Entrepreneur Had great article on how Tom Curtis, President of Burger King orchestrated company turnaround.
Tom joined Burger King from Dominos.
What impressed me most? Turnaround took few years. Turnaround started in 2021 when Curtis hired. Announcing was delayed until 2026. Why?
Majority of companies announce their plans in advance…then hope they can deliver.
Curtis approach was different. Customers were unhappy. Franchisees were unhappy. Profitability was slipping for franchisees and corporate. At a long established chain.
Where did he start?
Understanding public perception. Customers were unhappy, but still identified with the brand.
He made great point that all companies with franchisees need to remember: Majority of franchisees have been with the brand far longer than corporate executives. Franchisees needed to be convinced that Burger King was changing. Before asking them for additional marketing monies or to upgrade their franchise(s).
Step 1: Re-invest in your own product. Prove changes are worthwhile. Build customer trust. In this instance franchisee trust too. Burger King reinvested in themselves.
Individual Hotels/Restaurants need to reinvest also. Reinvestment doesn’t necessarily mean major financial commitments. Fresh cleaning. New coat of paint. Re-arranging seating areas. Refreshing beverage menu. Introducing new drink combinations by adding healthy fun ingredients.
Curtis: “Improve first, apologize later.” Most businesses apologize and then announce plans. Customers want results first. Explanations, if customers even care, can come later.
Step 2: All turnarounds take time. That requires patience from leaders and teams. Individual properties often feel they need instant turnaround. Actuality, customers are have more patience than we think.
Yes, some customers love totally new concepts. Other customers love the nostalgia. Bottom line: Customers stick with businesses that recognize their challenges. That are moving in the right direction.
We all love anticipation. Show customers what is coming next. Not whole story. What is coming in 2 weeks or next month. Show progress, not grand plans.
Step 3. Evaluate your product or service.
What is your hotel or restaurant known for? How is it remembered. Not sure? Ask your customers.
Step back. How do we improve? Curtis thought in simple steps. They had 70 year product that was chain feature. Customer told them not to radically change the product. Burger King looked at ingredients in the Whopper and then re-packaged it.
Restaurants will frequently make changes in place settings. Easy to do, and can be inexpensive. Others change how food is plated. Hotels? Re-arrange the lobby. Rotate front desk area 90 degrees. Expand or shrink business area. Re-name meeting rooms. Etc.
Ask customers what they want and like. Before making changes. Involve your customers.
Curtis pointed out that attention grabbing is fine. But make sure proposed changes appeal to customers.
Step 4. Once turn-around is fully engaged. How should you introduce and market?
Listen to customers. What are they saying? How are they describing changes? When possible use their words and quotes in marketing. Can be as simple as placards at Front Desk, in Lobby, meeting rooms, etc. Waiting areas in restaurants. Table cards.
Quotes from customers are more effective than our own bragging. In turn ask customers to leave own impressions. Ask them what should be next. This can be as simple as server asking at table. Or Manager asking when guest is about to leave.
|Summary:
Businesses should be in perpetual renovation/modernization. Tap employees, vendors and guests for ideas, suggestions and tips. Repeat their words back to them. Make sure you heard them.
Slow steady changes/improvements are less expensive and frequently better. They are also easier for people to think of.
I know hotels that change their lobby every few months. Just by re-arranging.
Restaurants that change out place settings every few months. Or change angle of hostess stations.
Was at fine dining restaurant that had unique little tool for removing crumbs from table cloth. My wife commented about it. At check out they presented her with one. Think we are likely to be repeat customers?
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Tom Ferree is the founder of Ferree & Associates and SecureEmploy, organizations focused on helping companies find exceptional talent and helping professionals advance their careers. Since founding Ferree & Associates in 1977, Tom has worked extensively with hospitality companies, executives, and rising leaders across the industry. Through SecureEmploy, he shares practical career strategies, leadership insights, and real-world advice to help professionals grow their careers and help organizations build stronger teams.
