Restaurant Franchises That Are Cookin' - Part 2
There has never been a better time for consumers to enjoy eating out. With decadent retro cuisine and mix-and-match menu options, these restaurant franchises are making customers happy. In this issue, we speak with Jeff Hiller from Hardee's and Nancy Hampton from Brinker International. Read on as we continue our insider's view on what makes a restaurant franchise sizzle.

Hardee's Makes Comeback with Big Juicy Burgers
Hardee's started out in 1960 selling ordinary low-end quick-serve hamburgers during the day and fresh-baked biscuits and gravy for breakfast. Within a year, the company was franchising and today there are 1352 units, mostly concentrated in the Midwest and Southeast. CKE Restaurants owns Hardee's now along with its sister company, Carls' Jr - the Western version.

For the first few decades, Hardee's did ok, claiming its place as the 4th largest burger chain. Three years ago, things started to chang radically. Hardee's discovered the key to a whole new level of success. In 2002, the two leading fast food giants were having a dollar war. Rather than jump into the fray and risk getting clobbered, CKE went in the opposite direction. Carl's Jr rolled out the "Six Dollar Burger" - a $3.95 half-pound patty with premium toppings. Hardee's followed suit, adding it to their menu as well. It was an overwhelming success.

Premium Product, Premium Prices
Hardee's executives were so excited by the success of the new bigger burger that they made the decision to reject discounting traditional cheap little burgers in favor of emphasizing a premium product with premium prices to match. The old "Star" menu was completely scrapped except for existing premium items in the breakfast menu, the chicken breast strips, and the Big Roast Beef. In came Thickburgers - big looking, big tasting, with big price tags.

The new bigger, tastier menu worked. Hardee's starting posting positive sales increases. Unit volumes climbed. They starting winning "Best Burger" awards in key Midwestern markets, something they were smart enough to capitalize on in their advertising.

Jeff Hiller, Hardee's, Director of Operational Development for CKE Restaurants, says "The vision we had was to focus on making the best possible hamburger out there. We rounded out the classic menu trio with great French fries and hand-scooped shakes. We brought back classic diner milkshakes and malts that are made the same way they were made in the old days with real ice cream, real milk, and blended to order. That combination of great burger, great fries, and a milkshake or malt really delivers what customers want. But our most popular menu item by far is our signature Thickburger with its one-third or one-half pound patty of 100% Angus beef. It is a monument to decadence."

There is a retro feel to all the changes at Hardee's, which Hiller says is intentional. The new Hardee's building design features a bright color scheme and is accented with framed wall art from various eras of Hardee's history. "It all supports the comfort food factor in the bigger better menu," says Hiller.

Healthy is OK, but Tasty is Better
These days every fast food company in the world is pushing salads and other light and healthy menu options. Hardee's is leading the rebellion, not so much against healthy food, but against tasteless food. It seems that though more of us are trying to eat healthier, what we really crave is a big juicy burger with all the trimmings. "People will talk a great game about what they're going to do, but they eat with taste," says Hiller. "This is where our product really delivers. Our food doesn't just look great in the pictures - it tastes as good as it looks. It's not that little skimpy piece of meat. It is a hefty patty with nice tomatoes and produce that is always fresh. We cook it fresh, too. That makes a huge difference. Our meat isn't sitting in a hot bin. We don't cook it until you order it and we take the time to do it right. To keep up with the speed of service, we have designed our systems so that we can cook our meat very rapidly. We are probably one of the few chains that can say we cook the meat when you order it," asserts Hiller.

Hardee's hasn't completely ignored the consumer looking for healthy choices. Hiller says, "As far as healthy foods, we do have a low-carb chicken and low-carb burger for people that follow that diet. And they do well for us. We also have low-fat chicken that rolled out with less than 4 grams of fat. We want to make sure that people have that ability to make a choice. But the bottomline is all about taste. When it comes right down to it, people generally come in thinking healthy, but they end up buying with their taste buds."

Successful Products Attract Franchisees
For Hardee's, "the future is big burgers." Hiller says, "We will continue to roll out two or three new products a year that really come out and make a statement. But the Thickburger will always be the corner post."

The future looks bright for Hardee's and for any new franchisees that want to get in on the action. Hiller is proud to point out, "Our existing franchise base continues to build new restaurants and the company wants to expand with new franchisees and new areas. Hardee's is growing in popularity, it's coming back strong. Our reputation has grown to the point that franchisees of other companies have come forward wanting to jump on this train."

Contact Information: Jeff Hiller, Hardee's, Director of Operational Development for CKE Restaurants, jhiller@ckr.com, http://www.hardees.com/

Brinker International Invites Diners to Build Their Own Meals
Restaurant menus are expanding to satisfy the diverse needs of a diverse population. Health-conscious diners, for example, can eat out and still watch their calories, carbs, and/or fat intake. But these days, consumers want more than menu choices - they want the option to customize their meals. Over 75% of restaurant diners routinely ask for alternative preparation methods, off-the-menu orders, and substitutions. Most restaurants are willing to oblige, but some are capitalizing on this need to "have it your way."

At Romano's Macaroni Grill, a 232-unit chain owned by Brinker International, chefs whip up more than 35 Italian specialties and Italian-American classics in exhibition kitchens. Guests relax while sipping chianti in a casual atmosphere with full service and the occasional strolling opera singer. The décor is "sprawling Tuscan farmhouse." The menu is loaded with pastas, meats and seafood, soups, and yummy desserts. With all this, you'd think guests would be satisfied. But according to Nancy Hampton, the chain's vice president of concept strategy, "Consumers let us know that they want to 'manage the experience.'"

Customizable Menus are a Hit
In 2002, the chain introduced its "Create Your Own Pasta," which allows guests to build their own pasta dish. "The idea for this really came from listening to our customers. They had gotten fairly adept at either customizing items that were currently on the menu or just creating their own menu item and saying 'I don't see it on the menu but I like this pasta with this sauce with these ingredients, can you make it for me?' We listened to the feedback from our team members, especially the waiters, and of course our operators, then put the idea through our formalized culinary development process. The idea just outscored all norms for new product ideas," says Hampton.

This is a consumer-driven idea that is a natural fit for Romano's. The Macaroni Grills are built in relatively affluent suburban areas. "Our customers are married, well-educated suburbanites, with above-average incomes. They tend to be two income families, both parents working, in that mid-40 age range. So they've collected life experience, they are curious, they like to try new foods. They watch the Food Network, the Travel Channel, Home and Garden TV. So they like to play chef, pretend they're Emeril. They can do that without having to shop, prep or do the dishes by coming to Macaroni Grill," says Hampton.

Although as an organization, Brinker International decided not to try to respond to every fad diet or trend that comes along, dietary issues do play a role. Hampton points out, "Sometimes our consumers choose to eat healthy in our restaurants, other times they choose to indulge. Some are on special diets, some are vegetarian or vegan, and still others have food allergies. Whatever their reasons, our customers want what they want, how they want, and when they want it. And we want them to be happy and to come back so we give them what they want - choices."

Hampton says choice-driven menus and customization are part of a much bigger consumer trend. Consumers, especially online, customize everything from cars and computers to Levi's and handbags. Hampton says, "I think you see this kind of consumer demand, that mass customization trend, across the board. It's an outgrowth of the trading up trend. Consumers feel 'if I'm going to trade up, if I'm going to go ahead and spend these dollars, then I want it exactly how I want it'.

Customization is a natural for restaurants to execute. At Brinker International, the customizable concept is system-wide throughout its five restaurant chains, either formally or informally. For example, Chili's has introduced a new initiative called "It's Your Choice." In addition to mix-and-match options, it includes menu items for low-carb dieters. You can also get low-fat options from the Guiltless Grill menu. There's even a customizable menu for kids. Pepper Pals offers a variety of nutritious options especially for kids.

Brinker Seeks International Partners
Brinker International is looking toward major international expansion. "Internationally is where we see tremendous potential," says Hampton. "Our enterprise has a varied menu brand with Italian and Mexican brands. We can offer a depth of opportunities to current and potential franchise partners to cover a range of tastes," proclaims Hampton.

Contact Information: Nancy Hampton, Vice President Concept Strategy, Brinker International, (972)770-9429, nancy.hampton@brinker.com, http://www.macaronigrill.com/