θωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψ

υιοπασδφγηϕκλζξχϖβνµθωερτψυιοπασδ
 

φγηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζ
ξχϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµ
θωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψ
υιοπασδφγηϕκτψυιοπασδφγηϕκλζξχϖβν
How  to  Be  Different  
µθωερτψυιοπασδφγηϕκλζξχϖβνµθωερτ  
Article  first  published  in  Romanian  at  www.FoodandBar.ro

ψυιοπασδφγηϕκλζξχϖβνµθωερτψυιοπα Andrei  Iordache  

σδφγηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκ
λζξχϖβνµθωερτψυιοπασδφγηϕκλζξχϖβ
νµθωερτψυιοπασδφγηϕκλζξχϖβνµθωερτ
ψυιοπασδφγηϕκλζξχϖβνµθωερτψυιοπα
σδφγηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκ
λζξχϖβνµρτψυιοπασδφγηϕκλζξχϖβνµθ
ωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι
οπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγ
ηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξ
χϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθ
ωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι
οπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγ
ηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξ
χϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθ
ωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι
οπασδφγηϕκλζξχϖβνµρτψυιοπασδφγηϕ
  

How  to  Be  Different  

 
"I'm   selling   this   schnitzel   like   my   competitors   do."   Were   they   human   beings,  
this  is  exactly  how  most  of  our  restaurants  would  sound  like.  
 
I   have   used   the   example   with   the   schnitzel   in   order   to   demonstrate   one   of  
Michael  Porter's  models  used  in  marketing  and  strategy.  Business  people  know  
Michael  Porter  as  the  guy  with  the  five  forces.  
 
Michael   Porter   assumes   one   has   business   that   makes   money   by   selling  
schnitzels  and  concludes  that  there  are  only  three  ways  in  which  one  can  own  a  
viable  schnitzel  business:  
1.  No  other  competitor  is  able  to  make  the  exact  schnitzel  we  are  able  to  make.  
Hence  we  are  profitable;  
2.  We  have  the  lowest  cost  per  schnitzel.  Hence  we  are  profitable;  
3.  We  only  serve  schnitzels  that  are  profitable.  
 

The  Unequaled  Schnitzel  

The   first   approach   reckons   that   a   company   consequently   succeeds   to   get   closer  
and   closer   to   the   perfect   product   -­‐   or   at   least   the   perfection   sought   by   the  
majority   of   consumers.   But   true   craftsmanship   comes   when   no   other  
competing  company  can  get  closer  to  this  achievement.  
 
Everyone   evolves   at   the   same   pace,   constantly   selling   a   better   and   better  
schnitzel.   This   is,   I   guess,   the   origin   for   many   of   the   problems   faced   by  
Romanian   foodservice   companies.   In   other   words,   the   Romanian   foodservice  
scene  is  full  of  decent,  easy  to  copy  products.  
 
You   might   say   that   only   your   restaurant   sells   schnitzels   with   sesame   in   their  
crust   but   Mr.   Porter   will   tell   you   that   any   competitor   is   able   to   serve   sesame  
schnitzel  as  of  tomorrow.  
 
Worth  emphasizing  here,  is  the  idea  of  sustainable  competitive  advantage.  Not  
every  difference  compared  to  the  rest  of  the  market  can  bring  you  profit.  Here  
are  some  ideas  capable  of  really  differentiating  your  product:  a  secret  ingredient  
-­‐   unique   to   your   recipe,   a   special   way   of   producing   the   schnitzel   -­‐   ensuring  
unique   taste   or   form   and   -­‐   why   not   -­‐   a   little   bit   of   both.   The   important   thing  
here  is  that  our  schnitzel  does  not  resemble  the  one  across  the  road.  
 
And,   since   we   speak   of   schnitzels,   the   best   example   here   would   be   the   stake  
served   on   hot   stones   at   the   "Little   Switzerland"   for   years   now.   Firstly,   it   is   a  
unique   and   fun   way   of   producing   the   food   -­‐   other   stakes   are   not   that   playful.  
Secondly,   it   comes   with   a   set   of   sauces   and   side   dishes   that   go   great   together  

2   How  to  Be  Different  

 
and  the  meat  marinated  in  a  secret  sauce.  Not  beating  around  the  bushes  any  
longer,  the  Swiss  stake  is  cooked  exactly  after  Porter's  recipe.  
 
Ok,  let  us  ask  the  key  question:  How  can  your  restaurant  differentiate,  should  
you  not  serve  a  single  product  such  as  the  one  the  Swiss  Hausmann  does?  
 

Probably  the  Most  Profitable  Schnitzel  

The  second  choice  could  also  be  called  "the  low  cost  schnitzel".  I  chose  however  
to  talk  about  it  in  terms  of  profits,  because  I  wanted  to  shift  your  thoughts  away  
from  cheap  airline  tickets  and  discuss  a  sound  business  model  seriously.  
 
In  order  to  be  different,  a  company  can  bring  a  unique  product  to  the  market,  
trying   to   differentiate   it   from   other   competitors.   A   company   also   can   look  
inside   itself   for   new   procedures   and   ingredients   that   are   able   to   lower   the   costs  
without  affecting  the  core  product.  
These  companies  live  out  the  following  philosophy:  "A  schnitzel  is  a  schnitzel  
even  if  we  fry  it  in  hemp  oil."  
 
If   I   told   you   now   that   McDonald's   seems   to   employ   this   strategy,   you   would  
argue  that  their  brand  is  highly  promoted  and  that  promotion  is  their  source  of  
successful   differentiation.   However,   if   we   look   at   how   McDonald's   does  
business,  we  will  see  that  the  founders  had  the  passion  for  consistently  finding  
cheaper   ways   of   getting   things   done.   McDonald's   prints   their   worldwide  
packaging   in   the   same   place   and   changes   design   very   rarely.   The   menu   is  
strictly   supervised   in   what   regards   the   number   of   items   offered.   This   means  
that   the   company   does   not   spend   money   on   stocking   up   fish   fingers   that   are  
only   sold   ten   servings   per   week.   The   standards   are   so   well   established   that  
everyone  can  build  a  happy  meal  after  only  one  day  of  training  and  this  means  
that  anyone  can  work  at  McDonald's,  hence  the  wages  can  be  kept  low.  
 

Lost  in  Transition  

The   third   way   deals   with   finding   a   profitable   niche   or   with   selectively  
minimizing   costs.   I   would   prefer   not   to   get   into   these   details   because   people  
talk   that   entering   the   third   way   almost   always   gets   companies   stuck   in   the  
middle.  
 
And  I  think  that  this  is  precisely  where  Romanian  restaurants  are:  stuck  in  the  
middle.  We  have  schnitzels  resembling  one  another  like  two  drops  of  water  and  
we're  trying  to  sell  them.  It's  clear  that  we  need  to  pick  one  way  or  the  other.  
This  would  bring  us  all  something  good.  

How  to  Be  Different   3