So, let’s imagine you’re on the leadership team at Cracker Barrel (I know: Right now, even the idea is giving you a headache).
You had a great plan:
- Update your menu. Tests on items like the Hashbrown Casserole Shepherd’s Pie seemed positive.
- Modernize your dining rooms to appeal to younger guests. All your data showed your guests were ageing out, and a significant decline in guest count had led to a stock price that plummeted and never bounced back.
- Oh yeah, and update the logo.
That did not go well.
The resulting firestorm of public opinion – or manufactured outrage driven by bots, pick one – made you reinstate your classic logo and back off on the décor and logo changes.
Then you restructured executive positions and fired the company and the company that came up with the whole brand refresh.
So Now What?
Why bring Cracker Barrel up in the first place in a forum devoted to successful owners of independent multi-unit restaurant companies?
Because Cracker Barrel still has not solved their withering guest count problem or raised their low stock price.
Now all they’ve done is eliminate a way to possibly make things better.
Problem Unsolved
The narrative says that Cracker Barrel changed things and paid the price. On the flip side, though, they were already paying a price for doing things the old way. Now all they have is some new menu items and other than that, the old way.
Does that sound familiar to you?
So be thankful you have control over your brands.
When you pay attention to what your guest wants and how they evolve, you can actually take smart steps to increase guest count and your net worth, unlike Cracker Barrel.
In today’s environment – where every dining-out choice constitutes a decision to spend money on a valuable experience – guests actually give you the key to future success.
Action Remains Up to You
I see common threads between the companies that have revenue increases:
- Increasing training and education to boost service experience.
- Developing new and exciting menu items – making sure their guests know what is being given to them, not just what’s being taken away.
- Creating perfected marketing messages to give people a reason to choose you over your competition.
- Honing their ability to save money behind the scenes where they can and spending money where the guest sees it.
I see independent restaurant companies proud that sales went up this year, and many others in the doldrums of flat or down sales.
In a flat market, everyone has to be in action.
What action moves you closer to your guest, lapsed user, or non-user? What makes them choose you and identify you as one of those operators who increases results?
