Franchising

Corner Bakery increasing sales amid turnaround strategy

February 15, 2024

When SSCP, owner of Cici's Pizza, Applebee's and Sonic Drive-In, acquired Corner Bakery Cafe last June for $15 million, its goal was to stabilize the brand and lay a strong foundation to drive growth for the 100-unit chain.

Fast forward six months, and Corner Bakery Cafe's revitalization efforts are underway and have led to positive sales growth, steady employee retention and improved guest experience, said SSCP President and Corner Bakery Cafe CEO Chris Dharod.

"Our plan from Day One was to invest back into the business in virtually every area, from developing and providing growth opportunities to our people to ensuring that our cafes are refreshed and inviting to our guests," he said in a company press release." We see so much potential for the Corner Bakery Cafe brand, and we're thrilled that our efforts are already paying dividends and have laid a strong foundation for growth in the year ahead."

The company's positive momentum resulted in a $200,000 increase in system average unit volume across its cafes in the last six months, and Dharod expects it to continue accelerating throughout 2024 with growth led by catering sales and improved counter sales.

As part of its turnaround strategy, the chain teamed up with a variety of partners to optimize its day-to-day operations and community engagement, including

• Qualtrics, an XM technology provider, to measure and improve employee and customer experience across all touchpoints. The software provides visibility into customer interaction and experience via survey intercepts both in-cafe and online, ensuring the voices of its customers and team members are heard and followed by action to provide best-in-class service and experiences. Corner Bakery Cafe launched Qualtrics' solution in December at its 66 corporate cafes and based on the platform's performance throughout testing and initial deployment, plans to roll out the technology across its franchise system in Q1 of 2024.
• Stingray Business and Bite to test kiosk ordering technology at two Dallas-Fort Worth locations in the first quarter of 2024.
• Champion, a marketing agency, to drive brand awareness and customer engagement.

Also central to Corner Bakery Cafe's revitalization efforts was stacking the brand's executive suite with a team of industry leaders to guide its evolution. Among these heavy hitters are two Corner Bakery Cafe veterans: COO Erin Hasselgren and VP of Development Bob Hartmann who returned to leadership roles, bringing back to the brand their collective 27 years of experience. Other key members of the team include industry marketing expert, Melanie Barichivich, who is the company's Head of Marketing, and Glenn Hurley, a procurement consultant. In a matter of months, Barichivich completely overhauled Corner Bakery Cafe's marketing strategy, resulting in substantial lifts in brand awareness, affinity, and sales, while Hurley is already making strides in optimizing Corner Bakery Cafe's supply chain and driving profitability.

Simultaneously, the brand is developing a prototype to set the stage for future corporate and franchise growth and will open five to seven cafes by year's end.

In February 2023, Corner Bakery filed for Chapter 11 bankruptcy protection.