Startups’ advice in the event of a worldwide epidemic
It’s probably not the best idea for a startup to launch a product during a worldwide pandemic. The foodservice industry is in upheaval, and retailers are having to adapt to changing consumer purchasing habits. Customers are too busy to put new things on the shelf. It is advised that business owners use this time to refocus and work on their business plan.
Give a concept enough time to be understood. Make the required investigational efforts. Most importantly, maintain your focus. After producing and promoting one or two products to great success, consider expanding your product line. That’s the counsel that business owners and startup experts recently gave Food Business News.
“Any business, no matter how big or small, needs focus,” stated Natalie Shmulik, CEO of Chicago’s The Hatchery. We’ve observed that a lack of concentration eventually leads to three main problems: expenses, perplexity, and cannibalization.
“There is an additional charge for each extra stock-keeping unit, or SKU. The list is endless and includes product development, packaging, extra ingredients, inventory management, launching a new line, and slotting fees. If you wish to introduce a new flavor or product line under the brand, keep all of these things in mind.
The foundation of Schweet Original Homemade Chicago Cheesecake, a family-run business, is that. The bakery specializes on creating a single type of cheesecake and then provides a selection of toppings and extras to suit the tastes of its patrons. The secret to the business’s success is simplicity.
“Simple ingredients are what make food taste good,” stated Schweet’s owner, Chamille Weddington. We are renowned for our delicious, straightforward, and freshly made artisan cheesecakes.
“Our granny’s original recipe serves as a proud inspiration for our delicacies. Inside is a nutritious crust, freshly prepared whipped cream, fresh fruit, and our exclusive batter. We only need a few basic ingredients. We make a conscious effort to use as many locally sourced ingredients as we can, and we concentrate on technique. Our reputation is built on serving “cheesecake done right.”
According to Tim Metzger, who sold his gourmet food company, Tillen Farms, to Stonewall Kitchens in York, Maine in 2018, it’s critical to get off to a solid start. Mr. Metzger continues to advise the business while serving as Tillen Farms’ brand ambassador. In January 2020, while giving a talk at the Winter Fancy Food, he stressed the need of creating a business strategy and maintaining focus.
He remarked, “Your idea might be strong, but it’s not a plan.” “Pay attention to your areas of expertise and your passions.”
Forecasts of sales and revenue, product expenses, and a go-to-market strategy should all be included in a plan. It is critical to have a comprehensive assessment of potential that includes determining obstacles to established goals.
Ms. Shmulik advised business owners to provide answers to a number of questions up front and to never lose sight of the answers: Why should this business exist? Why would consumers buy its goods or services? Why should customers choose your goods or services over those of others?
Before even starting their firm, we work with our members to help them discover their “why,” according to Ms. Shmulik. “Paying attention to both the quantity of SKUs and characteristics you are presenting for each SKU is crucial. Entrepreneurs frequently want to emphasize all the qualities that their brand stands for, such as being organic, low-glycemic, single-serve, high in protein, and gluten-free. However, customers find it confusing and annoying when everything is highlighted. An excess of flavors and products might be equally perplexing. Excessive options aren’t always beneficial.
Labels must concentrate on a distinct message. Avoid watering down the message by using a variety of messages and items that don’t support the main “why.” An excessive number of SKUs could lead to confusion and reduce sales.
You may also like:
Food security in emerging nations: issues and remedies
Are drinks the secret to increasing cannabis use among consumers?
Managing the lack of labour for mushroom picking
“Keep in mind that if you unintentionally introduce multiple flavors or products, you might find yourself in a competitive position,” Ms. Shmulik advised. “Your customer might be choosing between flavors, changing their selection instead of spending more money overall.”
Owner of Cheryl’s Farm Fresh in South Haven, Michigan, Cheryl Overholser, concurred that a brand is developed via mastery of a small number of goods. This holds true for more than just the packaged goods you find on store shelves.
“What keeps the customers coming back every Saturday at the farmers’ market and buying me out is one or two types of tomatoes, a special variety of corn, and my blueberry citrus bread,” Ms. Overholser stated. When you provide too much, individuals may become overwhelmed and leave. There are innumerable I would like to offer more baked goodies, but time is of the essence. As a result, by the conclusion of the market, I usually only carry one home.
The founder and CEO of Crockett Cookies Inc. in Chicago, Cheryl Crockett, bases the creation of her two cookie varieties, butter and peanut butter, on the handcrafted cookies provided in lunchrooms of Chicago Public Schools thirty years ago. Tubs of five cookies are the ideal impulse purchase and a nostalgic pleasure for locals; you can find them at the register of Walgreen’s stores all around the city, as well as nearby Whole Foods Markets and other independent merchants.
“Many years ago, local public schools served lunchroom cookies made with both butter and peanut butter,” Ms. Crockett stated. “I knew that customers would be most familiar with the flavor of butter because it has always been the most popular.” I became aware of this right away in 2013 when I founded the business.
In 2017, Ms. Crockett introduced the peanut butter flavor to the cookie line, having previously only sold one flavor for four years while maintaining stable distribution.
She stated, “The schools also served peanut butter lunchroom cookies.” “They would arrive later, but they were in my business strategy. Early commitment to providing the highest caliber of goods and services on a single item promotes more robust and sustainable business growth.
Ms. Crockett responded, “My preference is always growing locations, which in general has always attracted more customers,” when asked if she would rather expand distribution of the two present flavors or add another flavor in an effort to potentially draw in new customers at the retail stores. Crockett Cookies was poised to expand to multiple significant clients and outlets prior to the nationwide outbreak of COVID-19 that affected Chicago. As soon as we get past this difficult time, (I’m) excited to make it happen.