San-Maria's Startup Story: Part 2

Vitally Important, Rarely Taught

As opening day arrived, Santiago and Maria's were overwhelmed with emotions as they opened the doors of their restaurant, "Sabores de México". They couldn't believe it as they stood outside, watching their dream come true right before their eyes.

The scent of spicy food filled the air as the first customers trickled in. Santiago’s warm smile welcomed each guest, while Maria managed the kitchen like a pro. Word of mouth brought more customers and by evening the place was filled with laughter and clinking glasses. Everyone was full of praises and the first day was clearly a resounding success.

By the time San-Maria cleaned up the place it was past midnight and they were extremely exhausted. They hugged and congratulated each other. After a toast and a quick meal they realized that they needed to rise early tomorrow. Maria needed to do some food preparations and Santiago had to go to the market to buy fresh produce.

But how could they sleep without counting the cash. With hearts racing and smiles widening, they finished the counting, only to realize they had earned more money in one day than they could have earned in a month as employees. This filled them with hopes for a bright future.

The next few months were busy and they made good progress.

One evening, while Santiago was serving guests, a food inspector made a surprise visit to check their kitchen. Santiago requested him to return the next day, but the inspector insisted on immediate inspection, demanding someone to accompany him.

With Maria occupied in cooking and Santiago as the sole server, they struggled to comply, leaving many customers unhappy, some even began shouting. To make things worse, the inspector said the restaurant had to close until they fixed the problems.

This was a severe blow to their morale as well to their brand. Their heart sank when the local newspaper mentioned this in the next days news.

They realized that to rectify the inspector’s point, they would need a fortnight and all the money they had saved. They also learnt the following:

• Jealousy from nearby restaurants was probably the reason for this surprise inspection. Perhaps the customers that day were also planted by these competitors.

• The inspection points were not critical but they knew that following food safety protocols was non-negotiable. While, they always had the intention to be compliant, they had decided to fulfill the requirement when they had more money. They realized that proper adherence to laws is a must and having adequate financing in the beginning is critical.

• They needed to hire more people. Apart from needing more capital to hire, this also meant higher risk due to higher fixed costs.

Undeterred, they worked extra hard to meet all the requirements and got themselves certified within 10 days. The inspector was pleased and wished them good luck.

Having invested all their capital, they were extremely vulnerable now. That night, in the sacred shrine nestled within their kitchen, they fervently prayed to the Virgin of Guadalupe, asking her to send forth customers in their time of need.

However, the business remained stagnant. Apart from a few passing travelers, the local community was not frequenting their restaurant. The news had spread, casting a stigma upon their business.

This was a do or die situation and San-Maria had to do something quickly. They met their mentor - Antonio - who told them that they had neglected a few crucial points in the hurry to start the business.

He told them that it is crucial to be unique and have “differentiation” in the market. Right now, they were just another Mexican restaurant serving to anyone who walked in.

He also reminded them that they didn’t really work on their C-P-S strategy which he had shared with them.

Antonio had always believed that this duo had the potential to succeed. In addition to mentoring, he also agreed to provide them more funding.

Together they came up with the following plan:

1. Customer, Problem & Market Understanding - Understanding the target market and their needs is crucial. Being a tourist town, they identified ‘Travellers” as their ideal customer. These customers usually look for a unique experience and are ready to spend money for a good meal. At present no one was serving them authentic Mexican cuisines. They knew that this unique and appealing concept will resonate with their target audience and will also set them apart from competitors.

2. Go-To-Market Strategy - They decided that they would attract customers through relevant and helpful content and avoid the traditional ads and promotions approach. They hired an expert who crafted an appealing website and focused on SEO. Recognizing travelers' reliance on online searches and reviews, they optimized their website to align with Google's algorithms. Additionally, they revamped their social media accounts and started making social connections and building a brand.

3. Menu Development - Building on the C-P-S strategy they had to work on the solution part. Their solution was - amazing food, great service and a memorable dining experience. Food was their core product. Creating a menu that appeals to this target audience, balancing costs and pricing, and reflecting the restaurant's concept turned out to be difficult. Undeterred, they went for high-quality ingredients and ensuring consistency in food preparation.

Antonio helped them understand that in any business customers are the most important piece. One has to learn to delight them.

San-Maria also integrated technology in their customer experience. Simple things like using barcode to check menu and notifications showing order processing status helped customers relax while they waited to be served.

Brimming with enthusiasm, they were prepared to re-engage with the world. They expanded their team by hiring two additional individuals and diligently trained them to embody their ethos.

With all things done Virgin of Guadalupe, soon showered them with success. Their restaurant had become the talk of the town, and the very newspaper that had once criticized them was now filled with praise. Soon, they began contemplating starting a franchise business to expand into other towns.

Before embarking on their shared journey, they recognized a more significant calling. Despite their seamless partnership in work, a void lingered in their lives.

Their constant companionship in the professional realm had woven their destinies together, like ivy clinging to a trellis. In each other, they discovered not only a professional ally but a life partner. Their love fueled their journey.

They decided to marry and build a life together on the foundation of laughter, shared dreams, and whispered promises.