Know-How Exchange : Strategy

The speciality food market is really crowded. Just think of how many salad dressings, hot sauces, and soups are one the market.

There are people who will take your recipe and make it big. But, the less established your brand, the bigger their peice of the action.

Most people discover they must prove that they have a market by at least getting interest generated on a regional level.

I was involved a few years ago in a local dessert brand that went national. Sales grew from less than $10 million a year to almost $100 million in just two years. But I doubt that the entrepreneur who owned the company would do it if he could make the decision all over again.

If you do it yourself, the investment can be staggering -- perhaps $10 million or more just for slotting fees. And most of the retailers won't take it unless you show them a very strong advertising and promotion program. They have a lot of options, and only want to take on winners.

And if you give it to a third-party marketer, they'll have to make the same investment, and be convinced they'll recover it and make a profit for themselves. That won't leave much for you (if anything).

In short, it's a real long shot. The best way to start is to see if you can do it yourself on a local/regional basis. You probably won't make any money, but if you can demonstrate that the potential is there, you might be able to generate some interest from a larger company (or investor) who can take it over for expansion and give you a fair return on YOUR investment (in the limited test market).

I don't like having to deliver discouraging news, but what you're trying to do is not unusual, and it rarely succeeds in the marketplace.

Congratulations, you've obviously made a great success of your restaurant with a signature dessert dish that must be remarkable - because customers remark upon it!

Instead of trying to turn that success into an entirely different product selling on a different market through a distribution system you don't have experience with, why not turn the problem on its head and look at how you could be using this dessert to create a whole new level of restaurant-based success? It's a business you know and understand, and clearly, it's working for you already!

Here's a few ideas:

1. Make the dessert the entire reason for the visit. Get people lining up outside to order it.

2. Increase the price, if it's truly that remarkable.

3. Make variants that capitalise on the fame of the original product. Create a plate for two of four people, where the dessert is served communally and in greater quantity.

4. Bump up the prices of drinks, liqueurs, coffees etc that would go with it.

5. Promote the dessert as a unique restaurant dish you can only get at YOUR restaurant through media editorial coverage.

6. Take pictures of (local) celebrities enjoying the dessert, get them to sign the photo, frame it and put it on your wall.

Hope there's a few ideas you can use there!


ChrisB

In these 'difficult' times many of us skip higher priced big name brands for the House brands of national grocers....we save money and get a very similar product...HOWEVER House brands have higher markups for the grocer so they prefer selling more at a saving to you and I. Look for the number two guy in the field, perhaps a little hungier for an 'overnight' success willing to be more flexible too.

My 'pro bono' suggestion is find a national grocer who has a strong position and experience with house brands and let them maket/bottle/package/ship your great dessert for a finite period. If it takes off they will be back for a longer commitment. If not you will have learned a lot without doing all the leg work and can decide if you want to go forward on your own at that time.

Again, hire some legal counsel for your protection.