How Linda Chadwick created a ‘culture shift’ at Rita’sHow Linda Chadwick created a ‘culture shift’ at Rita’s

Linda Chadwick spent the early part of her career working her way up the ranks at Burger King. She started as a business manager and franchise business leader and moved up to vice president of franchise operations for the company’s Southeast Division.

In 2013, when a chief executive officer position became available at Fantastic Sams and then for parent company Dessange International, she jumped at the chance to lead. But she missed the foodservice space, and so in 2017, when the opportunity came up to take on the same role at Rita’s, she jumped again. She’s been leading the Italian ice dessert brand since.

“I missed food. I never had my sights set on making it a career, but it chose me and then I chose it,” Chadwick said during a recent interview. “I did every position I could in the restaurants and worked my way up, and I loved it.”

The Burger King VP role prepared her for her subsequent CEO roles, but to further prepare her for Rita’s, Chadwick first became a customer. She visited about 30 locations and mystery shopped to do her research. From those visits, she was able to create a list of what she thought the brand needed.

“I didn’t pull any punches. They were shocked and maybe put off a little, but I didn’t have anything to lose because I was already a CEO,” she said. “I had to make sure it was a good fit.”

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In the seven years since, Rita’s has grown by almost 140 locations even while closing “a bunch of underperforming” ones out of the gate. Last year, the 40-year-old brand grew its year-over-year sales by 9%, to $182.2 million, while its footprint grew by 4.2%, to 547 locations, according to Technomic. There are 45 new units expected to open this year.

Chadwick is now focused on building drive-thrus – “where I cut my teeth” – and building average unit volumes. New processes have also been put into place, which she called the biggest opportunity.

“I feel very strongly about this. If franchisees don’t make money, we don’t. They have to be successful for the brand to be successful. Also, creating new processes is just basic blocking and tackling. Every problem that comes up, you have to know what the root cause is to get beyond it,” she said.

Technology has also come into sharper focus for the brand. When Chadwick came on board, Rita’s did not have a standardized point-of-sale system. Now it does. The company also developed its own app to maximize the online ordering experience and added a kitchen display system to create more operational efficiencies.

“Every shop we have chooses their own flavors and they’re made fresh daily in store with real fruit. So, franchisees needed a way to change flavors on the app, on third-party digital apps, and on the fly. These systems can do that and it makes things easier for franchisees,” she said.

Plenty of work beyond blocking and tackling has also been done. Chadwick created key performance indicators that didn’t previously exist, for instance. This led to a “whole culture shift,” she said.

“I believe in meritocracy. Restaurant operations [are] about doing a great job, but if you did a great job yesterday, you still need to do a great job today and tomorrow. It’s harsh, but this industry is harsh,” she said.

Her priority KPIs include same-store sales growth, EBITDA growth, zero-based budgeting (a budgeting technique in which all expenses must be justified for a new period starting from zero), and unit growth. For the unit growth piece, the chain currently exists in 32 states and Chadwick says, simply, “It should be in 50.”

“There is a lot of white space we can cover in the U.S., and we’re excited about that. But we’re going to grow smart. The product is fresh, so distribution plays a major factor. We’re not going to open one shop in an isolated area,” she said.

Also on Chadwick’s watch, Rita’s has leaned into flavor innovation more aggressively, teaming up with brands like Sour Patch Kids candy, Kool-Aid, and Nerds to do so. Chadwick said flavor innovation is particularly important for the brand, which is considered a destination. Even as consumers tighten up their discretionary spending, Rita’s has remained a destination, she said.

“When we launched Unicorn Ice with edible glitter, people showed up in droves. That’s a good example of how we’re keeping our flavors relevant and exciting, which makes people want to come back,” Chadwick said. “If things are hard, like they are now for a lot of people, you might not go have a sit-down meal or quick-casual meal as a family as much. Maybe you cook at home more. But you’re always going to treat yourself and we’re reaping the benefits of that. How can you be crabby when you’re getting a frozen treat?”

Contact Alicia Kelso at [email protected]