ISHQ
This project was a massive success despite closing the establishment shortly after opening. A coffee shop and restaurant located in the heart of the Alps. It sustainably attracted a part of the local demographic that was not yet coming to our other restaurants. Amongst other things, we measured an increase of nearly 60% in total customers.
My employer at the time, a hospitality group, was running restaurants and caterings in Innsbruck, a beautiful Austrian city. My role was to manage their operations and growth. Business was good, and profit was getting better year after year. But my job was to make it better than better.
Problem
I started noticing that a considerable part of the demographic wasn't coming to our restaurants - The students. Now it is worth mentioning that about 20% of the local population are students. And a high-profit part of our lunch menu is designed for people who need to eat fast and affordable. Hence, the missing students were a problem for the revenue.
Research
I interviewed some people in the age range of 16-26 years, which helped me establish a set of questions for a survey. I sent it to about 500 individuals, and nearly 200 surveys were returned (The chance to win vouchers for our Restaurants was a great motivation, I guess).
I was able to extract the following 3 reasons for why said demographic was not showing up.
Location
None of our locations seemed to be convenient enough for the interviewees to eat lunch there. Nor did our sites meet their requirements for a nice spot to have dinner with friends. It would take a lot for the interviewees to go out of their way to consume at our restaurants.
Vibe
Our establishments did not pass the so-called 'vibe-check'. The individuals prefer going to places where they can sit with their friends, where the music is nice and where more people in their age group are present. (All our restaurants offer traditional Indian cuisine and atmosphere)
Sustainability
This one was the most exciting pain point. When I was interviewing, and the questions were quite open, about 50% mentioned their preference of going to places that go the extra mile to contribute towards sustainability and a better environment. This was also confirmed in the survey.
Solution
Location
After going through countless listings for properties to rent, we shortlisted five that matched our requirements. Two of which were near the University of Innsbruck area and three in student accommodation areas. Since this was an experiment, it was essential to me that the lease is no longer than a year (Usually five-year leases in commercial leases). We finally found a perfect location with a great social image and a lot of history. Cool features like a fireplace and wooden interior were a great bonus too.
Vibe
The new location was built with the precise mindset to be comfortable and appealing. A group of people should be able to sit for hours and talk or work together. Additionally, we provided free Wifi and multiple power outlets so people could just sit and work.
Sustainability
Local
Sourcing local is easier said than done. We did all sorts of things, including finding a local carpenter to preserve the beautiful wood, having regional farmers deliver our fresh ingredients and buying meat from a trusted local butcher.
Organic
Among other items like our burger buns or vegetables, our main organic star was our coffee from Segafredo, one of the worlds leading coffee providers. Their fair trade organic blend was sourced from their own farms in South America.
Alternative
Buying drinks from Coca-Cola usually is cheaper and easier. Still, we went the extra mile to source our soda from Fritz Kola, a transparent supplier that cares a lot about keeping its environmental footprint as low as possible. We also replaced all plastic items with more sustainable alternatives.
Outcome
60% More Customers
Comparing the total amount of customers per month just before and 1 year after opening Ishq showed an increase of 60%.
37.5% More Students
Comparing people who used student discounts per month just before and 1 year after opening Ishq showed an increase of 37.5%.
120% More
Profit
Comparing total profit 2019 vs. total profit 2021.