Casual-Dining's Biggest Mistake
Last month, Food Arts published an essay that every restaurant executive ought to read carefully. Written by culinary consultant Patrick McDonnell, it suggests that what separates struggling casual-dining chains from their betters is innovation. Granted, that’s not news; new ideas put to good use typically define success in any business. What McDonnell is saying, and what makes his argument cogent, is that successful restaurant companies don’t stifle innovation by measuring what doesn’t really matter. In short, they act like restaurants.
| Case in point: CEO Bob Hartnett is a turn-around expert who took Houlihan’s out of bankruptcy in less than three years and turned it into one of the most dynamic restaurant companies in the country. His investment partners don’t insist on layers of business school grads to run his business, and in this climate you won’t hear him talk about value menus, two for ones, or cutting overhead by attrition. Instead, he talks about innovation, food quality, culinary focus, and building better interactive communication with his customers. |
Other managements, however, handle things differently. They engage in sophisticated bean counting and market research. Consider Chili’s:
| Everything was on target until [Todd] Diener was promoted to the COO position in charge of all Brinker concepts and Wilson Craft came in to run Chili’s as its president. Craft’s apparent Wall Street-wooing strategy? Initiate a two-prong approach by "augmenting" culinary innovation with an intricate and lengthy consumer research and concept testing process. It made good reading on Wall Street–the classical disciplined managed development keeping creative efforts on a precise vector. The marketing and consumer research group mushroomed to 40 people. Culinary innovation? |
Well, let’s just say all that vector-keeping failed to wow guests.
McDonnell’s piece shouldn’t be missed by anyone with an interest in seeing full-service chains improve their lot by behaving like restaurants.
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