CHICAGO —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
The panel discussion at the National Restaurant Association’s Restaurant, Hotel-Motel Show included Steve Carley, president and chief executive of the 418-unit El Pollo Loco quick-service chain; Jeff Drake, president of the eight-unit Go Roma fast-casual chain; Sam King, chief executive of King’s Seafood Co., the parent of 17 seafood restaurants under six brands; and Jeff Sinelli, founder and chief executive of the 81-unit Which Wich sandwich chain and the new Burguesa Burger concept. The panel was moderated by Aaron Noveshen, president and co-founder of Pacific Catch Restaurants and culinary development group The Culinary Edge. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
Carley said El Pollo Loco’s strategy involved a return to its core business of flame-grilled chicken and reminding customers “who we are.” —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
“We’re sharpening the tip of our spear,” he said. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
Sometimes challenges create opportunities, as El Pollo Loco learned when KFC came out with its own grilled chicken. Carley said they were confident that KFC would kick off its grilled chicken with a giveaway, and El Pollo Loco readied its own promotion and turned it into a party, with tents and music. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
“It was a rallying cry to the whole system to focus on our products and celebrate how good it is,” he said. “We had a smile on our face, and we were proud to give it away.” —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
He said the promotion also struck a chord with customers, who were reintroduced to the brand and grateful to have a free meal during a tough time. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
King pointed out that all of his company’s restaurants are located in California, Nevada and Arizona, which he called the “epicenter” of the subprime-mortgage fallout. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
“Our mantra is survival, survival, survival,” he said. “For a while, we had to throw out marketing plans and batten down the hatches.” —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
After the financial crisis began, King said the company began looking for ways to save that did not affect the guest experience. One of their strategies was to hold off on opening a new restaurant and instead build a seafood distribution center. In addition to the cost-savings potential, the distribution center “gave us a deeper understanding of our products and brought us closer to the fish and fishermen,” King said. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
Sinelli said he strives to create a “vibe” in all of his restaurants. He said the warm yellow interior and laid-back music at Which Wich give the restaurants a positive feel, which adds to the customer experience. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
“We don’t want to end up in a sea of sameness,” he said. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
Sinelli said the restaurants also heighten the experience simply by saying “thank you” to their customers. “We live in a real thankless world,” he said. “Those two words can mean a great deal.” —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
Drake said Go Roma learned that many of its customers are “heavy users,” so the company developed a loyalty program with deals and promotions to reward them. The challenge, however, is turning first-time customers into regular patrons. One of their tricks: When a new customer comes in, the staff works to expedite their order to ensure that person’s first time at Go Roma is a good one. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
With consumer confidence starting to rally, offering hope to restaurant operators that increased spending may follow, the chief executives on the panel said the lessons they’ve learned during the recession will make them stronger on the other side. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
“We have discovered efficiencies in every aspect of developing a better guest experience than we had before because we were faced with a financial reality we didn’t like,” said Drake of Go Roma. “There was some painful learning, but some valuable learning.” —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
King said the recession taught his company the importance of value in tough times, noting that “clever cheap” was in. He said his restaurants responded by offering deals on lobster to drive traffic. —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
“If you don’t provide value going forward, you’re really screwed,” he said. — [email protected] —The recession has thrown a number of challenges at the restaurant industry, but tough times can also inspire new thinking about how to improve operations, said the chief executives of four restaurant chains.
