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Getting a Second Brand
Up and Running
March 2006
Thomas & King selected Johnny Carino’s Italian to complement its portfolio of 85 franchised Applebee’s restaurants. |
Choosing a second franchise concept is like choosing a stock, says Bill Campion, executive vice president and chief people officer, Thomas & King. “Buy something you understand because you’re going to have to run it,” he advises. “The best fit is a brand that is similar but differentiated.”
That’s exactly what the Lexington, Ky.-based restaurant company did in selecting the full-service country Italian concept Johnny Carino’s Italian to complement its core portfolio of 85 franchised Applebee’s restaurants. Carino’s leverages Thomas & King’s 18 years of experience in casual dining while tapping into a younger customer base.
Other factors on Campion’s list of do’s and don’ts for operating
a second brand include:
- Stay in the segment you know. “We tried a 24-hour concept. Our skill set didn’t translate. It was a different market and a different business model. You have to do a reality check,” Campion says.
- Treat each brand separately. “You can't really overlay best
practices. Every concept has its own nuances. There is very little overlap, even in the same sector,” Campion says. Centralizing
back-of-the-house functions such as accounting and technology
are the best places to drive efficiencies.
- Don’t skimp on marketing. Make sure you have a dedicated
marketing staff for the second concept, advises Campion. Thomas & King boosts visibility for Johnny Carino’s with initiatives ranging from sample lunches for businesses to catering for fund-raisers.
- Don’t grow too fast. “Understaffed restaurants are the scourge of this industry,” Campion cautions. “You don’t want to put a lot of inexperienced managers into your new brand. And you don’t want to have such thin staffing that you’re working your people to death.”
- Don’t forget the core brand. “One of the biggest mistakes people make is to put all of their attention on the new brand. Make sure you’re taking care of your primary brand. If that brand continues to drive the lion’s share of your profits, your mistakes with the new brand won’t kill the bottom line,” he says.
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