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Response in Adage - Cheesecake factory embarks on drive out hunger tour

by Administrator September 10. 2009 03:16

A few years ago, Cheesecake factory didn't need
1) a loyalty program,
2) a small portions menu,
3) a catering business or
4) Incentives tied to charities.

Their $12M+ average store sales dwarfed the entire industry and made them a stand alone institution.

Times are tougher now and they have had to adjust to the market. All four "didn't needs" now exist and they have stemmed negative trends keeping business pretty much flat over last year, thus far, based on recent earnings calls.

What's ironic with the over-sized stores is that as Cheesecake Factory and their Grande Lux Cafe's have not delved more deeply into more social media and mobile platforms.

The speak of new digital initiatives to drive revenues on-line. The could realize good revenues from a direct ship business, to markets that don't have Cheesecake Factory, understood.

Think about it, they have, in most markets, huge locations. By taping into key social groups, they could do a better job of filling seats by catering to specific social groups. And by using mobile tools like Deal Chime, they could shoot geo and blue tooth based, time sensitive, down to the hour, messages in the retail districts and shopping centers they typically anchor.

Both social media and mobile seem like low hanging indulgences that customers couldn't refuse. But, hey, they still have a good product, and they're doing better than most. Their customer service scores are up, they're paying down debt in accelerated fashion and they've got got growth on the horizon.