Small business wisdom

Cuban Restaurants "Words to the Wise"

 

Times are tough for everyone nowadays, particularly for the average consumer.  The first thing one cuts in tough economic times, is the superfluous. We go out to eat less often if at all. When we do, we tend to order less extravagant items on the menu and go to less expensive venues. 

In Miami, there are a multitude of Cuban Cafeterias, a small restaurant, usually family owned and operated, with a few seats at the counter and half a dozen tables. Much like the traditional American Diners but with Cuban flavor.

If the place is clean, the food is usually pretty good, although very simple. The purpose here, is to get you fed heartily so you can go back to work, without breaking the bank in the process. Food is served relatively fast, in generous proportions, for a very fair price and usually in a humble setting, using paper place mats, plastic glasses, often plastic cups for the "Cafe con leche" and paper napkins. Patrons don't usually linger much; they come, they eat, they leave (just like the Ants said about the Crickets in Disney's Cartoon).

Both sides find a valid deal, the owners make a very small profit, but offer very little service, in a relatively cheap setting, and make up for that in the volume of orders . The patrons eat a well prepared hearty meal at a price, often lower than most fast food chains would offer for far less quantity and quality. 

That arrangement is precarious, however, particularly for the owner of the Cafeteria. The Mom & Pop setting makes for a convivial atmosphere that adds to the charm of the establishment and contributes to the repeat business and customer loyalty. Nevertheless, the slightest error in judgement in assessing the cost of a dish, can translate to a loss that is rapidly multiplied by the fast pace and the volume of business. Most of these small cafeteria operate on a cash basis, and I am not talking about the accounting term (as opposed to deffered sales basis), but almost everything is paid cash by the patrons (few exceptions are usually made for large tickets amounts) and the Business Operator often pays cash for most of its daily supplies with a few exceptions for the goods delivered on account by a large distributor. 

So that tenuous arrangement  between the Business Owner and his Customers hinge on the latter paying immediately for goods served, and the former on serving them rapidly, in generous proportions for a very fair price. Should the former fail on his end, the latter will no longer frequent the establishment since there are so many offering the same service in Miami. Should the customer no pay in a timely manner, the owner will be forced to deny further service to that customer from then on, margin being so low, charity is a luxury the Business operator can not afford since most of his patrons are in the same situation as the one needing that charity. Spreading that generosity to everyone in financial difficiulty is the same as committing business suicide. 

The problem a Mom and Pop small business such as these cafeteria have, is the following: 

• How do you prevent a situation where a customer has to be "thrown" out of the business and denied future service for lack of payment? 
• How do you do it without alienating the rest of the Patrons? Even if the customer recovers his financial health, he will never willingly return to a place where he was humiliated.

Most Cuban cafeterias and small shop owners have a very simple solution to that problem: Communication. A direct, in-your-face, can't miss type of communication. It sounds blunt, but in reality, it is subtle enough and delivered in a non-caustic way, that it is highly effective. These is what they do: 

1. They post a sign where it is very visible, that all credit, debit or charge cards, will either require a Non-Cash fee, or a minimum amount (usually $10.00 min).
2. In addition, more than a few use humor and poetry by posting the following Poem in the most Conspicuous place in the restaurant: 

Si fio

Pierdo lo mio

Si doy

Al abismo voy

Si presto

Al cobrar molesto

Y para evitar todo esto

Ni Doy

Ni Fio

Ni presto

 

Loosely translated (the riming is lost in the translation):

If I open a tab

I lose what is mine

If I give it away

I'll go bankrupt

If I lend

When I ask for it back I annoy

So to avoid all of that

I don't give

I don't lend   

I don't open a tab

It is clear, concise and to the point. Every Patron knows in advance what the policy is and both parties can avoid the embarassement of a situation and ruin a good relationship. That is effective communication, on that forwarns of the consequences in a seemingly non personal and non threatening way.  Evey time I sit down a a Cafeteria counter and see such a poem displayed conspicuously, I can't help but smile and internally applaud the simple genius of the whole thing. Excellent business communication.