Is Your Star Fading?

The other day I came across a fascinating slideshow feature on one of the news websites, on fading restaurant chains – brands that years ago, enjoyed highly profitable heydays, but now whose best years are clearly behind them.

Remember The Ground Round? (Where else could an economically challenged college student get a burger and a large beer for under $8)? How about Sambo's? (Ah, those late night breakfasts!) Bennigan's? (Loved those hanging ferns and Tiffany lamps). Steak and Ale? (A must if you were lucky enough to convince that office girl on your first job to have dinner with you). Burger Chef? Mr. Donut? Chi-Chi's? (Terrific salsa, which by the way is still sold in retail outlets). No doubt many of you spent a dollar or two or three at these establishments, replete with culinary memories or special occasions. 

Along those lines I met the future Mrs. Carlino at TGI Friday’s – a casual dining chain that for those keeping score, was not on that list.

Some of those above-mentioned eateries had close to 1,000 units scattered across the U.S. in their respective primes, and currently at least three have no domestic restaurants left open.

It was sort of a bittersweet experience for me, one because I was a regular at many of them at one time or another, and realized that I’ve sort of hit the back nine as far as age, but second, because you learn (and often too late) that unless you keep things updated and fresh, you’ll surely get left behind by more forward-thinking competitors who do.

A few weeks back I spoke about how to make your firm “beautiful” as a merger candidate. But what about those practices, who are not yet faced with succession issues and instead focused more on organic growth and meeting competitive challenges from other firms?

Perhaps CPA firms can take a lesson or two from some of the missteps of these brands. The Ground Round went decades between unit redesigns and menu upgrades and refused to acknowledge the rising threats from younger and more vibrant competitors. When a restaurant or, for that matter, a CPA firm, appears old and outdated, it gives off the perception of being out of touch with today’s consumer or client.

What about your practice areas? Much like menu items it has to be in touch with the palate of today’s diner or demand of a client. A plain vanilla combination offering of tax and audit (throw write up in there as well) does little to distance yourself from the competition. Find out what practice areas are hot and make a serious effort to add them.

And finally, with the changing demographics in this country do young potential employees and clients alike really want to align with a firm whose staff looks like participants from a Knights of Columbus or Rotary Club meeting?

Sadly, the days of the $8 burger and beer are pretty much in the rear view mirror. A CPA firm like a restaurant is sometimes only as good as your last review.