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In memory of Coco’s

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After my daughter graduated from Rancho Bernardo High last May, my neighborhood quickly morphed from flocks of laughing teenage girls to small groups of earnest young boys.

It reminded me how communities reinvent themselves every few years. Graduations, births, deaths, and relocations are followed by transitioning priorities and opportunities.

Which brings us to the April 1 closing of Coco’s Bakery in Rancho Bernardo (and Poway as well). Restaurant management firm Zensho Tokyo handed over the keys March 31, and the new owner immediately shuttered 75 of the company’s 149 restaurants. 3,000+ workers instantly lost their jobs.

Coco’s catered primarily to seniors seeking early-bird specials. They appealed little to anyone outside this demographic, and apparently cared even less.

Which explains negative YELP reviews for this location from young families seeking casual, cost-effective dining experiences.

These reviews questioned Coco’s efficiency, quality, and consistency. Staff was alternately described as obnoxious, disheartened, or disengaged.

What caused these problems? Marketing from 8,000 miles away? Hubris? Greed? We may never know.

What we do know is that in 2014 the restaurant industry grew 3.8 percent to a record high, even as Coco’s corporate sales dropped 2 percent.

Zensho found it easier to bail, rather than to fix the problems. They had pricing, location, and name recognition in their favor, and did little with it.

Sadly, I watched as menu options were limited to cut expenses and waste. My uncontrollable desire for muffins disappeared when baking on-site stopped.

I wasn’t alone. True, centralizing corporate baking needs lowered corporate costs, but without olfactory motivation, sales also declined.

Sounds shortsighted to me!

Dessert was Coco’s strongest card, but it was under-utilized in their marketing. You never heard of a “Win dessert for 50 of your closest friends” promotion, or an RB Alive! pie-eating contest.

In fact there were no regional marketing efforts at all!

Rather than rebranding themselves to families, children, business people, and seniors, Coco’s was on autopilot.

Now they’re gone.

To avoid this same fate, you must be aware of your brand’s reputation, target audience, and community demographics. If sales are slipping, more of the same isn’t the answer.

And if your sales aren’t growing as you want them to, review your marketing strategies now. Make sure you’re sending the right messages to all the right people.

Mr. Marketing has the insights you need. Reach him at www.askmrmarketing.com.

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