I'm thinking about targeting restaurants as a niche. Should I go after chains with multiple locations or independent restaurants? Chains seem like bigger paydays but independents might be easier to close.
Restaurant chains vs independent restaurants — which is easier to close?
Both can work but chains are significantly more profitable per hour of effort. An independent restaurant might have a $3,000/month utility bill with a $300/month error — your fee is maybe $1,800 total. A chain with 15 locations and the same $300/month error at each location is $27,000 in total fees for essentially the same analytical work replicated across locations. Target regional chains with 5-20 locations.
Karen is right about the economics. Restaurants are an excellent niche regardless of size because their utility bills are relatively straightforward — mostly electric and gas with predictable usage patterns. The most common error I see on restaurant accounts is rate classification — a high-usage restaurant on a general service rate when they should be on commercial demand, or vice versa. Become an expert in restaurant utility patterns and you'll close deals faster.
Going to start with regional chains. There are about a dozen in the Oklahoma City area with 5-15 locations each. Planning to approach owners through the Oklahoma Restaurant Association networking events.
Smart approach. Restaurant association events are gold for this. Let us know how it goes!