“What’s for dinner tonight, honey?”  There have never been more answers to this age-old question than there are today.  While this is certainly good news for consumers, it is most assuredly the source of many Excedrin headaches for those competing in the most intense battle for market share the food and foodservice industries have ever known.  Once looked upon as a business in which even the most inexperienced couldn’t fail, today’s mature multi-billion dollar industry requires business savvy, well-conceived strategy and a survival instinct just to stay in the game. 

Whether you’re McDonald’s or Hamburger Habit, Taco Bell or Tito’s Tacos, Starbuck’s or The Coffee Bean and Tea Leaf, there is no question about it, the market is glutted with competition.  Between new product and service categories, franchising, licensing, and dual-branding, dine-in, take-out, eat here, take home, the possibilities are endless! There are more seats than fannies to fill them, and not enough differentiation to engender real loyalty among buyers. The simple truth is that we’re living in a buyers market and the consumer is king.  Anyone who is arrogant enough to believe otherwise is only fooling themselves. 

If you don’t give consumers a compelling reason to choose your restaurant, supermarket or product, for that matter, I guarantee you that they won’t.  In most instances, the decision regarding where to eat or what to buy is made in an instant, usually only a minute — even seconds — before the occasion itself transpires.  That means you must find a way to ensure that your place or product is top-of-mind when that moment of truth occurs.  The key to surviving market saturation is in developing and leveraging legitimate competitive points of difference… those features or benefits that set you apart from the competition either because you are the only one offering them or because nobody does them better.  

It is true that many companies today are attempting to use “critical mass” as their weapon of choice in the battle for market share.  The industry giants continue to get bigger, stomping out anyone or anything that gets in their way.  While the “world domination” strategy is an effective way to ensure top-of-mind awareness among consumers, by itself it is not enough to ensure long term success (after all, T-Rex was the largest of the dinosaurs and look where he is today {okay, the fact that he’s generating box office revenues in excess of $150 million probably makes that a poor example, but you know what I mean})!  If it were, then declining same store sales and consumer ratings wouldn’t be among McDonald’s most serious problems.  

Their arch-rival (no pun intended) Burger King learned this lesson well not so long ago.  After getting caught in the revolving door to the executive suite and advertising war room, management realized that their systems were out of control and their image was fuzzy at best.  In short, they had lost sight of what made them successful in the first place and were no longer leveraging their competitive point of difference.  In the past 18-24 months, the company returned to core menus and values, reminding the consumer — and themselves — what makes Burger King better than the rest…you just can’t beat an old flame!  Is Burger King the only hamburger place that offers flame-broiling?  No, but, those who love the flame-kissed flavor know that they can get it at a Burger King virtually anywhere in the world.  Their consistency of experience, convenience of location and strong value perception supports and enhances this legitimate competitive point of difference. 

Companies that are successful over the long haul provide products and/or services that are meaningful to the consumer — they aren’t just talking to themselves.  If you can’t give at least one — and ideally there should be several — truly compelling reason why consumers should choose you over your competition, then why would you expect them to do so?  By the way, truly compelling does not mean: 

      Good food (what’s so good about it?… what makes it special?)
Fast (or friendly) service (compared to what?… my bank teller or my cable company?)
Good value (is that code for “cheap eats”?… the 99¢ burger that’s really worth 49¢?)
Clean (could your operation pass the Prime Time or Date Line tests?)

When you seize upon a point of differentiation, stay true to your positioning.  Don’t abandon it in what surely will result in an ill-fated attempt to be all things to all people.  Two examples from which to learn: 

       TGI Friday’s:  Once known as the ultimate “meet market” appealing to young singles of the seventies and early eighties this concept has successfully evolved into the family-friendly casual dining spot for the nineties.  They did not attempt to maintain the meet-and-greet bar scene while trying to attract families, nor did they try to become the kiddie palace of full service restaurants.  Rather, they grew up, matured and adapted to their target customer’s changing needs. 

     Boston Market:  By contrast, it would seem that Boston Market has violated the very principles of the fast-casual adult positioning that made them so wildly successful in their early days in an attempt to reduce costs and expand their reach to include young males and even children.  Instead of the homey-looking, neighborhood-feeling restaurants they used to open, their latest and greatest units project as much plastic, vinyl and simulated wood laminate as virtually any other — or every other — fast food joint in the industry. 

If you expect your product or concept to be a contender tomorrow, it must be able to generate an enthusiastic endorsement from the unbiased, impartial marketplace today.  If you’re brave enough, try stopping a consumer at random in the vicinity of your product or establishment; tell them that you’re new to the area/unfamiliar with it, and that you’re wondering if you should try it (the product or establishment).  Those that love you will expound upon your virtues, helping you to recognize your true competitive points of difference.  Those who are less enthusiastic about your product or operation will help you quickly zero in on those areas in need of attention.  Either way, be receptive to the feedback and respond accordingly.  It’s the most cost-effective market research you can do.

It doesn’t take a rocket scientist — or even an MBA for that matter — to survive in today’s saturated marketplace.  It takes common sense, commitment to excellence and flexibility in operation.  Here are a few guiding principles to help you chart the stormy waters ahead:

     Go back to basics:  If your product or concept no longer resembles the picture of success it once projected, go to the archives.  Look at the first menus, the initial layouts, and the original recipes.  There you’ll likely find the “secret to success” or at least some ideas for reestablishing successful standards.

     Keep it simple:  Consumers today make snap decisions.  Your “reason for being” must be straightforward and explicit.  Your survival depends on it.

      Maintain customer focus:  Customers are not as fickle as they are made out to be; most executives just don’t pay enough attention to the signals consumers give off.  If you listen to what they like, what they need and where they’re going, you’ll be ready to adapt and respond accordingly.

Take pride in — and credit for — what you do:  Don’t assume that the consumer knows all of the special measures you take to ensure their satisfaction. Don’t just tell them; show them just how much you care. 

Build, don’t cut:  It is tempting, especially in a highly competitive marketplace, to cut corners and reduce costs, but there is a point of diminishing return… you can’t get any lower once you hit the bottom of the cost scale.  Most companies are not over-costed, they are under-saled. 

Don’t be greedy:  If you are fortunate enough to enjoy the fruits of success, remember to share the wealth — with your customers, your coworkers, your shareholders and your vendors.  It will come back to you in spades.