Article
Fast casual facelift
Keeping a store's image up to date is essential but is it worth the cost?
June 16, 2008
Serving fresh food comes automatically to any restaurant operator. But regularly giving the store a new look isn't always top of mind, especially when operators consider the substantial investment and income lost during down time for construction.
Ignoring the need for a front-of-store update may put customers off, however.
A redesign can "tell the story of success," said Cynthia Hollidge, president of CFM Concepts, a Toronto marketing firm. "It keeps you looking clean and fresh . . . (especially) when somebody's been coming to the same place year after year. Successful business owners will tweak and keep current their look and feel."
Operators need to consider several factors when approaching such updates, including thoughtful design planning, weighing the economic benefits and marketing the new concept. The design particularly needs to take into account store flow both in the front and back of house, as well as the image the store projects.
"You have to know where you want to be in the marketplace," said Hollidge, sharing how one of her long-time customers recently completed a redesign. Rather than just spruce the place up, the 45-year-old company did a complete overhaul, including its logo and menu.
CFM helped to apply a "very consistent, very deliberate" approach to getting the company's new look out to the public, she said.
"They put a lot of energy and effort behind the redesign from the storefront and from the print marketing material, and they were very consistent in the store efforts," Hollidge said.
How often to redesign
Being consistent in scheduling redesigns also is important. Such updates need to occur at least every seven to 10 years, said Ed Norman, FCSI, president of Dubuque, Iowa-based MVP Services Group Inc., foodservice design and hospitality consultants.
Yet with change occurring so rapidly in today's marketplace, "sometimes that window may be way too long of a window," Norman said. Instead, operators regularly need to examine their stores' performance and capacity.
"Basically store redesign is an opportunity to redefine the space, and that redefinition can mean increased productivity or additional seating," he said.
Operators should use the redesign as an opportunity to examine their needs, such as looking at how production or customer flow can be improved. Looking at cutting energy costs with energy-efficient equipment is another consideration.
Even operators on a tight budget need to update regularly. Operators can consider inexpensive changes to the front of the store, such as lighting, furniture or wall treatments — "all things they can pick and choose where they want to put their money," Norman said.
"Typically you can reinvent yourself with a new look pretty economically," Norman said.
Balance costs vs. benefits
Cincinnati-based Penn Station East Coast Subs' franchise agreement requires franchisees to complete a redesign at least every seven years but no more than two in 20 years.
But the company's goal is to balance the cost of the update with the overall desire to maintain consistency throughout all its stores, said Craig Dunaway, Penn Station president.
"It has to have an economically positive benefit or the franchisee doesn't want to do it," Dunaway said. "Most know that their restaurant needs to look new and current, but they're good businessmen, and they'd rather not spend the money."
So this year, Penn Station franchisees with existing locations have a choice. They can implement the aesthetic update with its more earthy, homey look for less than $30,000 and little to no down time. Or they can complete the operational update, which can cost $45,000-$50,000 and have 1½ weeks of down time for construction.
The aesthetic model includes adding softer colors and copper accents to create a more inviting atmosphere and less of a "fast-food feel," Dunaway said.
The latest operational update includes moving the grill line – including moving gas and water lines – so that employees are preparing food to order while facing the customer. The new grill set up is more customer-friendly and efficient, Dunaway said.
Penn Station's franchisees are excited about the new concept, and all new locations (about 22 this year and 25 next year) will have the new design, he said. But because of the expense, the company is taking a hard look at customers' reactions and the design's success before requiring franchisees to implement the full design.
"We're trying to make an educated and informed decision and not just say, ‘Here, do this,'" Dunaway said.
Dunaway added that it's too early to tell if the redesign has impacted sales, but "sales have continued to rise each year for 22 years now. I believe a portion of that rise is directly attributable to having a fresh look while balancing that with the costs."
Saladworks LLC has a more aggressive redesign plan, having completed four major redesigns since the company franchised in 1992. For John Scardapane, chairman and chief executive officer of the Conshohocken, Pa.-based chain, such changes are necessary to keep up the company's momentum.
The chain has 94 stores with just under 120 in the pipeline. All of the new stores will have the new green prototype, with the first company store opening in about a month.
| ||||||||||||||||||||||
Existing stores will update to the new model when franchisees reach their five-year contracted renewal date. Scardapane says he expects many to update voluntarily ahead of schedule because of the excitement franchisees have expressed over the new model. Existing stores will spend about $75,000 on the front-of-the-house redesign, with a down time of about 1½ weeks, Scardapane said.
Consider a full overhaul
The new look, designed by Mt. Laurel, N.J.-based InterArch, has Scardapane confident that the company will see unprecedented returns on this remodel.
"We're anticipating a 20 to 25 percent increase in revenues," Scardapane said, higher than previous remodels that fell just short of those projections.
InterArch president Shirley Hill said the interior design team's approach was to examine every aspect of Saladworks' business, including how they differentiated from competitors.
The company also looked at the priorities of Saladworks' younger customer base to come up with the model to install as many green products as possible, like bamboo flooring and recycled ceramic tile.
Overall, a redesign is an effort to take the lead in the industry, Hill said.
"You have to be an innovator," she said. "You have to look at your brand all the time and always do what's fresh."
While success stories like Saladworks and Penn Station make a redesign profitable, CFM's Hollidge warns against a struggling store using a redesign to solve all of its problems.
"Obviously they have other issues that they're not addressing," she said. "It could be service or product quality, it could be lack of marketing. A redesign isn't going to bring that stuff back. I would say look inside first."
Related Media
Subscribe
Get the latest news and resources from Fast Casual.
