next-generation platform strategies for restaurant development
TRANSCRIPT
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.
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!
Thanks to Our Sponsor
Meet Our Panelists
Dennis Lombardi
Foodservice
Strategist, WD
Partners
James Walker
Chief
Development
Officer,
Johnny Rockets
Ron Green
Founder &
President,
Another Broken
Egg Café
Next-Gen Platforms
Putting the Puzzle Together
To view the complete, free webcast click here:
http://rddmag.com/nextgen
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
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.
Johnny Rockets: Next-Generation Platforms
• 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
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
Johnny Rockets
Need prototype that:
• Isn’t real estate-confined
• Isn’t venue-confined
• Offers better STI
• Offers better ROI
• Is scalable
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
Diner
Express
Route 66
Drive-In
Food Truck
At Home
Next-Gen Risks
The Domino Effect: One Platform Impacts All
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
James: Tips for Protecting the Brand
• Do the research
• Ask your current customer base for permission
• Ask your franchisees for permission
Questions?
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
Thanks to Our Sponsor
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.
Thanks for Listening!
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