Integrating dramatic change to a concept
can cause ‘harm’. Meaning a loss of
customers resulting in loss of sales and profits according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. One of the best ways for a
branded restaurant company to drive growth is buying a brand with attributes
and culture that can easily integrate into your current corporate culture
according to Johnson.
One good example is Cracker Barrel’s
recent investment into Punch Bowl
Social. Both Punch Bowl Social and Cracker Barrel are brands that are
consumer interactive and participatory which drive customer loyalty and can be
the bases for a good relationship.
So, when Cracker Barrel announced it was
making an investment of up to $140 million into Punch Bowl, acquiring the stake
that will give Cracker Barrel a noncontrolling stake in Punch Bowl but will
give the company an option to buy the chain outright; a new platform for customer
relevant growth was defined.
Cracker Barrel CEO Sandy Cochran stated “Cracker
Barrel and Punch Bowl Social are both highly experiential brands that emphasize
quality food and beverage, hospitality and fun,” … “We love what Punch Bowl
Social has built and are excited about helping them continue to grow.” The
undercurrent of commonality was clear to industry professionals who track
customer migration.
Punch Bowl Social founder Robert Thompson
stated “the relationship with Cracker Barrel is a tremendous opportunity for
the entire Punch Bowl Social family.” “Our continued goal is to be an
experiential millennial and Gen Z lifestyle brand that creates authentic,
social guest experiences,” he said. “Having Cracker Barrel provide growth
capital and strategic resources sets us up for the next exciting chapter for
Punch Bowl Social.” Consumers are dynamic not static if your consumers are
moving how are your protecting your flank? Does your concept look more like
yesterday than tomorrow?
Foodservice Solutions® specializes in
outsourced business development. We can help you identify, quantify and qualify
additional food retail segment opportunities or a new menu product segment and
brand and menu integration strategy. Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche
visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant
Battle for Share of Stomach
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