Friday, April 11, 2008

Options Options Options!

A few weeks ago, we discussed the article "Innovation versus Complexity" and found that sometimes less is better. Consumers get overwhelmed by vast amounts of choices and companies get burnt out by high costs. When reading this article, I compared this to my dad's restaurant located in Gainesville, TX. When he bought it, it was famous for being two great restaurants under one roof--one side serving an all-you-can eat barbecue buffet including an array of fried foods and the other side offering a menu in which customers can order set dinners including catfish and shrimp. He, however, merged it more into one restaurant while still keeping both a buffet (which now includes the famous fried catfish) and a menu so that people from the same group can enjoy different ways of eating. This wide variety works in this restaurant because it is a well established place and people know how it works. However, it is often confusing for new guests. I think that one problem area we have is offering more health conscious products, such as fat-free salad dressings or making designated healthier options on the menu. I know that this does offer more choices, but this is health conscious segment is on the rise today and benefits could outweight the costs.

I wanted to also address the In-N-Out Burger joint that we discussed in class. I did some online research and found that this place has been able to gain some serious word of mouth through the internet. On their actual website they offer a secret menu list which doesn't seem to make it very secret, but it doesn't even list all of them. However, on the website http://www.badmouth.net/in-n-outs-secret-menu/, there is a complete list as well as over 600 postings from consumers! I found some very positive word of mouth including exciting things like people ordering the 100x100 (http://whatupwilly.blogspot.com/2006/01/in-n-out-100x100.html). Someone even designed a menu wish list (http://fantasymenu.blogspot.com/). While their small displayed menu with "secret options" has given way to huge publicity, it could also lead to negative results. For one, people who don't know of the secret menu may not ever eat there because they want something different than a plain burger and fries. Also, in one of the postings, I read that one location gave a girl a secret item and another location did not know what item she was talking about. Training employees would have to be consistent since the menu is so farfetched and customers expect them all to offer the same products. Another downside found in post #116 is an employee of In-N-Out Burger who bashed the secret menu maker because he claimed that the menu was almost just like asking for fries to be cooked longer, for no bun, no meat, etc. He said that "for the retards animals style is just a regular burger, we just fry mustard on the meat patties and add extra sauce, pickles and grilled onoins." This employee attitude could turn employees away. My advice for In-N-Out Burger is to stick to the "secret menu" with only burgers, fries, and shakes since that is keeping their costs low and word of mouth high. Some companies wish they could target everyone by offering numerous products, but sometimes you have to realize that your profit can also come from one defined area while keeping down costs. I also think that employees could be better trained to know all of the products as well as not bash consumers who feel important when they give pride in knowing the "secret menu".

1 comment:

Paul Dwyer said...

A very nice blog post. It impresses me that you did some research into In-N-Out Burger. I like the comparison with your father's place. I like your writing from multiple perspectives, you can get rewarded more by bringing in some additional connections to the class readings to explain a phenomenon, argue against a reading or make a well supported prediction.