Advice needed please!!

[Sandysarah100]

Hi everyone. Just curious of some opinions please. We own a cafe which has a separate takeaway hatch connected. Two members of staff are related and have told us they have their own coffee van which they’ll be setting up 10-15 mins away from us just selling drinks and snacks. They’re wanting to continue working for us without their days being effected whilst also working a couple of days on the van. It shouldn’t effect us too much as it’s a very different business however it could pinch the odd takeaway customer & more so, I think it’s obvious which they’ll care more about. It’s a nightmare time wise as we have young children so can’t just work all the shifts & it’s a tricky position to fill as it’s weekend work and taking on running the show. Ultimately, short term it’ll make our life very hard with the busy season approaching. Opinions please! Is it not such a big deal? Or a big no no. Thanks in advance! Sarah.

 

[estwig]

Clearly as their new venture grows, they are going to wind down with you, how that shows time will tell but it's going to happen, unless the new venture fails of course. If it does fail they will probably have wound down with you by then and be on their way out of the door anyway. Whatever it sounds likely you will see a drop in their performance.

Even more concerning will be little comments to your existing customers, about a great new coffee van just around the corner.

Sack them now and risk bad will, keep them going and risk losing custom and declining performance.

I don't envy you, good luck and I hope I'm being pessimistic!

 

[IanSuth]

I don't know your location and local clientele.

Will their busy time be your busy time (day/week/season)

Are both your and the van's location serving the same customers (or just a few the same)

If you are lucky there is not that much cross over and you might actually be able to take something positive from this, either combining for larger purchases (at a better discount), selling left over product in the others premises after closing to reduce wastage/charging them to prep product on your site they sell in their van or even when need arises being able to share an extra member of casual staff between you.

Only you know the likely level of customer predation and product crossover, but you need to sit down with these 2 sooner rather than later and have a frank conversation about expectations and limits. Hope for the best prepare for the worst

 

[Onthebrightside]

Clearly as their new venture grows, they are going to wind down with you, how that shows time will tell but it's going to happen, unless the new venture fails of course. If it does fail they will probably have wound down with you by then and be on their way out of the door anyway. Whatever it sounds likely you will see a drop in their performance.

Even more concerning will be little comments to your existing customers, about a great new coffee van just around the corner.

Sack them now and risk bad will, keep them going and risk losing custom and declining performance.

I don't envy you, good luck and I hope I'm being pessimistic!

I agree. I had a slightly similar thing running a craft shop. One of the tutors for classes said that they were going to start their own classes, but it would be different to anything we were doing in the shop and they wouldn't poach customers. However, whilst I was looking in the store room I overheard her not just mentioning her classes in the tutorial room, but the fact that she could do similar tutorials and further, could send them to shops where they could buy the bits the would need! So not only poaching customers, but refering them to my competitors - I was so shocked. I didn't offer her any further classes and she actually complained - when I pointed out what I had overheard, her response was simply that she had the right to start her own classes if she wanted, which is of course true, but I did expect her to keep her word and not poach my customer perhaps naively.

It's not ever what you want in your own business, but sometimes you have to be a bit hard-nosed.

I guess only you could know how much their van could impact on your business.

 

[JEREMY HAWKE]

Sack em in fact sack the lot of them .......all of them! (This is no help but I just love saying it )

This is a dilemma but those of us that employ people on the low end of the pay scale have to also realise at this price we have no control over people lives to do this would be very unfair. Unless they are in direct competition you have no business controlling what they do outside of your operation.

You are talking in terms of employees that have NDA contracts and exclusive after employ agreements and I am pretty sure that the payments you make to them for their labour does not reflect this type of employment agreement.

 

[iconic]

It's good that they've told you... They could have just done it in secret.

If it was me I'd keep them on (at least for the busy period) and just see how it goes.

 

[The Resolver]

They seem both honest and entrepreneurial. Exactly the sort of people you need should you ever wish to expand your business. So why not discuss your company buying the van and bringing the van business into the cafe business on a shared brand with some financial/share incentives?

 

[Porky]

As @iconic pointed out, they could have done it in secret and not told you.

However, you will most timely bleed customers to them and next thing you know the van is parked at the end of your road or they simply offer a delivery service to all your existing customers!

I would be looking to cut my losses frankly not help fund them whilst they are in start up

 

[MOIC]

Let them get on with their business idea, wish them well and actively look for new employees to replace them ASAP. Try staying on good terms (if that's feasible).

Keeping them on (until the time of their choosing to leave) is only going to help finance their business and potentially give a heads up to your customers about their location, as well as contacting your suppliers for their business.

You can see the way this is going to go . . . . .starting with coffee and snacks, then adding what they already have experience in, having worked in your business and knowing what sells. Also, what will stop them from encroaching even closer to your location, given it's a mobile business?

If they were of the mindset of discussing with you their intentions and being completely transparent with their idea, then there could be talks of potential collaboration. However, given they have decided to go it alone, it's best not to have any collaboration with them, It's only likely to get messy and you'll potentially lose your ultimate control of your own business.

Employees leave, it's part of business, accept it and move on as best you can.

Good luck with the decision you take.

 

[Paul Kelly ICHYB]

So, they are getting a wage from you and running their own business when best for them.

Grahame's idea of taking the van over is a great one. If that doesn't work for you, get rid of them because they are a form of competition that you are funding!

 

[manojspsmobile]

Hi,
Can anyone advice me pls for phone repair business ? is still profitable ?

 

[Mark T Jones]

Hi,
Can anyone advice me pls for phone repair business ? is still profitable ?

1. Start your own thread.

2. If you know what you are doing, it can be profitable. If you don't it will fail. Just like any other business.

3. Start by working on your research techniques.

 

[manojspsmobile]

1. Start your own thread.

2. If you know what you are doing, it can be profitable. If you don't it will fail. Just like any other business.

3. Start by working on your research techniques.

ok Mark