Duck Donuts CEO on Repositioning a Breakfast Brand



[ad_1]

Betsy Hamm was promoted to CEO of the emerging donut franchise Duck Donuts in May 2021, replacing founder Russ DiGilio, who took the brand to 100 locations in 14 years before selling to NewSpring Capital earlier this year.

The brand, which took inspiration from the donut shops on the Outer Banks promenade, serves a wide range of made-to-order donuts and added milkshakes to the menu this year as it changed its positioning of donut chain for the little one. -lunch all day. gourmet destination.

Hamm joined Nation’s Restaurant News editor-in-chief Sam Oches on the new Take-Away podcast with Sam Oches to talk about how Duck Donuts adjusted his marketing strategy during the pandemic to expand his mix of daily slices, how he invests in its franchisees for future growth, and how a brand built around an in-store experience can deliver that to more off-site opportunities. Here are Sam’s six takeaways from his conversation with Hamm:

1. Flexibility is the key to surviving crises. Operators learned during the COVID-19 pandemic to expect the unexpected, and that survival requires adaptation on the fly. Duck Donuts has built an exciting brand primarily around the morning day, which was particularly hard hit at the start of the pandemic as millions of Americans stopped their regular trips. But the brand didn’t turn around and hope the pandemic would pass; he innovated to return to positive sales, including with his messaging.

“We quickly figured out that people weren’t out in the morning, so you just need to move that marketing message a little bit or even when our digital ad is running, for you to see these messages,” she said. declared. “We really tried to capitalize on that just from a message point of view and try to reinforce that opportunity to come later today.”

2. Look for an opportunity outside of your core competence. Duck Donuts is built around a basic donut menu and has enjoyed significant sales from those office heroes who would net a dozen or two for their coworkers. But when the brand changed its marketing to support Duck Donuts as an all-day destination for a sweet treat, it reinforced that by launching milkshakes. It has helped him build a strong business in the afternoons and evenings.

“It’s a great product and it just gives another reason to come to Duck Donuts,” said Hamm. “I hope we will drive the frequency and of course increase the average control as well.”

3. The pandemic has proven that you have other equipment. Many food service operators have developed new muscles during the pandemic by being forced into innovation. For Duck Donuts, Hamm said the brand has learned to focus on how it puts donuts in the hands of customers, which has led to long and serious thinking about how new platforms such as Pickup trucks and catering trucks could be successfully operated for the brand.

“The good news is I don’t think this is all going to go away, so the things that have been started, we will continue to really evolve and focus as we move forward,” she said.

4. Adjust the experience to suit real estate. Duck Donuts has a unique experience where customers can watch donuts being made right in front of them; the dough is fried and travels along a conveyor belt to a member of the team who decorates the donut and puts it in a box for serving. With Duck Donuts thinking more about offsite activities and non-traditional growth, Hamm said the team is trying to think more creatively about how the experience can translate into real estate, while still protecting that benefit. competitive.

“We don’t want to stray from what made us successful, but how do we get to where we need to be in terms of being in front of the consumer and making it convenient for them? ” she said. “We haven’t fully understood it, but I think it’s a really good opportunity for us to do things a little bit differently.”

5. Don’t get too overwhelmed by the growth mode. For emerging franchise brands, it’s tempting to put stars in their eyes and think of all the potential locations the brand might have in the years to come. But while expansion is exciting, just as important is supporting existing franchisees and helping them grow. Hamm said franchisors can create a growth cycle that leads to the arrival of new franchisees if they take care of those already in the system and validate the brand through their success.

“[We’re] really focused not only on growing by adding more locations each year, but on every location we have, making it even better, stronger and more profitable than it is today, ”she said declared.

6. Your attitude in the way you lead goes a long way. Hamm has worked at Duck Donuts for more than five years, but was just named CEO in May. Even in that short amount of time, she has come to realize that her optimism, energy, teamwork and empathy can give the entire system a boost, especially now that it has just come from there. be listed on NewSpring Capital to support its next phase of growth.

“I want to be involved in everything that is going on. And it’s not from a micromanagement point of view. … When I started in this role a few months ago, even though I wasn’t new to the business, I really focused on listening to our corporate team here – what works, what that doesn’t work, what are the barriers to growth, how can we be better? “she said.” I do it because I think it just helps me understand what we are doing well and what we are doing aren’t doing well and how we can grow. I think you have to commit to doing that and move on.

[ad_2]

Source link