The Stages of Changes
STAGE 3—THE FINAL STRETCH
Saladworks Pares Down
WHO: John Scardapane,
CEO, Saladworks
WHAT: Saladworks, like
many young chains, operated under the more-is-better approach to menu
development and simply let menu items, particularly pasta dishes, pile up
over time.
GOAL: Convincing the
franchisees that paring down its menu won’t translate into chopped
sales.
WHEN: Process started
almost two years ago and will be complete by 2007.
NUMBER OF UNITS: 76
COST: Minimal
It’s a misconception common to young chains:
The more menu items you boast, the more volume you’ll enjoy.
Back in the late ’80s, John Scardapane was
involved in two mall concepts, Saladworks and Totally Pasta. He decided to
combine the two for inline locations and, over time, tweaked the menu by
adding sandwiches and wraps. Over the following decade or so, the menu at
Saladworks Café grew into something that didn’t exactly scream
salads. “Before we knew it, we had a pretty broad menu,” Scardapane
says.
But that broadness wasn’t
helping the brand. In fact, it was slowing it down.
The company decided it was
time to define its core values. It came up with six: fresh and high quality,
visual frontline made-to-order assembly, strong merchandising, quick service,
large portions, and comfortable environment. Anything that didn’t meet
those values had to go.
While pasta excelled at the
important fresh and high-quality grade because the chain had a sauté station,
its more than 50-second prep time did not pass the quick quotient. Only accounting
for 4 percent of sales volume and far more in terms of labor, pasta was taking
precious time away from salads, according to company research.
As for the customers who picked up some pasta, there
were very few who visited Saladworks with pasta in mind. Once in awhile,
regular customers would trade off and get pasta on an impulse, but internal
data suggested that the ratio of pasta to salad was strongest in the first
six months of operation but would eventually revert to about 70 percent
salads, he says.
Cue the violins as the franchisees
were informed that pasta would no longer be on the menu. “From a franchisee perspective,
it was a nightmare because they had it on their menu and we made the
decision to change it,” he says. Though the company tries to keep
franchisees in the loop—meeting four times a year and pulling certain
members in for monthly meetings—franchisees weren’t involved in
the research and analysis that revealed how critical it was to remove pasta
from the menu. “When you’re an owner-operator and you have a
menu item, your belief when you take the menu item off—regardless of
what percentage of sales volume—is that you’re going to lose
sales volume.”
It was up to the chain to
convince franchisees that this wasn’t the case. It altered its menu
at its corporate store to prove its case. The pasta station was replaced
with a soup station that tripled the number of soup flavors formerly available
to patrons, half order soups with a salad.
The results spoke for themselves. “We actually
increased our volumes,” Scardapane says. In fact, units that have
opened up without pasta are averaging 25-percent higher in sales volume.
Deleting labor-intense pasta led to other efficiencies for franchisees,
too. “It’s a lot easier for us to train now,” Scardapane
says. “It’s a lot less food product to bring in. We’re
moving through fewer food items, so we have quicker turnover and fresher
product.” Payrolls have also dropped, thanks to the reduced need for
labor. Even the initial franchisee outlay is now more reasonable.
“We’ve cut $125,000 off our initial capital
expenditures.”
Scardapane says it took about
a year to integrate the entire philosophy into the system. “Because
we’re at about a
10-month development schedule, we had quite a few stores in the pipeline
that already had the pasta,” he says. So, in total, it was a two-year
conversion project, he estimates. There are still some holdouts—those
20 or so units in development before the menu changed—but the
franchise agreement outlines a four-year program, so over the next two
years, all the units will be pasta-free. “We realized that
we’re the salad company,” Scardapane says. “We want to
be the best in the nation, and that’s what we need to focus on.” end
Wendy Cuthbert is a regular contributor to QSR.