When you’re just starting in business, the idea of landing a massive client with a substantial contract can feel like hitting the jackpot. In some industries, they call these customers “Whales.” While the big-name brand recognition might seem like a dream come true, sometimes these “Whales” can turn out to be the most challenging customers in your entire portfolio. That’s precisely what we experienced, and it’s why we ultimately decided to cut one loose.

In late 2019, shortly after we entered the Austin/San Antonio market, I set my sights on one of the biggest names in the Tex-Mex restaurant industry. For an early-stage business like ours, landing them would be truly game-changing. We were prepared to do almost anything to bring them on board.

 After months of relentless follow-up – sending emails with no replies, leaving voicemails with no returned calls, and even making in-person visits to their various locations around town – the email finally arrived: an invitation to bid on their work.

 “It’s game time!” we all thought. We ended up winning the bid fairly easily and were awarded the contract. This was a significant account for us: 13 locations requiring monthly service. “Great!” we thought. In our conversations with the restaurant chain’s decision-maker, they emphasized how much they valued proper service and strict compliance with NFPA 96 for their hood cleaning service.

 As we completed the first round of service at all locations, we meticulously compiled lists of all the deficiencies per NFPA 96 to submit to the decision-maker. Addressing deficiencies is critical for fire prevention and allows hood cleaning teams to properly service exhaust systems. If deficiencies on the exhaust fan located on the roof are not addressed, it can lead to extensive roof damage and costly repairs.

However, month after month passed, and the customer, who had so strongly emphasized compliance, was not approving our quote requests to fix the deficiencies, nor were they making any efforts to fix them on their own.  They were kicking the can down the road, so to speak.  This led to the continued deterioration of the restaurant’s conditions, significantly increasing the risk of fire and damage to their buildings.

After many months of conversations with their management team and decision-makers about these persistent issues, it became clear that the customer we initially thought would be amazing, simply because of their brand recognition, was becoming an extremely high-risk client.

Following a careful review of our risk/reward matrix, we made the difficult decision to end our relationship with this customer. The risk of severe damage to these particular locations was extremely high, and if something had happened, it could have severely damaged our reputation in the community. 

It’s crucial to stick to your values and ethics in all your work because if you don’t, there can be severe negative consequences for your business.