25&
PART
IV
The Marketplace
cffiffi#
{)t;r-ts,t
r
ttr,n,Auat,
l)escrihe fhe tvnes
of
y
?L
customers
that went to
Yore
Yore Heroes Tap and Grit[ was owned by Mike Monroe and his
wjfe, Barbara Brooks, in the cottege town of Prince George,
Heroes Tap and GritL over the past five years.
:
s
of
these
Mike was a graduate of the Cottege of New Catedonia's Hotel
::1. Do you think the perceptions of the restaurant changed
and Food Administration Program. In addition, Mike and
Barb each had many years of experience within the restau-
What were the primary needs and wants
customers?
across these segments over
Descrjbe as best you can
rant industry. both as minimum wage emp[oyees in the
the past five years?
the Likely change in betiefs.
attitudes, and jntentions toward patronizing Yore Heroes for each of the customer types you identified in
front and back of the house. and as managers.
o
Ifyou
The
became the new manager ofYore Heroes during the
and
oerated.
question 1.
',,
However,
first restaurant the two had owned
Yore Heroes was the
city of Prince George was located in central British
CoLumbia, Canada, and had
of
a population of about 70,000.
New Caledonia had an enrotlment
of
over
30-day ctosing period, what marketing strategy might
The
you put into place prior to reopening the restaurant?
Does it reail.y have a chance to become a successful op-
10,000 students in the fa[[ and winter semesters, and 4,000
during the summer.
There were on[y
eration? In other words, does Yore Heroes Tap and Gri[[
Mike Monroe was troubted and angry as he locked the doors of
Yore Heroes Tap and GritL for what he feared coutd be the I'ast
time. Yore Heroes woutd not be open for the next 30 days
because of the recent charges of serving a[cohoI
exceeding maximum capacity.
to minors
and
"It figures this woutd happen at
the worst time imaginab[e," Mike thought to himsetf. 0ver the
past year and a half business had been dectining steadiLy, and
they were struggting
to
break even. Mike wasn't sure the
restaurant would be abte to survive 30 days of no business
activity whatsoever. As he picked up his coat and left to go
home. Mike thought back to when Yore Heroes had first opened
five and a hatf years earlier. Then, the house had always been
fuLL. PeopLe used to [ine up and wajt for an hour to get a tabte'
He had worked so hard
to
p[ease peopte and
felt he had some-
thing for everyone at his estabtishment. What cou[d have gone
wrong? Why was patronage so [ow? What could he do
to
save
hjs restaurant? Even more jmportant, coutd his restaurant
be saved at a[t?
PhD, School
University of Guetph,
guised.
AtL
ights
Prince
was Located jn Chesire Road Mat[, the [argest of the two by
far. Peopte woutd travel from aL[ areas of Prince George not
only to shop at this [ocation, but atso to attend the Cineptex
Odeon movie theater located on the second ftoor of the ma[[
(one of the two movie theaters in Prince George).
The ma[[ was situated close to the co[[ege.
It
was
onty about a 20-minute watk to the mat[ from campus, and
it
was also easity accessible by bus. Buses Left from both
the coltege center and from the centraI downtown square'
The matt had operating hours
of Monday-Saturday,9:00
n.u.-9:30 p.w., and Sunday 12:00-5:00
required
to
adhere
to the
P.M. Heroes
was not
same operating hours.
It
was
open for business Monday-Saturday, 11:00-1:00 A.M., and
Sunday, 11:00 n.u.-8:00
P.r,t.
Heroes was located on
the second floor of the
ma[[,
directLy across from Cineplex Odeon' The restaurant had
a
chatkboard at the entrance on which they wou[d display a I'ist
of the movies currently ptaying in the theater, and thejr start
times. Mike wanted the restaurant to have a very relaxed at-
contibuted by Ein 0'Bien, developed under the supervision
of Margoret Shaw,
two matls within the city of
George: Westwood Mat[ and Chesire Road Ma[t. Yore Heroes
have a future?
This case was
CoLLege
1ntoio,
of HospitaLity ond Touism
Management,
Canado. Names and pLoces hove been dis-
reserved. Used by permission. Atl Monetary amounts ore
in Conadion doilors. For conversion use 1$C/0-85$US.
mosphere. The interior was woodsy with wine-co[ored cover-
ing on the seats, brass rai[ings, and a [arge number of booths.
Pictures of popular "Heroes of Yore," such as Marilyn Monroe,
Cl.ark Gab|,e, Elvis,
Joe DiMaggio, Lou Gehrig, Joe Namath'
i-
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'i{:i-;
PART
IV
The Marketplace
the area surrounding Cheshire Road Matt, onty an East Side
wings (Wednesday nights). WhjLe the majority of customers
Mario's and a Pizza Hut, wh'ich were located in two separate
sti[[ came from the matl crowd. Mike wondered
the street. Mike had consjdered one potentiaL threat, the Potted Pigeon. WhjLe it was not [ocated
directty near Heroes, jt was a simitar restaurant in its reLaxed
dents cou[dn't be the solutjon to hjs probLem from January'
strip
maLts across
style and in the types of food
it
served.
It
was situated
to the coltege and was also the only restaurant to accept the cottege's meaI card. However, seeing as the majority of their customers were not students, at the moment
ctoser
to Aprit.
He began
if the stu-
to advertjse Heroes in the two student
newspapers, the Crest and the CaLedonion. Mjke then appl.ied
to obtain a
meal card contract wjth the cotlege's Express
Centre and was granted a three-year contract
first of the
to
begin the
schooL year.
it was not a major issue. Besides. Mike thought having some competition is heatthy. "It keeps you on your
anyway.
toes," he said.
At the Co[[ege of New Caledonia, students living in any of
the on-campus residences were required to purchase a meaI
plan.Off-campus students were not required to purchase
the pLan but were given the opportunity to do so. Students
While business remainednsteady throughout the first coupLe
chose from meal ptan options ranging from a
of years. Mike noticed some bothersome trends that
pLan ($500)
were
to a fu[[
meaL
light
meal
ptan ($1,100) per semester.
occurring in his business. The most disturbing of these was
When the card was used
the incredib[e slow period from January to ApriL. Although
the cash register and a number of pojnts were deducted,
this was common for most restaurants. due to the tightening
tike a debit card. This meaI card was accepted in a[[ of the
of purse strings fo[Lowing the Christmas season, Mike felt
that his situation was even more severe because of his [ocation in the mat[. The number of customers in the
matL (Mike's
main cLient base) was very [ow, as was the number of peop[e
to purchase food. it was swiped at
campus cafeterias and untiI thjs tjme had been accepted in
on[y one restaurant off campus, the Potted Pigeon. The
meal card could not be used to purchase anv atcohoLjc
Devera9eS.
going to see movies. MaL[ customers dropped by 40 percent
and. at tjmes, as much as 50 percent below the norm for
obtainable (by application) from the Express Centre, a oe-
September to January.
partment of the hospitality services at the colege. When re-
To counteract
this trend Mjke decided to implement
a
number of changes. First, he attowed the two-for-one appetizer special. previously onLy offered to the bar patrons, to be
avai[ab[e
For restaurants interested,
any beverage. Mike atready had a number of regulars who
came
into
Heroes
to watch sports or play pool, so
he felt
a
number of factors. including the foLtowing:
1.
The
"fit" of the restaurant in
terms of suiting and
meeting students needs
2
tomer who produced a movie stub (for that night) cou[d receive two desserts for the price of one with the purchase of
was
viewing the potentiaI ctients, the Express Centre evaluated
to atl customers of Heroes (between 6 and 9 e.u.).
He aLso introduced a two-for-one dessert specia[: Any cus-
the meaI card contract
Whether
the restaurant attained enough of jts busi-
ness from students
3
to warrant the use of mea[ cards
Whether the restaurant woutd be ab[e
to
make monev
for the Centre
If the preceding factors
were met, the restaurant in
there was opportunity to expand his bar busjness. To do so,
he jnvested in a large-screen TV on which to show hockey,
question woutd then offer a bid (a percentage of sates they
footbaLl, and other sports games.
fit the requirements and was granted a three-year conrracr,
agreeing to pay the Centre 9 percent of Express card sales
Mike a[so observed over these two years that more
and more students were coming into the restaurant. He rec-
ognized that
it
was primarily
to take
advantage
of
the
were wiL[ing
to pay back to the Centre).
Heroes was found to
eacn year.
A
further benefit of having the meal card was the free
the soup and salad deat, the a[[-
advertising done by the Express Centre for those restaurants
you-can-eat pasta (Tuesday nights), and the allyou-can-eat
accepting the meal card. For example, tabte cards promoting
aLL-you-can-eat speciaLs:
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PART
IV
Exhbtl
The MarketPlace
The ComPetition
F€+1e:.i5::..1! Jiril+
Potted
American food
Hut
Pizza
Casual theme, popular
Independent
with students
and a younger crowo
Young families, price conscious, casual
Pigeon
Pizza
i€S.:+r:i
i*s*FeE:**:1f,
+r iF++ir:
joint
ltalian/American
Mario's
pool tables;
No
No
$6.e9-$ 14.9e
Family restaurant, midscale,
f un/boisterous atmosPnere
Chai n
Yes-
No
$ 1
Family, restaurant, casual theme, as the
name suggests-like a Swiss Chalet
Chai n
No
No
Chain
No
No
Sept
Creek.
Pub,
10.9e-$20.9
No
No
(? oo-{q qq
Chain
Yes-
No
$8 ee-$18.9e
next
Sept
The second decision was
Coffee
not a futl-service restaurant but one that served light
$
Chain
.-
the Red Rooster, Swiss Chatet, and Walter's
t7 00-(1 7 qq
9
atmosphere, earlY 20s to middle age
:
0.99-$20.9
v
next
PrimarilY sPitSwiss
roasted chicken
Chalet
Midscale, open concept kitchen, caters
BBQ food, ribs,
Red
to mid 20s to late 30s age group
Rooster chicken, beef
Walters Coffee, light lunch, Quick service, casual theme, varied
clientele from late teens to senlors
Coffee Pub desserts
Casual theme, firePlace, camPing
American food
Up the
Creek
Fril* €er:q*
$s.9e- $1s.9e
Chai n
theme
EastSide
f.ri+-;:i '*]ti:+;
i=;d? .4:::*:lii!es
Yes Yes-two
days, a new concept
to introduce Wacky Wednes-
in an attempt to bring in the students,
food djshes as we[[ as a variety of speciatty deserts. More detaiLed descriptions are giVen in Exhibit 1. Other probtems
not to eat, but to get them spending their money at the bar'
were atso arising. Staff turnover was incredibty high. with
50 Dercent of Mike's former staff leaving to work at the Red
stit[ coming in for the a[[-you-can-eat wings. The new
Rooster restaurant. Mike was faced with the probtem of
finding not onty new staff, but also the time and money t0
Drice of a 1.6-ounce one, or a doubte bar shot for
Wacky Wednesday special was a 32-ounce draft beer for the
of one, starting at 9:00
P.M.
It took
to
dectine
dramatica[[y. Students were now the main ctientete, about
the price
some time for the idea
to catch on, At first it attracted main[y
train them.
Customers, and subsequentty sates, began
Mike feLt Wednesday was appropriate because students were
matl' employees and
staff. Then Mike brought in a DJ on Wednesday nights
and
began promoting the speciaI in the student newspapers.
in;
75 percent, but their numbers were decreasing' Mike knew he
Eventua[[y, more and more students began pouring
would lose even more of this business in the future as East
Side Mario's and Up the Creek were expected to have meal
nights there woutd be [ineups at 9:00 waiting to get in. The
dance ftoor in the restaurant was packed, and it was not
card contracts by September. Few families frequented the es-
uncommon
tabLishment. Those that did come were mainly seen on[y at
restaurant. Mike raised the price of the drinks to $4.25 for
peak shopping periods (i.e.,5eptember and Novembey'
either a 32-ounce beer or a doub[e shot, and the students
December). Mike was at a [oss. He wasn't sure how he could
kept coming.
to
some
meet the maximum [ega[ capacity of the
Staff had commented to Mike a number of times con-
or shoutd compete with thjs new competition.
Mike knew he needed an edge. His first decjsion was
to introduce a delivery service to students Living in residence
(so they coul.d stj[[ use thejr meal card) because none
ofthe
cerning the regutars feeling alienated by this new atmosphere. More than one server had heard the [ine, "It's
Like
it
used
just not
to be." Not onty did regulars comptain, but other
0n more than one occasion, a table
other estabfishments offered this service. The detivery ser-
customers did as wel.l..
vice was a success and very wel"t tjked by the students; how-
seated at 8:30 on a Wednesday night wouLd become frustrated
ever,
it
was not making the money Mike needed
things around.
to
turn
and annoyed at 9:00 when the DJ came on and dance musjc
began
to
btare. Yet. as the night became more and more
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