When you are running a restaurant, a bar or a café, targeting a niche is key. Why so? Because you can’t satisfy all kinds of customers at the same time.
Of course, it is very tempting to get as many guests as possible. However, if heterogeneity of your clientele starts to increase, you get into trouble. Your offer is no longer tailored to your customers’ preferences but geared to an average customer, who merely exists. And that makes you interchangeable. Already a handful of unhappy guests can be enough to kill your business – by giving bad grades on TripAdvisor, Yelp and Co.
Case study: Just don’t be Ben
Let’s consider a brief example to make this clear. Meet Ben, a passionate bartender and recent business owner. He is running a bar and very proud of his drinks. They are rather expensive, but for your money, you get fancy drinks with high-quality ingredients.
Ben has been spending a decent amount of money on advertising since he opened his bar a few weeks ago. He has been launching different promotions to increase sales. And his efforts pay off. Wealthy guests enjoy a dignified ambience with piano music and good cocktails. At the same time, students are attracted by advertising and temporary offers.
But sooner or later things will get uncomfortable for Ben. Some of the guests start complaining about high prices. Others are irritated by lads that party and play cards instead of enjoying piano music. Consequently, reviews are getting worse, guests stay away, and Ben wonders what went wrong.
Target your niche
Most people who have just started their business would rather parachute jump for the first time than reduce the number of guests. But that might get you into trouble.
Thinking twice on your target group, it seems, is the best way to be successful in the long-run. Actively decide what your favourite guests are. What people do you want to attract and, most importantly, what people will be happy with your offer?
Once, you have identified your niche, focus on it. Think of your target group when you decide on what music to play and what events to host. The characteristics of your customers also determine what your website looks like. And what dishes get on your menu and how expensive they are.
By the way, rather spend less money on advertising than more if you have the feeling that your guests are getting too heterogeneous. Double-check your marketing activities and think twice on how to spend your budget.