next-generation platform strategies for restaurant development

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Next-Generation Platform Strategies November 19, 2014 These slides are part of a free webcast from rd+d magazine. You will find a link to the webcast on Slide 6.

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Page 1: Next-Generation Platform Strategies for Restaurant Development

Next-Generation Platform StrategiesNovember 19, 2014

These slides are part of a free webcast from rd+d magazine.

You will find a link to the webcast on Slide 6.

Page 2: Next-Generation Platform Strategies for Restaurant Development

Today’s Objectives

• Explore how chains are seeking growth by developing

and adopting new platform strategies.

• Discuss challenges and risks associated with taking an

established brand into new platforms.

• Offer insights on how to protect your brand as you enter

uncharted waters.

• Answer your questions!

Page 3: Next-Generation Platform Strategies for Restaurant Development

Thanks to Our Sponsor

Page 4: Next-Generation Platform Strategies for Restaurant Development

We are TriMark,

And We Bring It!

Learn more at

www.TriMarkUSA.com

Page 5: Next-Generation Platform Strategies for Restaurant Development

Meet Our Panelists

Dennis Lombardi

Foodservice

Strategist, WD

Partners

James Walker

Chief

Development

Officer,

Johnny Rockets

Ron Green

Founder &

President,

Another Broken

Egg Café

Page 6: Next-Generation Platform Strategies for Restaurant Development

Next-Gen Platforms

Putting the Puzzle Together

To view the complete, free webcast click here:

http://rddmag.com/nextgen

Page 7: Next-Generation Platform Strategies for Restaurant Development

Opportunities

• New and shoulder dayparts

• New design prototypes/elevated look and feel

• New sales layers – grab-and-go, bakery,

merchandise/products, elevated beverage station,

catering

• New territory — smaller footprints, nontraditional

segments, mobile platforms

Page 8: Next-Generation Platform Strategies for Restaurant Development

Key Considerations

• Need good, predictive ROI

• Determine where not to spend and how to spend wisely

• Evaluate impact on existing franchisees/units

The larger the chain, the more critical it is to consider

how you roll back next-gen designs or platforms through

existing stores.

Page 9: Next-Generation Platform Strategies for Restaurant Development

Johnny Rockets: Next-Generation Platforms

Page 10: Next-Generation Platform Strategies for Restaurant Development

• 210 units,32 states

• 180 franchised,30 company-owned

• 7 locations opened YTD of 17 planned

• Nontraditional venues perform best

Domestic Unit Overview

Johnny Rockets Locations

Page 11: Next-Generation Platform Strategies for Restaurant Development

Johnny Rockets: Current position

• 7 distinct prototypes, numerous iterations

• 2014 bank credit rating @ $1.49 sales-to-investment

(STI)

• Alternative Venues

– Perform well

– Limited scalability

– High Investment

• Traditional Venues

– Doesn’t work

Page 12: Next-Generation Platform Strategies for Restaurant Development

Johnny Rockets

Need prototype that:

• Isn’t real estate-confined

• Isn’t venue-confined

• Offers better STI

• Offers better ROI

• Is scalable

Page 13: Next-Generation Platform Strategies for Restaurant Development

2015+ One Brand, 4 Expressions

Diner Express Route 66Johnny Rockets at

Home

Alternate Venues Trad. & Alt. Venues Highly Access. R.E. HSN

Live Dance Digital Dance Digital Dance Walmart (Discount)

Relaxed SOS FAST SOS FAST SOS Costco (Club)

Min. Scalability Mod. Scalability High Scalability Grocery

High Investment Low InvestmentRange of Investments C-Stone

1,800 Sq. Ft. Plus 500-1,100 Sq. Ft. 1,800-3,300 Sq. Ft. Amazon.com

Full Menu Optimized Menu Optimized Menu

High Employee Number

Low Employee Number

Med. Employee Number

- Drive Thru

- Drive In

- Food Truck / Trailer

At Home

Page 14: Next-Generation Platform Strategies for Restaurant Development

Diner

Page 15: Next-Generation Platform Strategies for Restaurant Development

Express

Page 16: Next-Generation Platform Strategies for Restaurant Development

Route 66

Page 17: Next-Generation Platform Strategies for Restaurant Development

Drive-In

Page 18: Next-Generation Platform Strategies for Restaurant Development

Food Truck

Page 19: Next-Generation Platform Strategies for Restaurant Development

At Home

Page 20: Next-Generation Platform Strategies for Restaurant Development

Next-Gen Risks

The Domino Effect: One Platform Impacts All

Page 21: Next-Generation Platform Strategies for Restaurant Development

Next-Generation Platform Risks

• Confusing the consumer

• Not executing well against the new platform

• Not having the same level of control over the brand in

different platforms

• Failing to ensure consistent quality of product among

platforms

Page 22: Next-Generation Platform Strategies for Restaurant Development

James: Tips for Protecting the Brand

• Do the research

• Ask your current customer base for permission

• Ask your franchisees for permission

Page 23: Next-Generation Platform Strategies for Restaurant Development

Questions?

Page 24: Next-Generation Platform Strategies for Restaurant Development

Dennis: Closing Thoughts

1. Ignore the back of the house at your peril.

2. Pay close attention to value engineering and unit

opening costs for franchisees.

3. New designs/platforms are great, but successful unit

economics – regardless of platform – depend in equal

measure on:

• Concept

• Execution

• Location/Site

Page 25: Next-Generation Platform Strategies for Restaurant Development

Thanks to Our Sponsor

Page 26: Next-Generation Platform Strategies for Restaurant Development

We are TriMark,

And We Bring It!

Learn more at

www.TriMarkUSA.com

Page 27: Next-Generation Platform Strategies for Restaurant Development

Future rd+d Webcasts

February 25,2015

Developing Successful Rebranding/Reimaging Initiatives

April 29, 2015

Finding & Vetting Local Vendors for

Development Projects

Comments/suggestions: Contact Dana Tanyeri, [email protected]

A link to the CEU quiz will be sent when the webcast archive goes live.

Page 28: Next-Generation Platform Strategies for Restaurant Development

Thanks for Listening!

Visit us online

www.rddmag.com

Follow us on Twitter

@rddmag

Get bi-weekly rd+d content, project news,

restaurant design digest

rddmag.com/resources/newsletters