Article

Robeks CMO explains strategy on 'next-generation' concept

The chain hopes its new design, menu and marketing strategy will help it continue its 27 months of same-store sales increases.

March 28, 2014

Robeks corporate staff spent much of 2013 revamping franchise store designs and refining the brand's message. The goal was twofold, said Chief Marketing Officer Chad Bailey. Not only did the chain want to use design elements to better reflect Robeks' position in the marketplace as a best-in-class smoothie and juice franchise, it also wanted to offer franchisees more creative — and hopefully more profitable — options.

FastCasual.com chatted with Bailey about the chain's next-generation concept, why sales have been up since 2012, and how the chain plans to continue the trend.

Q: Why did Robeks embark on the next generation concept?
Bailey: The reason behind the next-generation store design is to make a significant impact to our brand presence, our sales and our growth. We are further solidifying that we are the premium brand in the marketplace, and we want to communicate it not only to first-time guests but to new markets. When you walk into a new Robeks, we want you to know instantly that you're getting a one-of-a-kind, upscale experience.

Chad Bailey

Q: You came to Robeks in 2012, and it seems like a lot has happened since then. Can you explain some of the changes?
Bailey: The first focus when I came onboard in 2012 was improving our sales and profitability. We rolled out the first new menu in the history of the chain, and that has helped us tremendously. So 2013 was to really elevate the playing field and take things to the next level. That's when we developed the next-generation store design, which is a holistic approach to communicating the brand. Next generation is designed to show Robeks' complete emphasis on healthful, authentic and natural ingredients, as well as our colorful, comfortable, upscale environment. Robeks are restaurants where employees help customers maintain healthy daily habits. We want all of this to be reflected in our stores.

Q: How are sales?
Bailey: They are going quite well. Over the past two years, our same store sales have increased 12.5 percent. We've seen 27 consecutive months of same-store sales growth and a lot of interest in our franchises. We are in new markets, and there are 10 new locations planned in the coming year. Another positive indicator: Our average unit volumes, which are how much a store makes in a year, have increased 9.2 percent since last year.

Q: What is the most striking thing about the next-generation design?
Bailey: We redesigned the inside and outside of the entire box — with an eye on visual impact, operational improvements, functionality and customer flow. It's actually a re-engineering that includes a lot of things — new equipment and any other nuances that help to improve our operational efficiencies. When you enter a Robeks now, one of the first things you see is our gorgeous display of fresh fruits and vegetables. We also have improved our customer flow and how customers get exposed to our products.

We intentionally designed our prototype store to be just under 1,000 square feet, which is a lot smaller than some of our competitors. This opens the door for franchisees to open smaller sites, and that allows us to get into nontraditional locations. We can actually fit a Robeks side-by-side or next-door or into small areas that larger tenants can't compete for.

Q: Why is it important to have new equipment?
Bailey: We've doubled our amount of fresh juice sales in a short amount of time. So our juicing stations now include their own make table. That table allows us display our fruits and vegetables very prominently, but it also allows us to prepare our fresh juices right there in front of the customer — and very quickly. It makes a big difference when you have beautiful produce, right from the farm, displayed in front of you. You never have to worry about something going on in the "back of the house."

Q: Are you following any industry trends?
Bailey: There's a global trend of people being able to choose their ingredients. You can really see the trend in the soft-serve yogurt industry where customers get to choose their toppings and flavors. And it's happening with pizza, choosing the ingredients you want. We are going for the same idea when it comes to juice — a juice-your-own concept. Customers will be able to select produce from a "grab and go" cooler. One of our associates will weigh their selections, and then the juice will be made right in front of them. It's really about the customization and the ability to select what you want down to a minute degree. Not so different than selecting your own product at a grocery store.

Q: The new design has brought changes to the Robeks hummingbird logo. Why?
Bailey: Our logo is very important to us; it really says so much about our identity. We simplified our hummingbird to reflect our brand evolution. It's a little less delicate and more robust and easier to read. We created a lot of energy with it. We designed it to give a sensation like it's in motion. It sums up the Robeks brand: Our products give energy. Our guests live active lifestyles, and it takes their energy to fuel the brand. The hummingbird helps communicate the energy you get from Robeks products. The logo also has an O now as an orange. It communicates a natural, authentic and sophisticated look.

Q: What was your process for making decisions on the redesign?
Bailey: As an executive team we put together an RFP, and we interviewed a variety of design shops around the country. When we decided on one we liked, we first started with research. We reviewed customer insights, quantitative and qualitative research. We had interviews with key stakeholders, and that represented a broad spectrum of people — everyone from the executive team and board members, to customers, to franchisees and regional directors. Then we compiled all the information and started creating a new retail atmosphere, step by step. We actually started with our hummingbird logo because that's the main communication point of the Robeks brand. It represents everything that we stand for today and what we stand for in the future.

Q: Your color scheme is subtle. Why?
Bailey: Our retail atmosphere is a big differentiator for us. A lot of our competitors have a very bright color palette that almost screams at you. We wanted something to show how unique we are, something that says: 'Hey, we're natural, we're authentic. We're a national brand, but we're also local. We're all about the community and neighborhood." We wanted a retail environment that's more sophisticated and more reserved than our competitors. A fine wine doesn't scream at you. The color palette you see inside our stores doesn't either.

Q: How are the franchisees responding?
Bailey: It's helped re-energize and excite a lot of our existing franchisees. At some point we'll identify a schedule for franchisee remodels and roll it out across the entire country. Three tiers of remodeling packages will be offered, and all stores will be required to remodel. Our building model is on track to be a 2 to 1 sales investment ratio. It means that if you double your build-out costs, that number reflects what your sales should be. The 2 to 1 ratio is a gold standard for the industry, and we'll meet it with our Next Generation stores.