The Dutch Horeca (hotel, restaurant, café) market has seen revenues decrease by almost 6 percent in the first quarter of 2010 compared to the same quarter last year. The Dutch statistics bureau CBS (Centraal Bureau voor de Statistiek) published the figures.
As has been outlined in a previous post, it is important to invest in design when things are not going well. You may think that this is a paradox, but it is a good investment for the future. This is because you will attract the attention of consumers and when things get better, you can reap the benefits because you will be miles ahead of the competition.
The Apolis Restaurant and Surya Restaurant cases are a good example of how a firm in the horeca business should invest during a recession in order to come out of it in a dominant position with a well established, solid brand and magnificent design. The Total Consumer Experience (TCE) was implemented to alleviate Apolis above its competition.
Should you invest in the Total Consumer Experience (TCE)? Do you want to perform better than others when the market picks back up again? That all depends on you and your company because the Total Consumer Experience (TCE) is for firms in the higher echelons of the market.
Are you still not convinced you should invest in design? Well, then just think of the economic downturn as the competition. What do you do to outperform your competition? You have to make strategic changes and improve your company. You have to put in extra effort compared to what you would normally have to do to get the same results. Again, immediate results may not be evident as something like the Total Consumer Experience (TCE) with parts of it such as branding yield returns in the long-term.