Joe's Crab Shack Made One Change That Turned Around Business

A few year’s ago, Joe’s Crab Shack was in trouble.

The chain had split off from parent company Landry’s Restaurant Inc. and was closing under-performing stores.

Today, Joe’s Crab Shack has pulled off a big turnaround, with 18 consecutive quarters of sales growth, reports Nation’s Restaurant News.

CEO Ray Blanchette says that one major change spurred the improvement: The chain actually began focusing on crab.

He elaborates in the interview:

“It wasn’t until I came to Joe’s that I realised we actually didn’t sell a whole lot of crab. Even though it was our middle name, it was only about 17 per cent of revenue. Today, it’s about 50 per cent … We made a very conscious decision to be best in the world at something. We narrowed our focus.”

Joe’s Crab Shack might be on to something.

Chains from McDonald’s to Olive Garden have struggled with falling sales. Analysts have said that offering too many menu items could be a factor.

When restaurant menus expand too much, it can hurt customer service because employees are overwhelmed. Consumers can also become confused about what to expect from the restaurant.

Joe’s Crab Shack is a perfect example of how restaurants can benefit from simplifying their menus.

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