Chain Leader

David Farkas

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February 26, 2007

The dining trade is divided into independents and chains, and yet one could argue the divisions are moving closer not farther apart.

The similarities are mainly conceptual on the part of chains. Red Lobster’s new image, for example, includes a separate menu that lists fresh fish and “Chef’s Creations.” The thing is, Red Lobster doesn’t employ trained chefs in its kitchens.

On the other hand, acclaimed independents like Danny Meyer, Drew Nieporent and Rich Melman—all of whom hire professional culinarians—recognize the economies of scale and the strengths of a brand (typically, their names). It’s pretty obvious they love the power of multiples as much as chain execs.

Every so often, however, the gulf that remains between these two groups becomes glaringly evident. Consider the issue of reservations, which major chains have largely ignored no matter how long their waits. Not so for independents, whose forecasts often depend on bookings. A recent blog post by The New York Times restaurant reviewer Frank Bruni shows how far some independents will go to ensure that you show up.

Posted by David Farkas on February 26, 2007 | Comments (0)