January 20th, 2008
When is it a good idea to stay small?
There are a lot of interesting businesses in the Amherst area. Being a college town that survives off the spending of students, there are many creative ways that business owners have managed to expand their services to cater to the 25+ demographic. The reasoning behind this is simple – students aren’t always in town spending money (winter and summer break account for more than 4 months of the year). Here are a few business that are trying this:
Amherst Coffee (great expansion idea)
I was very interested to try out this new cafe in Amherst. They gave a very good first impression. The idea of a simple $1 cup of coffee was great and the interior was very well done. You could tell the owners spent a lot of time on the decor. It made you want to stay, and relax. Instead of couches they have large cushioned platforms right up against the windows. You can sit/lay/etc.. on them. This is an interesting experiment that looks to be working great.
Expansion – Although coffee is a great product with a great markup, Amherst Coffee came up with a great idea to turn into a wine bar at night. Driving by at night I often see many people in the windows, enjoying a glass of wine. The profit margin of wine is lower than coffee, but the cost of a glass of wine is at least 2x more. I’d assume their earnings from nightly wine sales are similar to that of their daily coffee sales.
The Pub (very very good expansion)
I’ve heard from many people that The Pub has the best Pub food in Amherst. After eating there a few times I’d have to agree. Portions are generous and as an added bonus the manager seems to only hire the most attractive waitresses he can find. Subsequently our company meetings are regularly held here.
Expansion – After 8pm the Pub completely changes. Dance lights come out of the ceiling, the cooks window turns into a satellite bar, and the tables are moved to the corners to form a dance floor. The first time I went here after 8pm for drinks it was comical to see just how different it was here at night. I wondered if the families that came in to eat during the day had any idea that it becomes a nightclub within an hour after they leave. It doesn’t appear to matter because The Pub is packed day and night because of it. Without a doubt, a great idea.
Souperbowl (poor expansion)
There aren’t many places in Amherst that serve really good soup. Fortunately Souperbowl is close to our office and I really love eating there. I’d much rather patronize a local, small business than one of the corporate chains. Homemade is better, right? The Buffalo Chicken Chowder here is my favorite – nice and spicy.
When i first visited SouperBowl they had a small corner store (pictured left). It was just the right size for a place serving soup and sandwiches. There were 6-10 tables. This gave it a small, warm feel. Perfect in my opinion.
Expansion – I was very, very surprised when i came into SouperBowl’s new location a few days ago. They had more than quadrupled their size, now with more than 25 tables, seating for an estimated 100+. Even more surprising was a 25′ wine/beer bar. The bar is very sleek and modern – probably one of the nicest bars in Amherst. There are a few problems with this expansion. First, what is a bar doing in a restaurant serving soup? I drink moderately, and I can say I’ve never had the urge for a beer or glass of wine while standing in line for soup. Another problem is that there are already 10 or more very popular places to drink in town, maybe 20+. I can’t imagine students on a Friday night heading to a soup shop to drink with friends. The two just don’t mix.
I’m very curious as to why the owners decided to spend the tens of thousands of dollars on remodeling, obtaining a liquor license and more – all for the occasional odd character who finds it enjoyable to drink at a soup shop. It will be interesting to see if the students next semester agree with me. For SouperBowl’s sake, i hope they don’t.
In Summary
It very interesting to see these businesses expanding in creative ways. It’s often surprising what works and what doesn’t. Sometimes the most whacky and creative ideas can succeed (bar in a soup shop anyone?). With my most recent startup CampusLIVE i’ve relied on the friend test to decide whether my most creative ideas are worth persuing. I ask 20 or more of my friends whether they think it will work. If most of them do, I go for it. Worst case the idea fails, but I’ve learned something in the process.
