Hard Rock Cafe, Hotels, and Casinos

¶ … Rock Cafe (HRC) and the Hard Rock Hotels / Casinos is a highly successful series of ventures that serves up fun, music, food, nostalgia and beverage. The HRC is also famous for its music collectibles, including guitars used by icons in the industry, some linked to living musicians (Madonna, for example) and some linked to those who have passed on (Jimi Hendrix). The first Hard Rock Cafe was opened on June 14, 1971, in London, England. Founded by Isaac Tigrett and Peter Morton, HRC became well-known and successful almost immediately.

Tigrett went out and opened HRCs in New York City, Boston, Washington D.C., Dallas, Orlando, Paris and Berlin, while Morton developed HRCs in Chicago, Houston, San Francisco and Los Angeles. Various buyouts were executed, starting with "Mecca" buying out Tigrett and then The Rank Group acquiring Mecca. In time Mecca acquired Hard Rock America from Peter Morton, "consolidating worldwide control of the Brand," the Hard Rock Web site explains.

None of these consolidations and buyouts has any interest for the millions of happy customers who simply enjoy the atmosphere and the music at HRCs all over the world. The corporate Web site calls the HRC experience a "truly global phenomenon." About 130 HRCs are out there on the planet now, including in places like Shanghai and Kuala Kumpur. HRC claims to own over 70,000 pieces in its collection, including Bob Dylan's motorcycle and Elvis Presley's shotgun. The theme of HRC is of course rock music, but once inside a store the customer has a chance to explore the history of rock and roll, the roots of the music, some of the early pioneers whose names are not well-known, and more. Staying true to its original motif and theme is one of the hallmarks of HRC. "Classic American food…is still the 'order' of the day at HRC" (www.hardrock.com).

Organizational Description: For individuals interested in the background of a company, one of the first places to visit on a Web page owned by an entertainment-related business -- or any business for that matter -- is its "mission statement." HRC claims its mission is "to spread the spirit of 'rock 'n' roll by creating authentic experiences that rock" (www.hardrock.com). And while a first-time customer spreads the mustard and ketchup on a thick juicy hamburger, and takes that first sip of a frozen margarita, he or she should read the HRC motto, just below the mission statement. The idea of HRC is to "Love all -- Serve All," and moreover, "All is one…Save the Planet…Take time to Be Kind."

Those are some pretty radical ideas -- a for-profit corporation reminding people to be "kind" and to "save the planet" -- when it comes to comparison of HRC with other restaurant chains. But it would appear that companies like HRC and Starbucks, that go out of their way to publicize and advocate for the urgent environmental needs of the planet and the needs of less fortunate people, have had a powerful influence on other restaurants. Chili's for example is "proud to support St. Jude Children's Research Hospital" (www.chilis.com). Customers can use crayons at Chili's restaurants to draw "pepper designs" and make contributions. There are myriad other examples

In the later portion of this paper the "social responsibility" aspect of HRC -- which is very impressive, and one of the reasons this paper is focusing on HRC -- will be covered in greater depth,

The HRC of course is known more for it's theme and the music it brings to fans than for the food or the drink -- or for the service either. Not that the food is anything but very good, but when you are an HRC in Pittsburgh (featuring Marty Dread and the Kryptones) on May 4 or an HRC and in Munich, Germany on May 6 (Metallica, Guitar Hero) you're not thinking about the aroma of char-grilled meat and onions, you are thinking about music and the excitement that fans bring to the classy concert rooms created by HRC. Let's say you are a cocktail hostess at the HRC in Orlando and a big fan of Harry Shearer; what are you doing on May 6, 2009? If you're at work you won't get to be part of the crowd enjoying Shearer, Christopher Guest, and Michael McKean. It's nice to have those decisions to make.

Meanwhile the HRC management team consists of nine individuals at the top of the corporate ladder. Their photos and bios are on the HRC main web site, of course, and it is worth mentioning that 8 of the nine are men and 8 of those 8 appear from their pictures to be Caucasian. Hamish Dodds, President and CEO of HRC, held senior positions with PepsiCo prior to joining HRC, and presently "oversees all aspects of Hard Rock's worldwide businesses" including those in 45 countries (www.hardrock.com). The only woman on senior executive staff for HRC is Kim Creighton, VP for Human Resources, overseeing "recruitment, employee relations, compensation & benefits, and training and development." She has been with HRC for more than 15 years, has a Bachelor's from Jacksonville University and loves the Eagles, the Allman Brothers, and Atlanta Rhythm Section. Note that not every one of the top eight executives list their favorite rock bands, so it is clear that having a favorite rock artist or group is not a necessary part of employment as a top executive at HRC.

The Marketing Strategy

The HRC strategy has been a unique one to say the least. The HRC, with corporate headquarters in Orlando, Florida, has spent 36 years "forging a relationship between its brand and the world of entertainment"(www.brandstrategy.co.uk). And according to Sean Dee, VP and Chief Marketing Officer for HRC, the branding of his company allows it to "translate ourselves across a broad spectrum of guest experiences" and indeed "music allows us to deliver an experience to people, whether it's 90 minutes in a restaurant or a three-day stay in a hotel" (Brand Strategy). Dee goes on to suggest that guest of HRC are "fans of the brand," and he is probably correct.

A more objective view of HRC's marketing strategy comes from Guilio Bruini, chief executive of BrandAmp, a consulting firm advising businesses on brand partnerships. "It's about creating a soundtrack to the brand that people recognize," Bruini explains on the Brand Strategy Web pages. The brand can become multidimensional when people identify with how it "feels" and the "sound," Brunini, and he identifies Starbucks as a brand in the same genre as HRC. The most effective marketing technique that exploded early in HRC's development as an international brand was the "storied sightings of celebrities" which added to the "mystique and unpredictability" (www.FundingUniverse.com). Those visits by celebrities and rock stars created "…invaluable marketing for an organization that invested little time or money on traditional advertising," the Funding Universe marketing writers explained.

All that talk notwithstanding, people ranging into their 50s and 60s -- who grew up with Elvis, Fats Domino, Ricky Nelson and later the Beatles -- flock to the HRC for a taste of rock history and perhaps a serving of "Hickory Smoked Chicken Wings" ("Colossal wings, hickory-smoked in our hardwood smoker…") or maybe a "Twisted Mac, Chicken & Cheese" -- or even a "Grilled Sirloin Steak" ("Choice 8-oz. Sirloin steak grilled to your liking and topped with Merlot-garlic butter…"). Rock fans, food fans, music fans and collectors are likely to have an strong sense of curiosity and interest in visiting a Hard Rock Cafe no matter what country they are in.

Hard Rock Cafe Competitors

Hoovers, a business reporting company, lists three main competitors for the HRC: Johnny Rockets, Live Nation, and Planet Hollywood. Johnny Rockets is owned by the NFL's Washington Redskins' owner Dan Snyder. According to www.hoovers.com Johnny Rockets has over 250 restaurants in 30 states and in 10 other countries. The menu is similar to HRC's menu -- hamburgers, French fries, fresh-made sandwiches and "freshly baked apple pie" to be washed down with "hand-dipped shakes and malts" or "flavored soda pop" (www.johnnyrockets.com). This company is not trying to out "save the planet" anyone, certainly not HRC; under "promotions" the only offer is a gift card.

The restaurant chain that tries the hardest to be like HRC is Planet Hollywood, with a mission statement that uses the word "passion" but not for the planet, for "our guests" (www.planethollywood); Planet Hollywood does not "compromise on our high standards" and maintains "a sense of urgency in everything" they do. On their web site they announce that "Planet Hollywood Kuwait coming soon in 2009!" For anyone traveling to Kuwait later this year, that has to be good news. Seriously, Planet Hollywood has restaurants all over the world.

Live Nation is considered more of a concert destination than a restaurant per se, featuring 22,000 live events annually, according to Hoovers. Live Nation owns the House of Blues chains, and own part of Madonna's music (albums, tours, merchandise), and when you open up their Web site the whole page is promoting upcoming concerts. Not surprising to see concerts by Dave Matthews, Green Day, and other top groups since Live Nation recently purchased Ticket Master.

A recent article in the LA Times reports that 48% of consumers are "eating out less often now than they did six months ago" (Hallock, 2009). John Self, a professor at Cal Poly Pomona in Los Angeles County, who has published a study of why restaurants fail, estimates that about 1,100 restaurants open in L.A. County annually; and among those, 24% close the first year and within three years 50% of those 1,100 have closed. But given the sluggish economy, Self asserts that up to 50% of new restaurants may be expected close in the first year, double the number that close in good economic times.

Data are not available as to how the recession has affected HRC, or Planet Hollywood, Johnny Rocket's or other theme-centered restaurants, but it can be safely assumed that all eateries are hurting to some degree. The recession has also changed the way people date, according to The New York Times "City Room"; "Recent anecdotal evidence suggests that people are not dating less because of the recession," and in fact what they are doing is dating more than ever on online dating sites, that are reporting "double-digit growth" (Buckley, 2009). But with cocktails running up to $18 in clubs and food prices soaring, how many of those couples who hooked up online are planning to visit HRC? That's not a question that can be easily answered, but it is a sure bet that a substantial share of HRC's business comes from couples on a date, or married persons going out on a romantic evening date.

What makes the Hard Rock Cafe service different?

For one thing, the moment you enter the lobby / reception area of a Hard Rock Cafe you are greeted / welcomed by a smiling, articulate young person, usually an attractive female. The music hits you right away. Looking around the spacious room you see people enjoying drinks and meals and checking out the memorabilia. A quick look around at the attractively decorated walls of a HRC reveals not just guitars, signed clothing and photos of Elvis in a pink Cadillac, but also high-visibility evidence that Hard Rock Cafe is serious about "Save the Planet." The philanthropic part of this "high energy" restaurant business is impressive.

Some of the nonprofit and advocacy organizations that HRC supports include: Amnesty International (which shows that HRC is not shy about being identified with politically-active organizations); Breast Cancer Research Foundation; Children's Miracle Network; Crossroads Center (founded by Eric Clapton, who has placed a number of his guitars and other musical instruments in HRCs); Habitat for Humanity; Music Rising; Peace Games; Sharon Osborne Colon Cancer Research Foundation (Ozzy Osborne's organization with his wife); World Hunger Year (WHY) / Artists Against Hunger & Poverty (AAHRP); Farm Aid; Sustainable BioDiesel Alliance; and Wildlife Conservation Society / Cotton Conservation Initiative (CCI).

The impressive thing about Hard Rock Cafe's willingness to be part of the charitable and social change community is the fact that HRC is not shy about linking up with a group like Amnesty International. Log on to Amnesty International's web site at any time any day and there are controversial issues that take many countries to task. "Israel Army probe says it committed no violations of human rights in Gaza," for example, and "First 100 Days…mixed messages from President Obama" (www.amnesty.org).

Summary & Conclusion:

The bold start that the HRC launched in London back in 1971 turned out to be a winner for the two enterprising young men featured earlier in this paper, Isaac Tigrett and Peter Morton. They had the good sense to present a theme (rock music, rock stars, rock memorabilia) that would attract a customer base that is as huge as perhaps any musically-connected demographic in the world. Certainly jazz clubs have plenty of fans, and country music has never been bigger. But rock 'n' roll is here to stay, as some musician once wrote, and where else but at a Hard Rock Cafe can you get a cold beer and wander through a plethora of cool rock items like John Lennon's hand-written song lyrics and Elton John's set list?