HEARD the one about the banker, the airline boss and the celebrity chef. The week has been no laughing matter for Sir Fred Goodwin, Michael O’Leary and Heston Blumenthal.
The banker has come under attack over his pension plans; the airline boss said he may charge his passengers £1 to use toilets on his aircraft, and the chef found himself forced to shut his flagship eatery in a health scare.
Behind each of these stories lies a variety of serious business issues. Not least among these is the impact the week’s events are likely to have on the public’s perception of the businesses these three represent. Try as they might, it’s impossible to see the RBS group of banking interests continuing with business as normal. Bankers, surely, must by now have overtaken estate agents and journalists on lists of some of the most disliked professions.
Lavish as his government-endorsed pension provision is, Sir Fred Goodwin is undoubtedly taking a disproportionate hit from all quarters in which bankers have become vilified figures. He and his political adversaries have been operating in a land so far removed from the reality of the situation facing their customers and voters for so long, they cannot be surprised by the scale of the backlash. The concerted attack on RBS, and other banks must be having an impact on the number of people opening new accounts with the struggling business.
In time, and assuming the brand survives, those responsible for it will have to regroup and decide how best to re-establish consumer confidence. In time.
Now is not the time, and that’s why the appearance of the RBS brand throughout the weekend’s Six Nations rugby internationals will have prompted some smiles and some head shaking across the land. RBS has spent millions on its sports sponsorship programme in recent years, and this week is most definitely not the time to remind existing (angry or worried) customers or potential (incredulous and choosey) customers that it’s bank with a big sponsorship budget.
Ryanair rarely seems to take the conventional route towards any business goal.
If British Airways once preened itself as the world’s favourite airline, we could be forgiven for thinking the Dublin- based budget carrier is striving to be the world’s least favourite. There is no doubt its profile is high – but what value can be placed on its brand equity? Squeezing customers until they squeak is a dangerous tactic in any market. In one as volatile as aviation, right now it’s bizarre – even by Ryanair standards.
And that takes us to The Fat Duck. With battered brands topping this week’s menu, this could be the one that survives with least damage. Mr Blumenthal may be a maverick culinary expert but he has handled his passage in front of the media spotlight in a far better way than some of those with whom he is sharing column inches and air time this week.
MATT JOHNSON is chairman of Mando Group.
