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