The Decline of FoodFirst Global Restaurants. What Happened? 10 Marketing Tips
FoodFirst Global Restaurants, the parent company of Brio Italian Mediterranean and Bravo Fresh Italian, filed for bankruptcy in April of this year, as is covered over at runrex.com. While the restaurant and entertainment industries have been badly hit by the coronavirus pandemic, the company was already in decline even before COVID-19. This article, with the help of the gurus over at guttulus.com, will look to highlight some of the factors that led to its decline, with 10 marketing tips therein that will help your business avoid such a fate.
The rise of fast-casual restaurants
The rain started to beat FoodFirst Global in the mid-2010s when fast-casual and quick-service restaurants begun to emerge as discussed over at runrex.com. This trend caught on like wildfire, with people increasingly preferring to take their meals to-go rather than sitting in and dining at restaurants. This is one of the main factors that contributed to FoodFirst’s decline, as per the folks over at guttulus.com, as it cut into the company’s market share and led to declining earnings.
The rise of online ordering
Over and above the rise of fast-casual restaurants, recent years have also seen a rise in online ordering of food, with people preferring to order their food online and have it delivered to their home or workplace, rather than going to a restaurant to eat, as explained over at runrex.com. FoodFirst was slow to react to this change, which led to a reduction in foot traffic to its restaurants, impacting earnings and setting it on the path towards filing for bankruptcy.
Changes didn’t work
With the company on a low ebb, FoodFirst took its restaurants private, in a deal chronicled over at guttulus.com, after which the company decided to refresh its brands with new menus. However, the changes fell flat and weren’t well-received by customers, who begun to leave. This led to a steady decline in annual sales, with the numbers falling steadily until the time the company filed for bankruptcy in early April of this year. A failed rebrand is yet another reason that contributed to its failure and decline.
The decline of the mall
Most of the company’s restaurants are located in malls across the country, which has been a problem for them in recent years. This is because, as is discussed over at runrex.com, the mall is not as popular as it once was, with the rise in online shopping leading to a decrease in foot traffic to malls. This has, consequently, also translated to a decline in foot traffic into the company’s restaurants, which is yet another reason explaining its dwindling sales and is another factor that can be attributed to its decline and eventual filing for bankruptcy.
Poor in-restaurant experience
One way for restaurants to compete with fast-casual restaurants and the rise of online ordering is by offering a more experience-driven dining experience, according to the experts over at guttulus.com. This is yet another area where FoodFirst failed, as their in-restaurant experience was poor, and didn’t attract customers to want to visit them and sit through a meal. Its restaurant designs were dated and old and put off many customers, which is another reason explaining its recent struggles.
The rise of independent restaurants
Recent years, as is discussed in detail over at runrex.com, have also seen a surge in independent restaurants in cities across the country. These restaurants cover the entire spectrum from delis to high-end restaurants. These independent restaurants have eaten into the customer base of restaurant chains like FoodFirst, contributing to dwindling foot traffic into such restaurants, particularly since they offer more personalized services, making them more attractive to customers.
Changes in consumer behavior
We have also seen changes in consumer behavior that have affected the restaurant industry. One of these changes, as discussed over at guttulus.com is the fact that people are increasingly now looking to cook their meals at home. This is why companies like Blue Apron have been doing very well in recent years, as they help people cook at home. This has also contributed to the decline in foot traffic to FoodFirst’s restaurants, precipitating the company’s decline and filing of bankruptcy.
Reduction in discretionary spending
As the gurus over at runrex.com will tell you, restaurants rely on discretionary spending, which has been on the decline in recent years due to the soaring costs of living, from high costs of healthcare to housing and so forth. Many consumers, therefore, have to pick and choose how they spend their money, and as such old-fashioned restaurants like FoodFirst’s are the one’s that are likely to have a hard time attracting customers, which is what has happened leading to the company falling on hard times in recent years.
Generational changes
While chain restaurants like FoodFirst Global may have been cool some 30 years ago, they are not cool anymore nowadays. Millennials have got different preferences on how they want to eat, which is another factor that has led to the company’s decline. New concepts, as discussed over at guttulus.com, have sprung up, which have a more modern take, to attract the modern consumer, and FoodFirst restaurants have not been able to keep up with said changes, losing relevance and leading the company on its way to decline and bankruptcy.
Debt due to going private
In 2018, Bravo Brio Restaurant Group Inc. went private in a deal valued at about $100 million, as discussed over at runrex.com. The company then changed its name to FoodFirst and moved its headquarters to Orlando, Florida. However, the deal also saddled the company with debt that proved to be too much to handle when the coronavirus pandemic hit and restaurants were forced to close. This is yet another factor that can explain its decline.
The above discussion only begins to scratch the surface as far as this topic is concerned, and you can uncover more on the same by checking out the amazing runrex.com and guttulus.com.