My wife Kay and I own our own businesses, giving us flexibility in our work schedules. Last Friday, we went on a midday three-hour date. First, we exchanged (for the third time) Kay’s not-working MP3 at Best Buy (but that’s another story) and lastly we gathered some groceries at Trader Joe’s. In between was the date part.
Eating lunch out is a great luxury for us, as time out of the office and the expense of eating out cut into our incomes. However, we didn’t become our own bosses to get rich, although that would be nice. Anyway, next door to Best Buy is a Red Robin restaurant. We seldom eat burgers and fries and hadn’t visited a Red Robin since 1983 when we lived in Seattle. However, unlike Kay, I love gourmet burgers but my cholesterol count spikes just thinking about them. So, eating lunch at a Red Robin was a real treat for me plus they have beer, another of my weaknesses. It was also a great surprise.
I often write about values-driven businesses, because I believe those companies that use their values to filter all business decisions through are both better at what they do and are more likely to put people first, before profits.
We entered the busy restaurant and were seated and waited on in less than five minutes by two wait persons (one in training). They were welcoming and energetic. We ordered beers and water, and then prepared to look at a menu. We never did. Because in the middle sat a marketing box: each side told a story. We began reading and learned that Red Robin is inviting kids between the ages of 6 and 12 to create Red Robin’s next Gourmet Burger by entering their own unique recipe. The Grand Prize Winner receives a family vacation for four to Universal Orlando® Resort and the winning burger will be featured at all participating U.S. Red Robin® restaurants in 2009. The contest runs between July 1 and August 10.
Featured on the box was the most recent selection. An Au Brie burger A La Francais created by Joey, age 11. It features a ground sirloin burger sitting atop 2 ozs of au gratin potatoes, with 1 oz of brie cheese, fresh chopped rosemary, tomatoes marinated in vinegar and fresh lettuce. Oh, man! My cholesterol is rising just thinking about it. When our drinks arrived, we ordered Joey’s creation (yes, even Kay, who seldom orders anything other than salad for lunch).
While sipping beer I like to people-watch. When doing so, my eyes landed on a large board behind the preparation area. It featured not advertising but Red Robin’s four core values: “Honor, Integrity, Continually Seeking Knowledge and Having Fun.” As one who believes core value are integral to creating great businesses and happy, loyal customers, this was a present surprise. However, core values are useless if not posted in every work area and not practiced. After reading the sign, I started looking around, observing whether or not these values were being practiced. What I saw were customers laughing, talking and thoroughly enjoying their food and their surroundings. Score a big 1 for Red Robin’s values.
When I returned home, I checked out Red Robin’s website. Let me share what they say about their values:
“These core values are the foundation for every Red Robin decision from creating its mouthwatering gourmet burgers to hiring energetic Team Members and even to deciding new restaurant locations. They also are the foundation for how the company treats its Team Members, Guests and communities. Red Robin’s core values can be found embroidered on the sleeve of every Team Member’s uniform, which serves as a constant reminder of what makes the company unique and special.”
Here’s the point of my story, which isn’t really about Red Robin. Values, when carefully written, when focused on positive human behaviors (not making money), when trained on, when used as decision-making filters and when practiced lead to good hiring practices, lower employee turnover rates, happy and loyal customers, and excellent profits and revenues.
Do they solve all business challenges? No! Do they always guarantee the results I mention above? No. But without them, the foundation of a business has cracks. To create a solid foundation, we should create values, which center our business by forming a core business focus. When in trouble or difficult economic times, that foundation allows a business provides an anchor to steady us. Here’s one example of what I mean:
Today, Starbucks is working to return to its core values in order to take a step back and begin working again toward greatness. Will they succeed? Who knows? But without a foundation that focuses their strategies and plans, Starbucks chances of solving their current problems would be much more difficult, if not impossible.
“Values, when carefully written, when focused on positive human behaviors (not making money), when trained on, when used as decision-making filters and when practiced lead to good hiring practices, lower employee turnover rates, happy and loyal customers, and excellent profits and revenues.”
Well articulated and well written, Lewis. I absolutely agree with your statement. Unfortunately, many businesses don’t take the time to write out their values. And many companies deviate from them, even if they do. As businesses grow, it’s easy to lose sight of their core values. It’s also human nature to take the easy way out sometimes. . .and to not quite live up to the standards we’ve set. When that happens, it can lead companies down the wrong path. Starbucks is just one example that you’ve cited here. Conversely, when practiced well and articulated in every business location and on the web site as Red Robin has done, solid core values go a long way to ensuring continuity and success. Even when those inevitable bumps come up in the road.
Thanks for reminding businesses of the need to articulate and practice basic, core values each and every day, Lewis. Great stuff.
Claire,
Thank you for your savvy comment. What I like most about Red Robin’s core values is that they have a goal: To create fun. Happy customers are a goal far more worthy than satisfied ones.
It sure seems like it’s a winning strategy for them. I mentioned this post on Twitter, and lots of fans piped up about how great the experience is. That’s the power of Red Robin’s strategy, in part.
Ann,
It’s a simple strategy that always works and inspires word of mouth: Create great experiences.
Lewis,
The idea of making “fun” one of its core values, will probably ensure Red Robin that its chain will probably get ongoing consumer support. Even with the economy forcing consumers to go out less, they will choose Red Robin over some of its competitors if the experience is such a pleasant one. The idea of hospitality employees “having fun” and making the dining experience fun for its patrons, makes RR memorable. Enjoyment in association with a brand is powerful stuff. It tends to lead to real loyalty among consumers. Good for Red Robin!
Thanks for an excellent post, Lewis. Enjoyed it!
Ted,
I know I will return. It’s not fast food and it’s note as cheap as fast food. But it is good food and who doesn’t want to have fun?
What I like about Red Robin and I am sure the shareholders of the company like too is that they are lightning fast at getting your food out to you — it is the quickest $37 you will ever spend on a meal – almost borderline fastfood. I wonder what the average time spent per customer in store is? Do any other marketers pick up on things like this?
Levon,
I paid close attention and it seemed to me that tables turn about every 40 minutes to 50 minutes. We spent an hour but ordered drinks first, and then food, adding about 15 minutes. BTW: Our bill came to $37. Well worth it!
Thanks for sharing this Lewis. It’s a very wise strategy for a business in a very crowded market without much differentiation. I will definitely check them out next time I am in your neck of the woods.
They are good core values to have. If they keep practicing them in their business they will always be profitable.
Great story, Lewis. So much of what’s missing in retail today is emphasis on the customer’s EXPERIENCE. Yep, $37 is a lot to shell out for a burger and fries, but if the experience is a good one, folks will be happy to pay. They’ll just have to pop a couple of extra Lipitor later on, spend an extra hour or two on the treadmill…
Hats off to Red Robin for bringing in the fun. A well made burger can be fun.
But did “An Au Brie burger A La Francais” have to win? Couldn’t they have picked a leaner one? I am sure people have fries with this monster, too. That is easily an entire days worth of calories for an adult though some kids probably can handle it if they are athletes.
One of my friends’ sons plans club soccer so I am sure he could hammer that monster down with a plate of fries with no ill effects.
But the rest of us have limited capacity. Make a leaner selection win and I will come in and order it and bring back the fun.
Alan, Tech & Dawn,
Thank you for stopping by and adding your POVs.
Neil,
Food is good; over-eating is bad. Of course, I hear you but the responsibility for our diet is in our laps (big or small). Red Robin is selling fun and gourmet burgers are part of that. Not for everyone. Great comments. Thanks!
I was just saying they could sell fun with more reasonable burgers without reducing the fun a bit.
The “An Au Brie burger A La Francais” with fries might be fun but it would also be one of the seven deadly sins — gluttony. That is, unless you are like a friend of mine’s son who plays club soccer like crazy and can handle that many calories and fat in a sitting.
Not for everyone? I’d say not for just about everyone exccept hard core athletes…
I love a good burger and I love fun but I am not going anywhere near a Red Robin unless I hear something more lean won their contest. Frankly, to be blunt, I think it is harmful to promote monstrous sized portions and call it fun.
A good burger, cheerful service, a good atmosphere. Those are elements of fun. The only missing ingredient to bring me in would be to have a bit more lean fun on the Marqui as the winner.
It’s good to hear about a retail establishment that gives value. That concept seems to be increasingly rare these days.
I don’t know of any Red Robins here in Manhattan. Hmm.
David,
Great to hear from you. I’m not sure if Red Robins are on the island. At their web site go to store locations to find our. Or just walk the length and width of the island. (LOL)
Now, this is a great idea. It is simple information so people can make informed decisions. What could be wrong with that?
http://news.yahoo.com/s/ap/20080718/ap_on_he_me/diet_calories_on_menus;_ylt=Amr1fGazpydlVLlY842_CQCs0NUE
Good story, Lewis. I experienced the same thing with a restaurant chain called Mimi’s Cafe. They don’t advertise – just WOM. Their service is impeccable and they jump through hoops to keep customers coming back. Gee, what a concept!
Neil,
Not a thing. The idea gets my vote, although doing so might raise prices slightly.
Elaine,
Don’t you just love it!