Chains look to change
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Some of the nation's biggest restaurant chains are planning makeovers as they try to maintain popularity in a more competitive marketplace. Dairy Queen has for the past several years pushed its selection of hot food. Now, it's going back to its roots by more aggressively marketing frozen treats. The Minnesota-based chain is introducing DQ TreatWorks, a frozen-treats-only concept, in several test markets. Tom Miner, a food industry consultant, tells the Minneapolis-St. Paul Business Journal that the idea of an image update is nothing new. "Brands that are doing well in the marketplace are getting updated constantly," he said. "If they don't, they don't make it in the business." One of the first of the casual dining restaurants, TGI Fridays, is also in the middle of trying to do just that. The Orlando Business Journal reports that the 40-year-old chain is remodeling its restaurants or building new ones in a different style. The company is paying $200 million for the makeover. "It evolutionary, not revolutionary," said Chris Muller, an associate professor at the Rosen College of Hospitality Management. "TGI Friday's is part of the DNA code of casual dining. It's the godfather of the fern bar." Another chain, though, is doing something revolutionary -- at least for it. Down-home Bob Evans is going big city. Bob Evans, Inc., is slowing the growth of its signature restaurants in favor of expanding Mimi's Cafe, a bistro-style concept it bought last year. "You're not going to see the level of penetration with Mimi's Cafe that you see with Bob Evans," said Stewart K. Owens, Bob Evans' CEO, "but there is a lot of the U.S. to go. They've shown an ability to carry the chain across the country." Meanwhile, O'Charley's, based in Nashville, is growing the old-fashioned way. Franchising is the key to the company's growth strategy in the Upper Midwest, West, and Southwest. Source: Business Journals |
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