While chatting with our neighbors the other day, I asked them if they tried the new Black-owned chicken joint not too far from us. “Duane”, she said while shaking her head. “Yes we did.” This wasn’t a “it was the bomb” head shake. This was more of an “Aww snap, not again”. She told me to stay where I was while she walked to her car to get the menu. Sure enough, my suspicions were right. This business had priced themselves out of the market. Want two pieces of chicken with a roll and drink (I think the drink was included)? That will be about $8. Side items looked good, but based on the proportion description, you will still be hungry after one scoop. What started as a way to show her support for Black businesses in the area quickly turned into a one time donation when she realized that it was going to cost her about $40 to feed her family that evening.
The worst thing about it is that this business is right across the street from — not one but two (2) national fast food chicken restaurants that have been there for a long time. Also, keep in mind that both of those spots have a drive-thru window unlike the business I am talking about.
Like I have said on this site many times before, this is part of a two-sided problem I regularly encounter with most Black-owned businesses. One one side, the owners price themselves out of the competition. On the other side, customers from time to time expect a hook-up.
B.T.W. She said the chicken was pretty good, but not $40 good.
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March 4th, 2008 at 1:38 pm
Duane,
I do know of several black owned resturants in black neighborhoods that charge far more than the local KFC, are very profitable and have been in business for a long time. Needless to say outside of the poorest of poor communities in the USA the demographics of most black nieghborhoods can support a business of this nature. If done right a business like this will be sustained by the younger childless people in the community or those those family that can afforded it or do not care how much they spend on take out.
Lets not forget the vast majority of folks in America with more than one or two children can NOT afford to eat out in any type of classy establishment. Nor can they afford to feed their family at the local fresh seafood take out joint. in NYC $8.00 is nothing for a take out meal for one. Not for nothing I just spent over $20.00 in McDonalds to feed two adults and two children.
“Soul Food” has always been priced at a premium in Black neighborhoods as it is everywhere else. The situation is the same for Caribbean food also, hell for that matter “real” Mexican or Spanish food in a resturant is more expensive than fast food right here in the Bronx NYC.
The success or failure of this business will be determined just like any other one. Will the quality of the food remain high? Will the owners create and maintain a nice ambiance? Will the owners advertise the resturant properly?
Remember this is America and folks of all races spend money with reckless abandon. Hell if folks will buy a $7.50 pack of cigarettes without blinking an eye I am sure a good businessman will not have problem graping 8 bucks for a meal out of their pockets.
March 4th, 2008 at 3:13 pm
Had the restaurant I am talking about was placed similarly to the restaurants you are referring to, I would tend to agree.
As far as I know, this restaurant has NO history in the area. So unlike the restaurants you are talking about, they have no rep which already places them way behind the curb (I could stop with that point alone). This brings me to my second point. If they were the only ones in the area, then yes, I think that they could have the chance to controlling that market. Next, unless the chicken has a very distinct and wonderful taste to it, it would be unwise for them to think that they are actually competitive.
Do I want to see the succeed? You bet. But as someone who seen businesses like this rise and fall for years, based on what I know they appear to be the makings of the next chapter.
“Soul Food” has always been priced at a premium in Black neighborhoods as it is everywhere else.
Oftentimes yes. But that is because there are typically not close to each other as you see in Mexican communities here on the West coast. Same goes for Asian restaurants. The more you have, the more competitive the price. The restaurant I am refering to is offering some of the same fare you would find at KFC at a premium price.
March 4th, 2008 at 3:55 pm
Duane,
My point is business is some really tricky sh*t! Time and time again we see business success stories that prove that you do NOT need to be better than the competition, just different.
McDonalds could easily be used as a case in point. The food sucks, the prices are no longer inexpensive, they exist on just about every other corner in America, yet the corp. continues to see growth.
IMHO success in business is managing to balance “facts” with “fiction”. Facts being proper research, finance, and a viable business plan. Fictiion is the “HYPE” that one generates about their business.
Now needless to say is this chicken shack you are refering to is just selling plain-jane fried chicken than I too will say WTF! But if they do manage to come up with a competitive “edge” than I can see they surviving.
While I am not currently an owner of an established private business I do sell my professional IT services on the side in an informal manner. It is a nice little bit of extra cash. One thing I have learned about business is it is important to learn how to do business but NOT put your heart and soul into it. I know this sounds rather blasphemus to many but it does make sense.
Learn to be in business for the sake of making money! Do not set yourself to one particular dream of one particular business. Learn many different things and be perpared to jump out of one and into another. It is ok to sell real estate yesterday and switch over to cleaning-out foreclosed homes today!
March 4th, 2008 at 10:27 pm
There’s nothing inherently out of whack about a $40 meal for 4, regardless of its location in today’s economy. Needless to say, the restaurant here doesn’t have the economy of scale as a KFC, so it probably pays a little more for its food. That difference can be offset with clever marketing, incl. service, or atmosphere.
OTOH, the consumer isn’t obliged to support the business just because its proprietor is Black. We’ve all got a reasonable expectation for any establishment where we spend money to live up to its claims — be it fast service, quality preparation, personalized attention, etc.. Those expectations cut both ways, though. The entrepreneur has a reasonable expectation that their consumers value the proffered products/services realistically and fairly. If this lady walked into, ostensibly, a mom-n-pop fast food joint thinking $8/person was too expensive, she shouldn’t eat out period.
March 6th, 2008 at 9:49 pm
“The House of Blues” in Randallstown was doing great business. Not one, but 2 Asian competitors came in and DRASTICALLY undercut them in price AND quantity. But the thing is, their prices were reasonable to begin with. The Asians are part of a “co-op” that allowed the cut rate prices. The House of Blues is still around.
But, the Downtown House of Blues went out of business. When I found out about it, it had just closed. People complained that it wasn’t able to stay open, but I never heard of it AND the location, while in downtown Baltimore, was not in the location of the Harbor were a lot of foot traffic is.
The “lake trout” will make you slap yo mamma!