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Stop Asking Small Restaurants/Catering Services For Free Food
Stop asking us for free food.
Size matters
Within the past month, we’ve had a couple large, Fortune 100 companies reach out to us, highlight our mission and importance in the community…and ask for free food.
So we’re trading a shout-out that we’re “sponsoring the meal”…for a hit to our bottom line.
Unfortunately, as honored as we are by their acknowledgment, goodwill and pats on the back don’t pay the bills — for us, nor the vendors we represent.
Everyone knows that small restaurants need much more than mom’s classic recipes to survive. According to a frequently cited study by Ohio State University on failed restaurants, 60% don’t make it past the first year, and 80% go under in five years. Restaurants pop up in New York like a game of whack-a-mole and they disappear just as quickly. But why? There are of course the usual suspects: crowded market, subpar food and service, bad people management, or a lack of accounting skills.
But we tend to overlook another critical factor: a small business owner’s individual lack of negotiating power.
Big businesses — like the ones who reached out to us — have power, and power means they’ve got leverage. They’re in a much better position to espouse the…