Quick Bites Blog, Thoughts on Restaurant Marketing.

The Economy

The economy:

Obviously the economy is not in great shape. Consumers are looking for value and thinking two or even three times before parting with their money. That being said if your restaurant can communicate its value proposition to consumers this could actually be an opportunity for growth.  And value doesn't have to mean price. Some folks consider a Whole Foods Market a great value. Studies show consumers pay an average of 30% more to shop there. It's all because of the suggested health benefits of consuming their products.  They've convinced consumers that they're receiving an acceptable value in return for the higher price.

Other ways a restaurant brand can communicate value to the consumer are:

• carrying unique menu items sold nowhere else
• offering a one of kind dining experience or atmosphere
• serving portions appropriate for today's lifestyle
• using only organic produce or humane treatment of animals
• offering a brief escape from the every day

Some brands are doing pretty well right now. Consider the following same store sales numbers:

Burger King        +5.8%
McDonalds        +4.3%
Yum Brands        +4.0%
Applebee's        +0.5%
Olive Garden    +5.8%
Red Robin        +4.0%
Panera            +2.3%
Chipotle            +10.2%
Chuck E. Ch.        +3.6%
Bob Evans        +4.4%
IHOP            +3.7%

These concepts, despite gas prices, groceries and energy prices are experiencing positive sales numbers. Even Applebee's is seeing a positive same store sales numbers for the first time in a very long time. All of these concepts have several things in common; consistency in message and marketing efforts and a message of excellent value to the consumer.

Now consider:

Caribou Coffee        -2.3%
Jamba Juice            -4.2%
Starbucks (U.S.)         -5.0%

These concepts rode a wave of economic expansion from the 80's forward.  But as the economic landscape has changed they've found themselves ill equipped to to keep or gain new customers. It could be argued that consumers see these as optional purchases.  I think consumers having started questioning the value of these brands and have acted accordingly. This only emphasizes the need for your restaurant to reach out in every way possible and remind customers why your concept is relevant and provides great value for today's value conscious consumer.

Marketing via Email

The continuing rise in postage rates makes direct mail increasingly less affordable for the restaurant community. Until recently this was one of the best options available for individual locations to market in their own backyard. But now email marketing has finally matured, is easy and affordable to execute and the response rate may just shock you.

How effective is email marketing? Companies like www.mUrgent.com that provide a full range of email marketing services are full of statistics but beyond that I attend many conferences for restaurant franchising around the country during the year. I'm hearing again and again about the phenomenal response to permission-based email marketing. Does 20% to 30% sound intriguing?

It seems consumers have gotten really comfortable with the notion of receiving offers from brands they love and trust. That being said the evidence is also clear that consumers understand the score: "you want my business and you can't have it for free." In order to get them to participate it's necessary to offer an enticement. In essence, the "free" offers to consumers on their birthday, offers for referring a friend etc., are pure commerce. In exchange for access to their eyes and ears (via their email address) they expect a reward.

The flip side (and the reason I believe the redemption rates of email marketing can be so high) is consumers realize their end of the bargain is to "listen" when you talk about your company's products. Email marketing is really unlike any other medium in this respect and I think that's what explains the high redemptions.

No one likes giving things away for free. But looked at another way you're actually buying access to their email with a few free rewards. What makes this a superior medium is the ability to reach BACK out to consumers and lure them back in to your stores. Most media is passive. You cup your hands and shout out to the marketplace and hope someone hears you! With the consumer's email in hand (and even better their permission to talk to them) your brand is now empowered to lure those customers back sooner and increase the frequency of visits. Also assuming you're doing all the things necessary to keep a customer, you're able to amplify the power of your satisfied customers by making it easy and rewarding for them to refer others to you.

Very few restaurateurs do the research to truly know their customers. One of our clients was shocked to learn their average customer shopped them only once every 60 - 90 days. Email marketing is the perfect tool to try and convince those folks to come back more often and spend more when doing so.

Email marketing is here. Consumers are comfortable with it, it's not junk unless you send out junk. Email has an extremely high rate of response and and is super affordable. It's time to put it in your arsenal of marketing tools.

Garrick Arnold
Wildflower

Need help with Email Marketing? Call Jobeth and the good folks at mUrgent. They've been phenomenal to work with and I whole heartedly recommend them.

JoBeth Nastav
Account Executive

*mUrgent*
Smart Marketing.

Tel: 877.289.7250 ext. 268
Fax: 714.918.4726
Em: _jnastav@murgent.com _
Learn more about
Smart Marketing at
_www.murgent.com _

Get A Gun

By now most everyone has heard that the once seemingly indestructible Starbucks intends to close 600 stores. http://seattletimes.nwsource.com/html/businesstechnology/2008028854_starbucks02.html Based on recent conversations and the few articles I've read, a lot of people are taking no small amount of pleasure in Starbucks' fall from grace. Americans love the underdog and take a perverse sense of pleasure in seeing the Prom King tumble off his throne. Putting that aside here a few important lessons restaurateurs can learn from recent events at Starbucks:

Lesson #1: From Great to Just Good
Despite all Starbucks' recent reduction in comp store sales they're still a phenomenally successful company. They have tons of talent, cash on hand and brand recognition most companies would kill for. There are plenty of concepts out there with comp store sales in a far steeper decline but with none of the panache or track record of success of Starbucks. This is a case where I like to tell people "you should be so lucky to suck as bad as these guys."

Starbucks has done a brilliant job of connecting with consumers over the years. They know better than most how to create a holistic brand experience that excites people. Until your company can say the same I suggest these guys still have a lot to teach all of us.

Lesson #2: Pack Heat
Ever heard the old joke about the guy who showed up for a gun fight armed only with a knife? From day one Starbucks resisted traditional advertising methods such as TV, radio and coupons. Heck, they didn't have to advertise! And it worked brilliantly... right up until the day it stopped working. Now Starbucks finds itself in a hostile economy fighting for its life. The problem is they're engaged in a gun fight for market share with tough, savvy marketers like McDonalds and Dunkin' Donuts. Both are brands who, marketing-wise, come armed with guns and they know how to use them!

Meanwhile Starbucks has virtually no experience with using traditional marketing to reach consumers. They stand here today armed only with a knife. Starbucks never learned to fire a gun and now it's going to take them a lot of time and trial and error to catch up to their better armed competitors.

The next time you hear a restaurateur boast "we don't advertise. All of our business comes from word of mouth" ask them what the plan is when, inevitably, just like Starbucks, the economic landscape around them takes a seismic shift? I've seen it happen to clients who suddenly find word-of-mouth no longer working. It's a gut wrenching process for an organization that eschewed marketing to suddenly find themselves in a financial crisis and then frantically try to learn how to market. Can it be done? Yes. But most organizations find themselves unable to make the necessary changes and instead wither.

Lesson #3: Love Fades
I've never seen an organization that was so quick to do what is convenient for themselves and just assume customers will go along. Like a certain pastry? Well don't expect it to be available consistently. One day it's there. The next day not. Starbucks' attitude? Sorry, dude. Eight people in line and only one register open? Always! But again, they're attitude is seemingly "hey dude, that's just the way it goes." I guess when you post positive comp store sales for decades you get a little cocky. I always got the idea that while Starbucks appreciated my business it would always be on their terms rather than mine and that they assumed consumers like myself would simply continue to go along. Recent events show that the spell has been broken and consumers have discovered they can get coffee somewhere else or can even live a day or two without it. ( but only barely ).

Lesson #4 Stay Fresh
Starbucks put all their eggs in one basket from the start, betting on a upgraded level of service and ambience to attract and keep consumers. In essence they took the money that most companies used to advertise and spent it instead on an upgraded consumer experience. But then over the years, one can only assume in a cost cutting move, Starbucks allowed that consumer experience to become tired and dated. Older stores needed new lighting, fresh paint and new furniture but got none of the above. Starbucks didn't re-invest in their existing customers experience and I think consumers noticed. Maybe not enough to stop coming in immediately but enough that, when faced with a choice between $4 gas and a $4 dollar latte, the option of not coming in at all suddenly seemed quite reasonable.

Conclusion:
Starbucks completely reshaped the retail/restaurant landscape for the world. You only have to venture into a remodeled McDonalds or a Panera Bread to see the proof. The only problem is Starbucks let other brands steal their thunder and the Starbucks experience became a rather dull diluted experience that you could get anywhere. Don't let your customer's experience suffer the same fate. And don't expect customers to tell you they are bored. They'll let you know by simply eating somewhere else. Some good old fashioned coddling of your customers, from their psyches to their seats may come back in fashion soon.

Marketing and advertising are a lot like vitamins; you can't just take them when you're feeling a cold coming on because by then it's too late... you're already sick! Like vitamins you have to take them every day, even when you feel great. If you're lucky, when the flu (or a recession) hits, you'll stay healthy while others around you fade.

Finally, for the love of Pete, reinvest in your business. Customers see it and while they maybe can't articulate it they appreciate it.

Wendy says, "You're fired!"

So Wendy's kicks their agency, Saatchi & Saatchi, to the curb along with the wacky red wig campaign. It's a shame. Even Wendy's admits that while the campaign didn't cause sales to sky rocket it did get noticed and stimulated discussion about the brand for the first time since "Where's the Beef." No easy task, that.

Obviously my sympathy lies with the agency, Saatchi & Saatchi. Why fire them? Assuming they're not incompetent (their long list of successes suggests otherwise) why not stick with them and allow them time to fine-tune the message? If creating a breakthrough, explosive campaign were that easy everybody would do it every time.

Let me share a few comments from Wendy's corporate team:

Wendy's has decided that it shouldn't base its strategy on cool, and said food-buying decisions are based more on taste than the hip factor. "People don't go to Wendy's because it's a cool place," said Paul Kershisnik, senior VP-marketing strategy and innovation. "They'll never go to Wendy's because it's a cool place."

I love how Paul Kershisnik gives Wendy's permission to continue not being cool (and instead continue being stale, stuffy, corny etc.). Instead of firing their ad agency they should fire their market research department because I've seen research from restaurant consumers that says just the opposite. Good food AND an engaging (call it cool if you must) experience will win every time. He is right about one thing: people currently aren’t going to Wendy's “because it's cool.” Right now, sales numbers indicate people currently aren’t going to Wendy’s much at all. “Cool” can be lucrative, but it takes time and commitment. Deciding to never be cool, however, means deciding to ignore a major purchase influence and the revenue that goes along with it.

"What we've found thus far is the younger you are, the more likely it is that you don't have a connection with the brand," said Bob Holtcamp, VP-brand management. "The new advertising we've developed really sets the stage and clearly articulates what the brand is about. It's a reinforcement for anybody that's a bit older, but it's grounding for people a bit younger that aren't as in touch with the brand."

Bob is correct here. Wendy's doesn't connect with younger consumers. But the Red Wig campaign was an attempt to address that very problem. Instead of firing the agency you should have patted them on the back and said "try again." At least their strategy was an honest attempt to attract a new, more lucrative customer. Now it sounds like Wendy's has essentially decided to give up attempting to appeal to the largest consumer of fast food burgers.

Before finalizing the campaign, Mr. Holtcamp said, "Wendy's conducted tests in five markets pitting the Kirshenbaum Bond ads against the red-wig ads from Saatchi. "What consumers fed back was this new approach was more true to the fundamental principles of the brand," he said.

So now consumers are reading the tea leaves and determining what the Wendy's brand is supposed to be? So consumers are shown two campaigns and asked to delineate which one is the most strategically appropriate? Showing the Red Wig campaign to consumers next to, what I consider the bland forgettable new ad (just like the brand itself) was a cheap shot and a self-fulfilling prophecy. Saatchi & Saatchi was attempting to CHANGE consumer perceptions about the wounded water buffalo of a brand that is Wendy's, not reinforce the image like the current campaign! No wonder it lost in a comparison.

The bottom line is the leadership at Wendy's (if you can call it that) was fully aware of the intentions of the Red Wig campaign. If the agency deserves to be fired then so do they. The issue for Wendy's is strategy and the party who's ultimately responsible for that is management not the ad agency.

Wendy's is a train wreck. Any reasonable parsing of the executive staff's comments shows a bewildered, lost, directionless vision for the future.

Congratulations to Wendy's current agency, but don’t get too comfortable. You’re dating one crazy redhead.

An Open Letter To Howard Schultz, CEO Starbucks

Dear Howard,

Glad to know you’re returning to the CEO spot at Starbucks. You’ve got your work cut out for you, but I know you can do it! I’m sure as you settle in and take stock of the situation you’ll be besieged from all sides with advice.

As you know, something’s not right at Starbucks. Is it consumer fatigue? Competition? Is it those crappy pre-made sandwiches?

You see Howard, as a former employee of yours and a long time customer I feel like I’m uniquely qualified to talk with you man to man about Starbucks. I’ve read your book, stood in line and drank the proverbial Kool-Aid, or in this case the Americano. As someone who travels the country frequently, that familiar green round sign is an oasis for this weary traveler.

Keep in mind that I’m a regular customer so these criticisms are not universal. Starbucks has some of the finest people I ever had the pleasure of working with. That being said here are my thoughts:

Training:
Back in the day Starbucks spent an unheard of 40 hours of labor dollars per partner in training before allowing partners to assume regular floor duties. According to my sources that is no longer the case. Frankly it shows, especially in regards to soft skills. Considering generation Y now makes up a majority of the staff, this training is more important than ever.

I routinely experience partners chatting amongst themselves to the exclusion of customers. What happened to focus on the customer?

I routinely experience a lack of urgency on the part of the staff. Visit a store in Seattle and you probably won’t see what I’m talking about. The shear volume of customers in a dense metro area necessitates a fast pace. But Starbucks now has locations in Green River,Wyoming and Ogden, Utah and speed of service needs to be revisited again.

Most locations have more than one register, but I can’t remember when I’ve seen more than one in use regardless of the number of people standing in line. I suspect that as items are added to the menu no allowance for additional floor staff has been made.

Action:
Training techniques and technology need to be revisited immediately. Paying lip service to “legendary service” isn’t enough without appropriate resources to achieve the task. Partners need to be refocused on guest experience and again appropriate resources allocated to the task. 

Ambiance:
Comfy chairs, warm caramel colors - what set the standard for the third place is now a tired cliché. Imitators long ago co-opted the Starbucks look and feel. Even those locations and many locations look shopworn and dated. Did Starbucks seriously think they were going to remain immune to the need for the occasional major makeover and remodel?

Action:
It’s time to surprise and delight guests once again and the interior environment is as good a place as any to start. New colors, superior art work, lighting, seating etc., will send a message to every guest and every partner that Starbucks again sets the standard.

Musical Chairs:
Your average guest wouldn’t be privy to this information, but one of the most frustrating things I experienced as a Starbucks employee was the constant musical chairs at the management level. My understanding is that it has only intensified. The constant reshuffling of district managers and managers was a bad idea 10 years ago, and in light of the current situation it’s an even worse idea today.

Action:
Chipotle Burrito recently decided that offering good managers and D.M.s an incentive to stay put was better for the company than the constant revolving door. I recommend revisiting this issue and looking for opportunities to create much needed stability on the front lines of the organization.

Pride:
Want to know where and when the seed of Starbucks current woes was planted? It wasn’t the introduction of vacuum sealed coffee bags as your recently leaked memo suggested. It was planted the day skilled barista’s were replaced by automated espresso bars. Savings were gained and a lot of soul and a great deal of theater was lost.

There was a time when the Starbucks barista was a stud. The barista was the fighter pilot of the organization. It was a position that required skill and allowed for an ascending level of mastery. The barista was on stage and was a star. They took pride in handling a rush and whipping out custom made drinks to the customer’s satisfaction.

Now the milk is steamed and the grind and tamp are adjusted by computer, all in the name of efficiency. Pride derives from mastering a task. I can’t remember the last time I’ve seen a barista hand a drink to a customer with the knowing look that said they made a great drink.

Action:
Consider if the loss of making hand crafted drinks, having a challenging and skilled environment and the more intimate interaction with the customers that creates is worth more than the savings.

Conclusion:
Over the years Starbucks has received many accolades and deservedly so. Innovations in company culture, technology, training etc., produced unprecedented growth and a blue print for others to emulate. But somewhere along the way those elements that created the essence of the Starbucks experience got lost, sacrificed in the name of efficiency. The challenge is to find that ember that started it all and fan the flames!

If you need me you’ll find me at the nearest Starbucks with my quad grande Americano firmly in hand watching all the great changes to come.

Your friend,
Garrick T. Arnold
Wildflower

One to Grow On

McDonald’s just released comp sales figures today.

Globally comp sales are up 8.2% and domestic comp sales are up 4.4%. How is this possible? What about gas prices? The mortgage crisis? Childhood obesity?

All it took was vision, courage to try new things and a renewed commitment to serving the needs of the customer first rather than management’s and franchisees’ own shortsighted wants and needs.

I've written about this before but it's worth noting again: McDonald's was in financial trouble and now they're not. It was a turnaround with many elements, but mostly McDonald's stopped addressing what they did or did not want to do ( introduce salads, healthier sides, more options, etc. ) and instead used a blend of new product introductions that consumers wanted ( franchisees be damned ) and laser tight messaging.

Remember "YOU deserve a break today?" "Now it's "I'M luv'n it." See the critical difference in perspective? The old version is the company telling "you" the consumer how to feel. The new is inclusive and in first person "I."

No accident there. McDonald's got to know their audience through exhaustive market research and a sharpened message and offerings.

I've recently heard some talk from people within the industry suggesting that in the face of recent economic woes it's just not possible to grow sales. I say that's defeatist. If an old war horse like McDonald's can increase comp sales in the face of supposed market downturns then what can your concept achieve? 

Define your Brand, then Work the Plan

Read any good news lately? Probably not. Like everyone ( your competitors included ) you're hearing ominous tales about signs of recession, tightening credit markets, the mortgage debacle and so on.

What should restaurateurs do in the face of the latest economic news? Should you postpone your new product roll out? Slow expansion? Hunker down? Wait out the storm? No. In fact I say you should do nothing. Rather, you should plan your brand then work your plan. Assuming of course you have a plan.

Do you think that in the face of the same economic news that you're reading that the heads America's leading brands are going to change their plan? Is Honda going to delay the launch of their latest vehicle till better economic news? Is Chipotle going to pull back on their expensive "pure food" initiative until consumer confidence rebounds? Will McDonald's postpone its gourmet coffee roll out until housing prices stabilize? No.

You see these brands, like all great brands, have a plan. They've looked deep into their souls and asked the really hard questions:

• what is our value proposition?
• what differentiates us from our competitors?
• what are our brands' strengths?

Answering these questions reveals weaknesses and opportunities for your brand. This leads to action plans to build a better brand. Asking them over and over leads to an even better brand.

Great brands ask these tough questions then do the hard work to answer them. If your value to consumers isn't clear then make it clear. If the difference between you and your competitors isn't crystal clear then take steps to clarify.

Are you ready for 20 tough questions?

The next time you hear a business leader waffling about how they should react to the fed's rate cut or considering altering their plans for their company based on the latest business headlines just smile and nod, secure in the knowledge that this person stands naked in front of you, their inadequacies exposed. Their dirty little secret is revealed. They HAVE NO BRAND! Furthermore they have no PLAN for their brand!

Define your brand; then work your Plan.

Don't know how to define your Brand? Download Wildflower's 14 Step Brand Architecture process and ask yourself 14 tough questions. Need help? E-mail me.

Happy Holidays

Garrick

Vegas Baby!

April and I recently attended the Restaurant Finance Monitor's 18th Annual Restaurant Finance & Development Conference in Vegas. With 1,700 in attendance it was a great place to learn more about the state of the industry. Here are some highlights.

Wall Street's View and Outlook for Restaurants.
Analysts Nicole Miller Regan, Robert Derrington and Larry Miller shared their take on what the industry will look like in 2008. Continuing pressure on operators in terms of cost of goods, labor costs, energy will continue to tamp down margins and profits.

I asked the panelists if they took a restaurant brand’s Green initiatives into consideration when evaluating a restaurant stock. Nicole Miller Regan (the smartest person in the room, in my opinion) said "absolutely" and cited Chipotle as a brand that has turned it's Green efforts into a strategic advantage.

The other two analysts got in the Way Back Time Machine and turned the dial to 1964, seemingly dismissing Green efforts as little more than PR and tree hugging fluff. I wonder if they'd scoff at Olive Garden reducing it's electric bill by 10% via Green initiatives? Or their garbage bill?

The outlook for interest rates, consumer spending, housing and the U.S. capital markets.
Paul Kasriel, Senior V.P. and director of economic research for Northern Trust Company spoke about the state of the economy in the foreseeable future. Two words: not good. Interest rates will come down but the housing crunch, energy costs and tightening credit markets will make things very dicey in 2008. Basically the economy appears to be riding on the knife’s edge of recession. Paul was the funniest guy who ever depressed me at the same time.   

Restaurants of the future.
Celebrity Chef Wolfgang Puck told the story of his amazing journey from France to America and his eponymous restaurant brand’s growth. Wolfgang felt that the future of dining in America would continue to focus more and more on healthy dishes, locally grown and/or organic ingredients and responsible business practices. He's right of course.

Mega-Trends and their impact on your operations and your people.
Ron Paul, President & CEO of Technomic, Inc. and Teresa Siriani, President, People Report gave my kind of presentation. They pimp-slapped the room full of industry bigwigs with the thing people in power often resent most: facts. For example: how's the restaurant industry doing in terms of promoting minorities out of the kitchen into management? Poorly. And that's compared to retail. What are the emerging trends in workforce issues related to hiring older workers or the available pool of young people to man the front lines of restaurant brands? Click this link to view their presentation and find out. It's worth the time.

Comic Relief
Dennis Miller spoke at lunch and was both profane and hilarious.

Ever see the movie Catch Me if You Can starring Leonardo DeCaprio? Leo plays Frank Abagnale who, as a young man, travels the world under false names, writes hot checks all the while posing as an airline pilot, doctor, lawyer etc. staying one step ahead of the law. Eventually the law catches up and 26 years later Frank works for the FBI and many of the world's largest corporations as an expert on fraud and embezzlement. The real Frank Abagnale was our next day’s keynote speaker. Frank's speech was funny and at the same time very, very moving. At the end there wasn't a dry eye in the house.

The formula for rejuvenating casual dining brands
A panel of restaurant CEO's and industry consultants discussed the state of the casual dining industry. No consensus was drawn. Some chains are trying to bring fine dining attributes "down" to the casual dining segment just like fast food took "casual" dining elements downstream to fast food. Either way, it’s a tough segment waiting for an answer to its woes.

There was much, much more but I encourage anyone committed to the industry to attend the Franchise Times event. Time and money well spent.

An Experience Economy

It's all about the food. Or is it?

Restaurateurs will always tell you that, for consumers, it's all about the food. But a recent survey by Bryles Research says otherwise.

A recent national survey offered consumers the chance to create their idea of the perfect restaurant. Those surveyed described at length the atmosphere, lighting, seating arrangements, decor, colors, service and music of their ideal concept. But what did those surveyed say about the food served at their dream restaurant? It didn't come up!

Puzzling results. Followup surveys were conducted immediately. "What about the food?" Basically respondents said the food had to be good but if all those other elements of their perfect restaurant were there, the color, lighting etc., they'd settle for an average quality meal.

The devil's in the details and what consumers mean by "good food" or “average quality” is debatable. But clearly consumers’ priorities in regard to dining are not the same as the restaurant industry’s leadership.

The industry thinks it's the food. To the exclusion of everything else. But consumers say it's the food + more. It's about the experience. And managing the totality of the guest experience? That is branding. The sum total of the customer's experience. Restaurateurs are talking about food and consumers are talking about all the senses.

Hard not to feel for the typical restaurateur. They're encouraged to listen to their customers. The problem is consumers don't actually know themselves what motivates them. As consumers we think we're rational beings but we're not. As a wise man once told me "listen to what consumers mean, not what they say."

So what to do with this information? If you want to grab consumers and keep them transfixed on your concept then recognize that interior design, lighting, music, seating, etc. aren't afterthoughts to your customers. They're actually the most critical part of the consumer experience.

Oh, and don't forget about the food!

"Say Goodnight, Wendy."

Future of Wendy's personal for Thomas Family
Relatives want burger chain to go back to Dave's way

In Hollywood, the saying goes, it's better to be talked about than not talked about at all. Wendy's hasn't had a breakthrough, talk-worthy, campaign since the "Where's the beef?" years. After the death in 2002 of Dave Thomas, founder of Wendy's, the company had struggled to find a voice that resonated with the public. Now, despite the wildly popular "Wig campaign" the women of the Thomas family still aren't satisfied.

How unsatisfied are they? Dave Thomas's widow called the campaign "absolutely ridiculous."
She goes on to say "What does kicking a tree have to do with selling hamburgers?" Pam Farber, another Thomas daughter says the people who took over the company after the death of Dave Thomas didn't understand its culture and goes on to say the current efforts "just don't resonate with my family."

Molly Thomas offers up that competing in the hyper-competitive burger segment is simple. Serve good products, treat people well, and they'll come back. Problem solved.

You can't blame the Thomas family for being upset. Dave Thomas, the Thomas family and the Wendy's brand were virtually indistinguishable from each other, and maybe that's the problem.

The Thomas girls claim the company culture has been lost, but I say there's a huge difference between a genuine culture and a cult of personality. Several brands have lost their founder but soldiered on with a well-defined marketplace mission. Wal-Mart lost their founder but continued on with their "everyday low prices" ways. Suffice it to say that a company that loses its way so soon after the demise of it's founder probably didn't have a true culture to begin with, but rather it was built around devotion to an individual. That's hardly a formula for the long haul. I'll talk more about creating a lasting corporate culture (some are on purpose, others not so much) in a future entry.

By speaking out publicly in direct oposition to the Wendy's managment, the Thomas family opens up themselves and their simplistic solutions for fixing the Wendy's brand to scrutiny.

The Wig. Wendy's had to do it. An excellent attempt to reach out to the highest volume consumers of burgers in the U.S – males 18 to 28. To ignore that audience would be nothing less than negligence on the part of Wendy's managment. 3rd quarter sales for Wendy's show a slight increase in same store sales over the same quarter the year before. I believe it's only going to get better as the campaign builds steam with these consumers.

The Thomas clan calls the new advertising "ridiculous" and claim it doesn't resonate "with their family." Good. Because it's not supposed to! If the Thomas girls want to lead the marketing of Wendy's, then step one is to remove themselves from the equation when assessing marketing efforts. Does the Wig campaign achieve the stated goal? Apparently so, and that's good news for Wendy's investors. Remember them?

Serve good products, treat people well, and they'll come back, or so says Molly Thomas. The truth is that in the nearly seven years since Dave Thomas's death the fast food landscape has changed radically. Panera Bread, Starbucks, fast casual dining and the list goes on. Even Dave Thomas, were he still alive today, might find it difficult to navigate today's volatile marketplace. To keep Wendy's relevant the brand has to embrace change at all levels.

It seems obvious from the comments that the Thomas clan have made to the media that the Wendy's management team and its advertising agency have received no support. That's a shame given the herculean task of making a stodgy brand like Wendy's seem more relevant. These events also may shed some light on Wendy's problems in recent years. You can practically hear every decision ever made being measured against the "Dave wouldn't have done it that way" yardstick. In that light, managment's decision to seek a buyer for Wendy's only makes sense.

The ghosts of Wendy's past need to be exorcised once and for all. If that means selling the brand and purging the Thomas family then by all means do so. At the end of the day Wendy's, as a brand, is an investment tool. The best way to honor Dave Thomas is to let go of the past and let the brand's leadership take risks and embrace change. Otherwise it's time to say, "Goodnight, Wendy."