There’s a great little cafe @vyvecafe in Burgundy street. Nicely placed at the top of a hill but on the “wrong side of the road” some may argue. (The local supermarket and train station are on the opposite side, leaving this cafe next to a bank and a chemist – not exactly complimentary!) This groovy little cafe however excels at everything coffee despite being a good 5 minute walk from the main coffee strip down below. Good news: Just recently another cafe opened opposite Vyve and a chocolate cafe opened next to that. At first look this competition looks bad however I beg to differ. (I have a 100% success rate at observing local retail businesses and predicting their demise. Always with 100% accuracy they close down when I say they will).
Vyve is well placed to double their patronage over the next 12 months. As long as they don’t change anything in a reactionary way, if Vyve continues to be Vyve they will prosper as a result of competition. Why?
1. Competition helps differentiate – Vyve will be all the more Vyve when compared to their competition. What makes Vyve different will be augmented and amplified by how much their competition aren’t them.
2. Foot traffic – the fact that two more coffee shops are up that end of the street (away from supermarkets and shops) will pull cafe patrons from other cafes at the bottom of the hill to this new cafe shopping strip. Vyve is next to a chemist and now it is one of 4 cafes transforming this strip into a coffee precinct. A new “population” of cafe goers will emerge and the result will be more going through the doors into Vyve.
3. Competition makes us better – competencies must be focused on, customers can’t be ignored., service is paramount and hard work is again entered into. This will result in a better offering.
I predict that Vyve will double revenue in the next 12 months due to this new competition. If they remain Vyve-like and don’t react to their new competition in a threatened way but rather embrace their true uniqueness and create a strategy to adopt new patrons from the population migrating from the bottom of the street.