Business Insights: Key Factors for Success in the F&B Industry with Terer App
Opening a food and beverage (F&B) business can be a daunting task, filled with numerous challenges and complexities.To shed light on this endeavor, we interviewed two thriving merchants in our Terer App being a startup F&B owner: Joekee from Cocolicious and Jun from Tiny. Their insights reveal the essential considerations for starting and running a thriving F&B business.
Considerations for Opening an F&B Business
Joekee, the owner of Cocolicious, emphasizes the importance of financial stability. She advises aspiring business owners to ensure they have enough threshold to withstand the initial phases of their venture. "Believing in yourself and your vision is crucial," she adds. "You have to believe in yourself first before spreading your belief to others."
Jun from Tiny underscores the necessity of thorough market research. "Dive into the details and understand the market before starting your business. Knowing your market is essential for making informed decisions," she says. This approach helps in setting realistic expectations and crafting strategies that resonate with the target audience.
Key Factors in Running an F&B Business
Persistence is a common theme echoed by both entrepreneurs. Joekee believes that having confidence in oneself and the business is fundamental. "This belief will help you overcome challenges and keep you motivated," she states.
Jun agrees, emphasizing that persistence is key whether you're a startup or have been in business for a long time. "Persistence helps navigate the ups and downs of the F&B industry," she explains. It is this tenacity that often distinguishes successful businesses from those that falter.
Menu Selection: Quality Over Quantity
The importance of a wide menu selection is a topic of debate. Joekee reveals that Cocolicious started with only 12 drinks and now offers about 30. She advises focusing on creativity and effective use of inventory rather than a broad menu. "Give customers good choices, but be smart with your offerings," she suggests. This approach ensures that each item on the menu is of high quality and meets customer expectations.
Jun, on the other hand, notes that the necessity of a wide menu varies based on location, strategy, and business direction. "For Tiny, a smaller selection works well, whereas a restaurant or bistro might benefit from a broader menu," she explains. Tailoring the menu to the business model and customer preferences can lead to better satisfaction and operational efficiency.
Understanding Your Customers
Both entrepreneurs stress the importance of knowing your customers. Joekee believes that understanding customer preferences and making slight adjustments can significantly benefit the business. "Focus on what you believe in and adapt to your customers' needs," she advises.
Jun concurs, stating that fulfilling customer demand is essential for sustaining and growing the business. "Knowing your customers helps you meet their needs effectively," she adds. Building strong relationships with customers and valuing their feedback can drive loyalty and repeat business.
Online Delivery vs. Walk-Ins
Joekee prefers walk-ins over online delivery, explaining that delivery can affect the taste of drinks. "Everything tastes best when it's fresh," she asserts. Ensuring product quality remains consistent, regardless of the mode of delivery, is crucial for maintaining customer satisfaction.
Jun, however, finds both online delivery and walk-ins important. "Weekends we see more walk-ins, but when space is limited, online delivery becomes advantageous," she notes. Offering multiple channels for customers to enjoy your products can cater to different preferences and increase overall sales.
Pricing Strategies
Pricing is another crucial aspect. Joekee emphasizes the need to cover costs and maintain margins. "Pricing should ensure sustainability and depend on where you want your business positioned in the market," she says. Striking a balance between affordability and profitability is key to long-term success.
Jun advises basing prices on market research and understanding consumer spending power. "Offer standard pricing that reflects the market," she recommends. Competitive pricing strategies that reflect the value of your offerings can attract more customers and drive sales.
The Role of Upselling
Both entrepreneurs agree on the importance of upselling. Joekee highlights its impact on revenue, especially when individual items are not bought in bulk. "Encouraging customers to add more to their cart can boost sales," she explains. Upselling techniques, such as suggesting complementary products or highlighting premium options, can enhance the customer experience and increase average transaction value.
Jun adds that upselling by pairing foods adds value to both customers and the business. "It enhances the customer experience and increases the cart value," she says. Thoughtful upselling strategies that genuinely benefit customers can build trust and encourage repeat purchases.
Marketing in a Competitive Market
Effective marketing is vital in the competitive F&B sector. Joekee focuses on a unique element: coconuts. "This unique selling point helps us stand out," she says. Highlighting what makes your brand unique and communicating this clearly to your target audience can create a strong brand identity.
Jun markets Tiny as a plant-based café located in the heart of Kuala Lumpur. "Emphasizing our unique aspect helps attract and retain customers," she notes. Leveraging your unique selling points in marketing campaigns can differentiate your business in a crowded market.
Conclusion
Starting and running an F&B business requires market research, understanding customers, and effective marketing. Joekee and Jun's insights emphasize persistence, creativity, and market knowledge. Cocolicious and Tiny Cafe show how Terer boosts marketing efforts, increases cash flow, and customer retention. At Terer, we support businesses in the competitive F&B industry by providing a platform for merchants to market their items in combos, helping them reach more customers, increase sales, and sustain their businesses.