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What About Finance?

What About Finance?

One of the sticking points I see again and again with my customers is finance. Building a new store takes capital and most small businesses do not have the spare cash to pay for a store fitout upfront or are seeking a tax effective solution when funding depreciating assets. The finance option you choose will be based on your financial position and what is right for your business.

As a small business owner, the finances of your business are usually quite closely linked to your own finances. It is common for first time business to be financed by personal capital or personal loans. This allows you to open the doors on your first business but also puts you at a high financial risk if your assets or home are tied to the performance of the business. As your business grows and you open more stores, this problem repeats itself as you need to find capital to open new stores.

I met up with Dane Nicholson from HSS Finance and Xavier Gene from Econex Consulting  to discuss the different finance options available for Hospitality businesses. Understanding your options and when you need to apply for finance will avoid delays in opening your new store.

Commercial Lending

One option for financing your new store is to go to the bank. I have found this is often the first option my clients consider. However, it is generally secured against your personal assets and you cannot be guaranteed that your application for finance will be successful. Your ability to access finance will depend on the risk to the financier. Opening a new hospitality business is considered a high risk for the banks. Because there are more hospitality businesses who open each year to the number that survives, it can be a challenge to convince the bank that your business is a good investment. This is particularly difficult for first time business without a track record of success.

Xavier from Econex Consulting clarified why this is the case. Financing a store fit out is not creating a saleable asset in the same way as building a house. If you borrow $200,000 for a fit out, it is difficult for the bank to recoup this money if you default on the loan. The bank is more comfortable financing assets which have a clear resale value. Usually the bank will ask for other property or assets as security against the loan.

Applying for a commercial loan can be more straight forward for established business and franchises who have a track record of success and can demonstrate to the banks that they have proven systems behind what they do. Even in these cases the application is in the name of the business owner or franchises and specific to the individual site. Working with an experienced finance consultant will allow you to include all the information you need to have your finance application assessed.

Operating Lease Agreement

Because it is notoriously difficult to get commercial loans approved for the hospitality industry, there are a number of other finance options that have been created to fill the gap. A popular choice for hospitality businesses is an Operating lease Agreement.

Operating lease agreements are most commonly used for equipment and furniture. However, some financiers will be willing to cover other areas of your fitout including stainless steel and joinery. Unlike a commercial loan, which is a set dollar amount, an operating lease agreement relates to specific assets.

Dane from HSS finance summarized the basics of an operating lease agreement.

“With a rental agreement, the financier maintains ownership of the equipment, assets or furniture, similar to a secured loan from the Bank. The key advantages to this however include the ability to claim back GST on the payments in each BAS lodgement and claim up to 100% tax deduction on the total payment compared to a Bank loan whereby the interest component is only tax deductible. It also doesn’t secure your personal assets. Essentially this allows you to choose the equipment to want and, rather than purchasing it outright, pay for the use of the equipment as a regular payment. There is usually a term for the agreement and an ability to purchase the assets from the financier and take ownership of the goods.”

The advantage some business owners find with this form of finance is it allows you to keep your capital to get the new store up and running. With some lenders, you may not need to provide a security deposit as you would for commercial lending. This allows you to open the new store and still have the cash you need to pay for wages and suppliers during the first twelve months, which is usually the most challenging time for a new store.

With an operating lease agreement, rather than the bank loaning you money directly, the financier sits in the middle and absorbs the risk. Typically this form of finance does have a higher repayment than a bank loan however has more flexibility and can have tax benefits.

Chattel Mortgage

Another form of finance that may be worth considering is Chattel Mortgage. With chattel mortgage, you select the equipment and furniture that you want to go into your new store and the financier lends you the money to purchase those items. As with a lease agreement, the chattel mortgage is linked to set assets rather than a dollar amount.

The key difference with Chattel Mortgage over a lease Agreement is that you take ownership over the assets. This allows you to claim depreciation and has some tax advantages. Typically, the upfront payment will be cheaper than equipment finance but you lose some of the flexibility as you will be locked into a fixed term contract.

What Do I Need to Apply for Finance?

Finance applications for loans from the big banks are the most thorough, and must contain enough information to allow the banks to assess their level of risk. You may choose to make this application directly to the bank or go through a finance broker or consultant who can assist you with the application process.

As a general guide, your application should demonstrate the experience of the business owner in the hospitality industry and your financial position. The financier or bank is looking to assess their level of risk, make sure the business is viable and that you have enough cash in the bank to support the business through initial setup.

Xavier from Econex Consulting summarized what usually needs to go into a finance application. “If you are making an application to the bank, they will usually want to look at your business plan, financial plan and cash flow forecast for the business. To determine your financial position, you may need to provide your tax records, bank statements and statement of position. You will also to need to show evidence of your contribution and security.”

In your application you will also need to include a heads of agreement for your lease and site information. The location of your site is important to the bank in determining the viability of the business and your lease also contains key information round your lease period and lease amount.

For a lease agreement, the process is usually less rigorous. To start looking at finance, you will need two things: a site and indicative pricing. You will need to demonstrate your experience in the hospitality industry and your current financial position. What the financier is looking to see is that the business is viable. You will still need to demonstrate that you have cash in the bank sufficient to run the business and pay for any parts of the store fitout that do not qualify for finance as part of the lease agreement.

Before you can get finance approved on a rental agreement, you need a breakdown of the equipment costs and the other parts of your building cost that you are looking to finance. There will be elements of your fitout that won’t qualify for equipment finance. It is usually straightforward to finance equipment, steel benches and canopies. Trying to get equipment finance on things like plumbing and electrical is much more challenging. With a breakdown of costs, your financier will be easily able to tell you what he can and can’t finance.

When Should I Apply for Finance?

Timing for finance can be tricky. You will need to have finance approved before your shopfitter can start on site. However, before you can have a finance application approved, you will first need to give your financier a signed heads of agreement for your lease and a breakdown of your fitout costs.

This means that typically you cannot get finance finalised until your shopfitter gives you an itemised quote for your new store fitout. This is usually just weeks before you are wanting to start on site, any delays with finance approvals at this point will push back your store opening as you may be waiting on finance to pay your shopfitter’s deposit.

What is the solution? You can work with your shopfitter and designer to put together an equipment list and budget estimate much earlier in the design process. This budget estimate will only be indicative for your building costs and services. However, it should be quite accurate for your equipment. Your shopfitter should be able to give you an estimate for things like stainless steel benches and canopy. The financier can then sit down with you and look at the indicative costs for opening the new store and how much cash you have in the business.

This initial conversation should give you clarity on the amount you are likely to be able to finance. Starting this conversation early will also make sure you have everything your financier will need to approve the finance. Once you have the final itemised quotes through from your shopfitter, you can then sit down with your financier to run through the costings and finalise your finance approval.

How is the Finance Process Different for Franchising?

Finance applications for franchise stores follow the same general process as detailed above. The key difference is the backing of the franchise does help with your assessment of risk to the financier. In a franchise system, the lender has the confidence that the business will have systems in place, and have head office support for training. There is a level of credibility associated with recognised franchise brands that the operator knows what they are doing and will have vetted their franchisees.

For Franchise brands, the finance applications are still in the name of the franchisee. The franchisor should be able to provide more detailed information about the store costings and cash forecast for the store, however, the financier will look at each site individually as well as each applicant. Some financiers have agreements with particular franchises. However, the franchisee will need to demonstrate their financial position and viability before they will have the finance approved.

 

 

 

Are You Ready To Open New Stores?

Brian Keen from How to Franchise Simply talks to Renew Design and shares three decades experience working within the franchise industry. We discussed a simple strategy to set your business up for growth.0aeebbc

There are a handful of key ingredients that must be in place before a business is ready to expand. When a business owner first looks at expanding the business, they need to look closely at whether they have the right ingredients to open a new store.

The first one is the demand for the product. You have to make sure that there are enough customers who are hungry to buy your product. Secondly, you have to make sure that the business is profitable. A lot of people go out to franchise because they’re desperate to grow and they can’t grow their existing business because it’s not profitable enough. This should be a warning signal. Lastly, once you know there is a demand for your product and that you can sell your product at a profit, you have to know your business model can handle volume.

Preparing your business for expansion is a process of refining your existing business model. As you move through the stages, you will define and clarify your ideas.

  1. Firstly, you have to design the concept of your business. This is your brand messaging, customer experience, marketing strategy and your organizational chart.
  2. Then you need to define your business model a bit more by developing budgets and your territories.
  3. Once you have a clear understanding of your business model and figures, you can develop the detail of your operations manuals and store style guides.
  4. Finally, you are ready to deploy and open new stores.

Develop the Concept for Your Business

Expanding the business is basically taking what you have done and learnt and starting from scratch and saying;

“How will I change this?”

“What will it be like now?”

You may find you need to eliminate some things because they are not profitable. When you expand, keep it really simple. Most successful businesses that grow have a simple flow to them. Break it down to the minimum.

To simplify the operations of your business, start by putting an organization strategy in place. Usually in a small business, the business owner will be wearing several different hats. Before the business is ready to expand, you need to break it down into different segments. For instance, they may be administration, marketing, sales, production, and so on. You then need to describe very simply what those roles are and then list down the key five or six tasks under each one.

Breaking the business down and understanding the key tasks will form the beginning of the operations and procedures manuals. However, before you sit down and write your operations and procedures manuals you need to make sure everything works as effectively as possible.

Define Your Business Model

Once you have simplified your business model, the next thing you need to do is test your business model. Really look at the processes and expenses for your new store and how this will differ in the new stores to your existing store. Consider store setup costs, suppliers, wages and overheads. Allow for an additional marketing and advertising budget for each store.

For store setup costs, some of those figures won’t be viable when you are doing your preliminary budgets and you will need to revisit them later. Budgets for store fit out will vary for different sites however you should start with a realistic budget figure and refine this as you develop your business model.

Who are your customers? The key thing that most people overlook when opening a second store is understanding the demographics of the area in which you are opening. You need to do some research on the demographics, on the statistics, find out about the profile of the customer you are looking to attract.

There is an idea that is often used in marketing called your avatar.  Your avatar is your ideal customer. Profiling your ideal customers before you set up another store allows to look at the demographics in the new area and see how many of your target customers are in the area around your new store. Understanding who your customer is helps you to define your brand messaging and create the experience you want to offer to your customers. This will affect your marketing messages, the language you use to talk to your customers, and the look and feel of your stores.

Develop an Operational Strategy

Once you have defined your business model and customer, you are ready to document your operations manuals. The purpose of your operations manual is to allow you to communicate and train your staff in the operations of your business.  You will usually need two types of manuals, comprehensive training manuals and quick reference checklists.

In Franchising, it is pretty much accepted that you need to open a pilot store when you open your first franchise.  When you open your first business you still have things to fine tune. You need to test your store design and operational systems with staff. You need to see what works and pressure test your systems to find the holes and the things that you have overlooked.

Open New Stores

In the first few months of opening your new store you will be testing and modifying things. You will test the manuals, equipment, layout and business model to make sure it works as effectively as possible. When you open new stores, you need people who can assume significant responsibility, these may be managers or franchisees. You want them to step up to the mark, not because you’re paying them but because they love being involved with your business.

When you have opened your second store, you need to treat it like a newborn baby. What I mean is, monitor it very, very closely. Bad habits set in quickly, and having a system for monitoring the performance of the business will allow you to have the peace of mind everything is on track.

Expanding your business and opening new stores can be rewarding. Asking the right questions and planning in advance will help to keep the process simple.

Just Opened: Beefy’s Pies Mango Hill

Since opening their first store in the Sunshine Coast in 1997, Beefy’s commitment to creating award winning pies and connection with the local community has seen the business thrive. Last month, Beefy’s opened their eight store in Mango Hill  with a fresh design inspired by the history of the brand.

IMG_5397

Taken during the construction of the new Beefy’s store.

Designing the new store was not just about selecting colours for the walls, rather it was uncovering what works for the existing stores and creating a new store design that tied into the existing brand. Renew Design worked with Beefy’s Managing Director Mark Hobbs to define the experience Beefy’s create for their customers. Rather than starting with a blank canvas, we looked at the tradition and values of the brand to define what Beefy’s were already offering to their customers to make the stores a success.

Shopfront

The new Beefy’s store in Mango Hill.

The Beefy’s experience is first and foremost about enjoying a great pie. The idea of the pie is the subtle inspiration for many elements of the fitout. From the detailing of the entry to the warm timbers, the experience is designed to feel warm and homely. Quirky touches with a sense of humour  include the “ floating pie” lights above the shared tables.  The inspiration for the detailing of the new store interior came directly from the product.

Counter

Since opening their first store, Beefy’s have built strong connections to the local community. Regularly sponsoring local sports teams, schools and charities the stores are local in the way the operate at every level. Each of the Beefy’s stores are family-owned and operated and this sense of family extends to staff and customers. Supporting local charities and events is a big part of what allows Beefy’s to connect with their local community. This was something we wanted to convey in store to make it visible to customers

The new store sees a fresh take on the experience of visiting a Beefy’s store and the friendly welcome and first delicious bight of a Beefy’s pie as as good as ever.

 

Elizabeth Gillam on Food Franchising

A couple of weeks ago I sat down over a cup of tea and asked Elizabeth Gillam from Franchisee Success to share some of the insights she has gathered from ten years in Food Franchising. Liz bought her first Boost Franchise in 2004 and has gone on to open a Health Habits Franchise and Bucking Bull Carvery. I asked her to share some of her experiences starting out in Franchising and the keys that a business must have in place before they are ready to franchise and open new stores.

The Brand Story

Your need to communicate the value franchisees are getting upfront. Before you franchise a concept, you have to not only have a business model that shows profit but also you have to have a brand story. That is what people are paying for, you can’t just sell a dream.

“When I start working with business who are wanting to franchise, I ask, so what is your franchise model going to be?  We go through what their goals and aspirations are, what they feel they have to franchise and what their point of difference will be. Why is somebody going to buy a franchise over setting up a business on their own? They must be able to define what they will bring to the franchisee.”

The stores need to look similar and communicate the same story to the customer. When you are selling a franchise, you are selling not only your operations manuals but also the story behind your customer experience and brand.

Business Systems and a Leadership Team

To expand your business and open more stores you first need to free your time from the business. This takes an initial investment of time to record and systematise your business systems and test these systems with your leadership team. If you don’t have a leadership team in place your stores are not autonomous.

“You have to know your business inside out and upside down, what works, what doesn’t. You will need to systematise what you do and what makes you successful and then test that. The only way to do that is to put a leadership team in place that is running under those systems.”

In franchising, you are asking for a premium because your business is systematised. What is the system your franchisees will be buying?

The Pilot Store

In Franchising, you are selling a product, that product is your brand, store design and business systems. Setting up a company-owned pilot store will allow you to prove your business model and store design. You must come to the Franchisee knowing exactly what your product is. By the time you are opening stores for Franchisees, your time of trialling is gone.

“Your pilot store must be running at around 20% profit because by the time you franchise and lay out for marketing there must still be enough profit in each store that someone sees the value of investing in them.”

Elizabeth shares more insights into food franchising and tips for franchisees to increase profitability in her book  “Upsize Your Profit”. 

Understanding Fit Out Costs & Limiting Financial Risks

There is a saying by Dave Ramsey that goes this way: “A budget is telling your money where to go instead of wondering where it went.”  Knowing where your money is supposed to go is an essential part of business expansion. Having a realistic budget will save you time and will free you from unnecessary delays and stress. It will speed up the process of building new stores, and curb possible hindrances caused by financial restraint.

Most business owners I have worked with often ask how much it would cost them to fit-out the new store. This is a common problem in the industry if you do not understand the design and fit out process that is why it is necessary to know the roles that your designer and shopfitter play in managing the cost of the project.

An entrepreneur must have a clear understanding of how he or she wants the new store to look like and operate. First, create a list of the furniture and equipment necessary to keep the business running smoothly would help determine how much it would cost to replicate the success of their already existing store. Second, get a builder to run through the description of the typical store layout and floor plan for an estimate of the fit out cost.

In a hospitality fit out, your key costs usually come down to four things:

  1. Equipment
  2. Services
  3. Fit out
  4. Consultants and approvals

Equipment

Put together a list of all the things you need, including, but not limited to your cooking equipment, bench top equipment, fridges and freezer, stainless steel shelving, storage equipment, and counter tops, plus all other equipment that will be included in your retail display and counter area.

Give your equipment list to your equipment supplier for pricing and also to your shopfitter and designer to allow them to understand the equipment you need to allow for in your typical store layout.

Services

Services are a hidden cost that can easily be overlooked and have a big impact on your budget. Knowing your equipment requirements is the first part to understanding your services costs. It is best to have a sit-down with your shopfitter so you could discuss the cost of the installation of the equipment. He can give you the price range for the installation of grease trap if needed, exhaust canopy, as well as electric circuits and wiring connections.

Fit out

Fit out costs can be a bit more challenging as there are a number of people involved in controlling these costs. The problem arises when pricing is only discussed once the design has been resolved and documented. The way the fit out industry works currently, most shopfitters will not price a job until they have detailed drawings to base their pricing on.

Understanding your fit out costs upfront relies on close collaboration between your shopfitter and your retail designer. The way I approach cost is to give the business owner as much information upfront as we can. To do this we put together a concept plan within the first couple of weeks of your store design and run through a value management exercise with your shopfitter which will ultimately give you confidence that costs are under control.

Consultants and Approvals

Completing a new store design takes a team of experts, such as the retail designer, graphics designer, shopfitter, and others who will assist you in different areas to get the best possible result. Knowing who these key players are, and understanding their roles will give you an idea of who you need to contact to understand pricing. We will discuss more of these on my next post.

 

Juzcit Pressed Juice Freshens Up The Logan Hyperdome

There is a growing trend for shopping centres to create a market feel in and around food tenancies. Fresh fruit and vegetables on display, open fronted tenancies and an informal layout create a feel that is more in keeping with an open air market than a traditional shopping centre. Logan Hyperdome is the latest centre to follow the trend with the opening of the The Market Room at the beginning of July.

Juzcit 2 The Market Room is a breath of fresh air for the Hyperdome and creates an exciting new food experience for shoppers. Many of the kiosks are not yet fully  open however it is already apparent that the area has not only answered the growing demands for food retail but has also given the consumers a unique fresh food experience.

Juzcit opened their doors at the entry to the Market Room and have had fantastic feedback from customers and management. Offering fresh pressed juice and delicious spiced cold drip coffee Juzcit is the health alternative for a quick energy boost.

Juzcit is a cold pressed juice company with a goal to change the world, staring in our own backyard. Through their Juice Kiosk and home delivered fresh bottled juices they make it convenient and easy to live health and nourish ourselves with the highest quality foods.

Juzcit 1

The brief for the Juzcit kiosk was creating an open relaxed relationship with the customer. Rather than serve across a counter the layout is open to allow the staff to interact with and help the customers. Michelle the founder of Juzcit also wanted the materials of the kiosk to represent the brand; raw, natural and authentic. The design team from renew Design worked with Michelle to detail a simple design using plywood, stone and ceramic tiles.

Branding experts and graphic designers Brave Creative collaborated with us to provide their expertise and develop the brand strategy and logo and signage. The printed plywood panels that surround the kiosk share the Juzcit story and values with customers.

Creating a remarkable business takes a team of people. Juzcit is a great example of staring with a simple idea for a great product and the power of collaboration.

Project Team

Client : Michelle Caterson

Retail Designer : Renew Design

Graphic Designer : Brave Creative

Shopfitter : Rowe Shopfitters

 

 

The First Step to Business Expansion

They say that in order to reach your destination, you have to begin your journey by taking the first step. This applies to business expansion as well. Yes, you have a successful business, but are you ready to open another one?

One of the reasons why business owners are hesitant to venture into business expansion is the lack of knowledge on how to replicate success in a different environment. Copying the exact set up of the business is usually not enough. There are other factors to consider like the location, demographics, business operations, functionality and cost.

A Trusted Advisor 

Taking the leap from running one successful business to expanding and opening more stores is a big one. To open your first store you had to learn new skills. You worked out how to manage a fit out, hire staff, find suppliers and manage the day to day operations of your store. Often as a first time business owner, you had to learn how to juggle everything and manage decisions even when you were out of your depth because you were the only one to do it. Many business owners approach business expansion in the same way. Suddenly you are out of your depth again and juggling running your existing business with finding new sites and managing the design and fit out of your new store.

Lack of time and knowledge can be a big barrier for many business owners. The reason many successful business stay small is that expansion isn’t easy and takes the work of a whole team of people. So what is the solution? Working with an experienced retail designer can take away much of the stress of opening new stores and leave you feeling in control of the process. Always ask your designer upfront if they will assist you with design management, this means managing all of your approvals, consultants and timeframes to make sure your new store opens on time. Your designer can work alongside you, and guide you through the design and fit out of your store.

Working with the right people will make your new store fit  an exciting experience.

Replicate Your Store, Replicate Your Success

Replicating the Look and Feel of Your Current Store Across a Variety of Sites 

You have gone through the early days of working long days, nights, and weekends to get your business off the ground.  You have taken on staff,  grown a following of customers and made your business a success. For some business owners, this is enough, but ambitious business owners see the first successful business as a start. For them, this is only the beginning.

Now that you have the skills, product, and team – you are ready to open new stores and expand, right? From the business owners I have worked with going through this transition, it is evident that one successful store doesn’t always mean you are ready to open two, three, or a dozen more. The first thing you need to consider is how well your business is running without you? If running one store is your full time job, how will you handle running more than one?

To expand your business, you must separate your time from your business by documenting what you do in such a way that someone else can learn to do what you do.  A franchise consultant or a business coach can help you with this. It will mean an initial investment of your time, but will serve as the foundation for your business. After all, opening a new store is opening a new business, and your systems are your recipe book for success.

Consistency is the Key

In business expansion, consistency is the key to successfully replicating the look and feel of your current store across a variety of sites. Consistency creates brand recognition for your customers. Remember, your aim here is to allow your customers to recognize your newly opened store, and to create familiarity. How can your customers recognize your brand, that when you open up a new store, they will automatically know that it is a replica of an existing one?

You don’t necessarily have to copy the exact same store to ensure that it is recognizable. What works for one site does not guarantee that it will be the same for the other. Look at McDonald’s. It has millions of branches all over the world. The store layout are different in every location and yet, people know that it is McDonald’s. They are consistent with their logo and their colour scheme. The store layout varies but the system to order is the same.
The point is not just to copy what is already there, it is adapting to the new sites without sacrificing brand recognition and business functionality.

 

Communicating Your Point Of Difference

There’s a saying that goes this way, “Before you can know what you are, you must know what you are not.”

For instance, a café must know that they are not a fine dining restaurant. That being said, it is imperative that you, as a business owner, can communicate your point of difference to your customers.

What’s Your Story? 

What is special about you? What can you offer that others cannot? What do you believe in? What are you passionate about?

Let’s say that you are an art enthusiast and so are your ideal customers. You don’t have to curate a multi-million dollar art collection on the walls of your restaurant to communicate to your customers that you love art. You’re opening up a café, not a museum! So, how do you show your artistic side?

Be creative and don’t be afraid to share your story. I find the things that excite me and that I love are somehow linked to experiences I have had or people that mean something to me. I love daffodils because they remind me of frolicking through Hyde Park in London Springtime when I was 21. Seeing the bright sunshiny yellow in a cushion or a painting brings back those memories.

Define Your Point of Difference. 

I consulted with a restaurant owner who was passionate about quality health food. He made all of their bread on site and could talk for hours about the benefits of bread made without preservatives and chemicals. Yet looking around his business I couldn’t see the evidence of his passions anywhere. His fit out was beautiful but it lacked the passion and substance that I had found talking with the owner.

Share your experiences with your customers, let them get to know what you are passionate about and involve them in the story of your business. Be personal. Reach out to your customers by incorporating your beliefs and passions into your business. Pull them into your world and let them experience why you do what you do.

 

 

Disruptive Design, Making Your Customers Notice You

Whether it is scrambling through the Rubble Bars in Budapest or winding down back alleys in the grungy end of Fortitude Valley to visit “Greaser” (one of Brisbane’s new hotspots) customers are searching for experience. The young twentysomething hipsters with money to spend can be a fickle crew but one thing is for sure, they are looking for something different, something worth telling their friends about. The real question is, are you giving it to them?

The hospitality industry is becoming increasing competitive. There seems to be a new laneway bar or American food restaurant on every corner and customers have their choice of venues to wine and dine. However going out for dinner and drinks is not just about the food it is about the experience. Going “out” is a social experience, it is about the food the environment and the company. Your customers want to try something new. They want to be delighted. They want to take their friends out somewhere that will make them look cool for recommending it

Are you able to provide something special that can attract these potential customers? With so many different options available, what will make you stand out? Why will they choose you? A unique concept will draw more customers in. If you can pique their interest, chances are, they will want to visit your place not only for the food but for the experience itself.

What is your story?

What made you decide to go with the concept that you have chosen? This is where you communicate with your customers. Be personal and weave them a story, communicate your passion and make them part of the story. And ask them what they love about visiting your business? How do you become part of their story?  People visit and spend money with businesses they care about, to create a loyal customer you must be offering them something of significance to them. You may be a cafe and your product is convenience or you may be a baker who brings back the feeling of sitting in grandma’s kitchen.

What makes you remarkable?

The hospitality industry is one of the biggest and most competitive industries globally. With so many options available in the market, what makes you stand out? What can you offer your customers that others cannot? First you have to tempt them through the door to see what makes you remarkable and then you have to offer them an experience worth coming back for.

Your goal is to create difference!