Future of Cheeseburger in Paradise in Doubt

Post by **phjim** » May 8, 2007 6:36 am

An article in the St. Petersburg Times raises concerns over the Cheeseburger in Paradise chain: "Outback veggie steaks? Unlikely"
<em>
Fledgling concepts: It seemed like a great idea: Marry the don't-worry-be-happy ethos of Outback with the drink-heavily-be-woozy style of singer Jimmy Buffett. In just a few years, the Cheeseburger in Paradise chain has swelled to 42 locations. Unfortunately, it remains a money-loser.

The likely outcome? Some say Cheeseburger will be shut down. Why? OSI's new owners will be looking to fund proven restaurant concepts, fix the ailing Outback and pay off their crushing new debts. </em>

MargaritaMatt · Post by **MargaritaMatt** » May 8, 2007 8:09 am

I hope this doesn't happen. We really love going to our CIP here in Columbus. I can't imagine it is loosing money, it is one of the busiest restaurants in its area.

CaptainP · Post by **CaptainP** » May 8, 2007 8:33 am

MargaritaMatt wrote:I hope this doesn't happen. We really love going to our CIP here in Columbus. I can't imagine it is loosing money, it is one of the busiest restaurants in its area.

It's a question of overhead. These restaurants were high-cost to build. It takes a very long time to get them to profitability. If CIP is going to survive, many changes need to be made. I've worked for several, some that made money, some that didn't.

SailingAlien · Post by **SailingAlien** » May 8, 2007 8:35 am

This would be unfortunate but based on my experience not surprising. We went with a party of 20, calling a week ahead of time to prepare them. When we got there, they weren't ready and didn't have a clue about us. Not that big of a deal. But then they served 1/2 the table 30 minutes after ordering and the other half of the table 60 minutes after ordering. They ended up comping half our bill which had to be around $200. And they weren't that crowded. Any many patrons said they wouldn't return.

CaptainP · Post by **CaptainP** » May 8, 2007 8:35 am

Also, with the buy-back of Outback stock, re-privatizing the company, becoming complete this week, there are rumors that they may sell off some of their less profitable arms. CIP is part of that rumor. If OSI sells CIP, then anything could happen.

Caribbean Soul Man · Post by **Caribbean Soul Man** » May 8, 2007 8:54 am

the concept is good and in the right locations I'm sure there is more than enough demand for what CiP is selling.

Not sure if they are doing adequate market analysis before they throw one up (no pun intended) as may be evidenced by the fact that they are springing up in some unlikely locations and have grown maybe too fast.

I've been to a few and they are very unique and I'm sure very expensive to build - especially for a restaurant in a lower price range. If you do have the right location, I think it really boils down to quality of food and service. We've had very good food and good friendly service at some (i.e., Indianapolis, Asheville) and then we've had bad food and lousy service at others

(Myrtle Beach sticks out in my mind).

Nothing will keep customers away from a restaurant like forcing them to wait a long time for cold food when the place isn't even busy.

I spent a few years in the restaurant/bartending business when I was in college and I have seen what a difference really good service and a good kitchen staff can do.

IMHO - CiP should maybe reconsider some of their lower traffic locations but otherwise, get focused on the basics of offering a unique experience to their customers that emphasizes great food, great service and a fun atmosphere. Get those objectives right and they'll be profitable

CaptainP · Post by **CaptainP** » May 8, 2007 9:10 am

Caribbean Soul Man wrote: Not sure if they are doing adequate market analysis before they throw one up (no pun intended) as may be evidenced by the fact that they are springing up in some unlikely locations and have grown maybe too fast.

The unlikely locations were on purpose. They wanted to "bring paradise to the suburbs", and be a local place, not a destination place like Margaritaville.

Caribbean Soul Man wrote: I've been to a few and they are very unique and I'm sure very expensive to build - especially for a restaurant in a lower price range. If you do have the right location, I think it really boils down to quality of food and service. We've had very good food and good friendly service at some (i.e., Indianapolis, Asheville) and then we've had bad food and lousy service at others (Myrtle Beach sticks out in my mind).

The problem came in when the original president of CIP, Debi, resigned. She was always focused on the culture of CIP, while the new president got himself too far into numbers, and he started to make changes. The older units "get it", the newer ones, not so much.

Ambition At Bay · Post by **Ambition At Bay** » May 8, 2007 9:10 am

Well, as an OSI stock holder, we to be "makin' money", and whatever it takes, we should do it. Personally I thought they were putting in too many locations too fast.

CaptainP · Post by **CaptainP** » May 8, 2007 9:13 am

Ambition At Bay wrote:Well, as an OSI stock holder, we to be "makin' money", and whatever it takes, we should do it. Personally I thought they were putting in too many locations too fast.

You aren't a stock holder any more....at least not after tomorrow.

freaky4tiki · Post by **freaky4tiki** » May 8, 2007 9:14 am

I love going to the one in Cville. I was there once tho' and we asked our server if the band played JB and her response was shocking: "Thank god they don't!"

I still like it and we go once in a while. Thinking I might go for Mother's Day! The keets love it too.

so we hear CIP about twice when we're there, who cares. still love it!

OH HEY and the BAHAMA BREEZE in Raleigh was about the BEST beach themed restaraunt I've EVER gone to! WOW that place was wonderful!

pleiades03 · Post by **pleiades03** » May 8, 2007 9:21 am

Hmmmm, sounds like we better use up that Outback gift certificate my husband got for his Christmas bonus.

12vmanRick · Post by **12vmanRick** » May 8, 2007 9:27 am

The problem is they don't care about customer satisfaction

Ambition At Bay · Post by **Ambition At Bay** » May 8, 2007 9:40 am

CaptainP wrote:
Ambition At Bay wrote:Well, as an OSI stock holder, we to be "makin' money", and whatever it takes, we should do it. Personally I thought they were putting in too many locations too fast.
You aren't a stock holder any more....at least not after tomorrow.

Yup....

CaptainP · Post by **CaptainP** » May 8, 2007 9:50 am

12vmanRick wrote:The problem is they don't care about customer satisfaction

Depends on the location. I can speak for the 4 locations I worked at. One of them will do anything to indulge you. One of them was pretty good. The other 2 were not, but both have had changes in management since I left.

Jim in Raleigh · Post by **Jim in Raleigh** » May 8, 2007 10:22 am

I've never been to the CIP in Myrtle Beach. What I'm reading sure makes me want to avoid it. I may to go to say I went.

I have been to Margaritaville in MB, that is nice. I too was always struck by the number and speed the CIPs were thrown up.

Bahama Breeze in Raleigh is cool.

http://www.bahamabreeze.com/

MargaritaMatt · Post by **MargaritaMatt** » May 8, 2007 10:23 am

12vmanRick wrote:The problem is they don't care about customer satisfaction

Isn't that the problem with most companies now? I can't believe how low on the totem poll customer service is at companies. No wonder so many go OB.

CaptainP · Post by **CaptainP** » May 8, 2007 10:35 am

MargaritaMatt wrote:
12vmanRick wrote:The problem is they don't care about customer satisfaction
Isn't that the problem with most companies now? I can't believe how low on the totem poll customer service is at companies. No wonder so many go OB.

Funny thing is, most of OSI's restaurant concepts are very customer-driven, and CIP was when it started. It has just gone sour in the last year and a half since Dennis took over.

Tiki Bar · Post by **Tiki Bar** » May 8, 2007 10:42 am

I've been to 4 CIP's (3 in IL and 1 in WI) numerous times... more drankin' than eatin', but always satisfied with what I'm served!

Being that I'm normally there for the live entertainment though, my only complaint has always been that the stage is too small and the dance floor non-existent. However, we've always made due, dancing around tables, on chairs, or on top of booths!

Rather than appease that problem, I believe CIP geared away from the entertainment, foregoing bands except for Full Moon Parties, and booking soloists. From what I heard, that didn't exactly pan out, no pun intended!

If they go, I'll miss them.

And I gotta add, the Bahama Breeze in Schaumburg IL is pretty cool too!

Jim in Raleigh · Post by **Jim in Raleigh** » May 8, 2007 10:46 am

MargaritaMatt wrote:
12vmanRick wrote:The problem is they don't care about customer satisfaction
Isn't that the problem with most companies now?

Yes, it is the problem. I know a lot of problems with service-related companies is service-and the companies know it too. They do care, and do everything they can to make it better.

The problem is in the implementation-you are by and large relying on low wage hourly employees to carry out the service. No matter what you do, and that includes higher pay, or threat of firing (both positive and negative motivators) if they can go somewhere else and get the same pay because of some real or imagined slight (such as not allowing them to get off work for whatever reason), they're gone.

I used to run restaurants in Myrtle Beach, and while it was hard work, I loved it. Except for one thing: your success as a manager depended on the people on the front line, and in support (cooking)-those hourly employees. The job market got so good that employees could walk off the job or no show because, for example, they had a date that Saturday night, or had a party they could go to. In their 16-17-18 years that event may be the biggest event of their short life. And the next day they could be hired next door doing the same work making the same pay. It got to be such a rat race.....

And then the service would slide, despite the best efforts of the "company".

JustDucky · Post by **JustDucky** » May 8, 2007 10:53 am

You said by the time the food got served it was cold. Ha ha - one would think that the beer was probably warm....

I've only ever had a cheeseburger once at Margaritaville in New Orleans and have never been to a CIP. The cheeseburger was pretty good. But then again I don't think I've ever had a bad cheeseburger except at McDonald's or some other fast food place.

I've watched a local place go from being full of people one month (it had just opened and was the only place to go for a while) and then 4 months later they were struggling for anyone to show up and order just onion rings even. The service was terrible and people stopped showing up. Then a place down the road opened up and the service there is good if not excellent. That place is always packed.

So if one is just worried about making money they will lose it all. If there are 42 CIPs or however many than maybe it has become too common. I don't know. Why would anyone go to a CIP if there is a Margaritaville (or something better) nearby? I guess mainly do to fandom. That can only last so long if it sucks.

BuffettNews.com

Future of Cheeseburger in Paradise in Doubt

Future of Cheeseburger in Paradise in Doubt

Unfortunate but not surprised

CIP closing?