Change or Die: A Corporate Bulletin From Jacob Marley

In Charles Dickens’ beloved novella A Christmas Carol, the ghost Jacob Marley visits miserly Ebenezer Scrooge to warn him of his impending doom should he continue in his selfish, loveless ways. “ I am here tonight to warn you that you have yet a chance and hope of escaping my fate,” moaned Marley.

For the purpose of this post, think of Red Lobster as Jacob Marley. Or perhaps Olive Garden. Or, again, Applebees. These are three businesses that should’ve adapted, could’ve adapted, but haven’t – and so are failing. According to a recent Slate article, the whole category of casual dining has declined in nine of the last thirteen years. And now Red Lobster, Olive Garden, and Applebees serve as the harbingers of failing profits to any Scrooges who will listen.

Dunkin Donuts and Starbucks are listening to the specters’ warnings. Recognizing that the industry is changing, preferences are changing, and that, fundamentally, the economy has changed, these two companies have determined to change with the times.

Starbucks is going to offer gourmet small plates, wine, and beer as a part of its new evening menu, which will be available sometime in 2015. Dunkin Donuts will also be offering dinner food in 2015, but its new menu will be aligned with its fast-food service delivery strategy. Menu items may include burgers and sandwiches similar to those that are already offered by Dunkin Donuts in India.

Starbucks is trying to get consumers to stay longer, and believes that the new evening menu offering, paired with its recent store renovations, will accomplish this. Dunkin is trying to appeal to people who “are seeking all-day dining, and they want to eat what they want, when they want it and where they want it,” according to Dunkin Donuts president John Costello. It isn’t trying to entice consumers to dine-in, but it’s still trying to appeal more to more people.

Starbucks and Dunkin Donuts have different offerings, but they’re both trying to retain and increase their consumer base in competition with fast casual dining options such as Chipotle and Panera, which Forbes says have both seen strong growth in revenues and stock price.

The fast casual market segment as a whole has seen burgeoning growth, and according to this Forbes article, it’s due to the fact that “customers with low discretionary meal spending tend to use it on healthier dining,” as opposed to fast food. As a result, other companies in the food and drink industry must respond.

Dunkin Donuts and Starbucks are only two companies; restaurants are only one industry. The lesson applies across all boundaries: keep a weather eye out for your own Jacob Marley (or Marleys), and understand why they met with such a fate. Meet the ghosts of your industry with open arms, eager to learn their lessons.

You certainly don’t need the visitation of a dead friend and three supernatural messengers in order to shock you into avoiding the road to corporate perdition. You can do it with good market research; with really knowing your product and your customer. So, as Christmas approaches, how’s this for unusual advice: follow Scrooge’s example, and be on the lookout for chances to adapt before your company joins Marley’s ranks.