Louise's rolls out '110%' offer in post-Ch.-11 push

Nation's Restaurant News, March 29, 1999 by Amy Spector

Although the "110-percent guarantee" promotion started as a marketing concept, Gunderson said, it ended up as part of the service training. "Servers feel empowered by it," he said. "They no longer feel like they have to get the manager to fix a problem at the table."

The coupons require a manager's signature as a control, but Gunderson said the program has proved to be self-monitoring: "Servers said it raised the bar for them. It's become a competition not to have to hand one out." Gunderson estimated 12 coupons were handed out systemwide during the introductory week and said, "Each coupon has been a learning experience for everyone in that restaurant."

He said in each case the coupon was initiated by a server who spotted the problem and was able to turn the customer's dining experience around.

President Fred LeFranc said he expects the promotion to affect food costs no more than one-half of 1 percent. "But I think the increase in customer loyalty and revenue will more than make up for the cost," he said.

Gunderson said he is encouraged by the response of managers, who have also become "self-monitoring -- they call each other in the morning and compare percentages."

Previously, some managers did not even track their own store results, he explained, adding, "We gave them all bonuses at the end of 1998, 50 now we have their attention."

LeFranc, labeling 1999 the "year of growth" for the company, said he is scouting West Coast sites for an unspecified number of future openings. In addition, existing units are being evaluated for their future potential as the chain repositions to a dinner-house format with full bar. Louise's Trattoria units currently are licensed only for beer and wine sales, he said.

The chain's only outside-of-California location, in Milwaukee, has been designated as the prototype for future branches. That urban, dinner-house location has approximately 7,000 square feet and a full bar.