision to adjust pricing or menu items should be based on a careful analysis of the feedback, your business goals, and the financial implications.

Shrinkflation: A Double-Edged Sword

Shrinkflation, the practice of reducing portion sizes or quality to maintain prices, can be a tempting solution to address customer complaints about high prices. However, it's essential to consider the potential consequences:

• Perceived value: If customers feel that they're not getting the same value for their money, they may be less likely to return.
• Quality and reputation: Reducing quality or portion sizes can damage your reputation and erode customer trust.
• Long-term sustainability: Shrinkflation may provide short-term relief, but it's unlikely to be a sustainable solution in the long term.

Conclusion

As a fast casual food operator, you'll always face a barrage of advice from various sources. By considering the motivations and expertise of the advice-givers, evaluating the advice in the context of your business goals, and trusting your instincts, you can distinguish good advice from bad. Remember to take advice from those more successful than you, consider the source, and look for patterns. Ultimately, the key to success lies in finding a balance between listening to feedback and staying true to your vision and values.

Are you inundated with advice from your friends, family and strangers? Always consider the source when taking anyone's advice about your business.

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