I just heard about two restaurant owner who got tired of everyone being down because of the economy (and probably their business being down as well) and decided to bring some joy back to their clientele - so they took away the prices. This is a story about restaurants, but the learning is relevant to us all.
It all started with the Little Bay Restaurants owned by Peter Ilic. Because of the credit crisis hitting his customers, he wanted to ensure that they felt that they were getting value for their meal, so for the month of February he's allowing his customers to pay what they want for their meals - and there's no fine print.
In a Reuter's news release, Peter says, "It just seemed the right thing to do with everyone under the cash and feeling pretty miserable."
In Montreal, the Taverne Crescent had been forced to close for lunch on Mondays and Tuesdays since the start of 2009. Then the owners heard about what Peter Ilic had done and felt it might bring back some of the joie de vivre that has faded in the current economic climate.
As happened with the Little Bay Restaurants, most customers have been paying a fair price. Even if they don't that's OK. Nicky Odorisio, co-owner of the restaurant says "If someone pays a quarter and they've never been here before, and they like the product and they like the place, maybe they'll come back for dinner on a Saturday night when it's our regular menu."
He's looking at the long-run, not focused on the short term ka-ka.
I applaud both these entrepreneurs. Instead of just cutting back and shutting down, they're focused on how to create unique value and a unique experience for their clients. It reminds me of a few years ago when Hurricane Juan hit Halifax and shut the city down. power was out for days, so not only did most homes lose all their food, so did all the restaurants. Most did nothing. The Ardmore Tea Room on Quinpool Road, however, realized the food was going to waste and they knew that many people didn't have supplies, so they set up a barbecue and gave away 2,000 meals.
The kicker - as of the writing of this story, the Ardmore Tea Room still hadn't received an insurance settlement for Juan. This was an act of pure service to the community.
During Hurricane Juan, every restaurant faced the same crisis. Only one looked at what they could do and how they could make a difference and serve the community. In this current economic crisis, many restaurants (and other businesses) are facing challenges and downturns. How many are taking action like Little Bay and Taverne Crescent?
Most restaurant owners would say that these people are crazy and that they're going to lose their shirts - and use that as a justification for doing nothing. First of all, that isn't happening. Yes, there are people getting a free lunch, but there are others who are paying more than the meal is worth - and they'll be back for other meals at full fare for a long time. Second - whether this works or not, at least they're doing something and looking for ways to create value for and loyalty from their customers.
All of us are afraid and may feel helpless at times. Staying in fear and helplessness indefinitely, however, is a choice. And these entrepreneurs are choosing to take action despite their fear and despite the economy.
I applaud them for taking action, and if I were in their cities, I certainly would reward them with my patronage, now and in the future.
That's my 2 cents. What do you think?
