Tag Archives: restaurants

Seven Ways to Create Brand Recognition Learned from Benihana

Seven Ways to Create Brand Recognition Learned from Benihana

GUEST POST from Shep Hyken

When you think of recognizable brands, companies like Coke, Apple, Amazon, and McDonald’s come to mind. It’s hard to imagine there is anyone who wouldn’t recognize the brand name or logo of these companies. Some of my clients have said something like, “If we could just get a fraction of that kind of recognition, it would be a huge accomplishment.” Well, meet Benihana. Yes, the restaurant chain known for chefs putting on amazing, entertaining cooking demonstrations at your table while they prepare your delicious meal.

Benihana is an American restaurant company founded by Hiroaki Aoki in New York City in 1964. Today, its 116 restaurants serve about 18 million guests each year, and according to CEO Tom Baldwin, Benihana has 90% brand recognition. That’s incredible. Think about this for a moment. McDonald’s, with almost 13,500 restaurants in the U.S. serving millions of people each day, has almost 100% brand recognition. Benihana, with just 116 restaurants, has 90% brand recognition.

How did they do it? The restaurant chain has never strayed from what brought its original success. It is not the neighborhood restaurant you go to every week. This “special occasion” restaurant is known for creating great guest memories, which is their motto.

At a recent meeting of general managers, Baldwin shared what has made the Benihana brand a success, and how it will continue to be even more successful in the future. These strategies are the “brand builders” that have helped make Benihana so recognizable and can do the same for you:

  1. A One-of-a-Kind Restaurant Platform. While there may be some competition in local markets, with 116 restaurants, it is the largest chain of its kind. If you’re not already, what could you do to become a one-of-a-kind brand? What makes you unique?
  2. Timeless Appeal that Transcends Generations. If you walk into a Benihana, you will see young and old. Families are there celebrating children’s and grandparents’ birthdays. There are couples, young and old, celebrating anniversaries. Companies host events for their employees and customers. There are no age boundaries at Benihana. While most companies don’t have such a wide customer base, you must understand who your customers are and create an experience that is both timely and timeless.
  3. An Exceptional Leadership Team, Culture and Infrastructure. Benihana has a system. They deliver a consistent and predictable experience. It doesn’t matter if you’re in a restaurant in New York, Los Angeles, Miami or any of the other 113 locations, you will have a similar experience. Its leadership team, from headquarters down to managers of each location, along with the culture and processes, ensures the same great memories are created regardless of location. With focused effort, any company can create a consistent experience that comes from a good system and the right culture.
  4. A Clean Environment. A guest can expect to have an excellent meal and a great experience in a spotless environment. This is an important point. While you may not want to eat off the floor of any restaurant, they do their best to make you feel as if you could. Cleanliness creates guest confidence. Anything less may send a negative message. For example, a dirty floor means the food might not be fresh. What’s your version of the dirty floor? What sends mixed or negative messages to your customers?
  5. The Kaizen Philosophy. It may not be a surprise that a Japanese restaurant chain embraces Kaizen, the Japanese business philosophy focused on continuous improvement. It is a strategy in which all employees work together to find new ways—large or small—to improve the process. The five principles of Kaizen include teamwork, personal discipline, improved morale, quality circles and suggestions for improvement. The growth and innovations that Benihana has created come from its attention to Kaizen, a philosophy that can be embraced by any company.
  6. Engaging and Embracing the Community. Part of the Benihana company mission is to “engage and enhance the community.” How do you get involved with your community? More and more, customers are being drawn to companies that support what they believe in. It could be a cause in the local community or something as large as the sustainability of the environment. It’s about giving back.
  7. An Unparalleled Guest Experience. It’s all about the guest experience at Benihana. They relentlessly focus on creating great guest memories. They also recognize that the guest experience comes from the right employee experience. The strategy—and lesson—are simple. Focus on the employee and customer experiences. Create the experience that makes your customers say, “I’ll be back!” This is an appropriate strategy for every company—one you want all your customers to associate with your brand.

This article originally appeared on Forbes

Image Credit: Pixabay

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Re-imagining Drive Thru Restaurants – Innovation or Not

Food Locker Pickup Pizza Hut

Coronavirus (COVID-19) has changed our world with the subtlety of a sledgehammer and now billions of people around the world are under ‘stay at home’ orders. In many communities restaurants and bars are closed or only allowed to deliver meals or make them available as ‘to-go’ or takeaway orders.

But, even with the plethora of food delivery services in the United States and elsewhere, people still prefer drive-thru to food delivery when they choose not to dine in. But what are you to do when your restaurant isn’t configured with a drive-thru window?

One answer would be to re-imagine the drive thru and takeaway by learning from the automats of the 1930’s and 1940’s (the last one in New York City closed in 1991) and Amazon Lockers.

Food Locker Automat 1936

You can create lockers for warm food and lockers for cold food. Before the Coronavirus (COVID-19) pandemic began spreading across the globe some companies were experimenting with food lockers combined with mobile ordering at ballparks:

Food Lockers with Mobile Ordering at Ballparks

And, Pizza Hut was experimenting in Hollywood with Pizza Lockers to eliminate interactions with employees (picture top of article).

One could imagine that as Coronavirus (COVID-19) lockdowns stretch from weeks from months, and the virus lingers for the next 12-24 months, and fears of individuals linger potentially even longer, restaurants may want to re-imagine how they configure and leverage their physical space.

Is it worth redeploying an external wall of the restaurant to optimize to go or takeaway orders?

The idea isn’t that difficult for an individual restaurant to adopt as there are companies manufacturing food lockers already, and they can be combined with PIN’s to unlock them that can be delivered by email or mobile platforms and reset after each use.

During a virus outbreak (or on an ongoing basis) sanitizing wipes could be provided or if the lockers are on the street, then one employee could be staffed for delivering food from the kitchen to the lockers and then sanitizing the lockers on the outside of the restaurant.

Have you seen this type of solution growing in your part of the world?

Innovation or not?


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Changing Business Models Around

Changing Business Models AroundSome business models and products have been around so long that we just take them for granted, while others concepts that are becoming new business models are so new that we’re not quite sure what to expect. It is probably easiest to explain what I mean and why this juxtaposition is important by looking at a few examples. Most of these examples involve challenging our orthodoxies.

1. Coffee Shops

In the typical coffee shop pretty much anywhere in the world, the business model works like this – you buy a coffee and it comes along with it the right to take up a place at any table in the café for as long as you want. So, coffee buys you time. An article I came across on NPR highlights an entrepreneur in Moscow that has opened a restaurant that loosely translates to the Clockface Café where instead of buying coffee and getting time, you instead buy time ($4/hr per person for the 1st hour and $2 an hour after that, up to a maximum of $12 after 5 hours) and get coffee for free. Ivan Meetin, the founder, plans to open his next café in London. Meanwhile I have heard of similar operations in Paris, and by now they can probably also be found elsewhere. So, in your business what do people get for free, and what do they pay for? And is there an opportunity to change around what you charge for?

2. Waste Disposal

In many businesses, and in the creation of most products, there is waste. And in most cases, businesses pay to have this waste removed from their premises. Or there may be waste that the customer has to pay to have removed. But this doesn’t always have to be the case.

KFC, McDonald’s, Burger King, etc. used to have to pay to have their used fryer oil picked up, but now thanks to the rise of biodiesel they may even make money from this waste product.

Chicken FeetChicken processors used to throw the feet away after processing a truckload of chickens, but after they discovered that chicken feet are a delicacy in several Asian countries, they stopped throwing them away and instead started exporting them. In fact, chicken feet sell for more per pound than chicken breasts in China.

Broken OREO’s used to have no value before Cookies ‘n’ Cream ice cream (and now Cookies ‘n’ Cream OREO’s) were discovered.

And finally, I came across an example of a bottle cap concept created by designers from the Lanzhou University of Technology in China, intended to give poor children access to building blocks for play, from what was previously thrown away.

Building Caps

3. Discounts for Data

Data security and privacy is becoming an increasingly hot topic, and in the past companies would either ask customers for their data and not give them anything for it, or just not ask for it. But now we are seeing some interesting models of companies asking customers for data and instead giving them something of value in exchange. For example, Urban Outfitters rewards users that respond to promotions inside their mobile app or to users that allow its app to connect to their Twitter or Instagram accounts with points that can be redeemed for sale previews, concert tickets, or early access to new pieces. What data do you want from your customers? What is it worth to you? How could this exchange be made engaging and not be seen as a purely financial transaction?

4. The Soft Drink Category is Saturated and Cold

Soft drinks… How many people out there think that the soft drink category is a blue ocean full of incredible opportunities for unbounded growth for established soft drink makers? Most people would say that this is a mature category and a tough place for companies, full of merciless competition. But yet, people continue to innovate and challenge this orthodoxy. Witness a couple of interesting new concepts.

Shericks ShakesBritain has always been a hotbed of innovation, and the country that brought us Pret a Manger and Innocent smoothies brings us this tasty treat. Mr. Sherick’s Shakes brings people a little bit of luxury to their day in the form of their high quality milkshakes.

Meanwhile in Japan, there is a growing trend manifesting in a wave of product launches in the soft drink category that are not cold, but instead hot. Witness this example of what has always been a cold drink, Ginger Ale, being brought into the Japanese market as a hot beverage by Coca Cola’s Canada Dry unit.

Canada Dry Hot Ginger AlePeople always love something new and different, even if it is something old that has disappeared from the market. This is why fashion runs in cycles, and in a mature category like soft drinks there is no reason why we shouldn’t keep these principles in mind and see if now is the time to bring something back, or to see if there is an orthodoxy that we shouldn’t now look at challenging to see if an opportunity might not be created.

Conclusion

Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative. Value comes not just from physical invention, or business model innovation, but from psychological and emotional benefits as well and the creation of new psychological or emotional value can happen in any industry at any point in time, no matter how mature the category seems to be. We as humans are strange creatures and we simultaneously fight against change (and hold back innovation as a result) and embrace new things (or at least like to try them). So challenge your patterns of accepted thinking to look for opportunity and work to overcome your beliefs that everything that could be done has been done in your industry.

Keep innovating!


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Backwards Innovation

A Case Study in Accidental Innovation

Backwards Innovation - Chipotle Mexican GrillAccording to Wikipedia, Chipotle was founded twenty years ago by Steve Ells (1993). Chipotle had 16 restaurants (all in Colorado) when McDonald’s Corporation became a major investor in 1998. By the time McDonald’s fully divested itself from Chipotle in 2006, the chain had grown to over 500 locations. Today, 37,310 employees at more than 1,400 locations in 43 U.S. states and Washington, D.C., three Canadian provinces, the United Kingdom, and France (all company-owned, no franchises), help Chipotle generate an annual net income of US$278 million (2012).

Also according to Wikipedia, founder Steve Ells attended the Culinary Institute of America before becoming a line cook for Jeremiah Tower at Stars in San Francisco. It was there that Ells observed the popularity of the burritos in the Mission District taquerías. In 1993, Ells took what he learned in San Francisco and opened the first Chipotle in Denver, Colorado, in a former Dolly Madison Ice Cream Store near the University of Denver campus using an $85,000 loan from his father. Ells and his father calculated that the original restaurant would need to sell 107 burritos per day to be profitable, but after one month, it was selling over 1,000 burritos a day.

But according to Steve Ells himself in the video below, he didn’t start out to create a chain of burrito shops, but instead opened the first one as a means to generate cash to open the restaurant he dreamed of opening. So he didn’t set out to help create the growing casual dining category, he didn’t set out to be the head of a multi-billion dollar company, but he did set out with a vision to create a restaurant that would serve fast and fresh Mexican-inspired cuisine.

See the Chipotle Story – How it All Started:

See more about the Chipotle Culinary Story:

Watch One Man’s Quest for Better Tasting Pork (while released in 2011 it, according to Wikipedia, details a journey made in 1999):

And it is in this journey to understand how he can source better ingredients at scale a couple of years ago that led to the 2001 launch of their Food with Integrity mission. Some of the most recent efforts to support this mission have become more fun and more social. This includes activities like the release of a video called Back to the Start that features a Coldplay song ‘The Scientist’ sung by country music legend Willie Nelson that was made available for download with proceeds benefiting the Chipotle Cultivate Foundation and its dedication to creating a sustainable, healthful and equitable food future.

And most recently, this year they have created an App called Chipotle Scarecrow that rails against factory farming and they’ve created this movie called The Scarecrow to promote the App:

Don’t worry, all of this is leading somewhere.

It has led me to an idea that I want you to consider as you look at your innovation efforts.

It is the idea of Backwards Innovation.

What is Backwards Innovation?

It is the idea that in our quest to become ever more efficient and more effective, sometimes we go too far.

Or we pass a point from which, we can actually create innovation by going…backwards.

So today, the area of greatest opportunity for innovation in the food industry is in backwards innovation, by creating value by seeking in some ways LESS efficiency and by becoming MORE effective in DIFFERENT ways.

So, as you all continue to seek innovation, you must sometimes ask yourselves:

  • In our quest for efficiency have we gone too far in some ways, or have we reached a point where opportunities are created that might at first glance look less efficient?
  • In our quest for greater effectiveness, should we now be seeking to be more effective in different ways?
  • Have we been seeking increased technology for so long now in this area that now people almost want less technology?

These are just three backwards innovation questions you might ask yourself.

What other backwards innovation questions can you think of?


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