Brand Blog

I attended a presentation from Tom Baldwin, CEO of Morton’s Steak Houses, where one of the main topics of conversation wasn’t about steak or service or location selection – it was about brand. Morton’s actually generates more revenue per diner than any of its competitors – about $94 per diner, compared to amounts in the $60s-70s for Ruth’s Chris, Flemings, Smith & Wollensky and the national steak competitors. Why? Well, they emphasize wine as a greater part of their dining experience than others, and that helps, but Tom says their real reason is the power of the Morton’s brand. Over the years, they used to worry as their steak prices broke various pricing points, passing above the $20 mark for the first time, then $25, then $30, etc. And then, as they realized that these price points had no impact on their revenues, Tom says they came to understand that their primary asset is the brand experience at Morton’s, and if they took great care in preserving that brand, they would have all the pricing power they needed. Brand = Pricing Power became their internal mantra, one that would apply to many other companies as well.