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Visual Edge: Design makes cents

Research suggests that between 2000 and 2020, Americans will increase their spending by 18% per person at fast-casual restaurants alone.  As a result, restaurants are changing not only the foods and services they offer but are also focusing on becoming comfortable, enjoyable places to eat.

November 28, 2005

The Economic Research Service of the USDA suggests that between 2000 and 2020, Americans will increase their spending by 18 percent per person at full-service restaurants and 6 percent per person at fast-food establishments. The main factors contributing to this theory include rising incomes, a decrease in the proportion of "traditional" homes and an increase in the average age. Simply, more Americans are eating out and will continue to do so in the future. As a result, restaurants are changing not only the foods and services they offer but are focusing on becoming comfortable, enjoyable places to eat. Wendy's, for example, sought to increase dine-in sales from 30 per cent and called on WD Partners, a Columbus, Ohio–based design and development firm that provides national retailers and restaurant chains with one-stop assistance. "We offer two unique services—proto-type and rollout products," said Lee Peterson, executive director of design and branding. "They cover everything from strategy, brand base design, front- and back-of-the-house operations, architecture, engineering and development." WD Partners has worked with other clients such as Whataburger, Carvel, Red Lobster, Arby's and Bob Evans, and it seems that more restaurants are seeing the advantages of working with a professional such as WD, which reported $54 million in retail design fees last year—a 50 percent increase over 2003. "The goal at WD Partners is to discover how the product works and what the magic of the brand is," Peterson said. "We believe every brand is like a snowflake." For Wendy's, WD Partners developed two prototypes, one with a fresh-food market feel and the other a simple, residential look. Changes included sophisticated lighting; softer color palettes, separate dining room and food prep areas, higher-quality furniture and enhanced graphics. Results have been positive among franchisees and consumers, and with construction requiring only a few weeks of nighttime work and a two-day store closing, lost profits are kept to a minimum. Many times companies come to WD Partners when they believe they have lost the emotion behind their brand. Whether as a result of management changes or a lack of design dollars, restaurants are now realizing that while the quality of product and speed of service are key, they also need more than plastic chairs and tile. The search for identityClients working with WD Partners dive into the work, meaning they look at the tactical goals of how the product works and what services they offer. "Companies are always looking for things like quality, comfort, efficiency, convenience. We look at these as 'Duhs'—the cost of doing and staying in business," Peterson said. "We dive deeper and understand every brand is different, focusing on how it works—how to execute, build and make it look good—paying attention to product, place, people, process, projection, positioning, price and promotion."Next comes interviewing everyone from founders and CEOs to customers in an effort to discover and identify the mission, market and message of a product. This collection of thoughts then leads to the creation of the product.Defining your designInterior design includes layout, furnish­ings, architecture and organization, along with creative and technical solutions, all of which are applied to enhance an area or structure.When it comes to factors that play a role in design, Amy Williams of Orange Studios said concept and client play the most important roles."Without inspiration from the client, the connection to the food might be lost and customers won't understand."She said some important questions to ask before beginning to develop your design include:·What are the expectations?·What image do you want to portray?·What is your budget?"Clients are looking for a quality design that will enhance their food and the customer's overall experience," Williams said. "A restaurant's design is its identity. You can catch it from the corner of your eye and you know exactly what it is."Officials at Blimpie, the 41-year-old quick-service sandwich chain, knew that it was the first sub shop chain in the country, but to help customers get to know the new, contemporary deli Blimpie of today, they re­freshed the company's logo and implemented a contemporary restaurant design.The transformation from traditional neighborhood sub shop to a contemporary deli—one that reinforces "Real. Fresh. Taste."—included light cherry hardwood floors, earth-toned tiles, wainscoting, black granite-look tabletops, fresh food graphics and mixed seating that includes booths and tables.Elements that make up a great design"Customers are looking for a full-restaurant experience when they walk through the door," said Michelle Bushey, founding partner and design director for Vi­sion 360 in Dallas. "Consumers are much more sophisticated than they were before. Save your money for what people are going to look at and appreciate—things that they can touch, like flatware, and see, like lighting and paint.She added, "Keep dollars where you can see them. That's from the tabletops up to about 10 feet. Art, color and especially texture in this area help make statements, whether it's a few pieces of modern art on the smoothest wall or rough, dark millwork and antique brick."Proper illumination is another impor­tant factor in planning a restaurant's design, she said."Lighting is a huge part of a restaurant experience," Bushey said. "It affects every­thing from mood to how the food looks.""Good light and a comfortable seat. Beyond those two things there's the concept or theme that they will remember," Williams said.Careful planning also needs to go into the area where customers will be waiting."It is important to understand the popu­larity of a restaurant and provide a comfort­able waiting area. This is easier in larger restaurants with space to play with. Fast casuals, however, don't have that luxury. What you have to provide is atmosphere," Williams said.The next thing to consider is the type of seating that will greet diners. Think in terms of booths instead of plastic seating bolted to the floor. Neutral and natural tones, woods and upholstered seating all play an important role in providing acomfortable environment."People feel differently about their experience in a nice environment," Bushey said. "They expect a better quality of food, and waiting for it isn't so much of a problem, given the right setting." Design definitely sets the tone for not only customers but for employees, Williams said. "And that's when customers notice." Design dilemmasMany designers can walk beside you every step of the process, including developing your menu and designing the front of the house, to selecting plates and dishware. The most essential aspect is understanding and knowing who and what you're designing for. "Be careful of over- or under-designing your space," Bushey said. "If you're in a location where your design is too upscale, for example, it may detract certain clientele from coming in because they may not feel comfortable. The same is true if you're in a location that warrants higher-end fixtures, chairs, etc. Make sure it's there or your customers will go elsewhere." Measuring the success of designThere are ways to measure factors such as speed of service and how it may influence a store's return on investment. But how can intangible elements that are found in design—ones that cut into other operating budgets—be measured for their influence and success with efficiency, geographic reach and profitability? "It's easiest if there are already existing stores," Peterson said. "You can look at last year's numbers and compare them to this year. If it's a new establishment, taking a look at similar sites would offer fair comparisons." Williams looks at the success of the restaurant as a whole. And "comments from customers are the most rewarding." Finding a design firm that fitsGood design firms will offer a full spectrum of services and be able to take all elements into consideration, but how do you go about finding the right one? Seek out a company that has experience and displays the ability to work within a team. People who operate "restaurants are proud of their creations and, therefore, expect the same pride and effort from everyone on their team—including the designer," Williams said. "Pay attention to the experience and background of a firm," Bushey said. "Do they have a licensed professional on staff or access to one? This is an important factor with things such as health, safety and welfare coming into play," she said. Ask yourself if there is a willingness on the part of the designer to work for you and your designs. Finally, you should determine if you mesh well together. Looking to the futureThe National Restaurant Association forecasts industry sales to advance 4.9 percent in 2005 and to equal 4 percent of the U.S. gross domestic product. "The overall economic impact of the restaurant industry is expected to exceed $1.2 trillion in 2005, including sales in related industries such as agriculture, transportation and manufacturing," according to an NRA document. With such strong projections, restaurants from full service to quick service will continue reinventing and re-designing themselves to compete and win customers. Many are already doing so, including giants such as McDonald's, which in April brought the past and future Mc Donald's concepts together with the creation of a contemporary restaurant in Chicago—one that offers, among other things, Wi-Fi and a rooftop greenery design that complements the city's Green Roof initiative. El Pollo Loco also announced that it will begin remodeling its stores to make them "homier, more comfortable and upscale" by replacing plastic seating and changing the color scheme to pay tribute to its Mexican heritage. It seems that no flavor of fast casual will be off limits when it comes to reinventing not only taste but color as well, paying attention to what consumers are eating, and how comfortable and satisfied they are while eating it.

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