The more things change, the more things need to change.

June 27th, 2012

Burger KingThe best operators constantly update their image, offerings and physical plant or they risk falling behind.  In a market where product changes quickly, information between customers who notice anything outdated or inferior travels even faster.

Operators who fall behind eye deteriorating circumstances and think they can get by without re-investing in their product and facilities.  They try and stretch the ROI on their previous investments further than it can realistically go.  Then they wonder why their revenue is not keeping up with inflation, or worse.

Nowhere is that more evident than in the Quick Service Restaurant segment. Take McDonald’s, the segment leader, which reportedly bet $1 billion, (yes, Dr. Evil, billion with a ‘B’), to upgrade the look of their restaurants.  It has paid off, with increased same-store sales covering the wager.

Maybe you have driven by a Burger King lately with a strange blue paint job and a roof that looked a little saggy.  That is an image that will be going away as BK catches up with a new décor package, curb appeal and menu items.  Here is a prediction:  their sales will be increasing, too.   The Burger King upgrade I noticed in Dallas was on my mind when I talked with the Dallas Business Journal’s Steven Thompson for his article, “Guillermo Perales  building a whopper of a franchise empire.”

I am not known to be a great consumer of QSR food.  I don’t know if there is really anything happy about a Happy Meal, but I know there is a lot every business person can learn from that segment. Re-investing in product and facilities is one of those lessons.

Talking About Increasing Sales with Experts at Southwest Foodservice Expo

June 27th, 2012

Southwest Food Expo PanelWhen the best companies aim to increase sales, the first thing they do is evaluate and improve the customer experience. Then, once it is up to standard, they use that to define their brand and enroll frequent users.  What is the point of focusing on bringing people through your front doors before you have something you are proud of, and that they understand, they want and they can’t get everywhere else?

That was the unexpected common thread on two completely separate panels I moderated at the Southwest Food Service Expo recently.  All six of the industry professionals I spoke with agreed that the most important endeavor was getting the experience and the product right.  In other words, there is no point in talking about branding or converting occasional customers to regulars unless food, service, and atmosphere are perfected.

The two panels I moderated were entitled “How to Grow a Regular Customer” and “Who do you think you are?  A Branding Reality Check.”  The former comprised three of Dallas’ independent operators, Surrender client Ed Murph of Norma’s Café, Jack Perkins of Maple & Motor, and Seth Smith of Lee Harvey’s.

The latter  featured three CEOs: Carl Howard of Fazoli’s,  John Longstreet of Quaker Steak and Lube, and Antonio Swad of Pizza Patron. Ron Ruggless of Nation’s Restaurant News covered the panel in his article, “Effectively Building Your Restaurant’s Brand.”

The ideas were varied and creative:

  • Ed Murph talked about community involvement
  • Jack Perkin’s shared an unconventional approach to mutual respect between guest and restaurant, realizing he and his team cannot serve everyone and make them happy
  • Seth Smith explained how he has mimicked the radio technique of a prize for the fifth caller for a daily free dinner on Facebook
  • Carl Howard talked about the use of china and food runners in a QSR environment
  • John Longstreet explained how the worst tables in his restaurants carry a 10% discount on the guest check
  • Antonio Swad sent me a note with the Acronym ABB: Always Be Branding, a nice take on Glengarry Glen Ross’ ABC: Always Be Closing.

It  was not the methodology or gimmicks panelists were most interested in discussing.  When aspiring restaurateurs had questions at the end of both panels, the  message was clear . . . work on a concept that excites you and make it great.  Worry about the font on the menu later.

The Southwest Food Service Expo, celebrating the 75th Anniversary of the Texas Restaurant Association, was held in Dallas on June 24 & 25.

Photo:  Ron Ruggless via Twitter

Branding and Creating Regular Customer Panels at Southwest Foodservice Expo

June 5th, 2012

The Texas Restaurant Association has asked me to moderate SW Foodservice Expo panels on both Branding and Creating Regular Customers.  I appreciate the opportunity to make important contributions to thinking in the industry.   The panel discussions will take place at the Texas Restaurant Association’s upcoming Southwest Food Service ExpoEducation Idea Center June 24-25 at the Dallas Convention Center.
How to Grow a Regular Customer Sunday, June 24, 11:00 am to 12:00 pm
Every restaurant owner dreams of a house full of happy, loyal customers.  “How do I develop and nurture a regular?” may seem like an obvious question, but if it were easy to answer, tables would always be full. Successful restaurateurs will share how they’ve nurtured and grown regular customers.

The panel:

Who Do You Think You Are? A Branding Reality Check Sunday, June 24, 1:30 to 2:30 pm
Explain your brand in seven words or less. Not easy, is it? Yet, if you can’t communicate what you stand for, you can be sure your customers and competitors will do it for you.  How do you identify your brand? Once you’ve identified it, how do you make sure it is carried through every aspect of your operation? CEOs from some of the most successful and strongly branded restaurant concepts in the industry will share their insights into how to find out and tell everyone exactly who you are.

The panel:

Take the opportunity to come to Expo, it’s a great way to keep up with your peers and new trends in the industry. I hope to see you at the Education Idea Center, around the show floor, and at events during Expo.