Adapting to a Changing Market:

Abstract

In the late 1980s, the California Country Club noticed that, in addition to losing money, its full-service restaurant was no longer serving its target customers-golfers. Business people ("suits") had become the golf club's primary lunchtime customers while the golfers had abandoned the restaurant for less formal, less expensive, and quicker lunch places. After considerable market research, club management declined such options as continuing to operate the formal restaurant with a reduced staff, replacing the restaurant with a second snack bar, or closing the restaurant entirely. Instead, management developed a casual-service concept with a golfing theme, but made no structural changes. A reduced staff now offers table service to guests who choose from a limited menu and eat off high-quality plasticware. Although most of the suits deserted the restaurant, the golfers who replaced them are pleased with the new, informal service. The restaurant has cut its losses to an acceptable level and once again serves its main markets-golfers and members.