“Change is the very most natural thing, and life is mostly attitude and timing,” said JJ Walker, the singer-song writer, and it has always stuck with me. 

The hospitality business has never been more exciting, challenging or quick to change. 

As the Business Record’s Nov. 8 story “The Rapid Growth of ‘Eatertainment’ Venues” highlights, restaurants are no longer competing for diners based on food or atmosphere alone.

How does this make it more competitive and difficult? Restaurants are no longer growing organically; they are being pressured to fill a never-ending glut of open retail space coming available due to the ever-growing Amazon effect. Plus, customers are looking for new experiences. The current generation wants to be entertained. My own kids want fast and convenient delivery. It’s creating an opportunity and new revenue streams for many restaurants.  

Iowa now ranks 15th in the U.S. in the number of restaurants per capita. As the article pointed out, as new restaurants open, it will force the rapid closure of existing restaurants. That’s not a statement to take lightly. I’ve often been asked to speak to business students, entrepreneurs and other restaurant owners about the industry, and I wanted to share three things restaurants can do to not only survive but thrive in this market.

1) Invite your customers to new experiences

We opened Court Avenue Brewing in 1996, the second brewpub in the state. We took pride in offering craft beer and introducing the craft beer culture to our community.

It’s seems odd to say this now, since there’s 100-plus breweries in Iowa, but at the time our customers had not yet developed a taste for craft beer. They’d order Miller or Bud instead of one of our craft beers.

We started offering free samples of a craft beer they might enjoy, such as a light raspberry wheat. Soon, customer tastes developed, and we offered samples of darker and more hoppy beers. Today, diners are more sophisticated in their tastes and we offer eight ever-changing choices. 

We also looked for opportunities in the challenges. We were struggling to keep up with demand, and we found success by making handcrafted ginger beer to make Moscow Mules. They became one of our best-selling products, creating a new revenue stream. 

2) Listen for opportunities you might not expect

When we opened the Iowa Craft Beer Tent in 2011, all we wanted was to bring Iowa craft beer to the Iowa State Fair. We have been really fortunate ever since. 

Volunteers were asked immediately if we sold the T-shirts they were wearing. They were a simple white and black logo with the word “beer” inside an outline of Iowa. The logo stands for the wonderful Iowa beer and breweries that are part of communities across our great state. To our surprise, fairgoers asked volunteers if they could purchase the T-shirts off their backs – sometimes, with offers as high as $100.

Eight years later, there’s now a permanent retail spot on the fairgrounds, and due to demand we opened the Iowa Craft Beer Tent Store at Jordan Creek Mall this holiday season. We’re thankful we can enjoy good beer – and support the craft beer community – with friends and family this holiday season.

3) Listen to customer on how to serve them better 

Guests almost never remember what they had to eat or drink, but they almost always remember how they felt. I’ve always remembered that. At the end of the day, in the hospitality industry, we are selling feelings. We win when diners fully enjoy their experience at Americana, Court Avenue Brewing Co., Gilroy’s and the Iowa Craft Beer Tent.  

One approach we take is to ask open-ended questions. Instead of asking a diner, “How was your dinner?” we ask, “On a scale of 1-10, how was your experience?”

The first question doesn’t leave room for conversation. But when we ask customers to rank their experience, and they say, “An 8,” we can respond with, “What would make us a 10?” Then we listen.

The trick is being passionate and authentic. We want every diner to have the best experience possible, and we are constantly listening to see how we can serve them better. The customer will tell you how to treat them well. If you are listening.

Scott Carlson is the managing partner of Court Avenue Restaurant and Brewing Co., and the owner of Americana Restaurant & Lounge, Gilroy’s Kitchen-Pub-Patio and the Iowa Craft Beer Tent. For the holiday season, he recently opened the Iowa Craft Beer Tent store at Jordan Creek Mall.