There's an old saying that when the going gets tough, the tough get going.

The adage certainly applies to Michael Mack, CEO of Rancho Bernardo's Garden Fresh Restaurant Corp., parent of the popular Souplantation and Sweet Tomatoes chain of family-oriented eateries.

The stores features fresh salad items, along with soups, pastas, breads and desserts, each dinner for under $10.

Since acquiring the original two Souplantation restaurants in 1983 (The Sweet Tomatoes name is affixed to stores outside California), Mack has grown his business into a $300 million-a-year operation involving 115 restaurants nationwide employing close to 6,000 workers, including 65 workers in the corporate offices on Bernardo Center Drive.

Nevertheless, the fast growth he experienced for years came to a halt in 2008 as the economy took its steep nose dive. Mack said he knew that he had to act immediately to stave off a huge drop in sales. Same-store sales were flat, and falling.

"It was a crisis, and I just knew that it wouldn't be short term, but it would last a long time," Mack said. "We had to act."

And act, he did.

One of the first steps he took was to join the social media explosion then just emerging online to better stay in touch with customers.

With the help of digital marketing firm Red Door Interactive in San Diego, Mack moved aggressively into new "channels" such as e-mail, Facebook and Twitter to "start conversations with our guests."

"We want them to get to know us better, and for us to know them better," he said.

For example, the campaign to add new members to the Club Veg email promotion list was especially successful. The number of subscribers jumped to 1.4 million in September 2010 from 1 million a year earlier. Subscribers receive coupons good for discounts, as well as notices of changes to the menu.

"It's a great tool, "Mack said. "And it keeps us in touch with our guests."

As the recession worsened in 2009, Mack decided to adopt a new business model for some sites, going to smaller stores as he expanded into new markets.

Traditional stores seat 200 to 220 in 7,000 to 8,000 square feet of space. The smaller stores—the first opened in Encinitas in March—seat 200 in 4,000 to 5,000 square feet of space.

"The smaller size allows us to reach profitability with fewer customers, and reduces the risk of investing in the larger stores," Mack said. Plus, there are more potential sites in the smaller sizes. The traditional sizes still command a premium, even in a depressed commercial real estate market.

Lessening the financial risk has become especially important since it has become more difficult to predict sales because of the economic conditions.

"We had to rethink how we did things. It was a direct result of the economic environment," Mack said.

Garden Fresh is opening six new stores in the smaller format, including new sites in Florida and Nevada. One of the prototype stores is opening later this year in Escondido.

Looking ahead, Mack is also experimenting with retail store sales to increase growth. Costco stores in the West are selling "Joan's Broccoli Madness soup," a favorite for restaurant customers. He could add additional items, after assessing how retail sales go for the soup.

One online marketing expert says Mack has been smart in how he has used social media to keep sales headed in the right direction.

"Garden Fresh has been a leader in leveraging social media to interact with guests and fans," Red Door Interactive CEO Reid Carr said. "[But] I don't think they're a leader because they wanted to hop on the latest trend. They are leaders because they listen to guests and care about their experience."

Previously, the company used a classic focus group, added Reid. "Now, they hear from their guests in real-time all the time. Then, more importantly, they react."

Despite the success of his social media campaign and adopting smaller stores sizes, as well as experimenting with retail sales, Mack said he continues to make sure that his customers get good value for the hard-earned dollars they spend with him.

His chefs are constantly experimenting with new recipes in the test kitchen in Rancho Bernardo, for example. Changing the menu and testing new items is part of the corporate culture, he said.

"I think the heart and soul needs to be about the food," Mack said. "Our guest appreciates that."