A great example of a customer focussed response to the changing economic climate is the creation of of the BYO club (Bring Your Own club), which allows members to save money whilst visiting some of the best restaurants in the country. (See Guardian online for details: http://www.guardian.co.uk/lifeandstyle/2010/jun/20/top-restaurants-embrace-byob-revolution)
The idea is simple. BYO club members pay a small annual fee (£99) and in return they are permitted to take a bottle of their own wine to drink while they eat. The corkage charges range from zero to around £25, still significantly less than the premium charged for wines purchased from the restaurants’ own wine lists.
Although allowing this practice is tantamount to killing a sacred cow, the point is that customers needs have changed, even those customers who can afford to dine at Micheln-starred restaurants. The restauranteurs have responded in a way that means customers will still come through the doors and spend their money. In fact, having taken such a customer focussed step in these difficult times, they may find they attract more customers.
Although this approach will affect margins from wine sales, the overall effect will be at the very least to retain customers and at the best to attract more. Customer loyalty will be enhanced and therefore the outlook for these businesses will be improved. Food for thought in my opinion (pun intended!).
Tim Edwards, Senior Consultant
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