Facing Failure Head-On: How To Reinvest in Your Products and “Partners”

The food service industry is resilient. From wars and natural disasters to a global pandemic, we’ve witnessed the service sector push through hard times. Certain brands have even started over when necessary, all so they can continue to deliver quality to their customers.

Some companies succeed at survival, while others can’t recover from devastating challenges.

Building again from the ground up is no easy feat – it’s nearly impossible when companies don’t acknowledge how they got there in the first place. There’s no doubt the food service industry has faced hurdle after hurdle in an inflation-driven economy.

But usually when a restaurant fails, at least some of the reasons are within management’s control.

When faced with declining sales, restaurants can keep blaming outside factors… Or they can look inward and take accountability.

This fork in the road is a key moment for brand strategy: Do you find fault elsewhere, or do you own up to bad business moves? Those that choose the latter tend to fare better than those that are experts in denial.

Don’t believe me? Listen to coffee guru Howard Schultz.

The former CEO of Starbucks – the most recognizable coffeehouse chain in the world – recently posted his thoughts about the company’s disappointing sales on LinkedIn.

What was most surprising about his commentary was his emphasis on customer experience instead of the numbers. Schultz appeals to upper management to spend more time with staff on the ground floor (the ones making the drinks, interacting with customers, and executing the C-suite strategy).

“Through it all, focus on being experiential, not transactional,” Schultz advises.

Taking it from someone who helped make Starbucks the household name it is today, it would be wise to listen to Schultz. His position on fixing problems from within is a powerful way to influence change. He also suggests reexamining the app, as the ordering and delivery systems have also suffered.

What’s especially notable is his stance consulting “partners,” which is how Starbucks refers to its baristas. This is because, as the company puts it, “we are all partners in shared success.”

Who better to comment on what’s actually going on in stores than the people who work there every day?

Admitting problems via corporate transparency is not new. In fact, Domino’s set the stage for accountability by integrating it into its marketing. Boy, did it pay off.

The “cardboard pizza” confession heard round the world.

Still not sure about putting your problems on blast? Let’s take a walk down memory lane…

In 2010, Domino’s Pizza CEO Patrick Doyle admitted on national television that his company’s product was terrible.

The pizza chain went through a very public rehaul of its menu. It released revealing videos showing unedited focus group comments complaining about taste, and employees reflecting on where they dropped the ball in ingredients, cooking, and guest experience.

This approach was shocking. But it was the only way to get customers to trust them again.

Since then, Domino’s has worked hard to get its menu up to par and stores back in shape. They put the entire process on display, showing up at homes of former haters who tasted the new pies – and loved them. Their efforts paid off: Domino’s stock went up 2000%.

The company continues to find ways to improve the customer experience, and lately it’s been through tech innovations. Their app allows pizza tracking, even playing Nelly’s “Hot In Here” when the pizza enters the oven at the store, and it has the ability to turn off sprinkler systems and turn on outdoor entryway lights for the delivery person.

Digital ordering and online features now account for more than 60% of Domino’s sales. They bounced back from a seemingly inevitable end – and they keep finding ways to move forward.

Self-reflection reveals problems – and solutions.

If Domino’s didn’t convince you to look inward and acknowledge your mistakes, maybe Red Lobster will.

The seafood chain popular for its addictive biscuits and endless seafood specials is trying to avoid filing for bankruptcy. The casual dining restaurant mogul can no longer afford its expensive leases, and sales have been declining.

This is due to the many changes in management over the past years – and their inability to acknowledge their management missteps along the way.

From bad business decisions, like endless crab and shrimp meals that encouraged customers to stay for hours and decrease table turnover, to cutting corners at the expense of food quality and server pay, majority shareholders based in Bangkok could not properly handle nor comprehend what was really going on in their American restaurants.

Their various management groups over the years have cited high supply costs and fast-casual dining competition as the source of Red Lobster’s demise. However, throwing around blame is never the way to go – even if it’s a legit claim.

The best way to heal, repair, and rebuild is by dealing with problems from the inside out. Take a close look at product quality, kitchen operations, and most importantly, how service is brought from inception to the table.

Your employees will appreciate being involved in finding an organic way to make it right with guests.