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The Honolulu Advertiser
Posted on: Sunday, September 24, 2006

Mrs. Fields sweetens her look as she hits 30

By M.R. KROPKO
Associated Press

The Mrs. Fields store in Cleveland's Westfield Great Northern mall has seen sales rise since becoming the prototype for a company redesign.

TONY DEJAK | Associated Press

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JUST THE TIP OF THE COOKIE

About to turn 30 next year, Salt Lake City-based Mrs. Fields stores are ready for a makeover, starting with its suburban Cleveland store in the Westfield Great Northern shopping mall.

STILL SO SWEET: The white and red colors and bright lights typical of Mrs. Fields stores nationwide have been replaced in this mall's store with all-red walls, softer lighting, a wider display case, some new cookies and brownies and lighted signs displaying customer options for snacks, drinks or gift packages.

WAY BACK WHEN: Mrs. Fields started when Debra J. "Debbi" Fields, a 20-year-old with a love for cookies, on Aug. 16, 1977, opened Mrs. Fields Chocolate Chippery in Palo Alto, Calif. The small, walk-up store format found a perfect setting for growth mostly in shopping malls.

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NORTH OLMSTED, Ohio — Clara was being good.

The 3-year-old had just left a mall photo studio with her dad, Craig Orr. He told his daughter she had earned a treat, and just then she spotted a sweets shop that glowed red. She pointed. Dad willingly complied, and a Mrs. Fields cookie was soon in Clara's tiny hand.

That's just the way Mrs. Fields likes it to happen.

About to turn 30 next year and its parent company coming off a year of profit losses, the business known internationally for its chocolate chip cookies and other treats is being made over. It's starting at this suburban Cleveland store inside the Westfield Great Northern shopping mall, where walls have been painted red, lighting softened and the menu revamped to include gourmet coffees.

"Obviously the color red is very appealing. The lighting is nice. It's a very modern look," said Orr, glancing at the freshly remodeled store with a name in big white letters out front that Clara is too young to read but are familiar to older generations.

The store was chosen as the model for the Salt Lake City-based chain's redesign because it was planning to move to another location in the mall anyway.

Mrs. Fields officials say how many of its 503 stores will be redesigned, and when, depends on the response to this one in Ohio.

"I think the single biggest difference is warmth of the experience," said Leslie Snavely, brand manager for Mrs. Fields. "We want our customers to say, 'I deserve this. I want this."'

The change already appears to be paying off. Since Sept. 7, the remade Ohio location has seen about 60 percent better sales than the same period a year ago, said Jim Bird, franchise operations director for Pacific Hospitality, based in Santa Ana, Calif., the franchisee which oversees the North Olmsted store and 26 others Mrs. Fields shops mostly on the West Coast.

While there have been changes, much has stayed the same: Mrs. Fields is still stuck on decadent cookies and brownies and the business remains walk-up, with treats displayed in glass cases.

The store used to have more white mixed with red accents, and the redesign came with a wider display case to fit more products and lighted signs to better display options for snacks, drinks or gift packages.

Mrs. Fields is also expanding its drinks menu, with smoothies as well as specialty coffees. Dunkin' Donuts, McDonald's and Burger King have similarly introduced high-end coffees.

The store also has some new sweets to go with its new look, including new brownie flavors that are planned for shops nationwide.

New York City-based food business consultant Arlene Spiegel said any changes in product offerings and store appearance are important in a highly competitive market depending largely on customers walking past.

"Mrs. Fields intercepts them, much like a Starbucks would," she said. "In order to get noticed and be differentiated, design and sensuality of the brand has to be enhanced."

Mrs. Fields started when 20-year-old Debra J. "Debbi" Fields opened Mrs. Fields Chocolate Chippery in Palo Alto, Calif., in 1977.

She is no longer part of Mrs. Fields, which was acquired in 1996 by Capricorn Holdings, a Greenwich, Conn., investment firm.

The company is now part of the privately held Mrs. Fields Famous Brands, which posted a $37.9 million loss in 2005 after a $2.7 million profit the year before.

The loss was tied to write-offs for its TCBY frozen yogurt brand, which the company is trying to revitalize, spokesman Michael Frandsen said.

The company also operates Great American Original Cookie, Pretzel Time and Pretzel Maker stores. During the first half of 2006, the number of stores declined from 2,479 to 2,384, as company shops were sold or franchised stores closed.

The Mrs. Fields makeover is not directly tied to competitive pressures or losses, Frandsen said.

Some analysts suspect otherwise. Every brand reaches a maturity level, a staleness, and needs to find new ways to attract customers, said Karl Bjornson, a retail management consultant for New York-based Kurt Salmon & Associates.

"Mrs. Fields took something as common as a cookie and turned it into a phenomenon," Bjornson said. "But there have been a lot of changes in the competitive pressures over almost 30 years. Now they have a lot of competition."