Wednesday, May 5, 2010

Ten restaurant chains that are shrinking the most! Where were the brand marketers?


When perceived price value is not in line with consumer expectations sales slip. If they slip too much the restaurant chain is forced to close more and more under performing units. Recently Forbes.com listed the ten restaurant chains that are shrinking the most. Interesting they are based all over the country and cover many sectors here is their list:

1. Back Angus Steakhouse

2. Casa Ole’

3. Country Kitchen

4. Damon’s Grill

5. Carino’s Italian Grill

6. Western Sizzlin

7. Fazoli’s

8. Bertucci’s Brick Oven Pizzria

9. Smitty’s

10. Pizza Inn

The price value equilibrium is set by consumers not brand marketers. Consumers are dynamic not static. The value attributes like consumer need to be adjusted from time to time. Brand manages can not simply blame the economy, weather for results of brand performance.

The Grocery sector has undergone a competitive revaluation placing more and more focus on ready-to-eat and ready-to-heat grocerant fresh prepared food. This has driven frequency while increasing brand value.

Fresh prepared food has begun to be offered in new avenues of distribution including the drug store channel. The opportunity for national and regional food manufactures too enter this new channel of distribution is exciting. On the other hand, the competitive landscape for many restaurant chains is rapidly evolving as well. For more here is a link to an article on restaurant consumer discontinuity.

http://www.foodservice.com/articles/show.cfm?contentid=4112&title=Restaurant Consumer Discontinuity

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson.

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