What Do You Expect for $7?

Posted by Johan Cyprich on 06 Jun 2008 | Tagged as: Business

A friend of mine recently ate at a restaurant which I occasionally go to myself. He ordered the chicken curry with rice meal which cost around $7. The problem was that there was a lot of rice and curry, and not very much chicken. It was actually there, but in a very small amount which wasn’t enough to be noticed. My friend complained and the restaurant owner responded by saying, “so, what do you expect for $7?”

That answer led to leaving the restaurant with half the food left on the plate. Worse than that, the restaurant has lost a customer who will tell on average about 11 of his friends his experience there. Overall, 12 people will be dining at the competition in the future.

image To put numbers behind this, each person typically spends about $10 to eat there (including drinks). A good restaurant would have regular customers who eat there about 3 times per week. This comes to a loss of $18,720 per year which would have came from 12 diners.

When disputes like this occur with your customer, its better to settle in their favour. They complain because they want to give you a chance to solve the problem. The worst customer is one who walks away angry, never complaining, and then spreading bad news about your business. If the restaurant owner gave my friend a free meal (valued $7 or so), he would continue eating there and recommend other people to do so as well.

Saving $7 cost the restaurant $18,720. Not really a good way to build a profitable business.


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