Baker Runs Big Business Out Of Town March 22
This is truly an inspiring story of David versus Goliath. In this case, “David” is a baker in a small town of 65,000 people and Goliath is non other than McDonalds. In 2001, McD open a store in Altamura, a small town in the South of Italy. Originally the residents welcome McD that it provided a few more jobs and more options to the people.
Luigi Digesù, the baker he had not set out to fight against McD. He merely wanted the residents more choices serving tasty filled panini (bread rolls). The people in Altamura overwhelmingly preferred panini to hamburgers and chicken nuggets. It was a case of better product versus something new. According to Digesu, there isn’t any marketing strategy, no advertising promotion, no discounts! Yet people preferred his products to McD. This is stuff for big company CEO’s and managers to have nightmares.
Despites efforts from McD with is arsenal of special offers, children parties, Ronald the clown as well as management changes, its business continued to dwindle and finally, McD called it quits in South Italy, in 2006.
Lessons we can pick up.
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There is no such thing as guaranteed success. Although many franchisor especially big, proven franchisor like McD like you to believe their business is almost fail save, I’ve seen McD close even where I live.
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Mom and Pop business they still have a place in society and they can overcome bigger well funded operations. But they too must compete where the big boys cannot.
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Opportunities are there for niche markets that caters to local needs. Businesses have to be sensitive to changing consumer trends, in this case, greater health vs price and speed.
Story via zmag
