Red Lobster Heads Highbrow
July 25, 2007
HAHAHAHAHAHA. Okay. Sorry… wait - HAHAHAHAHAHHAHA. No really. Sorry. Okay really, here’s the thing: Red Lobster is getting rid of their hokey stylings for a more upscale look in an attempt to attract a more upscale clientele. You know - the type of people who don’t care that the cost of gas is in the stratosphere, aren’t sweating college tuition (too much) and would never be caught dead in a Red Lobster. Like ever.
Whew. We got a cramp there. We’re not laughing at their desire to reach out to a richer market considering that households with an annual income of more than $70,000 account for half of all food eaten away from home. We’re laughing at their execution, thought process and the long uphill battle they’ve got ahead of them. The chain has released two new TV spots, created by the Richards Group that replace the familiar “For the seafood lover in you” tagline with “Come see what’s fresh today.” We rather like the commercials, which have a more staid vibe. However, while we get that market data says that consumers want fresh when they want fish, it’s still hokey and thus, a tad downscale. That’s a tagline for like, a grocery store or some other massive chain. And it’s very hard to get any chain to appeal to anyone making oodles of cash. Really, it’s so very Sizzler’s or Olive Garden. Oh wait - Darden Restaurants which owns Red Lobster owns the massive pasta chain, too.
Meanwhile, a new team of chefs will not only cook up some new dishes, but also maintain blogs on the company’s Web site about the proper preparation of fresh fish. HAHAHAHAHAHA. Oops. Sorry, but come on… that’s funny. Anyone who is quote-unquote upscale is not, we repeat, not going to head to the blog to find out about how to take care of the fish they aren’t cooking because half the time they’re eating out anyway. We think all brands should talk to their consumer, etc., but this blog is a big ol’ waste of time. Instead, wouldn’t you rather see videos of how the chefs are going to prepare your food like the intricate sauce on the new crab cakes? All the chefs can display their personalities and give away their recipes for some of the more popular dishes. It would be like a cooking show almost. Just a thought.
Kim Lopdrup, president of Red Lobster told the New York Times that, “We are working to become the Toyota of casual dining. They have high quality and among the lowest cost structures, and have been able to offer superior value.”
Hold up. Toyota? Toyota successfully engages in two brand positions at once: they have econo-cars like the Corolla and they have The Lexus, which they’ve used to capture a more upstream market. However, if you think about Toyota - do you think affluent? Nope. You probably think sturdy, practical, affordable. Most people don’t even know that Lexus is a Toyota brand. So, this guy should really be like… we want to be the Lexus of sea food while Long John Silver’s and McGrath’s are the Corolla’s. We’re nitpicking, but this is where words really matter both in practice within your company, but then just as importantly to the press.
July 25, 2007 at 7:47 pm
Right idea.
Wrong strategy & execution.
July 26, 2007 at 12:28 am
The Red Lobster here in Ann Arbor MI has always had a very tacky cheap decor.If they want to go upscale they need to hire a competent restaurant designer (say Pat Kuleto of SF fame). They have recently improved the quality of their service with white friendly wait persons. The food varies in quality but is not much helped by the depressing atmosphere.
July 26, 2007 at 12:10 pm
You’re right– I wasn’t aware that Lexus was a Toyota brand. Given the experiences I’ve had with Toyotas, now I don’t feel so bad about not owning a Lexus, haha.
July 26, 2007 at 1:24 pm
Dudes: So, like, what’s with the excessively snarky tone? Yes, we’re all in on the joke, that Red Lobster is the heartland’s idea of fancy dining. HAHAHAHAHAHA.
But, like seriously, tone down the ‘tude, dudes.
“So, this guy should really be like… we want to be the Lexus of sea food while Long John Silver’s and McGrath’s are the Corolla’s. We’re nitpicking, but this is where words really matter both in practice within your company, but then just as importantly to the press.”
HUH???? Not to “nitpick,” but what the hell are you talking about? The Red Lobster president’s Toyota quote did bring a smile to my face because it was such wretched corporate speak—but her strategy seems relatively sound. I can’t fathom your point: How does what the Lobster prez said differ from or contradict your argument about differentiating its (ahem) “brand” from Long John Silvers? And if the company is really trying to differentiate itself as a more upscale dining establishment, why ever would she mention the dreaded “Long John Silvers” in the same breath as Red Lobster?????
Dudes: Maybe it’s time to start, like, that MBA-at-night program! And per your headline, wouldn’t “upscale” be more appropriate than “highbrow,” which would imply intellectual rather than culinary elitism?
See you dudes at the all-you-can-eat crab buffet….
July 26, 2007 at 1:53 pm
“However, if you think about Toyota - do you think affluent? Nope. You probably think sturdy, practical, affordable. Most people don’t even know that Lexus is a Toyota brand.”
Baby steps, fellas. If Red Lobster’s president claimed she was aspiring to make her “brand” the Lexus of the seafood chain world, your response no doubt would have been: “HAHAHAHAHAHA.” (D’oh!)
What you overlook from your yuppie perch is the fact that Toyota has brilliantly positioned itself at virtually every price point in the market. You present the choices as being between the lower-end Corolla and the upscale Lexus. (This is not 1982, by the way: Toyota is no longer equated with cheap, functional Corollas. Toyotas are not seen so much as “sturdy” (huh?) and affordable, but as reliable, quality automobiles.)
You are overlooking the vast middle- and upper-middle class market in the middle—the folks who have made the midpriced Camry the “number one selling car in America.” It is this enormous market that the Red Lobster “brand” is (sensibly) chasing.
To carry this dreaded metaphor a bit further: Red Lobster doesn’t want to be the Corolla anymore; it aspires to be the Camry. With luck, it will attract some of the Lexus crowd—but it is a large, national chain, not a small, rarefied, urban hipster hangout.
July 26, 2007 at 4:17 pm
RESPECT THE LOBSTER!
Seriously, those things have pinchers–and in the immortal words of ZZ Top, they know how to use them. David, it sounds like you need a dip in the tank in the lobby, with the rubber bands off. I bet there are some of those “recently (what?) friendly wait persons” who can help you get settled in.
Agreed, the marketing is schmaltzy and the blog idea is counter to the target audience’s apparent objective and means to outsource food preparation. It is as costless and riskless a brand awareness strategy as there is, though.
In my town the Big Red is a lot more like Legal Seafoods than Long John Silver’s Seafood Shoppe. Actually, there’s quite a lot of space between the three of them and I don’t find the Lob’s positioning as off-the-wall as this author seems to.
July 26, 2007 at 5:25 pm
I’m still reeling over their ‘innovation’ a couple years back of ‘CALL-AHEAD SEATING’ — ‘just call ahead, tell us the time and number in your party and we’ll have a table waiting for you’!!! (paraphrased)
I am SO amazed that no one in the restaurant business ever thought of that. What a remarkable idea!
Do you think the more upscale clients will understand the concept????
July 26, 2007 at 6:02 pm
Funny how this post says the RL blog is a waste of time…don’t MOST blogs fall under that category? While I think the general idea of brands talking to their consumers is cool, I don’t really want to know how bleach is made or learn about 1,000 uses for the stuff. In the Spy’s defense, I do agree that seeing chefs prepare RL meals would be a good use of cyberspace.
July 26, 2007 at 6:04 pm
Thank you Mike!
AS
July 26, 2007 at 9:41 pm
Right idea. Wrong strategy & execution.
First off, a facelift for Red Lobster is dated & long overdue. So they’re thinking is correct there.
The Red Lobster brand already has its audience. It’s a mistake to co-mingle the audience it already has with a more upscale market. They’ll end up pleasing no one if their current customer-base feels a cost increase is too much.
Like Toyota & Lexus, it’s best to either create a new restaurant brand for the upscale market, or buy an existing restaurant and grow it in select markets first.
They should play up the “Zagat” angle more too. And stop with the slogans and focus on “healthy eating” as a campaign.
Their homework or the Richards Group should have told them this in the first place. It seems like they want a new business strategy.
Another idea is to create an alternative for the working crowd that wants to pick up & take home & eat (nothing to fix). And maybe partner with a company like Schwans for delivery.
Can’t blame them for trying.
July 26, 2007 at 11:16 pm
Hey I have enjoyed Red Lobster in more than one place for lunch! As for the crowd with names IE; Lexus hey big deal I have dinned at Trumps Golf Country Club in Palo Verdes Estates and not been enjoyed the food as well as food at locale very small food shop in Sun City, arizona at1/2 the price.
So much for the folks who think location,location and of course NAME OF CHIEF WHO IS YOUR FRIEND!
COME ON FOLKS GET OFF THE WHO YOU KNOW AND WHERE YOU LIVE BIT AND THE CAR YOU DRIVE WE ALL HAVE TO USE BATHROOM THE SAME AND DIE!
July 26, 2007 at 11:24 pm
I truly would love any serious response. I have dined at Palmer House Chicago. Years ago the L.A. Ambassador!
Food is a matter of taste not the other folks dining or being seen with the right crowd. Like living in Beverly
Hills, Palm Springs,Scottsdale! Sure some of you are down to earth and get my point.
July 31, 2007 at 5:59 pm
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