Chain Leader

Well said and spot on! Forced resizing for short term results, creates an escalating chain reaction of unintended consequences. Loss of senior team members, loss brand value and loss consumer loyalty. Then losses in sales, profits and in some instances the company. Now is the time to focus on the customer!

So true. The state of the economy has accelerated the "Downward Spiral". As sales drop due to the shrinking disposable income of most consumers, companies are forced (or panic) into making cuts to the bottom line. Understaffing, lowering food quality, etc. While it may make a short term impact to the bottom line, in actuality will do tremendous harm to the long term good of the company. The customer recieves a lesser quality product/service than they did before, thus leading them to make the decision to go elsewhere. Sales drop even more and companies start another cycle of bottom line cuts to account for the newest loss in sales. And so on... Steve is correct, the only way to turn it around (and due to the current state of things, may be impossible for some) is to focus on the top line. Do all that you can to win guests over. Give better service than the other guy. Make it about more than just the physical product. History shows that people still go out to eat - they are just more particular in choosing where they go when the economy takes a downturn. They want the total package and they want to be taken care of. They want to go to places that make them feel good, and it is not always about the food. The companies that can truly focus on "guest service" while not running a bare bones survivalist bottom line are the ones that will invaribly weather the storm, They will also put themselves in a position to emerge with a more loyal, stronger customer base than before.

WOW IT STARTED LOOK AT CRAIG MILLER! WHO WILL BE NEXT? ANY GUESSES ON THE BLOG?

A lot of CEOs have to be a little nervous right now. Shareholders want to blame somebody. It is going to be an interesting summer.

Your father, Ron McDougall, always navigated through these cycles with an eye on reaching the destination. Working with him at Brinker taught me a lot about the importance of surviving the drought vs. making the same amount of money when you are in the drought.

Here we go again Hitting ROCK BOTTOM so to say: chief executive Ned Lidvall, chief financial officer John Coletta and senior vice president of human resources Sugi Randall all gone. This might be a bloody summer!

Is it just me, or is already getting pretty HOT this summer!