Regional Brands

Posted by Dustin Britt on April 30, 2010 Share

Sweet tea in Massachusetts. Cheesesteaks in Phoenix. Bangers & Mash in Decatur. These food items original to specific regions have now made their way out of their home territories and into anyplace U.S.A. Is this a loss of experience? Is there a case for keeping some brands & goods isolated to specific regions?

I read an article the other day about Chick-fil-A's entrance into new markets in Chicago, Southern California, & Kansas City. I was first proud for the local brand. Awesome to see their success bring them to new places. But as Alvin and I talked about it further, we began to discuss how this felt like the commoditizing of a relatively Southern experience. This seemed to represent another movement we see across the country – the idea that what I can get in New York I should also be able to get in Houston. And those unique places I usually enjoy while I'm in Chicago or West Palm I can increasingly find franchising and making their way to a storefront near me.

It feels like this migration removes a bit of the locality that is so unique to goods birthed out of specific regions.

I'm torn on this one. A part of me wants to see this happen. I want what I can get in California to be available to me in Atlanta. But then again, I also want to experience California very uniquely to how I feel when I'm at home.

There's also a tension with how this relates to growth and profits. If I want to stay successful and continue to grow a healthy brand and bottom line – isn't the goal to get my good into the hands of as many people as I can? Why stop in Atlanta if I can be successful in Chicago too?

Regionalism is very idealistic. But then again, scarcity does create demand.

I'm interested to hear others viewpoints on this – can a brand stay successful and limit itself to a particular region?


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9 Comments

"In-N-Out Burger in Atlanta!!!

I have similar feelings about regional brands, but it's a tough case to make for a company like Chik-fil-a. The problem is that scarcity doesn't really cause demand. It only creates price tension, allowing for higher prices. But it's unlikely that anyone would pay much more than they do now. A $6 Chik-fil-a sandwich makes Wendys look that much more appealing. Also, the scarcity of Chik-fil-a would be inherently proximity-based. So for people in Atlanta, for example, there is abundant Chik-fil-a goodness. So much so that they probably cannot reasonably create demand any longer, and thus, grow.

I think if Chick-fil-a can stay true to their brand, then they can be successful elsewhere. But I'm not so sure they can either. The notion of a Christian company works pretty well in the South. Having lived in Chicago I can tell you that will be a much more difficult, and less popular way to run a company. I can see something like that causing one of 2 problems:

1. Less acceptance of the chain in a place like Chicago ( although COME ON! Those sandwiches are soooo good!).
2. A big internal culture clash if more and more people come into the organization that don't really like the co-mingling of work and religion.

If one of those things happen, prepare for a meltdown, then a reappearance of a founder or family member as CEO ( a la Starbucks and Dell) to get the company "back to its roots."

But seriously...can we please get an In-N-Out Burger in Atlanta?"

- Mike Landman

"As a Los Angeles native, I grew up on In-N-Out. It's my favorite fast food shop. (well, really the only one I enjoy eating at).

With that said, I DO NOT want an I-N-O here. It's fun for me to go back to California a couple times a year to visit family. And it's a treat to be able to eat things that I don't get in Atlanta.

There comes a point where integrity must be sacrificed for growth. Unless you are content with staying steady somewhere and simply innovating and changing within the same plane. This becomes a much more difficult choice (or not a choice, really) for large public companies because of the constant need - year after year - to produce growth for shareholders."

- Alvin Diec

"I think we tend to imagine the United States as one big place and not the collection of larger territories that it really is. For instance if I was in France, I might not think twice about the absence of something purely English. Despite these countries being separated by nothing more than a few leagues.

Yet, in the US I think we tend to find it frustrating when something in Washington State isn't available in Alabama. Because for us it's in the same mental space."

- Daniel Cole

"I'm somewhere in the middle on this one. Mike - you make some great points that I agree with. I think its overly idealistic to think that we can completely isolate a good (even food) to a region. With increasingly borderless globalism, I am going to find baked beans in China & Dim Sum in Boston. But I do believe there is some strength in a growth strategy that includes regionalism as a component of its efforts. Rather than assume that all territories deserve the exact same brand experience - and even product offering - my vote would be to see regionalism a considered approach toward a brand's national growth strategy.
Thanks for the thoughts gents!"

- Dustin Britt

"I wonder if someone could adopt aspects of both of these. Consistency in most things. Unique experiences/tastes in certain regions. Best of both worlds."

- Craig Johnson

"I think some brands are better locally. They are generally better accepted, and it can help to foster a tribe to keep your brand local. In addition, it creates scarcity and helps bring together communities to support your company. I hope that Chick-Fil-A doesn't expand outside of the south."

- John Riley

"I wonder...will people in California laugh at the Chick-fil-A workers saying "My pleasure!" People thought something was wrong with me and my friend for calling older ladies Miss or Mrs in Nor Cal. If it could work and still be as faithful to the Chick-fil-A brand/experience as possible, I'm all for sharing chicken biscuits with the rest of the country."

- Priskers

"[...] I go back to an earlier posting for help: Regional Brands. [...]"

- Break Me Off a Piece of That… « Matchstic Blog

"I couldn't read this article and not comment.

First, the scarcity and demand issue is interesting - I think that the demand only grows inversely with scarcity as the product is something everyone is familiar with - like diamonds. Not everyone is familiar with Chik-fil-A, so the principle doesn't necessarily apply in new markets.

Regarding the cultural difference, while Chik-fil-A prides itself on being a Christian company, they do a very good job of presenting their brand more as Southern Hospitality and not necessarily Christian. The real question that their success continges on is whether or not they can replicate the same southern hospitality and if it will be well received in new markets.

The real leader in successful regional migration is McDonalds. They are the pioneers in franchising, and have fine-tuned their processes to deliver consistency in their brand to their customers every time. However, they have managed to cater their brand and menu specifically to each region - just look at their menu in a Middle-Eastern store.

From early reports, Chik-fil-A has been extremely successful in the So-Cal market. I am very likely to stop at a Chik-fil-A next time I am in So-Cal or Chicago, because I know I'll probably get the same result as I do when I visit a store here in the south - delicious chicken and southern hospitality."

- Jacob

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