Value Proposition

Creating a Value Proposition

A value proposition is a promise of value to be delivered and acknowledged and a belief from the customer that value will be appealed and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services. Benefits help in creating a value proposition for the guest. Hence to create a value proposition for a guest, the product/service must be first seen from the guest’s perspective rather than the organisation’s perspective.

The value proposition is, by definition, different than a company’s mission statement. A mission statement talks about how the company is going to offer a product or service to a specific market segment, while a value proposition explains why the people/companies in that market segment should want to engage with that business.

Value is innately subjective. Different people value the same thing differently.

For a restaurant, you must establish the value proposition that will best resonate with your target customer base. Make sure that the value proposition permeates through each part of the restaurant. For example, if your value proposition is simply “great seafood and the largest selection of white wines in the city,” then all restaurant employees should focus on delivering that value proposition. The wait-staff should lead with this statement at each table they serve. The kitchen should have a consistent menu of popular and unique seafood, and must also try to add a unique, seasonal choice. The wine-waiter should do the same—highlight the wide selection, but suggest special “pairings” of wine with featured seafood.

Deciding on the value proposition also helps with its focus. You might have a fantastic kitchen staff that makes great-tasting food, but you can’t be all things to all people. No single restaurant has the best steak, chicken, fish, wine, beer, appetizers and dessert. Any restaurant that tries to be the best at everything will find that they have spread themselves too thin. When you create an appealing value proposition for your restaurant, you are creating a reason for people to choose it over other options.

Keep in mind that your value proposition does not necessarily need to be food-related. For example, if you’re running a beach bar, your value proposition could be “sun-downer cocktails” or “beach games” or “trendy local live musical performances”.  Different people value things differently. Some people may not be interested in beach games, but you need to research what your guests may want and use the answers in creating your value proposition.

In summary, to ensure that your value proposition is successful, you must strategize such that the value as perceived by the guest is actually greater than the actual value in the product or service you are offering.

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