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January 2, 2007

Casual Dining is Looking for New Ways

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Jim Cheatham, Chairman and FounderJim Cheatham
Chairman and Founder, LionShare Group
Implications: Several midpriced chain restaurants are introducing new items to appeal to diners.

Casual Dining sales continue to be soft.

New product alone may not be the answer.

Analysis: Chains like Applebee's, Red Lobster, Chili's and Outback Steakhouse are offering more upscale entrées to boost the sales; but finding it difficult to expand the customer base.  They are finding out that the consumer may not be interested in the new changes in most cases.  Some restaurants found that customers did not like them and decided to drop items from the menu.

Management of these chains need to take a look at their branding and core culture of the chain. Most of the customer base repeats to a certain restaurant because they know what to expect and are unaware or don't like the changes.  Consumers are finding it hard to see the difference in the restaurants without a distinct marketing plan that brings the image up to date with the new offerings.
The age old marketing of knowing your niche and your unique difference ,directed to the consumer base that you wish to attract, must be a part of the master plan.

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