The Down Home Caf

Abstract

The Down Home Caf, a profitable 23-unit chain of family-oriented restaurants in Arkansas, Tennessee, and Oklahoma, have had slowly declining same-store revenue growth during the past three years. Although research suggests that patrons give the Down Home Cafhigh marks on food quality and value, growth may have been hurt by the lack of ambiance and brand image. Research indicates they are in target consumers consideration sets, although perhaps not a first choice. In order to generate growth, the executive team is focusing on ideas to generate repeat business and increase the underperforming dinner and weekend meal occasions. Down Homes advertising agency has encouraged management to step back from a short-term strategy and consider developing a more comprehensive approach. The agency presented analysis that has broken down the Down Home customer base into ten decision-making segments according to dining occasion, and is pushing management to adopt an overall branding strategy.