Gourmet Business June 2014

Know Your Customers

I have just returned from the National Restaurant Association (NRA) show, and I am pleased to report that it was very well attended. I was pleasantly surprised to arrive at the show and find that all of the McCormick Place parking areas were completely full. The recession sure did create a difficult environment for restaurants to thrive, as consumers faced with reduced household income had to cut back on luxuries such as dining out. The increased show traffic is an indication that restaurants are beginning to thrive once again as Americans begin to rebound from earlier financial setbacks.

The keynote speaker at the NRA show was Earvin “Magic” Johnson who shared his experience and success stories with building foodservice and entertainment properties in urban areas. Johnson has devoted his life, after an amazing basketball career, to bringing quality food and entertainment experiences to urban areas that are often underdeveloped and overlooked by large national chains. Johnson must be an inspiration to his employees because his passion for maximizing the customer experience is quite evident. He described his experience opening new Starbucks stores in these urban areas and having to advise the chain how to adapt and understand local tastes. The same formula that worked for hundreds of other stores was not going to work in this new environment, and there had to be subtle changes made in order to maximize appeal to this new customer base.  This joint venture with Starbucks went on to be a tremendous success, and Johnson’s interest was eventually sold back to the parent company.

The point of Magic Johnson’s stories was to demonstrate the importance of knowing your customers. A message that I also preach and is the reason why Gourmet Business has its wonderful GREAT team (Gourmet Retail Advisory Team), made up of a cross section of our audience, to advise us and share their opinions. I urge you to stay in touch with your customers from time to time and gain a better understanding of their preferences and attitudes. You will find that their tastes are always changing, and being aware of these changes will help you adapt your store and merchandise mix to stay on trend.

David Spencer
Publisher, Gourmet Business 

President, HousewaresDirect, Inc. 

dspencer@gourmetbusiness.com