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.
ESPN+ Tom Dougherty, CEO - Stealing Share 23 January 2019 UFC sets the future of ESPN+ UFC fans are ushering in the future of streaming television, and ESPN+ is reaping the rewards. The streaming app collected more than a half million new subscribers after...
Great British Bake Off Tom Dougherty, CEO - Stealing Share 22 January 2019 Turn off Hell’s Kitchen, tune into The Great British Bake Off For years, my wife and I dawdled with lackluster cooking shows. Gordon Ramsey, whose brand now reeks of cliche, leads a litany...
Chevy ads Tom Dougherty, CEO - Stealing Share 21 January 2019 Toyota calls BS on Chevy ads Ha ha ha. It’s about time someone (other than me) called bullshit on the Chevy ads that are insipid at worst, outright deceiving at best.You know the series of ads. The...