Friday 2 November 2012

The clever approach of Hard Rock Cafe

Since I have knowledge in both the Hospitality industry and marketing I believe I can explain a thing or two about "reservations" in this world known cafe.(I won't say anything bad, so no legal issues here)

How does Hard Rock Cafe works: You can't make a reservation, you just wait for your turn!

I had an argument recently with some friends about the new franchise cafe in Cyprus.  They told me that they believe they should have changed the franchise regulations according to the culture. (I don't really believe we have this attitude in our culture, we are never on time and reservations are not our thing. but I will just agree for the purpose of this argument)

So here are the possible scenarios if you have a reservation.


You will most probably go at peak time when most people go.  The peak time is part of a culture, in some countries it might be early for example at eight o clock, while in some others it might be later for example around ten (you can argue against me if you want or disagree with the timing but continue reading and you will understand my point, it doesn't really matter if the peak hour is at 22:00 or 20:00).

On the contrary 
Since you have a good name and a good cafe you will expect full nights. Owners and managers know this fact and because tables are not a product that can be stored and sold later on, (what we call perishability) you want to find a way to fill those tables by expanding that peak time from 3-4 hours to 6-7 hours which will almost double the customers.

I heard many people saying "yes we should go to hard rock cafe but we have to go early to find available tables".
So what happens here? automatically the peak time expands and you end up with something like this:








In order to find available tables, you go earlier, (you will most probably stay for a couple of hours) and you change the peak hour to an earlier time.  If you go there at 22:00 for 2-3 hours you will occupy the table until 12:00-01:00 so it's unlikely somebody else will come at that time since there is not much time left in the night. On the other hand, if you go at 20:00 in order to find available seats, and stay for 2-3 hours as usual, you will leave at 11? So the one who did not go early and had to wait for his turn will have a couple of hours more to stay and enjoy his/her night too.

Results-sum?
The cafe stays completely full longer which means more customers per night!