Cafe Owners! Get The Unfair Advantage Into Your Business Strategy
Channel: Hamish Young
Date: 2024-02-29

This video shed light on how complacency (the absence of a competitive advantage) can create chaos for cafes. 

It's what sets your cafe apart from the myriad of options out there?

The underlying advantage of why having an unfair advantage is most cafe owners don't even realise they need it to gain attention and attraction of cafe goers.

With thousands of cafes in operation around the country a common thread between them is they all potentially believe they are different and therefore have what customers want.

The reality is that they're all necessarily playing the comparative game. Competing on price and marginal product quality to win over a finite amount of customers in their local market. 

If everyone is playing this same strategy how can anyone truly stand out from the crowd and maximise their business potential. 

The results of not having an unfair (competitive) advantage are low customer numbers and revenue, amongst many others.

That's an eye opening position to be in. 

The beliefs about your cafe may be the limiting factor in why things like gross profit margins are so lean. There's other physical factors such as location, production costs and customer service which also lead to why customers aren't buying from you and they're buying from your competitors. 

Thus investigate the unfair (competitive) advantage. This is a visionary mindset where you, the owner distills the performance aspects of your business and in some ways shatters the cultural norms operationally. 

This means identifying the limits of your process and aim to deliver an improvement to those systems.

Product limitations too play a limiting part in the cafe game. Of course everyone has "good" coffee. At least to them. 

But what does that really mean? Are we making the coffee that we like or listening to our customers and delivering what they want?

I personally love V60 filter coffee. But the statistics indicate that the majority of customers enjoy milk based coffees such as lattes and cappuccinos. 

That doesn't mean putting up milky coffee doesn't come with innovation. In fact quite the opposite it true. There's a real art form in steaming milk. 

Moreover a competitive advantage could come from sourcing a unique and improved milk for steaming. It's the aroma and the mouth feel that set off coffee drinkers. The temperature makes a massive difference to the texture and flavour. 

For the low cost of trialling different milks and finding the perfect recipe for coffee extraction and milk steaming you will set yourself apart from those who buy the cheapest coffee beans and milks. 

While this seems ludicrous almost all people who aren't at the high end of being competitive in the market think this way. 

They balance costs with quality, not just in product but in service and packaging. 

However, don't try to fool your customers. I mean packaging as in the whole experience. A fancy coffee cup is useless without a brilliant coffee to accompany it. 

Packaging is the venue, the staff demeanour, the online messaging and aesthetic, it's the communication in person and online, it's frequency and consistency. 

The unfair advantage has people who portray the image you designed. There really isn't an option to be bad at customer service in the scenario of a competitive advantage. This is a huge limitation in being competitive. 

timestamps
00:00 Intro
00:18 Losing the competitive advantage
01:40 The "aha" moment
03:14 The unfair advantage
04:00 A comparison between businesses
05:15 Getting the competitive advantage back (unfair advantage)
06:39 Cafe customer's no. 1 frustration
07:20 Create standard procedures
07:49 Choosing the right products
08:37 The chess game
09:40 What products do customers really buy?
09:58 Doing research
10:30 Competition is rising
10:54 Competitive (Unfair) advantage checklist
11:40 Competitive Advantage benefits and summary

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Camera: Samsung S23 Ultra
Editing: CAPcut Pro, Adobe Premiere Pro
Thumbnail Creation: Canva
Artwork: Midjourney
Sound: Epidemic Sound https://share.epidemicsound.com/tnz355
Mic: M-Audio USB Uber Mic