by: Geoff Ficke
One of the pioneering brands in the fast food business was the venerable Horn & Hardart chain of automat restaurants. Started in Philadelphia in the 1890’s by partners Joseph Horn and Frank Hardart, the stores became hugely successful. The restaurants were famous for their unique food delivery system and iconic interiors.
The chain quickly expanded from Philadelphia to Manhattan and their location on Time Square became a tourist attraction. Horn & Hardart was famous for displaying their entrees, sandwiches and desserts behind little glass windows. The customer placed the correct change in the money slot and the door was then unlocked and the food removed. As soon as a serving was taken another was placed in the compartment by hand.
The automat was the precursor of the modern fast food restaurant. The Company expanded aggressively in the Atlantic region and at one time, during the Depression, operated over 150 stores. They popularized the phrase “Less Work for Mother” and take-out food.
And yet, Horn & Hardart went into a steady decline after World War ll and closed its last remaining outlet in 1991. What happened? How can an industry leader and trend setter become so inconsequential and obsolete that it goes extinct?
Joseph Horn died in 1941. Three generations of the Hardart family continued to run the business until the 1980’s. As so often happens when visionary entrepreneurs pass from the scene there is often a loss of focus and drive to stay ahead of competitors. In the 1960’s fast food restaurants became ubiquitous and as the population became more mobile, Horn & Hardart did not react to changing consumer buying and eating habits.
In marketing consumer products and services there is an old adage that always holds true: “You are never the greatest, only the latest”. As the great baseball pitcher Satchell Paige often said, “Don’t look over your shoulder, someone might be gaining on you”. Marketers, entrepreneurs and product innovators must protect their position in the market by constantly improving existing product and by introducing new products that bring consumers back into stores for their wares. In every business category from retail, to auto manufacturing, to cosmetics to airlines, and more, there are endless examples of once mighty industry leaders that have been replaced by more nimble, forward looking visionary companies. These new business leaders too will fall if they do not respect and react to this oldest of marketing truisms.
