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Mar14
David & Goliath - The Little Bakery That Drove McDonalds Out Of Town

I'm a little late in discovering this story, but a David and Goliath story, is always news, especially when a small independent bakery, David, defeats the mighty Goliath, McDonalds.

The locals of Altamura in Italy welcomed McDonalds at first.

Then the modern seemed to take over: McDonald's erected the huge arches on a pole near the old town center, jarringly near the 13th century cathedral, beaming yellow neon 24 hours a day.

Luca Digesu, opened a small bakery, Antica Casa Digesu next door hoping to "shake free some of McDonalds customers." His foccacia was the same price as a burger and the locals loved his food.

He soon developed a strong following with traditional local products such as Altamura bread.

In July 2003 Altamura bread was recognised by the European Union as a protected regional product.

Digesu's bakery business was helped by local anti McDonalds sentiment and media campaigns by those who wanted to preserve the old culture... a good example of customers being your strongest advocates.

McDonalds countered by offering free schsmall_biz_reflections.pngool visits, a TV for locals to watch soccer and special offers. But after the soccer game, customers simply moved next door for their favorite breads.

Eventually, McDonalds closed down due to lack of profitability. 

Some towns boast they don't have a McDonalds or other fast food outlet, so maybe it's about the culture of a place too.

This story points to the importance of knowing whether your business is a good fit for your region and potential customers, before you set up.

While small independent businesses can change tack as they go, a franchise usually has less room to respond to local needs.

It's refreshing to see that a well managed small business can hold its own with the big guys. Score - David 1, Goliath 0, at least in one small town in Italy.

 

 

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17 Comments/Trackbacks




This is inspiring. Also thought provoking.

But my business is a blog so 'the local area' is the topic I blog on and other blogs on the same topic I guess. (It's a topical blog not a news or personal blog).

You've provoked me to think about how this could apply to blogging. Thanks

I'm so happy to hear this, more so from a health rather than a business perspective, but either way I think it's great. :)

» Profit Margins - Food For Thought From The Restaurant Industry from SmallBizMentor
This week we've been looking at the food industry for some small business lessons.One of the main lessons I was reminded of from my viewing of Kitchen Nightmares and The Chopping Block was how easy it is to lose profit... [Read More]

Interesting point Evan. I guess with blogging it's also about appealing to and knowing our audience.

JoLynn
I hadn't thought of the health perspective, but that's an interesting angle too.

Fantastic story! It's about time McDonald's got whipped somewhere in the world. I look forward to the time when a local store puts a Wal-Mart under. Not to mention that small bakery saved the town from sure cardiovascular disease.

If you haven't seen the movie "Supersize Me" you might want to. It's about the health problems McDonald's food can cause. Granted it was made by a vegan vegetarian who suddenly switched to eating McDonald's three meals a day for a month. He suffered a lot more than an average non-vegetarian would have. But it still demonstrates the importance of eating a healthy diet.

With over 97% of all jobs in the U.S. provided by small businesses of 99 employees or less, why is it that the McDonalds and Wal-Marts are still so prominent? I guess the American mindset is still mostly corporate. I look for that to change over the next decade as the reality of the small business mindset returns.

This story highlights 3 important points of business-
1. There is no such thing as guaranteed success, even for big, proven franchise like McD.
2. Opportunities are there for niche markets that caters to local needs
3. Businesses have to be sensitive to changing consumer trends, in this case, greater health vs price and speed.

This story should inspire the mom and pop business that they still have a place in society

Hi Sherri
I do hope you're right about small businesses coming back into their own.

It does need people to support local independent businesses, though, and to be aware that if they don't support small businesses, they will no longer exist.

Personal Money - Well said and great insights.

By the way, March 29th is National Mom and Pop Business Day.

» The Little Pizza Cafe That Could - Take Aways For Any Small Business from SmallBizMentor
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Very nice. And as was mentioned, McDonald's food is just not that healthy. My big problem with McDonald's is the murdering of all those animals to make their food. (I'm probably in the minority.) But it's also inspiring to read about these townspeople who simply liked what they liked and could not be "bought" or "marketed to."

» California Kitchen Nightmare & A Business Nightmare To Boot from SmallBizMentor
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