BOOM: Legacy Restaurant Brands Relaunch and Get “Glow-ups”

MULO (multi-location) retailers and restaurants often take their eyes off the ball (or shelves and plates) when planning for the future. We’ve seen many examples of established brands that thrived for decades suddenly closing up shop and declaring bankruptcy.

However, we’re also witnessing legacy brands that realize consumer needs are evolving. These brands are coming up with creative ideas to appeal to the needs of new markets without alienating their loyal customers and clients.

• Huddle House just announced a major rebrand. This 60-year-old company redesigned its logo and overhauled its menu to appeal to new generations and types of diners. Portability and convenience are a significant focus in this initiative, including introducing smaller footprints with drive-thrus for take-out. The chain has about 300 locations and is owned by Ascent Hospitality Management, which also owns Perkins American Food Co. (formerly Perkins Restaurant & Bakery).
• Another legacy restaurant looking to appeal to an expanded market is Cracker Barrel. Bringing in management talent from other thriving restaurant brands, along with a significant investment in decor, menu options, and marketing is a way to infuse new life into an established brand. New ad agencies, a major TV campaign, and a focus on both conventional and digital media are all part of the initiative for this brand founded in 1969. About 40 percent of its customers are travelers and the restaurants are typically found along highways.
• Steak & Ale lay dormant for many years before reappearing as part of the “newstalgia” craze. After a 16-year “hiatus,” the brand made a comeback. Founded in 1966, the restaurant has a loyal following, as evidenced by the huge social media group that gathered for the launch.
• The MULO brand Chi-Chi’s had more than 200 locations at its peak in the 1970’s and 1980’s. But an unfortunate hepatitis A outbreak and bankruptcy led to its demise. The founder’s son and Hormel Foods (which owns the trademark) plan to resurrect the concept.
• Even legacy brands like Burger King are examining consumer tastes and trends closely and upgrading their locations and menus.

Despite a movement towards healthy options, 82% of today’s consumers still crave comfort foods and familiar items. Delivering those familiar tastes to new consumers, with a focus on convenience, variety, speed, and digital media may hold the keys to success and keep the lights on.

Some restaurants are still struggling. These ten MULO restaurant brands recently declared bankruptcy. But, as we know from history, if the right management, location strategy, menu, and marketing are implemented, everything old can be new again if leadership invests the marketing spend, focus, talent, and insights into transformation.