Rebranding a business when owners split.
Key is to maintain the elements that made the business succeed

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Pacific Business News by Jenna Blakely, General Assignment Reporter

Dominique Quinette opened her second Honolulu eatery this fall, this one at 1102 Bishop St. in the Union Mall.

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A successful family-owned business took an abrupt turn this year when its husband-and-wife owners divorced, leaving one of them with the challenge of building a new brand.

Their story speaks to the issues that many small businesses face, as they deal with personal as well as economic forces.

Dominique and Rick Quinette had built a fast-growing business, manufacturing and selling sausages with their own condiments. They began 12 years ago with a little stand on Kauai called Puka Dog, quickly relocating to the Poipu Shopping Center. Sales soared 152 percent within the first year and grew another 60 percent the second year.

In 2007, they expanded to Waikiki and built Wahine Brand Corp., an exclusive manufacturer of their tropical relishes, mustards and bread.

Then came the divorce and decisions about how to carve up the business. Rick kept the original Puka Dog on Kauai while Dominique took ownership of the high-traffic Waikiki store and the manufacturing company, which continues to supply the Kauai store.

But Dominique lost the Puka Dog brand.

“It was my decision to give him Puka Dog in Kauai,” she said. “I took a big risk but I trust and I believe.”

She began rebranding the Waikiki business in April under a new but similar name — Hula Dog®

Meanwhile, she prepared to add a second Oahu location — it opened in Downtown Honolulu in October.

“I lost 15 percent of my income, and what took me five years in business at the Kauai store will take me 12 years here,” she said of her rebranding. “The business was increasing each year, but because of the name change I went down in revenue, which has been the hardest part. I have to re-create myself and the confidence of the client, but it is only the beginning.”

She said customer awareness is improving, especially among visitors, who account for most of her business in Waikiki.

“It’s funny to see how people react because they were very attached to the original name,” she said. “I had one customer who complained that we were copying Puka Dog and so I had to pull him aside and explain the situation.

“People are starting to embrace this name,” she added. “I have a lot of people telling me that local residents love the name Puka, but the tourists prefer Hula because it’s more easily associated with Hawaii.”

To seek help, Dominique turned to Joseph Burns, director of the Hawaii Small Business Development Center, who had been advising her on an array of business-related matters.

Burns says a key to rebranding is to maintain product consistency and effectively communicate that consistency to consumers.

“There’s always a danger in rebranding in that all the work you’ve done before is going to be wasted,” he said. “The challenge is to be able to carry forth the elements that made you successful before the new brand.”

By talking directly with customers, Dominique has been able to reassure them that the name change does not alter the product that they have grown to love. But rebranding all aspects of the business has proven to be a financial burden — she spent $30,000 to update her advertising, signage and paper products and to build a new website.

She said it’s too early to project this year’s revenue and, with Burns’ help, she is in the process of upgrading her financial reporting system. Between her two Hula Dog® stores and manufacturing company, she had been lumping her financials together, which limited her ability to tell how well each entity was doing on its own.

That is changing.

“We are setting up profit center reporting so she can see how each store is doing individually,” Burns said. “It’s fairly common in small businesses to want to lump financials together because many small-business owners tend to focus more on the craft and operational side. But raising the level of sophistication in financial reporting will provide needed information to make informed decisions.”

While maintaining consistency, Dominique is diversifying her product mix to help Hula Dog® stand out as a separate entity. She has added items such as new relishes to the menu and plans to diversify Wahine Brand Corp. by offering packaging services to other companies.

Both Rick and Dominique Quinette say they believe that Puka Dog and Hula Dog® can succeed on their own.

“I want to strive to be better, but my goal is not to destroy anyone,” Dominique said. “Puka Dog will always be my first-born.”

Rick said Hula Dog’s recent branding efforts haven’t impacted his business and he doesn’t plan to make any changes to the original menu.

Dominique envisions further expansion. Next up, she says, is a bamboo hut on Oahu’s North Shore for her third Hula Dog® and

 

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