BRAND EVOLUTION: MANCHU WOK CASE STUDY
Wednesday, July 22, 2009
In 2008, Manchu Wok decided it was time to evolve its brand to stay current, move ahead of the competition and maintain its status as the largest Chinese fast-food operation in North America.
The desire was for a pristine, contemporary environment to reflect the increasing sophistication of its customers. This involved updating the franchise’s look, enhancing existing menu offerings and creating a consistent, memorable experience that would be associated with its brand.
Before moving forward with its vision, Manchu Wok analyzed how the franchise was currently functioning. The food service chain found:
- The traditional mall was convenient for all mall users who often chose Manchu Wok’s popular and recognized items.
- Business centres had regular users come to the facility on a daily basis and expected more variety and new items.
- Users in neighbourhood street stores thought of Manchu Wok as a destination for picking up their favourite items.
Manchu Wok also compared menu-ordering preferences in Canada and the U.S. Although neighbouring countries, the franchise discovered ordering patterns were not the same.
THE BUILDING BLOCKS
As part of a year-long review of all aspects of the Manchu Wok business, a “back to basics” program was established. Working closely with district managers, select stores were given the opportunity to demonstrate ingenuity, creativity, initiative, entrepreneurial skills and good common sense to directly impact overall sales and profit.
Recipe enhancements were made to menu items, including the popular Orange Chicken dish. A model was then developed and implemented to measure steam table offerings and ensure quality control as well as identify customer taste preferences and regional purchase patterns.
At store level, a customer survey was introduced to measure consumer satisfaction as well as understand key drivers and purchase patterns. A customer training program was then developed and implemented.
A mystery shopper program was put into place to measure compliance with procedures and progress at the store level relating to quality, service, cleanliness and value. These visits determined areas of strength and opportunities for improvement.
THE ANSWER
A prototype store was designed with a strong marketing focus that promised a feel good, fast and fresh Chinese food experience every time.
Bringing renewed focus to the customer experience, it included:
- A modern Asian aesthetic.
- A colour palette of bright, vibrant, eye-catching green to imply freshness and healthier food.
- A new, larger and easier to read menu board to capture the attention of potential customers, guide them through the ordering process and prominently feature top-selling items and healthier choices.
- A waterfall that became a signature element across all new stores. It creates a sense of calm amidst the hustle and bustle of the food court as well as gives a feeling of an upscale environment without the high prices.
- Customer preferences for healthier food choices with a focus on vegetables, a signature dish, region-specific dishes and more volume on popular items.
- New systems to increase profit margins, including a new pricing structure.
- A steam table makeover. New woks and display racks were introduced to showcase feature dishes and help up-sell items.
- Newly designed uniforms to complement the prototype’s new fresh feel.
Manchu Wok also revamped operational efficiencies, developing and implementing standards to ensure its food would be memorable. This followed the franchise’s longtime commitment to using only the best products, including fresh cut vegetables and federally inspected meat. Regular on-site training and visits by district managers reinforced protocols and ensured consistency.
THE RESULTS
One year after the introduction of Manchu Wok’s prototype stores into select locations in Canada and the U.S., the fast-food operation is releasing staggering results.
In the last year, the franchise has:
- Increased its customer base by up to 25 per cent.
- Increased sales of its signature Orange Chicken dish by 108 per cent, mixed vegetables by 57 per cent and egg rolls by 54 per cent.
- Seen double-digit growth in several stores in Canada. From Apr. 1 to Dec. 28, 2008, two mall-based prototype stores saw a rise in sales of 24 per cent and 19 per cent, respectively. In the U.S., there was an 80 per cent increase across three locations during the same time period.
Beyond these staggering results, the new Manchu Wok is receiving greater recognition for its brand. Last year, one of the malls in which Manchu Wok operates honoured the fast-food franchise with the 2008 Impression Award in the Food Court category for its merchandising and customer service.
This proven success of the prototype store will now be the model for all new Manchu Wok locations, including its malls, business centres, universities, military bases and street-front restaurants.
