blogsNH - Will the Pizzaria Uno chain survive? - Comments

I Second That...

Scott Ives — Sat, 30 Aug 2008 12:13:49 -0400

I love that place... Even the sauce stains on a favorite tie were worth it!

Scott

Inside Applebees

Terri Oberg — Fri, 29 Aug 2008 21:10:28 -0400

It seemed like a lifetime ago that I worked at Applebees at the Steeplegate Mall. I well remember the long waits and the popularity of their chicken wings and mustard sauce (not together of course). Now I drive by and see the nearly empty parking lot and wonder when the magic started to die. My S.O. and I used to laugh at the Applebees commercials with Tyler Florence. How embarrassing for this supposed top notch chef hocking *gasp* chicken grilled with rosemary---imagine that! And served with a salad. WOW! Now that's innovative. I'd much rather pay a little extra and have something truly innovative like what you'll find at a non-franchised restaurant. For instance, even though we can only afford it once a year, we have never forgotten any one of our meals at Don Giovanni's in Concord. Worth every penny.

Terri, my inside source...............

Bill Bunker — Sun, 24 Aug 2008 21:26:08 -0400

My inside source tells me that they count the fries served on the plates at RT's.

I worked for their parent company, Morrison's in 1994 and Ruby Tuesday's was the place to go and was HOT in those days. The look and feel of the chain today is a mere shadow of what it used to be. It is really sad.

This is so much more enjoyable

Bill Bunker — Sun, 24 Aug 2008 21:23:47 -0400

This blog and your blog about commercials were two breaths of fresh air and the most enjoyable replies I have been able to write in the past few months.

Now, politically, you and I are at opposite ends of the debate but on topics like this, you have brought out the best in everyone!

Thanks, Ken!

Thanks, everyone

Ken Braiterman — Sun, 24 Aug 2008 18:33:39 -0400

Comments on what I write is my favorite kind of encouragement. Thanks to everyone who participated in this informative discussion. To think, it started with something I said!

Ken

fresh tomatoes!

Terri Oberg — Sun, 24 Aug 2008 10:27:29 -0400

My S.O. and I laugh at that commercial for Ruby Tuesdays everytime we see it. Like square plates and ugly new lamps are going to make us run right over to check it out. PUUUULLLLLLEEEEESSSSSS!!!!

I agree, but.....

Bill Bunker — Sun, 24 Aug 2008 08:44:59 -0400

Good point about cutting back but places like Ruby Tuesday are trying to fool the consumer with square plates, etc.

When a restaurant changes the 8 ounces of chicken on a plate to 6 ounces, consumers are not fooled. They get it and often will not go back.

Olive Garden, Applebee's and Ruby Tuesday have all reduced portions over the last year or so. Maybe that is healthier for the consumer at times but overall I think it angers the guest and shows up in the sales.

Uno's has tiny portions compared to what they used to serve. Unless the economy improves, I believe that remodels and menu changes will not be enough to save many of the places on the Heights from closing.

The key is to take less of a profit margin and offer value. Staff up and give the best service. It is an investment but it is one that will pay off in the long run.

Cutting Back

Terri Oberg — Sun, 24 Aug 2008 08:40:50 -0400

I don't think cutting back is always a bad thing, but it has to be well thought out and planned. It's like prunning a rose bush. Cut back to much and you end up destroying the plant, cut back just the right amount in the right places and the plant flourishes. Pruning with little experience or in a panic is usually not a good idea!

Many of the chain store resturants are changing, including tossing out old menus in favor of new items, changing their looks, changing the way they operate. Kudos to them for the efforts, but only time will tell if the cuts and changes were productive or destructive.

For Many Years......

Bill Bunker — Sat, 23 Aug 2008 10:16:16 -0400

For many years I worked with major corporations and always felt as if their training programs were fluff when the talked about things like exceeding the expectations of the guest, etc.

For the last 10 years I have worked for 'start up' companies and have had the opportunity to not only advance to much higher levels but have built a resume of experience doing many varied tasks that in a larger company, there would be one specific person, sitting in a cubicle, simplemindedly single tasking.

I have authored operations manuals, training programs, guest service seminars, etc.

I started using some of the ideas I had learned with the larger corporations and it was an epiphany for me. As I pulled together all of what I thought were varied empty mission statements and value propositions and blended them for new start up companies....they worked and we built those companies, if even for the short term on ideas that really did work.

The difference was that we were not existing Fortune 500 companies trying to change who we were today. Changing culture in a large company is very difficult and generally results in a hollow attempt at appearing to live up to those lofty principles.

You are absolutely correct that to cut expenses to get out from under sinking sales and profits is very short term thinking and does not work. Unfortunately, management at those companies did not plan for a rainy day and often find themselves backed into a corner. In food, if you do not stay innovative and on the cutting edge, you lose...hence, you chain stores will start closing.

In the restaurant industry, that is the point where companies need the working capital to staff up, beef up the value of their product and remodel their image. Those three things combined send a signal to the guest that things are OK, 'you can count on us being here' and 'we understand what you want from us'.

It always irritates me when I see a company cut back to save their business. It costs twice as much to get back to where you were. Very few ever recover.

Focus on growth means executing the basics today and keeping your eye on the ball without reaching for the prize too early on!

It's all about keeping your word.

Scott Ives — Fri, 22 Aug 2008 15:45:38 -0400

I do a fair amount of public speaking and private consultation on the subject of marketing and advertising. Many people believe that successful marketing and advertising is about telling a good story, the bi-product of which is a funny or interesting commercial that may or may not be wholly true. Sadly this happens quite frequently. People see, hear or read an advertisement that causes them to visit a business, only to find out that the business cannot live up to the images in the advertising.

I submit that truly effective advertising tells the truth. Businesses that thrive communicate truthful messages about their businesses that are clearly recognizable by consumers when they arrive at that business. Lincoln's oft used quote about "fooling some of the people" is highly applicable, and today's consumers are far less forgiving than in the past. The reason I offer this little insight is simple, companies that invest in training and providing superior customer service flourish in good economies and even in ones that are not so good. Even in the midst of the Great depression there were companies with that philosophy that grew and prospered.

New Hampshire, has an organization called the Granite State Quality Council (they administer the examinations for the prestigious Baldridge Awards) they offer the opportunity to join their organization and provide guidance to companies big and small on ideas like constant improvement and best practices, as well as, process for developing sound management principles.They can be found on the web at GSQC.com

New Hampshire has a number of truly amazing businesses that are great inspiration for the adoption of this model (both GSQC members). BAE Systems and Northeast Delta Dental are two companies that live the mantra of exceeding customer expectations. They go the additional mile with their employees, vendors and really anyone that has contact with their company walks away impressed. Every company has its proponents for cutting in tough times but it is important to note that it is very difficult if not impossible to cut your way to profitability. Growth is the only long-term cure and that comes from having people that are clearly motivated to do amazing things.

Scott

Yes Scott....Service!!!!

Bill Bunker — Fri, 22 Aug 2008 12:53:44 -0400

Service is the cornerstone of restaurant success but that comes with solid training and operational follow through.

All of this is either entrenched in a company's culture and mission or it is not! When companies cut back, the first thing to go is training and development.

The loftiest of values and mission statements are only words if management is not focused on and able to execute the basics of guest service.

The company I am working with focuses on "exceeding the expectation of the guest". And, companies need to treat every guest as if they are their ONLY guest. If more did, they would soar in sales.

Next, food quality and price are equal in my book. There is nothing more aggravating than leaving hungry and paying $60+ for a family of four. Now, the Olive Garden has great service but I might warn that they cut the portions of late.

One of my clients has a daughter who has worked for them in Virginia for several years and she confirmed that they have cut back to make costs. Just a 'heads up'.

I am laughing (with you) Terri

Bill Bunker — Fri, 22 Aug 2008 12:45:38 -0400

Now could you tell us what you really think of Uno's?????

I was being kind in my reply to Ken but, once again, you are exactly correct!!!

Portion size is average and they do not offer the service of other restaurants.

It is about the wallet and you want something for your money, it is not at Uno's!

LOL.....LOL......your honesty is refreshing, Terri!!

Service first, quality next then price!

Scott Ives — Fri, 22 Aug 2008 10:04:47 -0400

Good service is so hard to find that even a modicum of reasonable treatment is a welcome thing. The Olive Garden in Concord is a family favorite. The food is just good, not great, but they hire bright, friendly and attentive people and they must spend a fair amount of time training them as the service is uniform every time we visit. It is very refreshing to be greeted with a smile, receive timely service and enjoy a good meal. The prices are not great but the service gets me every time!

Scott

Quality is what matters

Terri Oberg — Fri, 22 Aug 2008 06:50:15 -0400

I could care less if Uno's closed up tomorrow. I've been to the Loudon Road resaurant 3 times in the past 8 years or so and found both the food and the service under par each and every time. In this day when the wallets are thin and the choices varied, providing a good dining experience will make all the difference in failure or success. I refuse to spend my hard earned money on another lousy meal in that place. And that's what it comes down to really, doesn't it?

Good Points and More Information

Bill Bunker — Tue, 19 Aug 2008 21:29:51 -0400

This is the second major chain to announce financial insolvency in the last couple of weeks. Bennigan's closed last week. Their story is different. Bennigan's (there are none around here) was the place to go in the heyday of Friday's. They did not effectively redefine themselves as Friday's did. Their restaurants were poorly managed, poorly maintained and their menu hearkened back to the 90's.

Uno's suffers from much the same dilemma. The Uno's in Concord is approaching 12 years old, is located in a grocery corridor and far away from other competitors. Traveling about, I notice that others are in many locations that once drew traffic, but now, the draw is elsewhere. Uno's, however is head and shoulders above Bennigan's or at least what it turned into.

I think you erred, Ken, Chili's is closed. That location is now Friday's but you are correct that the restaurant alley cluster is not necessarily a universal draw. Remember, Friday's was Red Lobster before it was Chili's.

Olive Garden seems to be a draw and Longhorn does well but we have noticed that the wait at those restaurants is no longer an issue. You get seated right away.

I am in the business and I can not fathom why Newick's built in the old Smokey Bone's location and then call themselves a "Lobster House". Sounds expensive to me....and in a bad economy, a double blunder...and those prices....wow!

That takes you to Ruby Tuesday which, before this economic downturn had cost issues of it's own. Many readers might note that they now use a square plate...why?...because it looks like more! It is easier to fill it up. They also 'ration' the ketchup and you can count the fries on the plate. On a recent trip, I ran into an employee at the local Ruby Tuesday and they confirmed that, chain wide, they are on a cost cutting agenda. Including........rationing french fries. And the salad bar has been scaled way back. BUT, you have to hand it to them about being proactive and managing the situation!

My point is that companies are hurting but the check averages keep climbing. It is tough for any couple to eat at any of these establishments without spending at least $40.

Now, what companies do not realize is that if they offered value and outstanding service, they could conquer the entire market. Unfortunately, when times are tough, instead, they look at areas in which they can cut costs. That is called, managing down the business. You can count on seeing more of that. Uno's has done a good job of that in recent years.

Now, when restaurants and retail stores experience a downturn in sales, they immediately cut labor and cost of goods. Maybe they should staff up their businesses, offer outstanding guest service and increase portions. The moment you cut your costs in knee jerk fashion, it signals the consumer that you are in trouble!

The bankruptcy that you refer to, Ken is Chapter 11 bankruptcy. It gives companies a chance to reorganize their debt and provide the bankruptcy court with a plan that will hopefully recover the business. This works less than 50% of the time. Generally they try to sell or bring in a new management team.

In the 90's, both Boston Market and Einstein's declared Chapter 11, Wendy's may have to do the same. Baja Fresh took Wendy's down and was sold back to the original owner for pennies on the dollar.

You are ABSOLUTELY correct that in a poor economy, the family, value places do very well. In the great depression, Howard Johnson's thrived!

You can look to fast food and places like Friendly's (although they have attempted to imitate a Casual chain in recent years unsuccessfully) will benefit. This is not good news for those concerned about nutrition.

As far as corn is concerned, I read a commodities report that is sent me every Monday morning concerning food prices. Last week, it stated that corn is expected to drop. That is good news for everyone! Supplies will be up 17% over 2006 production.

Pork demand by consumers is up but demand for Beef and Poultry is down. More companies should analyze this kind of information and play to consumer trends.

Your point about restaurants on the Heights is right on.......it does not take a brain surgeon, however to figure out which one's are in trouble. Just look at the parking lots.....it is tough out there but fast food will start to dominate the business. QSR magazine reported that casual restaurants will be flat and down in 2009 but quick service restaurants are expected to trend up around 7%.

Will the Pizzaria Uno chain survive?

Ken Braiterman — Tue, 19 Aug 2008 13:44:35 -0400

Friday night, after all the business journalists had left for the weekend, Pizzeria Uno announced that it cannot afford to pay the monthly interest on its debt.