Even retail can get it wrong

The troubles afflicting the Morrison’s supermarket group will have resonance for many in the chain restaurant market. Some City analysts are blaming the profit warnings from the Yorkshire-based grocery multiple on the so-called "sushi line" that divides the north and south of Britain. The problem is that when the group’s chairman, no-nonsense Yorkshireman Sir Ken Morrison bought Safeway for £3bn he did not understand, or perhaps want to understand, what its mainly southern, middle-class customers wanted. Not so many years back chain restaurants were also getting it wrong, but the other way round. A whole clutch of London-based restaurant concepts headed north, only to fall flat on their faces and be forced to retreat back to the capital. At the time, their failure was put down to them being "too fancy" for sensible northern, or Midlands, tastes. But it is more complex than that, witnessed appropriately by the fact that Yo! Sushi has now opened in Birmingham, albeit in the new Selfridges department store. There may well be a "sushi line", but it is not simply a question of geography. It is a point that was picked up by Jim White in the Daily Telegraph commenting on the Morrison’s predicament. He pointed to the contrast that is Tesco, which has become a symbol of reliability across geographic and cultural divides, much like BMW. "Morrison’s has nothing like that cachet," he pointed out. As it has Morrison’s had "foolishly" allowed itself to be branded in its chairman’s no-frills image. "But whether they hail from Buxton, Brixham or Brixton, consumers want a lot more than that." In an observation that will be instantly familiar to students of the branded restaurant business, White concludes that consumers want to believe they are accessing sophistication, choice and ethical sourcing, albeit at knock-down prices. It is the hard truth for retailers across the board – consumers want it all. It’s the challenge that faces those selling food whether it’s for in-home or out-of-home consumption. Tesco has managed to be all-things-to-all-men, because it works hard and relentlessly at it, both in improving efficiency, cutting prices, buying more effectively and delivering quality as well as finding out and delivering exactly what its customers want and expect. It knows it needs to focus both on the "factory" and "theatre" sides of its business – the behind the scenes systems and its in-store service and show. Not everyone can reach Tesco’s standards, but it is about knowing that cheap isn’t every thing and aspiration and belonging are also part of the mix. To use a fashionable marketing expression, it’s about "brand-matching", making sure your brand attributes match those of your consumers – no matter what part of the country you may happen to be in.