Hey Hot Potatoes,

Welcome the latest edition of the Hot Potato Newsletter. Now, if I asked you what has been the oddest meal you’ve had, what would it be? For me, I’ve certainly eaten some interesting things in my life, but I reckon a kangaroo burger from when I was in Oz a few years back is high up the list… sorry vegans! And now you’re probably thinking, "Max, where are we going with this?" But the moral of the story is that being ‘odd’, means you’re different and most importantly memorable. According to Statista, there are over 50,000 restaurants in the UK alone. That’s a lot of choice for customers, which inevitably makes it difficult to stand out. So, what can you do to make sure you do stand out? Well, one answer is going niche. In today’s newsletter, we’re going to explore why going niche matters, how you can find your niche, and we'll look at some of the best niche offerings out there.

In today’s email: Why going niche means winning big.

Read Time: Approx 6 mins

Why going niche matters.

Going niche is important because it gives customers a specific reason to come to you, it allows you to focus on a quality offering, helps you become more profitable, improves operations, and allows you to build focused brand awareness.

Key Points:

1. What does niche looks like: Having a very specific focus—whether that's an ingredient, a dish, or a cuisine—gives you the opportunity to become instantly recognisable. It means you’re doing something totally different from everyone else and ultimately allows you to stand out.

2. Quality offering: When you go niche and have a narrow offering, you generally have a simple menu with fewer ingredients. This smaller selection means you can focus on one or a few things and do them extremely well. Become a master of your trade and deliver something exquisite.

3. More profitable: In plain economics, having a narrow focus and fewer ingredients allows you to benefit from economies of scale since you can bulk buy your ingredients. You'll also be able to better manage excess waste, reducing the need to throw unused products away!

4. Operational efficiency: Let's break it down—fewer moving parts make operations easier to manage. Your staff in the kitchen can master the menu more easily, forecasting becomes simpler, staff training improves, and this all leads to a better customer experience.

5. Brand awareness and identity: Going niche means people are going to notice you. It draws intrigue and generates excitement. When you know exactly what you’re offering, you are able to build a distinct and clear identity more easily. It also makes your brand much easier to take to market.

It goes without saying that there is a caveat to all this—the offering still needs to be good despite it being niche. Standing out is important, and doing something different is bold and admirable, but if you’re serving up something that no one wants, then you’re obviously going to run into issues.

How to find your niche.

Source: Icentivo

So you’re thinking about starting something, but how do you find your niche? Well, there are several ways to find that niche, depending on where you want to begin… The main factors you should consider are competition, location, and audience.

1. Who is the competition? An obvious starting point is to look at what else is out there to get some inspiration. Can you spot a gap in the market with only a few competitors doing what you’re considering? Or, even if there is competition, can you do something a bit different, more unique or just better? Look at what customers are saying, check out Google reviews—what are they doing well? What aren’t they doing so well? Think about the likes of Supernova coming in hot with their smash burgers, or the infamous Crisp Pizza, bringing in the new NY style. Both operate in saturated sectors, but both are doing something unique.

2. Study your physical location: Get yourself out on the streets and see what's already available. The folks at Crunch, during their R&D phase, would taste and rate what others were doing to see how they could do it better. You don’t always need to reinvent the wheel—just do it better than everyone else.

3. Who is your target customer? Are you targeting city workers, suburban mums, the after-club crowd, or those who prefer a slower pace of life? Consider who will be buying your offering regularly. Remember, you could have your idea all planned out, but if none of your target demographic lives where you want to launch, then it might all be in vain.

That being said, it should boil down to where your passions and tastes lie. Like most things in life, if you’re passionate about what you do, success will follow. Launching a brand based solely on a trend won’t offer any real longevity.

Niche brands that are smashing it.

Humble Crumble launched by Kim Innes back in 2018, originally at a stall in the Primrose Hill market, she has gone on to become the queen of crumble. Pursuing her passion for crumble and recognising that no one else was doing it, she took the plunge to make her dessert dream a reality. They have built a mini dessert empire, selling four variations of crumble desserts and custard, and I tell you what, it’s bloody fantastic! Their passion for crumble has created a massive following of loyal fans, with constant queues for their epic desserts and a huge frenzy on social media, too.

Find them at: Camden Market, Borough Market and Spitalfields Market

With fifteen locations and growing, Flat Iron is arguably becoming one of the most recognisable steakhouses in the UK. The traditional steakhouse concept hasn’t really changed in a long time, with notable players like Goodman’s, Hawksmoor, and Smith & Wollensky in London. However Flat Iron identified a problem, they recognised that going to a steak restaurant was often viewed as an exclusive experience, or for a special occasion only. So they wanted to bring amazing steak to customers at a reasonable price point. They only serve one cut of steak, along with sides, sauces, and a couple of specials. For £14, you can get a top-notch steak, alongside free nibbles like popcorn and an ice cream to finish. It’s also just solid food, and for the price point, fair play!

Find them in: London, Cambridge, Leeds, Manchester.

SushiDog has reinvented the wheel when it comes to grab-and-go sushi. Founders Nick and Greg realised upon some research that the grab-and-go sushi market was pretty drab and uninspiring, where the offerings available were quite unimaginative. So they decided to do something different and bring a fresh twist to the sector with their chunky burrito-style hand rolls. These rolls are the focal point on their menu and are a perfect lunchtime option. Six years and nine locations later, they’re on a roll with exciting plans to grow even more.

Find them at: Westfield, Seven Dials, Soho, Bishopsgate, Baker Street, Strand, London Bridge, New Oxford Street, Bank.

CDMX Tacos are taking the taco world by storm, serving up some of the best tacos I’ve ever tried. On a personal level, I’ve always felt Mexican cuisine in London has been traditionally under-served, and there was a gap in the market for someone to come in and shake things up. Well, I’m glad CDMX came along, because it seems they’ve filled that void. What’s particularly interesting about them is that they only offer three types of tacos—and that’s it: Beef, Pork, and Cactus… talk about niche! With this focus however, comes an emphasis on quality, and they’re doing a phenomenal job.

La Maritxu could be one of the most niche offerings I’ve seen out there, serving only one thing on their menu: Basque cheesecake. Lucia, originally from the Basque region in Spain, launched La Maritxu three years ago. She would bake cheesecake on weeknights and weekends, eventually quitting her job to follow her passion and go full-time. Using her family’s secret recipe and a lot of love, her cheesecake has been a hit, having recently opened a second site! It goes to show that if you do one thing and do it well, you can be successful!

Today we’ve explored why being niche matters, how to find your own niche and good examples of what niche offerings look like. My question to you is, if you were going to go niche, what would you do?

Now, are you one of those out there who has genuinely thought about starting something, but have never understood how to create a business plan? Well in next week’s newsletter we will look into how to write your own business plan, and understand what the rough costs would look like to open a restaurant.

Thanks for reading and don’t forget to subscribe to stay updated weekly on all things hospitality!

Bon appétit,

Max Shipman, Founder, Hot Potato

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