As the Olympics edges ever closer to the doorstep of London, business owners are gearing up for the final run in of what will prove to be a memorable few months for the borough of Newham. Several of my previous posts have focussed on what impact the Games will have on small businesses within Stratford, Upton Park and Forest Gate – three of several districts within Newham in which local establishments are hoping to capitalise upon the arrival of the Olympics.
But how much exposure do small businesses from each of these areas have with those from other districts? And what can they learn through one another’s experiences about preparation for the Games? I decided to bring together three local business owners from Stratford, Upton Park and Forest Gate for a brief ‘Round Table Discussion’, to share, explore and question their attitudes to the Olympic experience.
AA = Athar Ahmad
BC = Ben Davies, owner of Ben’s Burger Bar in Stratford
DA = Daresh Akram, owner of Karachi Express in Forest Gate
AS = Anil Sharma, owner of Massala Wala in Upton Park
AA: Thank you for taking the time out to join me in this Round Table Discussion gentlemen. First question – you all own food establishments in Newham, are you expecting to see a surge in revenue during the Games?
BC: Definitely, especially considering I’m based in Stratford, which is where the bulk of the tourists are going to be. I’m bracing myself to be rushed off my feet for the next couple of months, I’ve even taken on extra staff despite the current economic climate.
DA: Well I’m not entirely sure to be honest. Obviously Ben’s in a great location but Karachi Express is in Forest Gate and we’ll have to wait and see whether tourists come out as far as that during the Olympics or if they just stay in Stratford.
AS: I’m quite optimistic about the Games. I understand where you’re coming from Daresh but I think London will in general be far busier than usual and we’re all in the food game here. People will always want to eat and buy food and that’s even more true during events like the Olympics.
AA: How have you each prepared, if at all, for the upcoming Games – any particular strategies you’ve adopted or adhered to?
AS: I’ve definitely been far more proactive than I thought I would be in terms of marketing and trying to raise the profile of my business. Tourists are going to want to go to places where they see the locals eating – that’s why it’s so important we get the residents of Newham into our restaurant before the Games even begin, so they can see that it’s an established and well liked place to eat.
BC: Absolutely, I think you’ve hit the nail on the head there Anil. A lot of businesses, particularly when it comes to restaurants and takeaways, think they can just sell food willy nilly. But people are actually quite loyal to particular brands, and that extends to what they eat. You can’t just put a few special offers up during the few weeks the Olympics is on and expect to see a massive boost in sales.
DA: I disagree with that, I think there’s definitely money to be made on a shorter term basis. People want food, it’s a short term commitment, it’s not like buying an item which you’ll keep and own for a certain period of time. People want value, they want good food and they’ll search for that regardless of how ‘fashionable’ the place they’re eating is.
BC: It’s not about how fashionable it is, it’s about feeling comfortable and enjoying where you’re eating – it’s the entire dining experience.
DA: The experience will come with the quality of the food they have, not how flashy a place looks.
AA: Ben, you mentioned you’ve taken staff on lately in anticipation of the Olympics rush – financially speaking, what position does that leave you in?
BC: Well hopefully it’ll pay dividends, in that the labour costs will be nullified by the increase of business revenue, meaning that although I’ve got more outgoings and staff expenditures, we’ll be able to serve more customers and generate a bigger slice of income.
AS: That’s an interesting point, because at the moment it’s very hit and miss. In places like Stratford where your restaurant is Ben, you’re pretty much guaranteed business due to the foot flow which will be going through the area and so, taking on more stuff for the Olympic period isn’t a massive risk. When it comes to places like Upton Park where my business is or Forest Gate where Daresh is, it becomes a far bigger risk as it’s still uncertain whether we’ll be seeing any tourists come our way.
DA: Absolutely, I haven’t hired any additional staff at the moment myself as I’m uncertain as to whether we’ll have a higher customer turnover than usual or not. Hiring – and paying – extra staff without seeing that return in customer revenue would be a total disaster, so I’m holding off on that front for right now.
BC: I guess I just presumed that every food joint in Newham would be amping up their workforce at the moment due to the Olympics, it’s interesting to hear that you’ve both got reservations about it.
AA: Anil, what kind of marketing have you been doing in the build up to the Games? And what advice on the back of that would you give Ben and Daresh?
AS: I’ve been handing out lots of flyers, vouchers and have even been looking at social network sites to try and raise the profile of my business as everybody seems to have one these days! The advice I’d give is to try and be true to the roots of your business and your own personal ethos. There’s no point printing out t-shirts with your businesses name on it and hand them out to people as it’s just tacky – no one will wear them, you’ll end up spending loads on production costs and you’re likely to end up being stuck with hundreds of t-shirts at the end! You need to really look at your target audience and understand how best to tap into that market. With the Olympics bringing people from all over the world to the UK, it’s important to try and appeal to a wide a range as possible.
BC: Totally, it’s basic marketing practice – know your audience. Fair enough, the Olympic like Anil said, will bring people from all around the globe but it’s important you don’t lose track of your own identity as a company. Once you do that, it’s a slippery slope and you’ll end up wondering where it all went wrong.
AA: Daresh, do you think you’ll go beyond the confines of Forest Gate to try and draw more attention to your business?
DA: Once again, I’m not totally sure. Like I said, Forest Gate is quite out of the way but people might come if they’ve heard the food is good. Food is different to other businesses in that word of mouth is quite strong. A lot of my friends who have businesses are going to be going to Stratford in the next few weeks and will try and promote their businesses. I’m still in two minds.
AS: I think you’ll have to Daresh, in the sense that, the Olympics will only be here once in our lifetime and it’s a massive opportunity to make some extra money.
DA: Yeah true, I’m just not sure if Forest Gate is going to appeal to tourists. I could spend time and money advertising in Stratford but if no one comes, what’s the point?
AA: Finally, do you view the Games as an opportunity to make up for some of the revenue you may have perhaps otherwise lost during the year due to the poor economic situation?
DA: I do yes, but I’m just quite nervous about the whole thing if I’m being totally honest. It’s been a bad year and when the pressure is on to make sure the Olympics is a massive cash cow which will solve all your problems, it’s easy to be sceptical.
BC: I understand what you mean Daresh but it is a massive opportunity and you have to grab that with both hands. Fair enough, the year’s been pretty bad for all small businesses, but us guys here in Newham are lucky in the sense we have a chance to recoup some of that lost money. Businesses outside Newham, let alone outside London, just don’t have that opportunity. We have to embrace that fact.
AS: I’m with you on this one Ben, it is a daunting prospect as Daresh said, but it’s a great chance for us to get our businesses back on track, kick start once more and then after the Olympics is all over and done with, try to use that money to improve our businesses. We need to get the economy going again and that responsibility lies with us small businesses as much as it does with the big boys.
