HOTELS

Bob Puccini

The Value Quotient
October 29, 2008

In this troubling time, I was thinking the other day about how to describe value to one of our clients, and how to add value to their restaurant. Everyone wants value, but is value pricing alone? What I have found is the following:

Value = Quality + Service + Environment
                    Price

I want to give you two illustrations: The first is a restaurant in a suburban market in the United States that I had dinner at recently with some friends. It had been a long day and I really just wanted a good steak, so I ordered the US$32 filet mignon. The filet was ok, but the starter salad did not have dressing on it—I needed to ask for it. The server forgot bread and it took 15 minutes to get the bottle of wine we wanted. There was low value in this experience despite the moderate price for a filet and I will most likely not be back.

At another moderately high-end hotel resort I was having dinner alone and I ordered the filet again, which was US$42. OK, maybe Daniel Bouloud can get away with that, but it is still just meat right? While the filet was very similar to the US$32 one I had a few nights earlier, the service was correct, albeit a little distant. The ambience was terrific, the lighting was right, the booth comfortable, a glass of wine came on time from a friendly and knowledgeable server. I felt that I received more value from this experience despite the higher price of the meal as I didn’t have to ask more than once for things. Service was prompt and the ambiance was relaxing and comfortable.

In restaurants, I feel that food and beverage is the price of admission to an experience. The better the experience (service, décor, environment), the more people are willing to pay for a meal and the more value they are going to get from the experience. It is a game of balance. Instead of slashing your prices, whether in restaurants or in your business, look at other ways to provide value. Can you have more servers on the floor ensuring all needs are met and a maitre ’d that personally connects with your guests? Go above and beyond what your contract terms call for to help a client in a pinch.

Posted by Bob Puccini on October 29, 2008 | Comments (1)