
A few months we discussed about the Somali restaurants that are taking over Nairobi on Reality Cheque for startups. A big thanks to everyone who participated in the conversation. One of the recurrent highlights from the conversation as being the number one cause of this take over was generosity. Giving more than what your customer expected always leaves your customer with a lasting memory. What this means is that you have successfully recruited your customer into your sales force, in fact they are three times better than your sales force because research shows that third party word about you is three times more credible than your own word.
Such generosity inspired Mugg and Bean to start small and consistently build on the promise of generosity. Ben Filmalter started Mugg & Bean in 1996. He was already a seasoned hand in the restaurant world, having started in the industry as an 18 year old cook's apprentice, and working his way up from there until he made it out of the kitchen and into management.
Filmalter and his wife were inspired by the idea of creating Mugg & Bean after a visit to a small boutique coffee shop in Chicago, which offered a unique combination of great food, good coffee and outstanding service with the spirit of generosity. The Chicago coffee shop experience made a lasting impression on them, and they felt that this type of restaurant concept was an offering that would do well in the South African market. And based on these initial inspiring ideas, the Mugg & Bean story was born.
The first Mugg & Bean restaurant opened in 1996 at the V&A Waterfront in Cape Town, and as Filmalter had predicted, their unique model proved popular. Generous portions, fast food made from good quality ingredients, the value for money appeal of bottomless cups of coffee as well as being served by friendly staff made their first restaurant a hit with customers.
Two years after the establishment of the first outlet, and based on the success and popularity of the original Mugg & Bean restaurant, development of the concept as a franchise opportunity started to take shape. Franchising would permit rapid expansion of the business, while allowing Filmalter to retain control over the development and marketing of the brand, and the subsequent years saw many more franchised Mugg & Bean restaurants opening up all over South Africa.
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As today's consumer becomes more cost conscious, generosity goes along way in the value for money proposition. It will cost the provider in the short run but pays in the long run. Indeed a brand attribute that sells.