LOS ANGELES--()--Following a back-to-basics revival, Sizzler restaurants are posting increased guest counts and sales figures, despite the challenges of a difficult economy. In recognition of this dramatic turnaround and of his unique management style – acquired over 30 years in the restaurant business – Sizzler Chief Executive Kerry Kramp received the 2010 Innovation Award during the recent 14th Annual Restaurant Industry Conference, sponsored by UCLA Extension.
“With a new look, streamlined operations, and an enhanced menu, Kerry led Sizzler to steadily increasing guest counts and sales figures, even during the recession. We congratulate Kerry on his outstanding achievement.”
Kramp received the honor from Tom Davin, former CEO at Panda Restaurant Group, Inc. and 2008 Innovation Award recipient, during a ceremony at the Sheraton Gateway Hotel in Los Angeles.
“UCLA Extension was proud to honor Kerry Kramp. The 2010 Innovation Award recognized Kerry’s extraordinary achievement in successfully revitalizing the venerable Sizzler brand in the United States,” said Heidi Townshend-Zellner, director of UCLA Extension’s Business, Management and Legal programs. “With a new look, streamlined operations, and an enhanced menu, Kerry led Sizzler to steadily increasing guest counts and sales figures, even during the recession. We congratulate Kerry on his outstanding achievement.”
Entitled “Who’s Winning and Why: Actionable Lessons from Today’s Top Industry Leaders,” the conference drew top restaurateurs, entrepreneurs and industry watchers from around the country. Steve Carley, President and CEO of El Pollo Loco and Timothy J. Leiweke, President and CEO of AEG delivered keynote addresses.
The Sizzler Turnaround
When Kramp became Sizzler’s president
and CEO in 2008, recessionary times kept diners eating at home.
Sizzler’s sales were down as much as 20 percent. Nothing about Sizzler
was sacred from change. Not even the venerable Cheese Toast was safe.
Kramp and the senior management team created a plan to examine and
overhaul, if necessary, every aspect of the Sizzler brand.
Surprisingly, they kept to their 18-month plan. They spoke with
franchisees, staff and guests, and they acted on the input.
Lesson #1: Sizzler needed to serve good food at a price people could
afford.
The nation was in a recession in the late 1950s when
Sizzler opened, yet families patiently waited in line for their 99-cent
steak dinners. Sizzler would return to that value proposition by
bundling its Endless Salad Bar with signature dishes, such as Malibu
Chicken or steak, for a value-priced $7.99 for lunch and $9.99 for
dinner.
Lesson #2: Guests prefer fresh, flavorful and expertly prepared food.
Sizzler’s
new Chief of Strategic Development Dennis Scott scrutinized every item's
recipe for speed of preparation, cost efficiency and taste. In the end,
25 percent of the menu board's items were eliminated and the remaining
items were updated or improved. Kitchens needed to be stocked with
measuring spoons and cups for the made-from-scratch soups, butchering
knives were purchased for hand-cut steaks and more fresh products were
needed to make pico de gallo, salad dressings and desserts in-house.
Lesson #3: Food tastes better in a nice surrounding.
Some
restaurants were overdue for refurbishment. Sizzler invested $285,000 in
its Inglewood, Calif., location, making capital improvements to the
building and doing a floor-to-ceiling makeover of the interior. Weekly
sales at the remodeled Inglewood location are up as much as 25 percent.
Lesson#4: Stick to the basics.
By serving good food at a great
price, Kerry Kramp and the Sizzler team are successfully revitalizing a
venerable brand in the United States. Sales have increased in 13 of the
past 17 periods, despite the majority of Sizzler restaurants being
located in economically depressed California. By comparison, many other
restaurant chains are posting double-digit sales declines.
What began as a fact-finding mission to discover why people love Sizzler took an 18-month journey few restaurant chains could afford. In the end, a top-to-bottom brand overhaul returned Sizzler to its humble roots and earned it the 2010 Innovation Award.
About the UCLA Extension
UCLA Extension is the continuing
education division of the University of California at Los Angeles. UCLA
Extension offers evening, weekend, and online courses and certificates
for professionals in business, management, engineering, information
systems, entertainment studies, public policy, public health, the
humanities and many other fields. Find out more at uclaextension.edu.
