Comment: Rebrand vs refurb

Firstly, let’s address the difference in a rebrand and a refurbishment. Essentially, one is a nip–and–tuck, and the other is a total overhaul. So, how do you go about making the undeniably hard decision to undergo a refurb/rebrand, and how can you be sure it’s right for your outlet?

Assuming you have planned your business properly from the outset — designing your brand based on market research–led strategy and developing a strong creative concept carried through all elements — it is more likely you will be considering a refurb, and we are probably talking 3–5 years into business operations.

This may be dictated by the landlord, i.e. it might say in the lease that you must refurb every 3–5 years to keep up with the overall style of the host venue. Or it may just be that the interiors are looking tired and need refreshing.

A rebrand is much more comprehensive, and is a total redesign of the emotional connection a brand makes with consumers. If a business is failing and the decision to rebrand is taken, to be successful it’s important the business is viewed objectively. If customers aren’t engaged, the brand purpose is not clear, and/or elements are not aligned throughout, including food, service, and visual communications, a rebrand can fix this.

There are, of course, other reasons for a rebrand; an outlet could have opened with a strong brand identity yet throughout the years of operation the area it serves could have drastically changed. Taking into account local market research and strategy, the wants and needs of their consumers have changed over time and the business must adapt to suit. This is particularly common in rapidly developing countries such as the UAE, but less so in the mature markets of Europe or North America.

To decide which is the right direction, consider this: a refurb will not fix a failing business but it can address aesthetic problems; damage, tired–looking interiors, bored customers, staff morale, unsatisfied landlords, utility cost and/or ineffective service flow. If your problems are bigger, if you’re losing money, customers and staff, it’s time to consider the brand and what changes are necessary; this is re–engaging rather than re–painting.

A simple differentiator is: brand working and outlet profitable but space needs reinvigorating = refurb. Brand not working, business losing money and customers, bad food and service = rebrand.

After all of this, let’s say you’ve chosen to rebrand, what do you do now? Do you send out feedback forms, run customer polls or even focus groups? Probably not. Crowd sourcing ideas could be an interesting way of engaging consumers, but asking the public to set your business purpose is likely to result in a direction that is very faddy or current trend–led. In the long run, you’ll probably regret it. That said, there’s no reason you can’t set the purpose and then collaborate with consumers as a marketing or pre-opening exercise.

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If you are confident you have identified the problem areas and are comfortable running the rebrand yourself, ensure all the applications you are considering are directly related, look at the brand above all else. Apply whatever emotion the brand carries to each element, including visual communications, space and product.

Alternatively if you think you know what’s wrong but are looking for professional opinions, then a brand design agency would be able to offer this support. It’s important that these projects are planned properly, with clear expectations of the outcome and realistic budgets and timelines.

As I’ve already said, it is a hard decision to make and of course has cost implications, but taking into account the pros and cons of each, both a refurb and a rebrand can positively affect bottom lines. The outcome should be that of a better–looking outlet that is more efficient, with improved service flow, and able to source cheaper, more sustainable and ergonomic materials. It will also stimulate and invigorate staff, plus keep your landlord happy.

Additionally a rebrand ensures consistency in your total package and brand values manifested through everyday activities including staff behaviour, staff look and feel, product, plating, cleanliness, music, sounds and smells, repeat customers and customer satisfaction.

Cons of both are pretty similar: significant costs involved and downtime in terms of trading may make you want to rush the process as you will be paying rent but not taking revenue.

The other major factor to consider would be alienating customers, more so in refurbs than rebrands. Interior changes, if not properly considered, can result in brands morphing into bigger, smarter, but somewhat generic outlets, that end up feeling very cold and open, losing the cozy, intimate atmosphere and old charm which many customers previously found appealing. If a refurb results in an ultra–stylish modern outlet but a more confused brand identity that customers struggle to relate to, has it been successful and how long until you have to re–refurb? Of course the flip side of this coin is that by alienating one demographic you may increase your appeal with another!

In summary, if you find yourself leaning towards either a rebrand or a refurb ask the question: do I need to do it? Too often these decisions are made in the heat of the moment, and unnecessarily changing your brand perception is unquestionably damaging to your brand equity.

Bio: Sanjay Murthy is the managing director of Figjam, the Dubai-based food & beverage agency. Figjam combines the disciplines of branding, interior design and operations to deliver complete design solutions for its clients. Visit www.figjamco.com