Houston’s: Name Change Sinks Brand Equity

by Francine on March 21, 2010

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My favorite restaurant is in the process of throwing twenty years of brand equity out the window, and all the local customers are in mourning.

Houston's is a wonderful restaurant. It's part of a chain, but you would never know it by the way the food and atmosphere are created. The food is utterly reliable and high quality, the staff is always well-trained, and the interior design is comforting. I've eaten in the Phoenix Houston's for the past twenty years, since it opened. I brought up my children and my foster children there, and its bar has seen me through the ends of two marriages. Tom and Al, veteran bartenders, have watched me and a whole host of others who live in and near the Arizona Biltmore grow older. When I walk into Houston's, I always see people I know. It's "Cheers" for the white collar class.

 I've also been to their restaurants in Kansas City, Atlanta, San Francisco, and Scottsdale. In a strange town, I seek out the familiarity and comfort of a Houston's. It's the artichoke, it's the apple walnut cobbler, it's the salmon, the chicken, the pork chop, the chicken salad, the wine list, the waitstaff.

But I've been thrown for a loop by the decision of the Phoenix Houston's to move across the street to a free standing building and change its name to "Biltmore Grill." Biltmore Grill? Where and what is that? Why would George Beall, a man who clearly knows how to run restaurants and create repeat customers, do that?

I have a theory. My theory is that George is phasing out, and younger members of his organization are phasing in. George has a "succession plan." The chain has been re-christened Hillstone Group. All the restaurants are no longer the Houston's concept. He's moving into the future.

Those younger people probably have MBAs and research about statistics like parking, cost of goods sold, etc.  They have decided that a free standing building is better than the mall we are in now, and that we, the family of customers, will get used to it.  They probably also have theories about the name: since the shopping center is named Biltmore, and the neighboring hotel is named Biltmore, and every crummy condo development in the neighborhood has borrowed the Biltmore name to give itself some class, that Biltmore Grill is a better name.  After all, it does say where the place is located and what the food is like.

I really understand all this.  It's rational. Houston's always was a meaningless name, and parking in a garage or with a valet is a pain in the tail. Rationally, the new location will be much better, and the same bartenders will be there, with the same waiters and cooks. As a change junkie, and a futurist, I am trained to plan for future generations and live in the youth culture. I even eat dinner at the bar now while Tweeting on my iPhone after checking in on Foursquare.

But it will still take me a while to get used to my favorite example of brand equity throwing it all away.

Posted via email from Not Really Stealthmode

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Contrarian Investing: Smart, but Scary

by Francine on March 18, 2010

I am a contrarian investor.  Which is why I have now shifted my angel focus to real estate for a while.  I’ve done that because real estate is in the toilet, especially in Arizona where I live in the winter, while tech is flying high in the Bay Area where I live in the summer.

I just got back from SXSW, a huge (18,000-20,000 attendees) conference that’s often called spring break for nerds. The hot thing there was location-based mobile phone applications. I counted five different platforms being used to check in: Buzz, Yelp, Foursquare, Gowalla, and Whrrl. Each of these applications has investors.  In fact, some of the deals were so hot that they were difficult to get into unless you knew someone. The space is over-invested right now.  The same is true of solar energy, which has received hundreds of of dollars from venture capitalists in the last few years and hasn’t yet paid off.

That’s because even professional investors are attracted to a space everyone else is crowding into. And this is wrong. I’ve seen it in the stock market as well.  Everyone wants to ride the same wave.

So I am going to turn to a more neglected space: Arizona real estate. It is literally at an all-time low. Sentiment about Arizona’s future couldn’t be more negative. To my mind, that’s the time to buy.

Of course in a market like this, you can’t just buy anything. You buy information. You buy experience. You buy things that are well below replacement costs.

Experienced investors are already back in the Phoenix housing market because they know they can by a home for $.50 on the dollar and rent it out to someone who has been foreclosed on as a result of the mess. Or they can buy a foreclosure and fix it up. Unfinished subdivisions are also being snapped up. Pretty soon institutions with deep pockets will be buying our see-through retail centers and office buildings.

Things always come around sooner or late. The people who bought low will sell high:-)

There’s only one pre-requisite for knowing all this: time on the planet.  If you have been in this market since the 70’s, as I have, you already know that Phoenix, indeed, has a strange economy. Indeed, wages are low and large corporate headquarters are scarce. Everything that can be wrong from an economist’s perspective is wrong. However, people continue to make millions in Arizona real estate, on the up cycle and the down cycle.

So I’ve started to look for what people will need first when the recession lifts, no matter how slowly. How do I find that?  I go to my old friends Bruce Hilby and Dick Wilson, whose careers started when mine did, and who sat out the entire upturn, buying nothing an selling everything for their investors. I heard from Bruce a couple of months ago for the first time in years. I am recapturing my youth.

(full disclosure: I am a licensed Arizona Realtor, which I use only for my own investments. I’m not trying to sell you a house:-)

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Addicted to Social Media?

March 17, 2010

This is a hilarious study, courtesy of
Retrevo.com. I have my laptop and my iPhone on my nightstand, so according to it, my habits are those of someone under 25. 

Twitter & FaceBook:
- 48% of people check/update FaceBook and/or Twitter after they go to bed

- 18% of people under 25 years old can't go more than a [...]

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SXSWi: Innovators Win, Everyone Else Loses

March 15, 2010

SXSW is a celebration of innovation: in film, music, and interactive technologies. This is the third time I’ve gone to SXSWi, and every year I am happier I spent the time and treasure to attend. Yesterday I went to perhaps the best session I attended this year, Andrew Keen’s intimate talk on  ”Is Innovation Fair?” [...]

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My Fifteen Minutes of Fame

March 14, 2010

<br />Watch live video from The Cube LIVE from Austin on Justin.tv
Posted via email from Not Really Stealthmode

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SXSW Live Studio: My Intellectual Home Sweet Home

March 13, 2010

This happened last year at SXSW, too: I walked into the live studio Michael Sean Wright had set up, and I felt like I had come home. This year, the studio is at TexasCoworking, the brainchild of Paul Terry Walhus (@springnet) and a newly-renovated co-working space above a bar on 6th Street. It's a quiet, thoughtful [...]

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SXSW: The Beginning

March 12, 2010

I walked over to the Austin Convention Center and got my SXSW badge this morning, at the crack of dawn for geeks (9:30 AM). Walking through the Convention Center, it was easy to see that some things had changed.
1)The food has moved to a much more prominent place. Right at the northwest entrance, there’s a [...]

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Conversation with Scobleizer on Buzz: Impossible

March 9, 2010

We have all been talking about our issues with Google Buzz.  In theory, having your conversations aggregated in your email should be a huge convenience. But from the moment Buzz appeared in our inboxes, it was greeted as either a savior or a marauder. And a week later, even the people who had thought "savior," [...]

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Real Estate Investors Can and Should Invest in Startups

March 8, 2010

Real estate investors should invest in startup tech companies.Typically, early stage angels and real estate investors never mix, because the real estate guys feel like they can’t measure the risk in startup investing.  But there’s not that much difference; I invest in both, and I know. What’s really cool is that real estate and tech [...]

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The Wrath of the Social Customer

March 7, 2010

Companies had better get out in front of the social customer. She is not without resources. When she gets angry, she’s tough.
Paypal, this means you and the ridiculous customer service survey you sent me this morning.
I am missing a $4000 check that was mailed from my Paypal account to my home on 2/11.  When it [...]

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