Fast Forward: Women of Fast Casual
How Cousins Subs CEO knew it was time for $8M rebrand
Cousins CEO Christine Specht reveals how she knew it was time for an $8 million rebrand and how those changes have lead to huge increases in AUVs and same-store sales.
December 12, 2019 by Cherryh Cansler — Editor, FastCasual.com
It might surprise some to learn that Cousins Subs CEO Christine Specht wasn't always planning to take over the sandwich chain founded in 1972 by her father and his cousin in Milwaukee. Although her first job was at a Cousin's unit in Germantown, Wisconsin, Specht left the business to study at Marquette University, where she earned a bachelor's degree in criminology and law studies. It wasn't until she received a master's degree in public administration from American University in Washington, D.C. and worked as a legislative analyst and then as a case worker in Florida before she returned to the family business.
"When I first started my professional career, I did not think (Cousins) was the plan for me," she said in an interview with FastCasual. "My parents encouraged me to explore my own interests throughout my education. I thought I would build my career in a service-driven role working for a non-profit or a branch of the government."
In 2001, however, Specht accepted her first full-time role at Cousins overseeing the human resources department, where she realized how transferable the knowledge she had learned through her coursework and previous positions were to the fast casual industry.
"After successfully developing and introducing a strategic plan for the company and cultivating an empowering workplace culture, I was fortunate to grow within the company and now hold the position of CEO, said Specht.
She recently shared with FastCasual how she transitioned into that role and then in 2011, started implementing an $8 million rebrand for the 97-unit chain that has fueled massive growth. Although the overhaul is not yet complete, nearly 40 units have the new look.
Q. What does the rebrand look like? What were the changes?
A. After the initial adjustment period of becoming the company leader, which included working through the recession of 2008, I felt it was time to take an honest look at the company and determine what our next steps were. Cousins Subs is rooted in a rich history and a second-to-none commitment to quality. However, after 40+ years, we recognized there were some legacy issues — tired restaurants, some product inconsistency, a lack of a brand story and team members who were not the best fit to propel us to future growth.
The company rebranding is an ongoing initiative. In 2011, we began by evaluating all upcoming franchise agreements and corporate locations. We closed underperforming and noncompliant stores, determined what units would be viable sites for the next 10 years and worked with our franchise partners to secure their commitment to reinvest in both the remodel of their locations and our other strategic initiatives. By taking the time to efficiently evaluate what changes needed to be implemented and by taking the necessary steps, we’ve strengthened our brand to solidify our future in existing markets and position ourselves as an appealing investment to future multi-unit franchisee prospects.
Q. What were the costs associated with the rebrand?
A.There are multiple ways to quantify the cost of the rebrand. Corporately, Cousins Subs invested nearly $8M into remodeling corporate restaurants and our support center. This includes unifying our restaurants in look and feel and introducing new products and technology like Chocolate and Vanilla Shakes and digital menu boards.
It's estimated that Cousins Subs franchisees spent $80,000-$400,000 on the remodel of their restaurants. However, we offset some of the costs to install grills and implement a new point-of-sale system.
Another cost we endured was intentionally slowing new unit growth to address legacy issues. We parted ways with a fourth of our support center, and we closed over 40 restaurants that may have been providing royalty income but were ultimately not a good fit for the brand.
Q. How did you know it was time to rebrand?
A. As CEO, I knew it was time to rebrand when after visiting all our restaurants, I saw how different the guest experience was at each location. That didn't seem right to me. Particularly as my leadership team and I discussed growth and expansion. Consistency is key to success and there was an opportunity to improve it. Whether it was by enhancing our in-store environment, technology or product quality, we needed to address our challenges if we were going to enjoy future growth. Some franchisees were also unhappy. It was important to us to mend those relationships while unifying the brand in look and feel.
Communicating our rebranding was no small feat, particularly as it pertained to our new remodel requirements. When doing so, we were honest and transparent. We gave franchisee groups advanced notice of our new expectations going into the future and allowed them to decide if they want to invest in their business to meet our evolving brand standards.
Additionally, we reduced the number of stores within our footprint and, as a result, the number of franchise owners in our system. By "pruning" in this way, we ensured the strongest franchise partners represent our brand so we can pave the way for more successful ownership groups.
Q. Do you have measurable results yet?
A. I'm very proud of our results to date. Our commitment to quality has not gone unnoticed. This year we were recognized by the Milwaukee community with a Milwaukee Journal Sentinel Top Choice Award for Best Sandwiches and Sub Shop. Additionally, last year Cousins Subs was named BizTimes Milwaukee's Corporate Citizen of the Year, and I was named a Milwaukee Business Journal Woman of Influence.
And if that isn't proof enough, the stats don't lie:
- Average unit volumes increased by 48% from 2011 to 2018
- Same-store sales increased by 24% from 2011 to 2018
- Corporate store profitability increased by 19% from 2017 to 2018
- Since 2013, 18 of 21 quarters have seen positive comp. sales growth
- Quarterly comp. sales beat the industry in Wisconsin for the last five years
- Remodeled stores are outperforming non-remodeled stores by +10.2%
- Drive-thru remodeled stores +15%
Q. What were some of the challenges of making the transition from the "owner's daughter" to the brand's leader?
A. I have been very fortunate to have an extremely supportive team. However, as I began building my career at Cousins Subs, I wanted people to realize that while my father and I are close, we're not the same person and have different leadership and communication styles. To be successful, I knew I needed to gain the trust of my colleagues on my own and develop a peer-to-peer or supervisor-to-peer relationship. I have enjoyed developing these strong relationships by learning about my peers' roles at Cousins Subs.
Yes, Cousins Subs is a family business. However, that didn't mean that I knew everything about it. It was important to remain humble and in a constant state of learning so that when the time came for me to take over, I felt confident and understood all of the dynamics of running a family business.
Q. Do you think being a woman made it more of a challenge?
A. Not necessarily. My father never suggested that I was unfit for the CEO role because I am a woman. My gender was also never a part of the discussion. Instead, our discussion was centered around what it takes to run a successful business, the importance of effectively leading and empowering teams, how to translate your vision into action and how to build upon the success our founders achieved in terms of growing the business.
Q. What's next for Cousins Subs?
A. I've been told many times that we are at an "inflection point." We have done a lot of heavy lifting to strengthen the brand. We have streamlined the franchisee group, closed underperforming restaurants and enhanced the brand through remodels, improved technology, better people and better systems. Now, it is time for growth and expansion.
We have a partnership with a franchisee group to bring 40 locations to the Chicagoland area, and we are looking to grow and develop in more new markets. We firmly believe that while we are in a competitive space, we have a product and a brand that resonates with the Midwest. We are looking forward to the future and to bringing our deli-fresh and grilled-to-order subs to more sandwich lovers in more cities than ever before.
Editor's note: This is part 5 of a monthly feature called "Fast Forward: Women of Fast Casual." If you would like to be considered for this feature, please send email to Editor@fastcasual.com
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About Cherryh Cansler
