Brand turnaround: Houlihan’s Restaurants
Situation
Houlihan’s Restaurants had become a dated, me-too casual dining concept with dismal customer satisfaction, unsustainable financial performance and no soul. During its chapter 11 reorganization, a new leadership team was brought on for a turnaround.
Action
Repositioned the brand in a ‘hip casual’ hybrid space between fast and fine dining, tapping the growing importance and accessibility of style and design that was non-existent in the industry. Stylized the building, menu, presentation and smallwares, music & lighting, service style, brand voice and every touchpoint down to the weight of the forks. Relaunched with a campaign to revitalize the lunch daypart, tighten kitchen operations and present the brand with a newfound edginess - the Nooner: lunch in 15 minutes or it’s free.
Result
Post-repositioning in 2004, experienced 51 months of same-store-sales growth, at a time of overall industry decline. Grew average unit volumes and EBITDA significantly, expanding a new prototype and total brand experience with both corporate and franchised units and ultimately selling the company to new PE owners in Dec. 2015.
Before
After
Media response.
“Social Network Rockets Houlihan’s Restaurants’ Profits”
“Houlihan’s Gets Hip”
— IBJ