SCHAUMBURG, Ill. -- Ira Blumenthal's best impression of 20th-century bard Bob Dylan included acrobatic harmonica work and an impassioned recitation of a Dylan classic: "There's a battle outside, and it is ragin'. It'll soon shake your windows and rattle your walls, for the times they are a-changin'." So began the closing session of CSP's inaugural Foodservice at Retail Expo (FARE) outside Chicago.
Blumenthal, author, speaker and president of Atlanta-based business consultancy CO-OPPORTUNITIES Inc., used Dylan's words to illustrate the challenges FARE attendees face in a world where everyone [image-nocss] is a competitor and those who don't react or adjust to changing market dynamics can quickly find themselves on the precipice of extinction.
"[Dylan's] words are still critically important," said Blumenthal. "The final stanza of that song is one you should take heed and listen to: 'The line it is drawn; the curse it is cast. The slow one now will later be fast.… The order is rapidly fadin'. And the first one now will later be last.'
"Change is inevitable," he continued. "Growth is optional."
He used Howard Johnson—the preeminent hotel and roadside restaurant operator of the early 1970s—to illustrate his point. In its prime, the chain was an innovator and had more than 1,000 restaurants and 500 motor lodges in 42 states and Canada. Howard Johnson now has little more than 50 sites nationwide.
What happened? It's quite simple, by Blumenthal's estimation. The company did not react to the changes going on around it and fell into the trap of believing the myth that "it won't happen here."
The oil embargo of 1974 and the rise of the fast-food channel conspired to bring down the once-powerful giant by the end of that decade. Meanwhile, quick-serve restaurants and others stepped in and began eating away at HoJo's share of the traveling public's pocketbook.
Blumenthal's hour-long talk gave attendees plenty of ideas for improving the health of their businesses and, just as importantly, living a life of vigor and passion. Between success stories concerning the clients he consults and other companies that have changed the course of retailing and restaurant history, he shared tales about his family, from the sage advice offered to his graduating daughter ("Plastics," he told her, channeling Dustin Hoffman's character in The Graduate, only to receive a confused look in return), to his wife's ability to outcoach him on the basketball court. But all his lessons centered on how to deal with the concepts of motion and change.
There are only three things a business owner can do with change, said Blumenthal:
Ignore it, which will ultimately lead to that business' demise ("Ignore a toothache and what happens? It gets worse"), Adapt and adjust to it, which will prolong a business' future ("I promise if you react to it, you'll be here next year"), or "The big strategy:" Make other changes."That's how you soar," he said. "I promise you will find yourself on the cover of some magazine [if you make other changes].… Great companies have gone from distinction to extinction because they couldn't adapt to change."
He suggested that collaborating with vendors and distributors—and even competitors—could help operators raise the bar on their businesses and move into territories never thought possible. He also said any such collaboration must be between two equally strong companies that have an inclination to share, trust each other and set boundaries, much like a relationship between two partners in a marriage.
"You cannot have a successful strategic alliance if you have a strong company and a weak company," he said. "The key to alliances is two strong companies who want to get stronger.… It's got to be mutually beneficial; if not, it's not going to work."
But alliances may not be for everyone, he cautioned. "Engaging in an alliance means opening up the door a little bit," he said. "It's clearly about taking a shot.… Wayne Gretzky once said he missed 100% of the shots he didn't take."Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.