Economic Indicators

by Jay on June 7, 2009

Economy Up, Service Down

hardees2I have long believed that the health of the economy is inversely proportional to the quality of service in fast food restaurants. When the economy is good, service truly sucks because they are forced to hire  the dregs of the labor pool.  When the economy is bad they can be more selective and the help they hire is more motivated to do a good job .  If there is a silver lining to a recession it is that it does make individuals and companies focus harder on finding and satisfying customers.

Bad economy = Good service

Amateur economist that I am, I formulated this hypothesis several years ago when the two worst fast food places I have ever encountered where within a mile of each other and also happened to be the two most convenient to me when I was renovating my kitchen and eating a lot of fast food. The first was the McDonald’s at the convergence of Chapel Hill Blvd and University Drive. It was dirty, the help appeared to be not only indifferent but probably illiterate and possibly larcenous. One time, needing a quick breakfast sandwich, I went through the drive thru. The voice coming through the speaker was polite and knowledgeable. I was so stunned that I paid at the first window and drove away without my sausage biscuit. But that was very unusual. The inevitable finally happened and they closed in spite of what had to be considered great area demographics.

Turnaround story

Just west of the McDonalds was a Hardees that ran a close second in awfulness. I hadn’t been in years but decided to try them again when the chain introduced Thickburgers. Thickburgers are actually very tasty especially if  you want to get two days worth of calories in one meal. But I vowed never again after getting stuck in their drive thru for 20 minutes one evening when I was very hungry and tired.  And I do mean stuck…no way to even get out of the line until somebody up ahead moves.

But here’s the happy ending to that story.  I really don’t know if it’s the result of current economic pressure or some enlightened manager. Hardees is one of the few national franchises to serve hot dogs. I had about a half hour to kill one afternoon before an appointment and it was lunch time and a couple of hot dogs just seemed like something that would hit the spot. The parking lot at Hardees was nearly vacant which I didn’t take as a good sign.

Good service

But everything else was a big surprise. I was greeted as soon as I walked in the door, assured that they still had hot dogs (strangely they aren’t on the menu on the wall). I ordered two and this same pleasant person suggested I try the onion rings instead of the fries. She then asked if I would be dining in or carrying out. “Dining in!” I thought in surprise, accustomed as I had become to the perfunctory “ear or ta-go?”  I did intend to dine in and they handed me a little plastic numbered tent card…not as cute as the puppy pictures at Nosh, but adequate. She politely tried to up-sell me to a large drink and shared with me where the drink machine was.  I responded that the regular size was fine but enthusiastically remarked, “You’re good!”  She smiled shyly. She was happy to get the compliment but she already knew it. A few minutes later the meal was on my table.  A little later a very small man came by and pleasantly asked if he could remove the empty food basket and refill my drink.

Good food

So, the service was excellent and the food was good. The beer battered onion rings are really much better than what is offered at Burger King and compare favorably to those served right around the corner at the Q-Shack. The hot dogs are large and grilled and the buns are toasted and they come with chili, mustard and fresh onions and for a few pennies more a nice cole slaw. The store was very clean and although the decor was standard Hardees it seemed light and cheerful…and empty.  It obviously hasn’t been rediscovered yet except by passionate hot dog lovers like me.

Happy customer tells his friends

What does this have to do with real estate, especially luxury real estate? Well, my favorite place to eat in that neighborhood…or any neighborhood for that matter…is Nana’s. But I can’t eat there every day.  These are tough times for real estate people. If you’re buying or selling a home you might notice a notably more attentive attitude from agents hoping for your business.

A frequent theme on this website and the primary theme of another I have just launched for real estate people is that it isn’t simply a matter of attitude; it’s also a matter of providing more sophisticated marketing of a client’s property. Like our friends in the fast food industry, acquiring the skills to do that may mean the difference between staying in business or closing the doors.

Expect more.

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