I have previously spoken about the idea of super traders, which is that in any given area there will be certain operators that trade significantly better than others. Looking at some of the smaller independent restauranteurs that surround super traders such as Zuma, Cipriani, The Ivy, Five Guy's and Duck & Rice (to name a few), they don’t trade anywhere near the levels of some of the neighbouring super traders creating significant distortion.
What is the secret behind these super traders - why is it they can trade sometimes a 1000% more in relation to turnover and or profit?
Most people you ask this question to will say it is the concept, “they have just got the concept right” and they know what people want. However, I have to say that I quite disagree with this.
Whilst the concept does have to be right, the two most important ingredients of any of these super traders is the team behind it and the plan they put in place. A lot of the operators dwarfed by these super traders tend to be tactical businesses.
They don’t plan, they react.
They don’t know what next week’s campaign is never mind next month’s campaign, whereas some of these super traders are planning months, if not years, in advance to ensure that they capture their target market, to keep them interested and coming back.
In addition to this, a great team who is motivated and excited about reaching to a certain point in their concept’s journey is essential.
Take for example, Franco Manca who recently won a number of awards. The team behind it is mainly ex-Pizza Express who are not only experienced and true professionals, but they are also trying to crack the new age pizza concept, which offers not only great value but also has real imagination in terms of its marketing. We saw this a lot in years gone by with the burger concepts, yet not all gourmet burger concepts survived. For example, Hamburger Union and Natural Burger Company, both were well founded start-ups however due to a combination of the team and lack of planning they didn’t make it. Whereas Gourmet Burger Kitchen and Byron have stood the test by getting the people and the plan right. So, if you are about to venture out and set-up a restaurant business, yes of course you need to be priced right in the marketplace and offering what people want, but the key is to stick to a strategic plan.
At the Cedar Dean Group, we have real experience from doing this ourselves and with a three-year plan in-place that our team are excited on working towards. Our vision is to help add significant value to operators along their journey and we do this in a number of ways, both property related as well as corporate, and work as a team together to achieve this. By using this approach ourselves we are able to help other operators to implement these plans, allowing them to become super traders themselves, which is what is required in a market which is extremely crowded and only the best can survive.
Our door is always open for a chat in our humble Soho abode.
Have a lovely Easter break.
CEO Cedar Dean Group