“We forgot what the customer expects from us and got a wake-up call,” said Stephen Joyce, CEO of Dine Equity, the company that owns Applebee’s and IHOP, both of which have had sales declines. Further, he notes, “We lost a little relevance with our customers.”
You know me. I’m all about relevance!
Casual dining overall suffered a 1.3% decline in 2017. Chili’s “chased consumer trends” by expanding its menu according to president Kelli Valade and that gave the restaurant a “fuzzy food reputation.” Like Applebee’s, Chili’s went back to basics after experiencing decreases in 2016 and 2017. (State Journal-Register, February 25, 2018)
Restaurants aren’t the only organizations that need to get “back to basics.” Based on my work with clients over the past several months, I believe associations need to do the same. In fact, it’s the first step I recommend when boards are looking at strategy. It is easier to make decisions with clarity of purpose.
According to the State Journal-Register, “At the same time, Dine Brands launched new websites and mobile apps for Applebee’s and IHOP this year, and rolled out online ordering for IHOP in the last half of 2017. In the next 18 months, all Applebee’s and IHOP restaurants will have Wi-Fi, tabletop tablets people can use to order food and mobile-phone checkout.”
So … back to basics or innovating? The answer is: both. And doing both requires walking a fine line. It causes internal tension, but it’s also why being in association leadership today is so interesting.
What else can we learn from the restaurant industry? “We’re comfortable with who we are and what we stand for and we simply wouldn’t pretend to be an overly hip or trendy brand,” notes Applebee’s President John Cywinski. “It’s unlikely you’ll see sriracha, quinoa or pomegranate any time soon.”
Remember what members expect. Innovate. But don’t forget who you are. Sounds like a simple recipe for success to me. Simple…but not easy.