Joseph Carbonara

Lessons Learned from Restaurant Chains

Last week I had the opportunity to attend Chain Leader Live!, an annual conference hosted by FE&S’ sister publication Chain Leader. While the weather outside the Hyatt might have been as frigid as today’s business conditions, the attitude at the conference was exactly the opposite. The restaurant chains in attendance warmly embraced one another and shared countless ideas about the way they intend to grow their concepts.

Following are just a few of the running themes that emerged from the first day of the conference.

Focus
With all the distractions the struggling economy can generate, it is important for foodservice companies to maintain their focus on the opportunities the market offers. “We know people are eating out less, but our strategy has to focus on growing market share among those who still go out,” said keynote speaker Peter Coors of the MillerCoors Brewing Company. In other words, focus on those customers you have, and don’t dwell on those who have cut back.

Be True to Your Brand
While riding the wave of a current trend can be an appealing way to drive short-term sales, for long-term success it is important to stay true to those attributes that allowed a concept to develop brand appeal within its target audiences.

For example, Laughing Planet Cafe, a Portland, Ore.-based quick service restaurant that serves portable nutritional devices, more commonly known as burritos, became a chain by accident, according Richard Satnick, its founder and chief burrito officer. The restaurant chain rose to regional prominence by not looking or acting like a restaurant chain, which is important to consumers in the Portland, Ore., market. Sure, each location features certain core elements, like a tribute to musical artists Frank Zappa, but the physical similarities end there. When Laughing Planet takes over a space previously occupied by a restaurant, it reuses the décor items left behind by the prior tenant.

Laughing Planet also uses a commissary for production and then transports the food to its locations. This allows the restaurant chain to move into smaller, more unique locations in Portland’s many neighborhoods, keep startup costs to a minimum and improve quality standards, according to Satnick.

Burger Lounge is another example of a restaurant chain staying true to its brand. The four-unit chain built brand loyalty by taking a less is more approach to its 10-item menu. In doing so, the fast-casual operation employs fine dining techniques to food preparation and presentation, according to J. Dean Loring, Burger Lounge’s president.

“A great deal of our relationship with our customers develops after the financial transaction,” Loring added. That’s due to the fact the Burger Lounge staff will continue to have contact with customers by clearing their plates and refilling drinks.

It’s OK to Break the Rules to Create a Winning Proposition
Who says good food can’t be healthy? Roti Mediterranean Grill features a rotisserie-based menu that meats many healthy-eating guidelines, according to Bill Post, the concept’s co-founder, president and CEO.

A Little Competition is Healthy
In recounting his experience as a restaurant operator, Denver Mayor John Hickenlooper, a former restaurant operator himself, recalled the way his establishment used to promote some of its competitors on premise. While his staff at the time thought this practice was unorthodox, Hickenlooper pointed out that by promoting other businesses his operation was in fact promoting the entire segment which was good for everyone.

Along those lines, Coors also encouraged foodservice operators to be thoughtful in their approach to their product and to understand its position within the market. Just as importantly, Coors said to not be afraid to see your product placed along side a competitor’s. “If they beat us head-to-head, well, good for them. They deserve it,” Coors said.

Posted by Joseph Carbonara on November 4, 2009 | Comments (0)