by Les Watkins
Fiona Grayson has an outstanding talent for preparing and presenting food. That cannot be disputed. Soon after she and husband Warren launched their One Red Chilli company at Papakura – a catering service doubling as a cafe – she secured the contract for a banquet for 400 diners including Prime Minister John Key. She later provided a meal for Mr Key’s initial meeting with newly-elected Auckland mayor Len Brown.
Talented. Yes, Fiona Grayson undeniably is that. And Warren, a former building industry executive, certainly has the necessary business know-how.
But both had to learn to sell themselves more effectively. That was essential for big success in such a competitive market.
Now they are delighted that their company is one of 10 small businesses benefitting from ASB’s Business Mentor Programme.
The 10 are having what the bank describes as “money-can’t-buy mentoring sessions” with highly-successful business bosses.
New Zealand’s 350,000 SMEs provide more than 30 percent of the country’s jobs, with a high percentage being in the food industry, but Ministry of Economic Development figures show that nearly half fail within 10 years.
The mentors for Fiona and Warren Grayson are Nosh Food Market directors Clinton Beuvink and Chris Moore.
They did not identify themselves when they first visited One Red Chilli, a former car workshop transformed into a cafe, but seemed like casual customers.
“We’d no idea who they were,” says Mrs Grayson. “That was good because it gave them a genuine picture of what we were doing right or wrong.
“One of the first mistakes they later told us about was the appearance of the inside walls. They were black and gray, far too drab, and ought to be a lot lighter. So we’ve repainted them a neutral stone colour. Much better.
“But even worse, they felt, were the loads of local artwork on display for sale – with nothing on the walls selling ourselves.”
“That’s right,” says Mr Beuvink, “A good cafe is all from the heart, from the ersonality of the person running it, and the art was completely out of character. And Fiona needed to realise she is not in business to sell art.”
Now the art has been replaced by information about One Red Chilli’s catering – a service which almost seemed to have been kept a secret.
“We didn’t even know about it until Chris chanced to spot a small notice in the toilet,” says Mr Beuvink.
“We rectified that pretty smartly,” says Mrs Grayson. “Our catering operation is already expanding because people who enjoy the café food now realise, for the first time, that they can have it in their homes or at private functions.”
Another mistake was a failure to up-sell.
“The mentors weren’t asked if they’d like another coffee which they certainly would have bought,” says Mrs Grayson. “Just a small point, maybe, but an important one – and typical of the many they made.
“Clinton and Chris have helped in a variety of ways. For instance, their advice saved us from wasting at least $15000 on new equipment, floor covering and lighting.”
“Many small businesses do waste money because owners don’t see things from the viewpoint of customers,” says Mr Beuvink. “Some of the most successful cafes have had virtually no money spent on them and yet they work.
” People use beer crates as seating or get cheap bric-a-brac – none of it matching – because customers are there because of the food, for goodness sake, not because of the furniture.”
He and Mr Moore also urged the Grayson’s to think more deeply about what really was their core business – perhaps catering rather than the cafe – and then to concentrate on that.
They should also consider moving from their rented premises, where there is little passing foot-traffic, to a better location.
Another food-industry company benefitting from the programme is Auckland sausage-making firm Branco where the main mentor is Stefan Lepionka, co-founder and chief executiveof juice-maker Charlie’s.
For more information:
Visit: www.creatingfutures.co.nz/frog
