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January 11, 2006
Different names, same outcome
I'm just speculating here. I'm not a restaurant maven.
But it's occurred to me that a restaurant by any other name must be carrying the aura and karma of previous restaurants that have occupied the same space.
Now my sample is pretty small, just two locations. But in both, restaurants seem to turnover rather rapidly. Over the past 20 years one of them in an up-scale shopping center, but housed in a separate building with plenty of parking and visibility but no traffic congestion, has had at least eight different owners.
Each metamorphosis changed the entire brand: cuisine, name, trade dress, logo. I remember when we moved into the area it was a steak house with a small but loyal following. But the following was too small apparently.
Then in succession it became a fish house, an Italian bistro, a steak house again, an all-you-can-eat buffet, a Mexican buffet, a Mongolian buffet, an Asian bistro.
The other spot clung to the same concept - sports bar and grille - through four or five ownerships and identity changes, then went to a family restaurant, and is now on another reincarnation of sports bar.
So what does this have to do with branding?
Just this: it's the market segment that really "owns" the brand. Those people have long memories, and once a "place" is classified as not my kind of place, that memory lingers no matter what.
An "under new management" banner won't cut it.
The lesson to branders: be sure you know the history of the location before signing the lease.
Posted by Martin Jelsema on January 11, 2006 | Permalink
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Comments
And, follow Starbucks example: Count the oil stains in the parking lot! Of course, folks always think their idea/food/brand is different. But, if more than one has failed (and repeatedly) with the same "basic" product (food) - it's likely not a good place to bet your bank account or life. Other things like nightime traffic patterns, the surrounding residential wealth (or lack thereof) also contribute to the mix.
Posted by: Mary Schmidt | Mar 20, 2006 2:01:59 PM
Wholeheartedly agree! You can't take the stink out of old memories no matter how great your branding is.
Posted by: Barb Denison | May 12, 2006 9:29:26 PM
In my personal opinion, Losing a name can mean going out of business. A name is important because its loss would at the very least cause disruption and monetary expense, and in many cases would put a company out of business. But on some cases it would be a necessary. So many factors are pushing owners to sell they businesses. Like population in area is change or minority of some different backgrounds are change. So ,it could be anything. I am doing now research for my dissertation on Small Business for one of my customers,( http://www.coursework4you.co.uk) where a have been pointing on same subject, but a bit different object
Posted by: Samuel King | Jun 8, 2006 5:20:03 AM
I often wonder why anyone would set up shop in a location that has had numerous past failures. I think you would find this true in any type of business, not just restaurants. The failure in these cases is probably not about branding or marketing, I think it is simply a matter of "karma". Just my 2¢
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