Alternative Revenue Focus | Monday, December 14, 2009
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Restaurant-Level Marketing: Why Do It? Restaurant Chain Operators Use Local-Store Marketing Tactics to Drive Traffic and Create a Connection with Customers Restaurant chains work hard to ensure that guests visiting a unit in, say, Poughkeepsie will get the same treatment when in Dubuque or El Paso. But within a carefully orchestrated culture of sameness, there are times when unit-specific is the better way. "Local specials drive traffic, and getting customers in seats is what everyone needs right now," says Susan Franck, vice president of marketing for Atlanta-based family-dining chain Huddle House. "There is a real battle for each guest, and deals are everywhere, so events that offer that added benefit and allow franchisees to connect with consumers in a personal way are what it's about." Take California Tortilla's Meet Mona event, for example: The new owner of one of the chain's restaurants invited local guests, enticing them with games and prizes including a chance to win free burritos for a year. The event cost less than $1,500, reaped sales double those of the same day the prior year and added 200 names to the store's database. Random Acts While Meet Mona was a one-off, Random Acts of Spunky is an ongoing local-store promotion that 39-unit, Rockville, Md.-based California Tortilla uses to keep local buzz going year-round. Marketing-team surprise visits to randomly selected units, Random Acts of Spunky create a carnival atmosphere with prize wheel, logoed merchandise, free chips and queso with any purchase (or similar deal), and the chance to win free burritos for a year. Store owners choose which three-hour window they want to host the promotion. Most go for the 2 to 5 p.m. slot; some do it during the lunch rush. According to Director of Marketing Stacey Kane, restaurants see an average of 10 percent increases in sales during the Random Acts hours, topping sales on any day in the previous six weeks, and the event only costs $100. Indie Credibility Also inexpensive but effective, Vancouver, Wash.-based restaurant chain Burgerville says it has built awareness among a younger demographic with local-band promotions. This summer Burgerville started hosting hometown rising stars in a biweekly Summer Music Series at select restaurants on Thursday evenings, promoted via Facebook, Twitter and MySpace. Local performers included The Red Spades, a classic-inspired local band from Vancouver, and R. Michael Torrey, a local singer/songwriter. Four of the chain's 39 units participated this year, and based on results, more may do the promo next year. According to Cathy Miller, director of marketing, one participating unit manager said guests felt very comfortable with the live performers, stayed longer and came back up to the counter to order extra food and desserts during the performance. Another general manager stated that the restaurant made approximately $200 more during the two-hour Summer Music Series performance than it did all day the prior Thursday. Just for You Sometimes local promotions are meant to make customers feel as if they are getting something just for them. Mike Curtis, vice president of marketing for Chattanooga, Tenn.-based Gordon Biersch, says operating only one or two restaurants in seven very diverse and high-media-cost markets means focusing on customized marketing plans for each market "is the only way for us to effectively deliver a relevant message and connect with our potential and loyal guests." Gordon Biersch reaches out frequently to its Passport Members, inviting them to special events at local units. For example, each restaurant hosts a tapping party for every seasonal beer introduced. As part of the celebration, loyal Passport Members are invited to tap the kegs, "just like the German tradition of having a Mayor of the town do the honors," Curtis says. Salsarita's Fresh Cantina is another believer in the power of local-store marketing. "We built our entire marketing platform on the local approach," says Paul Mangiamele, CEO of the 80-unit, Charlotte, N.C.-based restaurant chain. "It makes sense because our system is made up of locations that focus on different demographics." So while salsa dancing classes and knitting classes are great traffic drivers at some stores, a silly collegiate promotion was a better fit for Greenville, N.C. Because the East Carolina University team mascot is a pirate, the Salsarita's there promoted a special Pirate Day last year Anyone who came in and spoke like a pirate that day got a free taco. The Power of Free Whether it's free pizza handed out at college freshman move-in days by Whitewater, Wis.-based Topper's Pizza or an iPhone from Beaumont, Texas-based Jason's Deli, a lot of chains agree that free is often key to site-specific-special success. "It never ceases to amaze me how much people love free stuff," says Huddle House's Franck. Even free coffee mugs are effective, she says. "We circulate our travel coffee mugs to teachers at nearby schools and other VIPs in the restaurant's trade area as a way to show our appreciation in each of the communities that support our brand," Franck says. "Simple, inexpensive tactic, but it produces great results." Real-Time Marketing Whatever the promotion or the prize, the power and speed of social media means events can be hatched and happening very quickly. "Now, instead of promoting what's happening in a few weeks, we can have managers text local-store guests to let them know about an event that's happening in a few hours -- it's real-time marketing," says Dan McGowan, president of Chicago-based Big Bowl. Big Bowl's new Food Fortunes Mobile Club can be customized by location. Diners join the club by texting a code with a specific Big Bowl location. Members then get "fortunes," special offers exclusive to the club, texted to them once every two weeks. While most of these offers (such as complimentary desserts, egg rolls or appetizers, or reduced-price packaged goods) are good systemwide, each unit manager is allowed to do spur-of-the moment promotions only for those members who signed up at their specific unit. Jason's Deli is big into social media as a tool for its local marketing, too. "Our best examples of unit-specific promotions are 'tweet ups' via Twitter to help particular unit delis around the country," says Daniel Helfman, director of marketing and public relations for the 218-unit restaurant chain. A July 2009 trivia tweet up at its Round Rock, Texas, deli (across the street from Dell Computer's headquarters) drew "a large crowd," says Helfman, which was excited about the trivia prize: a free iPhone. Nightly Happenings Tampa, Fla.-based The Melting Pot is moving in that direction. The restaurant chain recently hired a new manager to orchestrate a company strategy for social media and says it will have guidelines ready by mid-December. In the meantime, The Melting Pot continues to leverage its e-mail database of 1.7 million Club Fondue members, along with posters and table tents, to spread the word about unit-specific special events throughout its 144 restaurants. Among the most effective local-store events are the Ladies Night Out and '80s Night promotions it's been doing for the last several years. "Tuesday and Wednesday nights are typically our slowest, so franchisees often feature these promotions on those evenings once or twice a month to boost traffic," explains Adrienne Drew, local marketing specialist for the fondue chain. For Ladies Night Out, locations offer a discounted three- to four-course menu. To enhance the evenings, many locations partner with vendors for gifts such as spa treatments; events featuring such gifts generate from 10 to 50 percent more sales than Ladies Nights that don't. Similarly, '80s Night promotions also include three-course menus for reduced prices, and feature '80s-themed drinks, music and costume contests. Results are impressive: During a recent '80s Night in Columbus, Ohio, the restaurant did $10,000 in sales and 260 covers compared with an average Tuesday night of $3,000 in sales and 75 covers. Expanding on these themes, some Melting Pot franchisees have recently been hosting Double-Date nights and Kids Chocolate Tours. (Source: Chain Leader, 11/24/09) How You Can Make Money: The key for these restaurant promotion successes is the same for any business: You have to give even your very best, most loyal customers a reason to go there. How often we hear from local businesses, "Everybody knows we're here." Yes, but are you giving them a reason to come back today? And while it's true that the restaurants in your market can do these promotions without you, your saleable assets are: the ability to churn out a turnkey promotion (how many of these owners/managers want to do all that work themselves, seriously?), a glut of fun, creative ideas (many others are just not able to generate the same ideas that seem to come so easily for us), and, most importantly, you can deliver the consumers that listen to your station. Some may already be customers, but their brand loyalty to your station plus the promotional activity will bring them out for that extra visit. And you've added all those first-time customers to their mailing list. If your station is not already doing so, it is imperative that you use your station Facebook and Twitter accounts as touchpoints for your campaigns. Especially since Twitter offers the added benefit of being a late-in-the-day reminder for those who intended to participate and then forgot. And you've got the added benefit of generating excitement of Tweeting in real time from the event. It isn't just for "Good Morning America" anymore. Restaurants tend to not be very keen on giving away stuff for free, but a Gift-With-Purchase campaign works wonders. It's especially suited when the "gift" is a new product the restaurant is rolling out and curious consumers are not yet convinced enough to lay down actual money for it. Click here to add your comment about the article. 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