Brunch or cake?

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Grace and I went out for brunch yesterday.

Yes, that’s right, just the two of us.  No children knocking drinks over, pretending to be werewolves and drawing scowls from other diners.

Just us.

To commemorate this special occasion, we headed to our favourite spot – a fabulous café-cum-bakery in Kings Heath.

It really is an incredible place – they made their name with cakes and pastries, and now they offer a truly incredible brunch and lunch menu too.

Trouble is, managing the two revenue streams seems to be something of a struggle for them.

Their current approach is to divide the establishment into two – a set number of tables for lunch/brunch, and an equal number of tables for coffee and cake.

On the face of it, this might seem smart.

But here’s the problem: if the “lunch/brunch section” is full when you arrive, they’ll make you wait, even if the “coffee and cake section” is entirely empty.

Obviously I’m not party to their P&L, but I know for a fact that their spend-per-head on lunch is significantly higher, and with pretty speedy service, they turn the lunch tables at pretty much the same rate they do coffee and cake.

I understand why they’re trying to do this – they don’t want to “sell out” and disappoint the people who helped them make their name.

But the reality is this:

  1. They’re missing out on revenue by not letting you sit down and start spending
  2. In trying to appeal to everyone, they’re missing out on higher quality, more profitable revenue

Business is full of opportunity.  The art is finding the right opportunities to maximise, and the most effective use of time, money and resources.

As we head towards 2024, it’s worth a few minutes of your time to consider where you focus your time, money and resources next year.

Are all the products in your business created equal? Or are some more popular or profitable than others?

Ask the right questions this year, and you’ll end up with the right answers about what you should be doing next year.

Good luck!

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