As restaurants see sales decline and struggle to maintain margins, it's tempting to slash costs and tinker with the concept even if it means sacrificing brand integrity. But take a lesson from Grady's American Grill. In his blog post “The Demise of Grady's,” industry veteran Lane Cardwell recounts how this once high-flying concept crashed and burned after Brinker International diluted the brand.

A former Brinker executive, Cardwell was involved with Grady's when Brinker bought the casual-dining chain in 1989. The concept was known for made-from-scratch cooking, high-quality ingredients, big portions and motivated employees. But by 1995, Grady's lost its identity and points of differentiation.

“Almost monthly I use some element of Grady's as an example of how you can lose a good concept by trying to make it a 'better' concept,” writes Cardwell. He shares some of the lessons he learned firsthand:

• Changing a successful concept's name multiple times confuses customers.
• Replacing premium ingredients and large portions with lower-quality ingredients and smaller portions betrays customers.
• Cutting quality means employees can no longer tout to customers what made the concept successful in the first place, eventually demoralizing employees and prompting key members of management to quit.

Learn how you can avoid the mistakes that plagued Grady's under Brinker's tenure. Check out Cardwell's blog, The Next Big Thing.