In 2008, the restaurant chain Bennigan’s declared Chapter 7 bankruptcy. That might have been the end of the story, as it is with many chains that file for bankruptcy. But Bennigan’s is growing again under new leadership.
In an article for Fox Small Business Center, Michele Hieles outlines the “lessons learned” from this experience, courtesy of its current president and CEO Paul Mangiamele.
According to Mangiamele, Bennigan’s didn’t falter because of a lack of consumers. Instead, the culprit was what he calls “brand drift".
Brand drift occurs “when the brand moves away from the many elements that made it successful in the first place,” he says. To be successful, “You need to constantly reinvent yourself so you don’t lose relevance.”
As part of the turnaround effort, the plan is to “respect the Bennigan’s legacy” while launching such elements as a “chef-driven menu, a refreshed drink line-up, updated training methodologies, and forward-thinking marketing initiatives.”
Mangiamele is also overseeing efforts to invest in the “fractured” franchisee system. “All of us together will always be smarter than one of us,” he says.
Here are Mangimele’s turnaround strategy tips to franchisees of all industries.
Know your mission, vision, strategy, tactics, and culture. Start with a solid mission and vision statement. Then put together a team, develop strategies, and determine tactics.
Initiative development is another critical factor, as illustrated by these five initiatives fueling the resurgence of the Bennigan’s brand:
Put together a team of “business athletes.” Mangiamele firmly believes the most important characteristic to look for in an employee is attitude. There’s no way to force an employee to smile or to feel genuine enthusiasm for your brand. Instead, you can “find team players that have a 25/8 work ethic—employees who can help not only achieve your objectives, but also exceed them.” The A+ team must consist of dedicated workers “who will make sacrifices to contribute to the team objective.”
Go ABCD. To achieve success, Bennigan’s must create a “legendary experience”—and the only way to do that is to go ABCD—“Above and Beyond the Call of Duty”. Mangiamele expects everyone in the organization (“from executives to busboys”) to forge an emotional connection with their customers. This approach is reinforced by programs that recognize and reward stellar employees. Best of all, “ABCD-type performance is contagious.”
Get out in the neighborhood. “Given the competitive marketplace, you can’t open your doors at 11:00 a.m. and just wait for people to come,” Mangiamele says. Instead, focus on what he calls “neighborhood marketing”—a system designed to promote your business within a five- to 10-minute drive from your company’s front door. Get out and introduce yourself and your business, making “emotional connections” with neighbors within that 10-mile radius.
Today, Bennigan’s operates nearly 100 domestic and international restaurants, with agreements to develop many more in the coming years across the U.S., and in Mexico, El Salvador, Panama, Cyprus, Korea and the United Arab Emirates. It looks like the company’s turnaround efforts are paying off.
What have you done to turnaround your brand?
Strategy is always a hard concept for people to grasp. Once you get it, you really get it. But it doesn't come naturally for all.
It's funny - you'd think it wouldn't be that difficult. You're answering the question, "What do I want to accomplish this year?"
But, for some reason, people get bogged down in the details. They present tactics as strategy. They don't know the difference.
In this CBS News article, MoneyWatch discovered the same: Most managers don't know the difference between strategy and tactics.
Their evidence? This...
- Managers are forever presenting objectives or tactics as strategies and vice versa.
- The endless debate over strategy versus execution, which is silly because companies need to excel at both.
- How the simple phrase "strategic planning" makes most executives roll their eyes and think "wasted time and money" which, in most cases, is the unfortunate truth.
- For most people, the term "career strategy" is synonymous with finding a job.
- Change management consultants are all about the process when it's usually the underlying strategy that's flawed.
They also discovered there are eight business strategies that kill companies and careers.
As Americans, we're accustomed to the hope strategy. But, as it turns out, hope is not a strategy. You can't wait and see what happens instead of taking action. It doesn't work.
Most companies without a vision are guilty of doing this. They get backlash from a customer or a group of customers and they react. There isn't a reference back to the vision because there isn't one.
In the past few years, we've been doing more with less. But multi-tasking and spreading ourselves too thin (a la peanut butter) does not work.
Just like the movie, some companies have a tendency to continue to do things the way they've always done them because they're not led by people smart enough to make real change.
While it's extremely admirable to have a vision that extends beyond yourself, it can be harmful as competitors are more nimble, flexible, and focused.
Yep, it's just as it sounds. Throwing stuff up against the wall to see what sticks.
This strategy is prevalent with the use of social media. Companies build Facebook and Twitter pages and expect their customers to welcome them into their personal lives with open arms. This is not the Field of Dreams.
This is also known as, "But we've always done things this way." If it's not working, stop doing it!
You've likely experienced one, or a combination, of these. What else do you have to add to the list?
