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Today’s Restaurant Marketing Strategies – From Discounting to Delivering Value
In recent conversations with restaurant marketing leadership, I heard mostly familiar themes when discussing their marketing strategies. There are smaller concepts that have seen some success with the promotion of “Name Your Name” and other unique efforts to drive sales that have attracted a lot of media attention. But most of the restaurant people I’ve talked to stick with traditional marketing strategies, with the occasional “toe in the water” when it comes to less-tried-and-true methods of increasing market share.
Among the most common marketing strategies that some restaurant executives have shared with me are limited-time-only discounts or promotions. Jean Smoke, Marketing Manager for the 550% 2B unit concept TacoTime, told me that her concept “has a limited time offer from their world famous line of Crisp Burritos, a Crisp Pork Burrito at a discounted price of $1.99 .” They found that this offering brought in their Crisp Burrito fans as well as new customers for an exciting new element. Frank Day, president and CEO of RockBottom Restaurant and Brewery, said his concept “has built traffic and created some excitement with consumers by running a variety of promotional features, some supported by the media but mostly within the four walls of his restaurants. are developed”. Marc Geman, President and CEO of Spicy Pickle, a 40% 2B food and sandwich unit concept, said his brand will be, “rolling out a Picklenomics menu that will offer your own build-your-own portion as well as half sandwiches with soup or salad. Drinks and snacks that will combine a high quality product with a reasonable price.”
Along with discount shopping lines, Pops for Champagne in Chicago is offering a Low Cost Promotion. “From 3-7pm weekdays, guests receive a 37% discount on any food they order,” Tom Verhey, owner of the country’s longest-running champagne bar, shared with me. Dan Beem, President of Cold Stone Creamery, was pleased with the results of his concept when they brought their new ice cream cups to market at an introductory price. “Their response was so great that our stores could hardly keep the dolls on the shelves and as a result our sales increased.” Paul Damico, President of the Tex-Mex concept, Moe’s Southwest Grill, said that their goal is $4.99 Joey Jr. The bundle was twofold. “First, we wanted to offer our guests the right size portion. Second, we wanted to give our guests a meal option under $5. This was a successful strategy and we plan to continue in these difficult economic times. expand your menu in the same way. times.” In response to Subway’s $5 promotion, Jeff Warfield, Chairman, President, and CEO of Submarina, a California-based deli concept, released a $5 meal that includes a 6-inch sub, soda and chips. “Our 6-inch bun has as much meat as a 12-inch Subway, and we use fresh-baked bread,” claimed Warfield.
Few restaurant concepts had more to share with me in terms of marketing strategies than offering discount pricing and limited-time promotions. One way that some have linked is to improve their online presence. TacoTime recently updated their website to provide more convenience to their customer base. They have some online promotions coming up soon, including a “match” contest. He and Cold Stone Creamery are also looking to build their online presence through increasingly popular social marketing methods such as Facebook and Twitter. Josh Richman, CEO of Happi House said, “Our most targeted strategy is to create an email club for our guests. Every new address collected online or at the restaurant includes a free meal for joining, a free birthday offer them, and monthly promotional messages.” Happi House can track message views, published rejections, which are the most successful offers, and who are their most loyal members.
Other restaurant concepts focus on staying relevant to their customer base. For example, Submarina and Spicy Pickle both emphasize the healthy aspects of their menu offerings, not only the nutritional information, but the lack of enzyme/preservative/filler content in their ingredients. Pops for Champagne appeals to the generosity of its guests with its Tuesday Toast Offer. Guests are encouraged to find something to celebrate and visit Pops to enjoy a specially priced glass of champagne. Pops will donate $1 from each bottle to the Chicago Job Council, an organization that helps people in poverty find career opportunities. According to Megan Winters, Director of Marketing for North Carolina’s Port City Java, they are “making an environmental, economic and social difference with their Fairganic coffees.” In response to the increasing adoption of “green” efforts, Port City Java uses only organic beans that are grown in a way that has a low environmental impact.
While most restaurant concepts have made some sort of adjustment to their marketing strategy in response to the market, there are a few I’ve talked to who feel they’re positioned in such a way that they’ll simply continue to do what they’re doing now. Jeffery Bank, CEO of Alicart Restaurant Group in New York, said of one of their concepts, “Carmine’s has been around for over 19 years and is an original Italian family style concept. It’s a great value…a brand in this economy. is perfect and that’s why our sales are high, not low.” In this case, “if it ain’t broke, don’t fix it” seems to work.
While there are changes in the subject, current conditions certainly call for restaurant concepts to ensure that their marketing strategies are effective and sustainable until the market improves.
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