Monday, January 10, 2011

Brand Integrity. A Loss Prevention Function?

The Mershimer Group was recently retained to conduct site inspections in thousands of one QSR's franchised units across the country. We were asked to enter the unit, and verify that food items found in the walk in were, indeed supplied by this brand. There had been concerns that Franchisees were sourcing their own product, and not buying from approved vendors.

I was challenged by a peer in the industry as to why they would "waste" money doing this, because, who really cares whether the restaurant buys their mayonnaise from the approved supplier versus Costco? Additionally, she challenged how this was loss prevention's issue anyway. I was shocked that someone in the loss prevention industry would not comprehend the concept of "Brand Integrity". So, I went on my rant as to how using the wrong mayonnaise, bread, sauce, ice cream, etc. can affect the brand. I explained that when a consumer visits a restaurant in one part of the country, and loves their particular brand and menu item (and yes, consumers "love" their favorite brand and menu item at that brand), they are extremely offended when that item does not taste the same in another area. And if you think using a different mayonnaise can not alter the taste of a sandwich, you are mistaken. I have always been a Bob's Big Boy sandwich fan. I've loved this sandwich since I was 12 years old growing up in Western Pa. The concept of Brand Integrity hit me like a punch to the midsection about ten years ago when I visited a "Big Boy" in Southern California. I ordered the Big Boy sandwich, and as I took my first bite, I was shocked to discover that this franchisee used salsa on their Big Boy sandwich instead of the approved Big Boy sauce, which is more like a tarter sauce. Talk about a dramatic difference when it hits your mouth. When you expect one thing, and get something so much different, it is upsetting enough to make you question your loyalty to that brand. And that is the point i'm trying to make in this blog. When consumers expect and pay for one thing, but get something different, they are very likely to turn their back and vote with their legs, as they walk out the door.

As to why Loss Prevention is involved... I am a firm believer that anything that damages the brand, affects the bottom line, and that is what loss prevention is there to protect. If you are a loss prevention professional for a restaurant brand, and are not involved in brand integrity issues, I would urge you to jump in with both feet. I know of many national chain LP functions who focus solely on employee dishonesty, and other criminal activity. In this economy, the LP function must be looking at additional opportunities to positively impact the financial welfare of the business. Focusing on those things which affect Brand Integrity, which ultimately affect consumer confidence is a great place to jump into.

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