Darden, cutting costs isn’t the way to improve business
Tom Dougherty, CEO – Stealing Share
20 September 2013
Cutting costs means you’re failing in other areas
Darden, the restaurant operator that runs Red Lobster, Olive Garden and others, said on Friday it would implement a cost-cutting plan.
“Here is a novel solution. Increase preference for your restaurants by defining who you are and what you do by the prospects you wish to influence.”
In a nutshell, this is what is wrong with most businesses. Darden sees its profits shrink so it management announces a cost-cutting plan. Don’t blame such craziness on shareholders. Blame it on management.
Here is a novel solution. Increase preference for your restaurants by defining who you are and what you do by the prospects you wish to influence. Not only do will you increase preference, you will also be able to better hold on to margin. Nah. Instead, find ways to cut costs, decrease customer service and cheapen your already bottom feeder foods.
Increasing preference takes smarts, vision and discipline. Darden only knows about discounting.
NBCU's Peacock Tom Dougherty, CEO - Stealing Share 20 January 2020 The offerings of NBCU’s Peacock are anything but simple In the world of streaming TV, simplicity pays. Netflix and Disney+ know this, but others - including the recently unveiled Peacock...
The Bloomberg ad (and Trump's) Tom Dougherty, CEO - Stealing Share 15 January 2020 Will a Bloomberg Super Bowl ad or even Trump’s make a difference? It’s never too early to start talking about Super Bowl ads, right? This year, in addition to the beer,...
Instacart Tom Dougherty, CEO - Stealing Share 15 January 2020 Instacart and table stakes: The brand will need more We’ve entered the time of the needy shopper. Or, on the flip-side, the time-hungry consumer. People exist in both of these domains, which...