Restaurant Rebrands

Rebranding a Restaurant: Three Wins and a Flop

When sales start to slow and public opinion begins to sour, many restaurants look to rebranding for revitalization. Changes in management, simplifying the business's identity, and capturing a new audience are other reasons to reinvent an operation's image. Rebranding a restaurant can be as simple as updating the logo or as complex as changing the entire concept and identity.

No matter how big or small your rebrand will be, it's important that the changes are carefully researched, planned, and executed. To help you avoid critical missteps in your rebranding journey, we've highlighted four recent examples from the restaurant industry that you can learn from.

Win: Arby's Exceled with Advertising

In 2010, Arby's was a "loser" in the fast food industry1 with consistently falling sales. In 2012, on the heels of a severed finger incident2 that sparked bad publicity, Arby's introduced an updated logo. Despite the 3-D effects rendered on the classic top hat, the change fell flat3, and the new slogan, "Slicing Up Freshness," didn't give the company's sales a fresh start. The fast food chain was sold to Roark Capital Group4 in 2011, but was still struggling to recapture its audience.

After the altered logo got roasted by fans and critics alike, Arby's released another variation of the top hat in 2013 that harkened back to the original logo with two-dimensional appeal and a serif font. The next year, a different tagline and advertising campaign finally connected with customers by reminding them, "We have the meats." Hyperbolic scripts narrated by actor Ving Rhames were featured in distinctive commercials with simple white backdrops that made viewers focus on the food. That new approach to marketing complemented a friendly feud with Jon Stewart5 and an accidental partnership with Pharell Williams6, whose own oversized hat gained notoriety.

Rebranding with the right marketing plan helped Arby's experience record growth7, including same-store sales growth of 8.1 percent in 2015. The fast food chain's marketing tactics are keeping customers interested, but it will have to make sure it maintains the food quality – meats and otherwise – that keeps them coming back.

Win: Domino's Relied on a Redo

In 2009, Domino's was a company with plenty of reasons to rebrand. It suffered from poor public perception, worsened by a damaging viral video8 made by two irresponsible employees, and consistently dwindling sales9. At the end of the year, the company announced a comprehensive "turnaround" campaign, which began with a four-minute video posted to its YouTube channel that opened with customer complaints, including that the "pizza was cardboard… wet and flavourless" and that "microwave pizza is far superior," and showed reactions from executives, chefs, and staff. The company's Pizza Turnaround website claims it "face[d] our critics and reinvent[ed] our pizza from the crust up." In the two years following the launch of the turnaround campaign, Domino's stock gained 233 percent10.

After reinventing its pizza, Domino's expanded its menu and updated its branding. In 2012, a new logo11 debuted alongside a plan to redesign stores to be more welcoming for customers choosing to pick pizzas up. To improve the ease with which customers could order, the company invested in technology-based ordering methods12, like a pizza tracker that allows each customer to monitor their pizza's progress after ordering online or via text. In 2015, the company announced that it was officially dropping the "pizza" from its name and attempted to engage its customer base with a logo informant13 contest that encouraged consumers to Instagram photos of Domino's locations that had not yet replaced outdated signage.

Admitting that its product was flawed and letting customers know it made improvements helped Domino's rake in the dough. Although a glance at the highly franchised company's Facebook page shows some bumps in customer service, its profits are continuing to increase beyond estimations14.

Win: McDonald's Is Lovin' Breakfast

For better or worse, McDonald's has long been married to American culture as a fast food icon. The company hasn't been without its fair share of scandals15, from employee mistreatment to undisclosed ingredients, but it wasn't until 2002 that the golden arches began a rapid fall from grace with its first reported quarterly loss16. A documentary released in 2004, Super Size Me, aimed to highlight the link between obesity and fast food at the expense of McDonald's. The documentary's critics17 pointed out the 5,000-calories-per-day regimen followed in the documentary, accompanied by no exercise, was a bit unrealistic for the average American, but the documentary's popularity didn't help the fast food chain's image. As customers began opting for healthier options, McDonald's profits, despite the addition of salads and smoothies to the menu, were weighed down by its bad rap.

McDonald's started updating locations18 in 2011 to shed its stale image for contemporary designs. That ongoing change supports last year's announcement that McDonald's wants to become a "modern, progressive burger company."19 The company offered some transparency about its food by answering questions20 about ingredients, nutrition, and sourcing and sustainability, and vowed to switch to cage-free eggs and antibiotic-free chicken in a move that caters to diners who prefer ethically raised and sourced food. Perhaps most importantly, it also introduced all-day breakfast in response to customer demand.

After implementing menu options they knew customers wanted, the company enjoyed an increase21 of 0.9 percent in same-restaurant sales during the third quarter of 2015, success that continued in 2016. Customers are buying McMuffins, but it will be interesting to see if America also buys the new image the fast good giant is hatching.

Flop: Ruby Tuesday Tossed Tradition

Although Ruby Tuesday was known for being a casual dining establishment, a rebrand effort in 2009 attempted to transform it into an upscale restaurant. The restaurant's founder seemed optimistic about the decision22 at the time, but it was executed in the middle of a national recession23 when restaurants and diners alike struggled financially. Despite spending more than $100 million on the effort, sales didn't sizzle. The rebrand also came after an advertising ploy where Ruby Tuesday pretended to demolish24 the wrong building, which failed to create the buzz it wanted.

In 2013, the restaurant chain's CEO said it was in a "transition period,"25 but it's difficult to say when that transition is meant to end. In 2016, the restaurant chain has made headlines for its declining numbers26 and additional management shake-ups, including its CFO resigning, as well as a wage lawsuit27. Those stories might have obscured its promotions, including 15 meals under $10, kids eating free on Tuesdays, and the resurgence of the salad bar.

After rebranding during a recession and alienating existing customers, Ruby Tuesday has struggled to reconnect with diners. In addition to offering family-friendly menu options to reclaim its previous reputation, the company is refocusing its advertising28 to attract women with children.

References

  1. Too Much Beef: Why Arby’s is so low on the restaurant food chain. Slate. Accessed December 2021.
  2. Teen finds finger in Arby's sandwich. USA Today. Accessed December 2021.
  3. What Do Pro Designers Think of Arby's New Logo? Bloomberg. Accessed December 2021.
  4. Roark Capital Group Completes Acquisition of Arby's. PR Newswire. Accessed December 2021.
  5. How Arby's came to embrace Jon Stewart's jabs – and even create a sandwich in his honor. The Washington Post. Accessed December 2021.
  6. Pharrell sells Grammys hat to Arby's for $44,100. USA Today. Accessed December 2021.
  7. One restaurant chain is defying the stereotype that millennials don't want fast food. Business Insider. Accessed December 2021.
  8. Video Prank at Domino's Taints Brand. The New York Times. Accessed December 2021.
  9. The Many Acts of Domino's Pizza. QSR Magazine. Accessed December 2021.
  10. Domino's "Brutally Honest" Ads Offset Slow Customer Spending. Bloomberg. Accessed December 2021.
  11. Domino's Revamping Stores, Drops 'Pizza' from Logo. AdAge. Accessed December 2021.
  12. How Domino's became a tech company. Nation's Restaurant News. Accessed December 2021.
  13. Tattling on Domino's owners may win you free pizza. USA Today. Accessed December 2021.
  14. Domino's Pizza profit, U.S. sales beat estimates as more people dine out. Reuters. Accessed December 2021.
  15. We're not lovin' it: McDonald's most notorious scandals. Salon. Accessed December 2021.
  16. McDonald's to Post a Loss For First Time in 37 Years. The Wall Street Journal. Accessed December 2021.
  17. Big Mac Counterattack. Slate. Accessed December 2021.
  18. McDonald's yuppie makeover explained. Salon. Accessed December 2021.
  19. McDonald's CEO Promises 'Modern, Progressive Burger Company'. NPR. Accessed December 2021.
  20. Frequently Asked Questions. McDonald's. Accessed December 2021.
  21. McDonald’s Profit Climbs, Showing Turnaround is Sustainable. The Wall Street Journal. Accessed December 2021.
  22. At Ruby Tuesday, Casual Dining Dons a Blazer. The New York Times. Accessed December 2021.
  23. Restaurants Face Lean Times in the Economic Downturn. TIME. Accessed December 2021.
  24. Ruby Tuesday Gives Up the Exploding-Restaurant Gig. Grub Street. Accessed December 2021.
  25. Ruby Tuesday CEO: Company in ‘transition period’. Nation's Restaurant News. Accessed December 2021.
  26. Ruby Tuesday Announces Exec Changes After Q3 Loss.
  27. Ruby Tuesday Hit With Unappetizing Wage and Hour Class Action. Find Law. Accessed December 2021.
  28. Ruby Tuesday Picks Precision and Emotion Over TV to Woo Moms. AdAge. Accessed December 2021.