Spaghetti Equity: Fazoli’s Multi-Media Strategy

ChainLeader:

As it approached the ripe old age (for a restaurant company, anyway) of 20, Lexington, Ky.-based Fazoli’s knew it needed a makeover. Customers were migrating away from the brand. The limited-service chain had closed underperforming units as part of a recent restructuring: It had 286 units when Carl Howard took over as president and CEO in June 2008; there are 264 today. In addition, a survey of customers last year found that the chain did not have enough “craveable products.”

In response to these factors, Howard oversaw a complete overhaul of the concept’s menu, with a focus on adding more baked pasta dishes and then devising ways to let lapsed and new customers know about them.

“We started with expanded baked pasta dishes because there is not a lot of competition,” Howard explains. “Baked pasta is difficult to make at home, and you don’t find the quality in the grocery store or in a lot of restaurants.”

Not Half-Bakedcontinue reading.

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