Dive Brief:
- Maggiano’s president Dominique Bertolone left the brand on Aug. 7 after working at the chain for nearly two years, according to an 8-K filed by parent Brinker International on Wednesday. Kevin Hochman, current Brinker CEO and president and Chili’s president, will serve as Maggiano’s interim president.
- Brinker promoted Rich Kissel, Chili’s vice president of operations for the Florida region, to chief operating officer of Maggiano’s, Hochman said during an earnings call Wednesday. Kissel has worked at Chili’s for over 30 years, according to his LinkedIn profile, and helped lead Chili’s turnaround efforts at the regional level, Hochman said.
- Hochman, Kissel and the Maggiano’s executive team will craft a Back to Maggiano’s plan using key lessons from Chili’s turnaround strategy, which has led to double-digit comparable traffic and sales growth in the past five quarters.
Dive Insight:
Executives will focus on similar areas as Chili’s: improving food, service, atmosphere and listening to restaurant teams’ ideas, Hochman said, adding that more specific plans will be shared during future earnings calls. Maggiano’s has done some menu and beverage innovation in the recent past in an effort to drive traffic, but that momentum was not sustained in the recent quarter.
Maggiano’s significantly lagged behind Chili’s in terms of traffic and comparable sales, with traffic down 8.9% and sales down 0.4% during fiscal Q4, according to an earnings release. Comparatively, Chili’s posted its 17th quarter of positive same-store sales growth and fifth quarter of traffic increases. Chili’s performance, now three years after its turnaround strategy began, shows a path Maggiano’s could emulate.
Over the past 12 months, Maggiano’s identified areas where it is aligned with guest desire, but also some points of disconnect. Guests continue to enjoy the service model, how they connect with staff and restaurants that feel more like a local restaurant than a large chain, Hochman said. Customers also enjoy the large portions and made-from-scratch dishes.
But not all elements have been a win for consumers. For example, Maggiano’s has a specific bussing technique meant to reduce noise, but it requires attention to detail when placing places and can result in longer wait times, Hochman said. But guests would rather be seated at their reservation times, while walk-ins would rather wait 10 minutes than 45 minutes, he said.
“If we get true about the experience that the Maggiano’s guest wants, and then actually sit down with Maggiano’s leaders in the restaurant to understand how we can better serve them, I’m very confident we can get this thing back on track,” Hochman said.
