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Restaurant

Sector: Restaurants
Owner Type: Public

Background Information

A restaurant chain developed a successful regional brand, establishing a niche position in the market as a premium product with a low entry level pricing. The company planned to expand nationally however the brand had limited exposure outside its regional market.

Causes

Although the product offerings had universal appeal, the market segment that the brand targeted was too limited to sustain aggressive growth in the expansion market.

The upper casual segment in which the chain operated was not yet fully developed among consumes nationally and the brand risked losing its brand clarity in the middle of the fine dining segment and the casual and family restaurant chains. Further, the developers had limited knowledge of consumer behaviour in the other parts of the country to understand how to properly position the brand

Turnaround

We worked to develop three significant strategic initiatives to reinforce the growth of the brand in the new markets.

Develop a real estate and marketing strategy using urban flagship stores to establish the brand value prior to the build out of satellite stores in suburban markets

Develop a people strategy mapping the requirements and development schedule of restaurant managers and chefs to ensure its product quality was not diluted in the rapid expansion

Re-position the product offering in specific day-parts to maximise consumer value in the new markets.

Outcome

The brand was established as the leader with the expansion markets, having created a new segment in upper casual dining. The stores in the new region outperformed the rest of the country in top and bottom line.