Eddying
Foodservice Solutions® industry leading insights on Restaurant Brand
Protectionism industry icon restaurant research guru Ron Paul founder of
Technomic speaking at UCLA Extension’s Restaurant Industry Conference saw participants conclude
that brand protectionism leads to customer discontinuity.
During the session
that looked at “why winners win and why spinners spin” Paul identified several
key points for stall-out within some chain restaurants. Here are some of the
points he identified:
- Concept
fatigue is taking its toll on consumers who are turning to
more contemporary restaurants
- New
competitors in each segment are putting greater pressure on
more established brands
- Chains with narrowly
focused customer demographics can suffer from customer base issues
- Several
larger chains are focusing on international expansion with less
effort spent domestically
- Weak or
deteriorating economic models are generating weaker results
- Under-capitalized
brands or those with weak cash flow can’t invest more
aggressively at the unit level
Many legacy chain restaurants continue to operate under a model made popular
during the 1970’s and early 1980’s. That
model has opened the door for many evolving restaurants chains and new chains
to exploit. Within the ready-2-eat and heat-N-eat food niche retail foodservice
operators are redefining success while garnering customers from legacy
operators. If success leaves clues
abandoning brand protectionism is one of them.
Is your company growing with the times and with conusmers?
Steven Johnson is
Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive
experience as a multi-unit restaurant operator, consultant, brand / product
positioning expert and public speaking. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant
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