Coopetition in the Restaurant Industry

Have you heard the term Coopetition? If not,food stalls. Because of the participation of many
you'll hear it soon. It is causing quite a stir in therestaurants --and good marketing -- crowds of
marketing circles.people attend these events (there is usually music
So in case that you are not familiar with theinvolved and often many other activities as well).o
term, let's start by defining coopetition. If weEtc.
check Wikipedia, we find the following definition:As you can see, these are some of the
"Coopetition or Co-opetition is a neologism coinedpossibilities for coopetition. However, there are
to describe cooperative competition. Co-opetitionsome other intriguing ideas for you to consider.
occurs when companies work together for partsHere you have a few to think about:o
of their business where they do not believe theyCross-promotion with restaurants that offer
have competitive advantage, and where theydifferent food than yours. Often your menu
believe they can share common costs. Fordoesn't compete directly with other restaurants. If
instance, the cooperation between Peugeot anda person is in the mood for Italian food, for
Toyota on shared components for a new city carexample, she won't go to an Indian restaurant to
for Europe in 2005. In this case, companies willdine or vice versa.
save money on shared costs, while remainingPerhaps you can join forces with restaurants in
fiercely competitive in other areas. Foryour area that have other styles of cuisine, and
co-opetition to work, companies need to verytogether create a coupon book that you can
clearly define where they are working together,distribute to the regular clients of the participating
and where they are competing."restaurants. Or maybe you could create a
Your long-term business success comes not solelydiscount card that your customers could use in
from competing successfully against otherany of the restaurants in your area. This will
restaurants, but also by working with them toattract more customers to your neighborhood.o
your advantage.Cross-promotion with restaurants that offer the
Coopetition is part competition and partsame kind of food than yours, but are not
cooperation. When restaurants work together,located near your place.
they can create a much larger and more valuableAgain, usually people prefer to go to restaurants
market that they ever could by workingthat are near their homes or workplace. If there
individually. Restaurants can then compete withis a French restaurant nearby and they are in the
each other to determine who takes the largestmood for French cuisine, they won't typically
share of the increased number of potentialtravel far to a different French restaurant... unless
customers.the other French restaurant is so superior that it's
A good example of coopetition betweenworth the trip -- and this where the competition
restaurants is when there is section of a city orkicks in.
town that has several restaurants concentrated inSo what can you cross-promote? Well, if you
a relatively small area. If you look at this areahave an ethnic restaurant you could create a
from a traditional business point of view, openingnewsletter sharing printing and perhaps distribution
a food service establishment there looks like acosts with similar restaurants and distribute it to
bad idea.clients of all the restaurants involved. The
Why should anybody open a restaurant in an areanewsletter should cover articles about the foods,
already full of restaurants?culture, geography, etc. of the restaurant's native
The reality is that the abundance of places to eatcountry.
attracts customers who may visit the areaBut what if your restaurant is an all-American
without any specific restaurant in mind, and makeplace? Give unique information about your areas.
their decision when they arrive.You still can have trivia about the specific states,
This is where the competition starts.some local recipes, etc.o Join forces to negotiate
Typically, the restaurants with the best ambiancebetter deals for linens, food and beverage
or most attractive menu or the best quality/price,products, menu printing menus, etc. Imagine that
that are filled with the most people, usually bring inyou talk to the owners of nearby restaurants,
the most customers...and you make a deal to use the same distributors
There are many typical examples of coopetitionfor common things like linens, candles, dishwasher
such as:o Food courts: All the restaurants aremaintenance and supplies, garbage and/or grease
placed together in places like shopping centers -disposal, exhaust filters, printed menus, etc. You
sharing tables, trays, cleaning services, etc.could then request a volume discount from these
Customers are brought to the same spotdistributors and everybody will benefit.
(cooperation), and then they compete for theirThese are just some quick examples of
business (competition).o Advertising: Sometimescoopetition. Joining forces with your competitors
restaurants collaborate to put together a foodcould be a win-win proposition. Just be smart
magazine or similar publication where they eachabout it and think about areas where both of you
contribute (both in money and in content) to thecould benefit.
publication.o Special food events: SometimesCan you think of more areas for coopetition? I
several restaurants organize food events wherewould love to know. Please visit my web site and
they all contribute food or display their items atlet me know.