July 9, 2008, 9:07 am
Feed the Locals First
Keene Addington closed his Washington restaurants after realizing his brand should be concentrated in the Midwest. Was it a good idea for Flat Top Grills to concentrate on expansion in only one region?
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Yes the local expansion is probably a better idea for a regional brand. You can still obtain the desired growth, but spreading out locally(branch style) may be better.
Selling the restaurants may not have been necessary because they could have instituted a local areas manager to oversee the operations. Especially if they were profitable.
However, with this said, that type of growth is usually slower and takes longer to become profitable. With the strong local presence, you have word of mouth and brand recognition.
By the way, great exit strategy. I'd love to buy the business. Let me just get the funds first….