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CIRA...Will it be the Independents Vs. the Chains?
They met in the desert, but the meeting really wasn't some clandestine and
top-secret paramilitary type operation. They met at the luxurious Loews
Ventana Canyon Resort, and even several members of the media were present
(including the Restaurant Report). It was to be the first major meeting of a
new group known as CIRA, which stands for the Council of Independent
Restaurants of America, and major restaurateurs from all over the United
States were in attendance.
We see the formation of CIRA as a major story in the hospitality business
because the reason for this association was somewhat inevitable. It all
comes down to survival, and there is a significant segment of the independent
community that feels extremely threatened by the chains. Some see this
competition as an unfortunate reality of the modern food world; some see at
as just some intensified emotional stress; some predict a skirmish; and of
course, many see it as all out war.
Chains have been around for a long time, and the independents were more than
willing to tolerate their growth when the chains were truly the chains. But
when they started looking like and behaving like the independents, the threat
became more noticeable; and this added stress pushed many into a battle mode.
The chains bring some formidable advantages to the table - most notably, big
money. Big money buys the prime real estate, and big bucks result in
dramatic purchasing power, and all that green stuff buys tons and tons of
advertising, and the basic ownership of the electronic media. And as the
folks at CIRA put it, "If the dinner-house chains have their way, the dining
scene in most cities will soon offer the limited choices that consumers now
find in shopping malls throughout America: the same 30 or 40 stores in every
location. We don't want to follow in their footsteps!"
All this is not to suggest that the mission of CIRA is a mission of chain
bashing. The true mission as presented is that "CIRA is a national trade and
marketing association comprised of independent restaurateurs operating
fine-dining establishments devoted to the highest standards of food and
service. It has been founded to represent the interests of independent
operators and to establish a proactive marketing program that will meet the
challenge of the national dinner-house restaurant chains now making
significant inroads in every marketing territory in America."
And Bob Kinkead, the President of CIRA discussed the issues as he sees
them "How can the independents attract the attention of bankers and real
estate developers, and how do we find and retain key employees? Also, one of
the hottest topics among independent restaurateurs today is the feasibility
of forming purchasing groups at the local and regional level to allow the
independents to enjoy the same cost advantages through group buying power as
the chains. And advertising is critical - our program will develop and place
advertising in major consumer publications as well as in the electronic
media."
Mr. Kinkead adds the following "CIRA's priority is to educate the consumer as
to why the quality of food and service at an independent restaurant will
always surpass that found in a chain establishment. I really don't see our
mission as good versus evil, but rather David vs. Goliath, and what bothers
me is that nobody is fighting back." It's sounding like CIRA is getting
ready to do just that.
For more information concerning membership, contact Phillip Cooke at CIRA
Headquarters, 304 West Liberty Street, Louisville, KY 40202 - 502-583-3783 -
e-mail: cira@hqtrs.com
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