The study guide for "Scarcity Marketing" with Chef Thomas Keller of The French Laundry in Yountville, California as seen on Small Business School, the series on PBS member stations.

The Case Study Guide

last update: May 2005

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It's ok if you don't like meetings

Hattie says Thomas Keller is a contrarian.

Do What You Want To Do

Topic for Discussion: Is Thomas Keller a bad business man?

Answer: Some would say he's a bad business man. We say he's a man who is doing what he wants to do, is creating work, is pleasing investors, and delighting customers. All of that adds up to success in business.

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Key Ideas of this episode


1.		Make a Small Amount

2.		Learn From Mistakes

3.		Be True To Yourself

4.		Keep Dreaming

5.		Put All Of Your Skin In The Game

6.		Stay Charming

7.		Take Dozens Of Investors

8.		Win Awards

9.		Do What You Want To Do

10.		Hire A Maitre D'

11.		Hire People You Like

12.		Buy From The Best

Topic for Discussion: What is the risk in making a product that only pleases you without doing market research?

Answer: Your business will only be as big as the market. If you are like Thomas Keller and do not have "main stream" tastes, you will struggle as Thomas did in the beginning. How many people are there who want to spend $175 on one dinner and spend 2-3 hours eating that one meal?

Thomas found there weren't enough people in Palm Beach and not enough people in
New York City back in 1986.

Topic for Discussion: How important is location if you want a retail business?

Answer: Some would say location is everything. It is certainly critical, and Thomas proved that by finding the perfect location where he can cook what he wants to cook and people are happy to pay his asking price.

With the passing of time, Thomas Keller is seen as a hero in the food world. He is enjoying amazing success and he is finding plenty of people who want to eat what he wants to cook.

If you read the comments below, you'll discover the tiny bit of customer backlash that a business like Per Se and The French Laundry must endure.

One diner writes, "Was it really worth it? The food is the finest anywhere ever. No doubt. Was it really worth it? We say probably not. You dine how Thomas Keller wants you to dine. There are no options for you as a diner. It is $175.00 without tax, tip or beverages whether you choose the 9 course tasting menu, the 9 course vegetarian menu, or the 5 course menu. The price had gone up from $150.00 from the time we made our hard-to-get reservation. The only real flaw in our dining experience was that our Pinot was served refrigerator cold. It took almost an hour with lots of swirling and decanting for it to be the proper temperature. We were surprised that there wasn't a wine pairing offered with the tasting menus. Be prepared for LOTS of food. There are all kinds of goodies brought before and between courses. We counted 5 desserts/sweets at the end of the meal. We were all glad we went, but none of us feel the need to go back at those prices and there was just too much food! We would have liked to have had a 3 or 4 course option that wasn't $175.00."

Even though some customers feel they have no freedom when they enter the world of Thomas Keller, there are plenty who stand in line to get in.

You think about it: What can you do to make your products and services so in demand that people have to wait their turn?

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