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So, what can be taken from this history? Was Farrell’s destined to be a “flash-in-the-pan”, or can it be successfully revitalized into a viable business?
Farrell's excelled in the 1960's by being a high-quality ice cream
parlour and restaurant with a novel twist. In the 1970's it began changing
into a novelty with steadily decreasing quality of product and service. More
and more it became the place to go only for the kid's birthday, especially
since one could eat a meal at Denny's for the same price as a banana split
and coffee at Farrell's.
I believe that Farrell’s has unique and beneficial qualities about it, and I believe that these qualities would allow it to grow, once again, into a national presence. However, I also believe there are some guiding principles
that must be
observed for it to fully succeed. It would cost approximately $1.5 million to open a new parlour today. Once open, it would need to average no less than 5,500 guests per week, or $2 million/yr average sales. This is achievable - the
parlour in Greendale averaged 6,000 guests/wk in 1977, and the estimated average for the Schaumburg
parlour was more like 9,000 guest/wk; both of these parlours had been open for 6 years at this point. 5,500 guests/wk is achievable for most any
mid-size market.
The current owners of Farrell's have done a good job working to bring
back Farrell's, although their concept still needs refinement to achieve the
full magic of the pre-Marriott Ice Cream Parlour. This is understandable, since much of
what elevated Farrell's to its hailed status hasn't been around for over 30 years. Here are some
comparative elements to consider, though:
- When Farrell's first opened in Portland, the name did not mean anything
yet. It had to compete with the numerous soft-serve ice cream places (e.g.
Dairy Queen) that were in preponderance at that time. Actual sit-down,
full-service gourmet ice cream parlours had literally disappeared at that
time. As long as Farrell and McCarthy could provide high-quality service and
foods, they would draw customers and command a price that allowed them to
make a profit. The birthday fun, siren and drum did not even exist in those
first days.
- Today, there are more "hard" ice cream parlours and
places than ever. Most of the "gourmet" places such as California-based
Ghirardelli Chocolate and Illinois-based Oberweis Dairy offer high quality
ice creams with butterfat content around 17%. Many of these parlours are
not true full-service, though. There is something special about being
waited on versus carrying your own food around.
- What about the kitchen? Farrell's original parlour did
one-third of its dining room sales from the kitchen versus two-thirds from
the fountain. Over the years, the only parlours with kitchen sales higher
than 50% were the ones located in shopping malls. Those same parlours were
the ones that saw sales tank when food courts and McDonald's moved in. Several attempts
were made to boost kitchen sales. Marriott tried to increase the food focus with the Hollywood Menu
in 1976.
Farrell's, Inc. really went food-centric in 1983. There are over 7,400
full-service restaurants in Illinois alone (where I live), but only a few
full-service ice cream parlours in the same state. Personally, I'd
rather compete against the ice cream parlours. The kitchen menu is there
to fill gaps in the business day, and I wouldn't lose too much sleep if
those sales are not through the roof.
- Entertainment? Farrell's heyday was at a time when arcade games were
limited to the Aladdin's Castle in the shopping mall or the midway at the
state fair. Entertainment at Farrell's was people-driven, with the drum and
bell, zany announcements, and running of the Zoo. Now, there are restaurants
with built-in arcades, arcades with built-in restaurants, and there is a
perception that a modern-day Farrell's would need this type of entertainment
to be competitive. Moreover, other restaurants do birthday announcements on
a routine basis. So what does Farrell's need to succeed? Well,
Farrell's most famous entertainment (outside of the birthdays and zoos)
was the player piano. The piano was a remnant of times gone by, back
before the days of radio, CD's and television. A well-to-do family seeking
a little musical entertainment would slap a piano roll into the piano (the
1905 equivalent of putting a CD in the player), turn the system on, and
listen to Scott Joplin or any one of dozens of performers. For Farrell's,
nostalgia is the entertainment.
- And the ambiance, the style of the parlour? Farrell's was originally
developed on the 1900's ice cream parlour style. At the time, it was a
fresh, retro look. When Farrell's undertook the Sacramento Concept in
1982-83, they were looking for a style that would draw more customers in
than the 20-year old gay-90's parlour concept. Customers were cool to the new look
of both stores. in 1985, when Marriott reacquired the chain, they gave
nearly all company-owned stores a facelift, eliminating the red-flocked
wallpaper and painting the mahogany-colored paneling white. Customer's did
not respond to this either. The Santa Clarita store has a nice feel to it,
although I had one person tell me it looks like a Wendy's (ouch!). Then
again, the new Honolulu Farrell's at the Windward Mall has been
described as looking "like a children's playroom". I bet
that one could open a brand new Farrell's, using the same motif as all the
ones built in the 1960's and 1970's, and customers would love it. Isn't
that scary?
So what will make Farrell's work going forward? Not just as the place
that people go to because they "remember Farrell's years ago", because that
gets guests to come in once or twice. Here's my ten-step program for
success:
-
Remember what people remember Farrell's for - ice cream and fun. I see it
all the time in other websites, conversations with people, conversation
threads in Internet newsgroups. I am amazed at how many people don't even
remember that Farrell's served food (it always had a kitchen menu).
-
Ask this question of yourself: If you were going to open an ice cream
parlour and could not put the Farrell's name on it, how would you ensure
success? The successful entrepreneur will focus on high-quality menu items and
first-class service. This is what worked for Farrell's in the 1960's.
Farrell's special formula ice creams, developed by Ken McCarthy, had 16%
butterfat. This is even more critical today since the competition is
greater now than it was back then.
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Location, Location, Location. I've seen Farrell's thrive and bomb inside
shopping malls, and I've seen them thrive and bomb as free-standing stores. Is
one better than the other? Mall-based Farrell's were decimated by food courts
in the 1980's. Even before the food courts, many parlours saw their guest counts drop as the malls
either lost traffic to other, newer shopping venues or saw the earning power
of the mall shoppers drop due to changing demographics. Free-standing stores
that were dogs pretty much opened as dogs and stayed there. I do not know of
any free-standers that went from good to bad over time. Those that did well
were on major thoroughfares, near shopping venues and movie theatres, and had
great curb appeal.
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Don't get too caught up in finding the "perfect" design motif. The
original 1905 concept worked well, although the dark paneling and red
wallpaper required the parlours to have lots and lots of lighting to give it
a bright and festive look. The average Farrell's had between 600 and 1000
light bulbs (granted, most of them were those little 10-watt lamps in the bay
window and ceiling coves, but that's still a lot of bulbs to change). The
Santa Clarita style looks nice even though it is definitely not 1890's. It
still has a timeless element to its style. The Mira Mesa store looked
interesting although I did not care for the merry-go-round design of the
fountain counter or the location of the candy shoppe. The etched glass panels
added a nice touch to the dining room, as did the oak-trimmed simulated marble
tabletops. Personally, I'd take the Santa Clarita parlour, put in a real ceiling, change the booth cushions to black, use the glass
panels and table style of the Mira Mesa store, add the original fountain
setup, and lay it all out like the old Los Angeles parlours that were designed
so efficiently.
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Don't dilute the value of the
Farrell's name. When the Kirin Group was planning to partner with Paradigm Leisure &
Entertainment, a news article said they would offer desserts from The Cheesecake Factory at a new
Farrell's in Woodland Hills. While that deal fell through, there is still a
lesson here somewhere. Hey, the sign does not say Farrell's Ice Cream
and Cheesecake Parlour! Farrell's actually had cheesecake and pies on the menu
during the '60s and early '70s, but those items did not sell big. Apparently,
people went to ice cream parlours for ice cream. Go figure...
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Learn from past mistakes. Even Bob
Farrell and Ken McCarthy made mistakes and learned a lot when developing
Farrell's throughout the 1960's. Yet, all through the Marriott days and
post-Marriott era, the same mistakes were made at the corporate level. The
excessive focus on food variety instead of ice cream, the attempts to
dramatically change the parlour ambiance, and systematic compromises in
product quality occurred several times, each time with the same predictable
impact on sales. By 1985, the busiest Farrell's parlour was drawing as many
guests per week as the median parlour drew in 1977. To the customer, the value
was simply not there.
-
Be relentless on quality and
service. All of the effort to develop a great looking parlour and tempting
menu is lost if the customers are seated at a table with caked-on fudge on the
edge, straw wrappers on the seat, and a torn, stained menu to read. And if a
customer has to ask "will anyone be waiting on me today?", you just lost the
game, set and match. Of course, this is true for all foodservice
establishments (McDonald's had lost its focus here and only recently began
recovering its guest counts).
-
Be one level higher than the
competition. Most ice cream places either serve their sundaes in plastic, or
in common-variety glassware, dishes and banana boats. Fast food sandwich shops
will often put their burgers in paper-lined plastic baskets - one step up
from the classic hinged foam container. Many of these places
don't have full service either. Farrell's started out by providing full table
service, highest quality products, and many of the sundaes were served in
shining silver dishes (nickel silver, actually, but it still looked very rich)
with silver-plated utensils. Customers got the "royal treatment" at
a price they could affort, which
brought them back again and again.
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Think entertainment. Sharply
executed birthday announcements, short Keystone Cop skits, the occasional
singing waiter all add to the unique ambience that is Farrell's. Done right,
it adds up to a lot of fun. On the other hand, a poorly done announcement can
be a real turn-off. Farrell's is a 12-hour a day stage production in addition
to an ice cream parlour and restaurant.
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Keep it fresh. One of the issues with many of the
parlours in the late 1970's and early 1980's is that they looked "tired".
Most of them had original wallpaper, flooring and furniture. A complete remodel is
not necessary, just plan to replace tabletops every 7-8 years, re-paper the
walls once a decade, and basically do not let people believe that the parlour had been around since 1900.
These are not all-inclusive, but
simply a starting point to the successful Farrell's Ice Cream Parlour. Most
of these could be applied to any foodservice business. All too often I have
witnessed restaurants that were being run by managers who use the warm-body
staffing approach. As someone once told me, running a successful restaurant
is simple, but it is definitely not easy. If it were easy, the number of
restaurant failures would be much lower than it is, and I would have nothing
to complain about except for my cable TV service.
For the uninitiated, warm-body
staffing is when the manager will hire the next person to submit an
application simply to fill an open position with a "warm body", usually
without regard to such specifics as job qualification, work ethic, personal
hygiene, experience or temperament. These same managers also tend to do a
horrible job training and developing employees; this can be observed if you
have ever been to a restaurant where employees with dirty shirt tails
hanging out alternate between handling your cash, assembling your lunch and
running their fingers through their hair.
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