Perspectives · F&B industry

Diluted identity with each kilometer of expansion

Three identity control points that an F&B chain needs to overcome before signing a new lease.

Quick summary

When an F&B chain expands into rural areas, the identity often weakens. The reason is that the brand system is not synchronized enough to operate without the founder's direct supervision. There are three control points that need to be refined before signing a new lease: identity assets that can be accurately recreated anywhere, space standards independent of location, and an operational handover process tied to the brand.

Every time a new lease is signed, the brand must prove itself again. At the first location, the founder is usually right there: noticing the wrong paint color and correcting it immediately. Smelling something off and adjusting it right away. But when the chain opens in the second, third, or a province hundreds of kilometers away, that invisible layer of control disappears. The brand identity begins to dilute because the system is not robust enough to replace the founder's direct presence, not because the team is inadequate.

Why geographic expansion is the real test

Many F&B chains look at the number of locations as a measure of success. However, each new location is essentially a test of the brand system's operation without the founder present. That location also lacks the original team and the familiar local cultural context. Contractors build according to architectural drawings, not according to brand perception. New managers learn to operate according to the SOP, but the SOP rarely explains the reasoning behind each rule. As a result, a facility may look similar but does not evoke the same feeling.

85% have guidelines, ~30% execute consistentlyAccording to a 2019 survey by Marq (Lucidpress) and Demand Metric, the majority of organizations have a brand identity system. However, only about 30% maintain consistency in actual operations.

The gap between "having guidelines" and "consistent execution" is where brand identity is lost. Not due to a lack of goodwill, but because the documents themselves are not an operational system.

A brand is not a logo. A brand is the feeling in the gut of customers when they think of your name.

Marty Neumeier, The Brand Gap

Control point one: identity assets must be reproducible accurately

Before signing a new lease, one question needs to be answered first. Can a local contractor execute the brand identity correctly with just a handover document set? And can that happen without the founder needing to be there to check?

If the answer is "maybe" or "we need to see the reality," the identity system is not ready for expansion. Core identity assets need to be packaged into a document set sufficient for a local contractor to execute correctly without needing to decide on every detail. This document set should include four parts: the exact colors by code (Pantone, CMYK, RAL); a typeface with original files; the logo with protection area rules and variations for dark and light backgrounds; and a set of physical applications such as signage, menus, uniforms, and takeaway packaging.

  • Has the color code been confirmed on actual materials, or just on screen?
  • Does the logo file have all formats for large print, small print, embroidery, and CNC cutting?
  • The document clearly states what is not allowed, not just what is permitted.

Distinctive identity assets hold long-term value in the minds of customers only when they appear consistently across multiple touchpoints. If each branch is a different interpretation, the customer's brain lacks enough repeated signals to remember.

50 millisecondsThe time it takes for the brain to form the first visual impression of a space or interface. Source: Lindgaard et al., Behaviour & Information Technology, 2006.

Control point two: space standards must be independent of location

F&B chains expanding into rural areas often face a common challenge: different layout shapes, ceiling heights, and natural lighting. The construction budget is also often lower than that of the original facility. If the spatial identity is only defined through the drawings of a specific layout, it will not be able to be recreated at a new location without distortion.

Space standards need to be separated from specific locations. They must answer three questions: which elements are mandatory regardless of the layout; which elements are flexible based on practical conditions; and what are the limits of that flexibility. For example, the location and handling of the ordering area may be mandatory because it affects the customer journey. Meanwhile, the wall finish materials can be flexible as long as they achieve the correct tone and surface feel.

+30% doanh thuA furniture company participating in a McKinsey study reported an increase in revenue after integrating design into its operational processes. Previously, design was confined to a separate department. Source: McKinsey, The Business Value of Design, 2018.

Wally Olins points out that a brand is expressed through four vectors: product, environment, communication, and behavior. The physical environment is one of the four ways a brand communicates with customers, not just an additional decoration. When the physical environment distorts with each location, a quarter of the brand's communication with customers becomes inconsistent.

Control point three: operational handover linked to the brand

The third control point is often the least noticed. But this is usually where brand identity fades the fastest: the training and handover process to the local operational team.

SOPs (standard operating procedures) in the F&B industry often focus on measurable outcomes: preparation time, ingredient ratios, storage temperatures. These factors are necessary but not sufficient. The team at the new branch needs to understand the reasoning behind each regulation that affects brand perception, not just know how to follow the steps correctly.

  • Why must communication with customers follow a specific tone, and what is that tone?
  • Why are certain small details not allowed to be changed even if they seem unimportant?
  • In case of an incident, which handling principle reflects the brand's personality?

A brand is behavior, not just an image. A facility may look right, but if the team does not embody the brand, it will gradually create mismatched experiences. Customers recognize that mismatch before they can articulate it.

Note on the data in the article: the figures 85% and 30% regarding brand guidelines come from self-reported surveys by Marq (Lucidpress) and Demand Metric in 2019. The survey sample primarily consists of small and medium-sized enterprises in North America and Europe. The 30% revenue figure from McKinsey comes from a specific case in qualitative research, not the average across the entire sample. Both figures are used to illustrate trends, not as forecast results for any specific business.

Before signing, check these three questions

The three control points can be distilled into three practical questions for self-assessment before signing a new lease.

First, if you send the identity document set to a contractor you've never met in another province, can they execute it correctly? Or will you still need to be there to decide on every detail? Second, if the new location has a completely different shape from the original facility, do you have a space standard to determine what is mandatory and what can be flexible? Third, if a new manager starts working without you by their side, after how many days of training can they make decisions that align with the brand in situations not covered by the SOP?

If all three questions have clear answers, the brand system is ready. If not, that gap needs to be filled before signing, not after the facility has opened.

References

Wally Olins, On Brand. Marty Neumeier, The Brand Gap. Jenni Romaniuk & Byron Sharp, How Brands Grow Part 2. Marq/Lucidpress & Demand Metric, Brand Consistency Report, 2019. Adobe, Content Authenticity and Brand Governance Report, 2022.

Frequently asked questions

Why does the chain have brand guidelines but the identity across branches is still inconsistent?

Brand guidelines are documents, not operational systems. When a new branch is managed by a local partner or a new manager, they often interpret the guidelines in their own way due to the lack of a specific handover process. Consistent identity requires both documentation and a mechanism for checking and approving before construction.

Does standardizing the space mean that all branches must look exactly the same?

Not necessarily. Standardization ensures that core identity elements, such as colors, typography, and the layout of key areas, appear consistently. Secondary elements like finishing materials or layout can be flexible according to local conditions, as long as they do not blur the overall brand perception.

When does an F&B chain need to hire brand consultants before expanding?

When the brand owner cannot answer three questions themselves. Can identity assets be accurately recreated without you by their side? What will the new space look like without you deciding on every detail? How many days of training does the new team need to understand the brand well enough to operate correctly? If all three questions lack clear answers, that is the time to start.

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