Local competition Feb 15 2006
Church of the Customer takes a look at how a Northern California restaurant called Cyrus competes with The French Laundry in attracting local customers, particularly those from wineries with big expense accounts for entertaining clients:
1. Match your competitor's exceptional quality.
The food at both restaurants was cooked perfectly and beautifully presented. Both delivered flawless service. By matching the quality of its better-known competitor, Cyrus removes the primary barriers of opposition.
2. Allow your customers to customize.
The French Laundry offers three prix-fixe menus of nine courses each. Cyrus allows its customers to choose their number of courses and the dishes.
Local competition still matters. You usually think of restaurants like The French Laundry as competing on a national or international level. Over the years, Keller's flagship has made several short lists of the best restaurants in the world. But as this article demonstrates, having to compete for the same pool of local customers can drive competitors to achieve a high level of excellence, higher perhaps than they would have achieved without that competition, and that excellence could lead to wider recognition. Even companies like Google, Yahoo, Microsoft, and Amazon who compete on a global level and don't interact with their customers face-to-face still have to vie with each other for local resources, particularly employees.