Presented by Daniel Toriola
Very few restaurant type businesses actually succeed. Most fail in their first year of operation. There are many
opinions and reasons given as to why this is happening. Upward of 25-33% of restaurant type establishments
shut down in under 12 months
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COOPETITION in the Restaurant Industry
By Jose L Riesco
Have you heard the term Coopetition? If not, you'll hear it soon. It is causing quite a stir in the
marketing circles.
So in case that you are not familiar with the term, let's start by defining coopetition. If we look at
Wikipedia, we find the following definition:
"Coopetition or Co-opetition is a neologism coined to describe cooperative competition. Co-opetition
occurs when companies work together for parts of their business where they do not believe they have
competitive advantage, and where they believe they can share common costs. For instance, the
cooperation between Peugeot and Toyota on shared components for a new city car for Europe in
2005. In this case, companies will save money on shared costs, while remaining fiercely competitive in
other areas. For co-opetition to work, companies need to very clearly define where they are working
together, and where they are competing."
Long-term business success comes not solely from competing successfully with other restaurants but
also by working with them to your advantage.
Coopetition is part competition and part cooperation. When restaurants work together, they can create
a much larger and valuable market that they ever could by working individually. Restaurants can then
compete with each other to determine who takes the largest share of the potential customers.
A good example of restaurant coopetition is when there is part of a city or town that has a large number
of restaurants concentrated in a rel