Taco Bell Runs Naughty TV Ad For ‘Happier Hour’

March 27, 2014

taco-bell-campaign-188_2To drive awareness of its “Happier Hour,” which runs from 2 to 5 pm each day, Taco Bell is running new TV creative that’s slightly naughty, in a playful way.

The spot (in 30- and 15-second versions), from Deutsch LA, shows three different scenarios in which male/female pairs — office colleagues, college students and seniors — exchange suggestive looks and then appear to be heading out together for a tryst, as the song “Afternoon Delight” plays in the background.

But it turns out that they’re all actually headed to a Taco Bell, where they can get any “Loaded Griller” for $1, and any medium beverage for the same price, during those three afternoon hours.

The “Afternoon Delight” version is a Little Hurricane cover of the 1976 Starland Vocal Band song.

The keen-eyed viewer may notice a cameo by “America’s Next Top Model” winner Laura Ellen James, playing a college student who clearly makes the day of her much-shorter classmate when she lures him out of an in-progress lecture.

The spot started airing this week on networks and cable, and will continue running through the end of June, with additional media support through the end of August. Happier Hour is being promoted on Taco Bell’s social assets, including Facebook (10 million “likes”) and Twitter (1.1 million followers), as well as featured on YouTube.

Happier Hour is described in consumer promotions as a “limited time offer,” but it’s been running at participating locations since last year (an “always on” promotion), according to Deutsch. The current marketing push is the second campaign for Happier Hour; Taco Bell also ran a campaign last year.

The reasons behind a special afternoon event/offer aren’t hard to grasp. QSRs obviously benefit from driving more traffic during the quieter hours between and following regular meals. And offering snackable items at attractive prices has become a key strategy for driving such business.

According to a new “Snacking Occasion Consumer Trend Report” from foodservice research firm Technomic, 51% of Americans now report that they eat snacks at least twice a day — up from 48% two years ago. Nearly half (49%) report that they eat snacks between meals, and 45% replace one meal a day with a snack.

Among those who buy snacks at restaurants, 45% order from the value or dollar menu.

“There’s plenty of room for restaurants to expand their snack programs and grab share,” even as packaged food makers and retailers also push harder to grab those snacking dollars, noted Technomic EVP Darren Tristano.

And while candy is still the dominant snack (purchased at least occasionally by 71% of surveyed consumers), half of consumers say that “healthfulness” is very important to them when choosing a snack. As a result, many restaurants, like their CPG counterparts, are including healthier options within their snack offerings.


On the Horizon: Five Trends for U.K. Restaurants

January 24, 2014

The trends driving restaurant growth and innovation are driven by consumer demands for transparency, quality, flavour, and flexibility.

The U.K. foodservice scene continues evolving in unique and interesting ways. Looking forward to next year, Technomic’s analysts and consultants have identified five key trends that expected to play major roles at British restaurants.

Catering to the Millennial customer

As the influence and collective spending power of the U.K.’s Millennial generation grows, expect to see restaurant operators amplify efforts to target these consumers via foods and brands that appeal more directly to a Millennial demographic.

For instance, consumers aged 18–34 display the strongest interest in ethnic flavours. And a greater proportion of younger than older consumers indicate that it is important to them that cafés offer a variety of side options and seasonal menu items, according to Technomic’s U.K. Café Consumer Trend Report. Further, 31% of consumers aged 18–34 strongly agree that they would order limited-time offerings (LTOs) at cafés, compared to just 22% of all consumers polled.

Also watch for new mobile apps and digital tools that integrate seamlessly into Millennials’ lifestyle. Offering free WiFi in-store and letting customers place orders online are great starting points for connecting with these on-the-go, always-connected guests. Leading operators are also going beyond these steps.

Last spring, Wagamama partnered with Blippar, an image-recognition mobile application, to introduce augmented-reality place mats. Guests who downloaded the free Blippar app could hold their mobile device over (aka “blip”) the special place mats to access promotional information about the Wagamama Lounge, a pop-up concept featured at London-area summer music festivals.

Domino’s last September rolled out the free Pizza Hero app in the U.K., giving customers the chance to play professional pizza maker, rolling out pizza dough virtually, adding tomato sauce and then sprinkling on cheese and assorted toppings. A direct link takes users to the ordering page on Domino’s website.

And Apple’s Passbook lets iPhone users group their coupons, loyalty/rewards cards and more in one quasi mobile wallet—giving them quick access to their most-used or most-important passes. Last fall, casual-dining chain Harvester Salad & Grill became one of the first U.K. restaurant concepts to offer Passbook integration, and gave diners who used the app at Harvester £5 off when they spent £30.

The evolution of pubs

Classic British pubs will push even harder in 2014 to transform and grab market share from conventional restaurants by focusing more attention on creating upscale, premium food and drink (particularly speciality coffee and American craft beer); launching repositioned outlets in nontraditional sites; introducing web-enabled ordering systems that emphasise convenience and speed of service for guests; and promoting low-price-oriented menus and new loyalty programmes designed to spur customer traffic and strengthen the value perception.

Die-hard traditionalists might scoff at the idea of having a coffee and working on a mobile device at the pub, but a customer-centric evolution can help pubs maintain their relevance with a new generation of consumers.

Throughout 2013, we’ve seen examples of how pubs and pubcos are tackling the task of serving consumers who have higher expectations for food/drink, amenities and service at pubs. We expect the focus on this imperative to be that much keener in the year ahead.

For example, Orchid Group—whose approximately 250 pubs are now up for sale—realised that those establishments best positioned for success in Ireland and some U.S. cities after smoking bans took effect there were those that emphasised attractive food offerings. Orchid re-evaluated its menus and added pizza and Thai food, among other items, driving increases in food’s share of the sales mix. The company also took efforts to appeal to women.

Similarly, Marston’s PLC announced at the beginning of the year that it would install free Wi-Fi at about 550 pubs under its managed pub estate, Marston’s Inns & Taverns. The Prince George pub in Brighton, East Sussex, offers an all-vegetarian menu and a vegetarian-friendly wine list. And in August, Wetherspoon announced a new initiative pairing craft brewers from the U.S. with U.K. brewers, as part of an effort to seize upon U.K. consumers’ heightened interest in craft beer. The U.S. brewers produce their beers in the U.K. for sale at Wetherspoon pubs.

Honest chicken

Thanks in part to the recent crop of “better chicken” concepts opening in London, emerging chicken-focused concepts will flourish in 2014, a trend closely tied to growing consumer interest in sourcing, preparation and menu transparency. Pret a Manger, for instance, touts that its chicken is starch-free, phosphate-free and sourced from a higher-welfare supplier in Suffolk. Expect to see chicken increasingly described as “free-range,” “locally sourced” and “hand-battered.” We’ll also see more American influences in the form of barbecue chicken and buttermilk fried chicken, as well as simpler cooking techniques that let the quality of the chicken speak for itself.

KFC in the U.K. touts that its chicken on the bone comes from only British and Irish chickens, and that chicken goes from the refrigerator to a breading of flour and the chain’s 11 signature herbs and spices and then to the fryer within two minutes. Little Chef touts that its Crispy Chicken Platter features 100% chicken breast fillet.

Other takes on fried chicken include Scream’s Southern-Fried-Style Chicken fillets served with barbecue seasoned chips, Jubo’s Chicken Roll with Korean fried chicken fillet, kimchi slaw and gojuchang mayo, and Clutch’s Love Me Tenders, fried chicken tenders in a peanut and chilli crust.

These dishes also illustrate U.K. consumers’ growing appetite for spicy heat, also evidenced incurries that pack a little more punch than chicken tikka masala; the rising popularity of Mexican cuisine; and the cult-like following of London-based Nando’s, the fast-casual concept specialising in flame-grilled piri-piri chicken. Neutral-flavoured, food-cost-friendly chicken offers an ideal protein platform for showcasing the vibrant flavours and colours of chillis from around the globe.

Migration of street food

Fueled by younger consumers’ demand for authentic and unique offerings, chefs are looking to global street foods for menu inspiration for their brick-and-mortar restaurants. Trendy street-inspired dishes starring on menus include Venezuelan arepas, Chinese jian bing and bao, Taiwanese hirata buns and Italian arancini.

KFC U.K. got in the game last year, introducing a limited-time Streetwise Sweet Chili Wrap featuring a chicken mini-fillet, sweet chili sauce, lettuce and cheese wrapped in a tortilla. And London-based fast-casual chain Leon introduced a Thai Green Chicken Curry box, featuring slow-cooked shredded chicken thigh, roasted aubergine and bamboo shoots served on brown rice.

Looking ahead, ethnic beverages like Mexican aguas frescas and horchata will carve out a wider niche on the menu. Also watch for dynamic flavour mashups from different cuisines and the continued growth of food trucks serving ethnic and fusion street foods.

Telling the sourcing story

Transparency is now top-of-mind for operators who want to keep customers confident in their brand. Use of eco-friendly food packaging, such as recycled or reusable cups or stemware, is increasing along with a growing commitment to ethical food sourcing. Next year will bring a surge in brand campaigns communicating quality and traceability. Watch for package logos denoting animal welfare standards, in-restaurant signs documenting supplier sourcing, and marketing initiatives focusing on the use of British and Irish products.

A good example is the Olive Branch Pub in Clipsham. Its website highlights a story about head chef Sean Hope’s recent lobster fishing trip, to source the freshest lobster for dishes such as grilled lobster Thermidor and a fresh lobster claw and tail meat with lobster tortellini. The site also provides a list of the pub’s suppliers and producers—not just the names of the farms but also the actual farmers with whom the Olive Branch works.

For its part, McDonald’s U.K. invited three young British farmers to get a behind-the-scenes look at operations inside McDonald’s stores as the part of its Progressive Young Farmer Training Programme. The mentoring-focused programme, according to McDonald’s, “aims to help young people looking to work within agriculture kick-start careers in the industry by providing them with the blend of farming and business acumen needed to succeed in today’s modern farming sector.”

The programme has the added benefit of providing a fresh, interesting supply-chain story that McDonald’s—which also announced in April that it was switching to serving 100% Freedom Food pork raised on farms that meet strict animal-welfare standards—can share with consumers.

Similarly, fast-casual burrito specialist Chipotle, whose Food With Integrity philosophy/sourcing model has won acclaim in the U.S., notes on its U.K. website that it uses Freedom Food chicken, Farm Assured beef and free-range pork.

Key Takeaway

The trends driving restaurant growth and innovation are all driven by consumer demands for transparency, high-quality and -flavour, and flexibility. Restaurant operators should examine and pay attention to these trends but follow the lead of their own customers and those they are trying to attract.


Cold Fusion

January 9, 2014

2014-01-09_1101In an exercise that captured the attention of category managers attending CSP’s Cold Vault Summit, consultant and former retailer Casey McKenzie of Lexington, Ky.-based Impact 21 Group asked the retailers to consider where they would place products in a fictional convenience store.

While the specific results didn’t matter—“There is no right or wrong answer,” McKenzie said— the real message was in the variety of answers.

While one group placed beer in the back-corner cold-vault doors across from a beef-jerky endcap, another put dairy in the same corner doors with bread and other grocery basics nearby. “We imagined our store was in the Northeast, where c-stores really evolved out of the dairy business,” explained the team’s leader, Nancy Knott, category manager of alcohol for La Palma, Calif.-based BP ampm. In that region, she reasoned, consumers are still drawn by bread, milk and eggs.

“That’s it!” McKenzie said. “This exercise is not just about product placement and adjacencies; it’s about what your marketing objectives are. Much of it is driven by who your customers are and what you want to be. But it can’t all be pie-in-the-sky stuff; there has to be some science behind it.”

For three days, 35 retailers from across the country put on their proverbial lab coats to consider the science and the data driving beverage sales today. Their scientific method started with a big picture: the economy and,
perhaps more important, how consumers view it.

“I think the economy is in a lot better shape than [most] people do,” said analyst Nik Modi, who follows beverage and tobacco stocks for RBC Capital Markets. Modi said the housing market is improving, U.S. gross-domestic product is growing again and the job picture is showing some progress.

Despite that, 10 of 12 major beverage categories are slowing and the majority of food categories are declining, according to Modi.

This is a matter of psychology and how consumers think about their purchases. “The internal consumer is being squeezed,” forcing them to be more disciplined in their spending, meaning less discretionary spending
on things such as beverages and fast food, he said. “Consumers are making choices.”

Also, as spending on cars and housing have increased this year, retail sales have declined.

Calorie Concerns
Meanwhile, the continuing trend toward healthier eating also has taken a toll in more ways than one.

First, there’s the move away from products—full-calorie sodas and juices—viewed as adding to the obesity epidemic in the United States.

But the real surprise is that even diet drinks, particularly low-calorie carbonated soft drinks, are hurting, indicating the next phase in the continuing move away from the CSD category.

“It comes down to health and wellness,” Modi said. Consumers are hearing a lot of negative news about low-calorie sweeteners, particularly aspartame, that’s turning them away from the category.

“Just as consumer interest in aspartame peaked (in the first quarter of 2013), diet CSD trends began to worsen, while regular CSD trends remained,” he said. “There are a lot of companies out there chasing the lowcalorie trend. I’m not sure it’s as important today as it used to be.”

For c-stores, those more indulgent beverages are still an area of growth. “Seventy percent of what I sell in my stores have nothing to do with health and wellness,” said retailer Lundy Edwards of Forward Corp., Standish, Mich.

Still, Modi and others pointed out, the trend suggests these full-calorie categories are falling out of favor with the public.

Ivan Alvarado, director of category management for Plano, Texas-based Dr Pepper Snapple Group, acknowledged that in just the past year, the average CSD set has shrunk from 14 shelves to nine in c-stores, most of it claimed by energy drinks and bottled water. “Some of this is related to health and wellness, and some of it is self-infl icted,” he said, citing beverage makers’ hesitance to innovate, and that “CSDs have not been able to communicate with millennials. New tactics are needed to reach these consumers.”

Added Clinton McKinney, group director category advisory for Atlantabased Coca-Cola North America, “If you want to be known as one of the retailers who embraces innovation, you’ve got to go all the way and let the
consumer know that’s your play with signage and other messaging.”

“It’s all about interrupting that autopilot behavior that consumers have in the store,” Alvarado said.

One challenge for retailers is the latest generation—those 21 to 35—coming of age. These millennials are less trusting of big business, making a warning message about the industry’s oldest artifi cial sweetener resonate all the more.

“They have a very low level of trust for institution,” Modi said. Instead, millennial consumers rely on their friends for recommendations, whether it’s a co-worker they see every day or a distant but respected acquaintance they  communicate with only through Facebook.

“It’s when recommendations start coming in on social media that sales really begin to improve,” Modi said.

To that end, Alvarado encouraged retailers to call out soda makers to turn things around. “Challenge us,” he said. “Every time we walk in your stores, ask us: What are you doing to sell more in my store?”

Energy’s Boost
One of the most active beverage categories on social media is energy drinks. With sponsorships of extreme-sport athletes and unique events, such as Red Bull’s Flugtag competition and Monster’s sponsorship of skating, surfi ng and snow events, the suppliers are keeping their brands in front of their key demographics’ eyes.

“Think about all the things that Red Bull does that make someone think, ‘Oh, I’ve got to post that [on Facebook],’ ” Modi said.

Still, energy-drink sales trends are slowing. The young category overall is growing by about 5% today, compared to the double-digit (up to 20%) growth of past years. The category is maturing, and consumers have taken notice of the headlines surrounding energy drinks and the pending lawsuits that claim the drinks are dangerous. Still, Modi doesn’t think that has had much of an effect on sales.

Energy-drink sales grew 8.6% in c-stores for the 52-week period ending Aug. 10, 2013, according to Nielsen data presented by James Ford, head of category and shopper insights for Red Bull North America, Santa Monica, Calif.

“The convenience channel is driving energy-drink growth,” he said. “And energy drinks will continue to be the biggest growth contributor to the beverage category through 2017 and beyond.”

C-store retailers attending the Cold Vault Summit generally agreed that energy drinks are still a bright spot in the cooler, bringing a high-margin ring to the checkout as the major energydrink makers—Monster, Rockstar and Red Bull—maintain a busy newproduct introduction pace to keep the category fresh.

The Wonders of Water
Bottled water is also gaining space in the cold vault as the subcategory continues its march toward becoming the No. 1 beverage in the United States.

The growth comes as usage occasions expand and variety increases, said Chelsea Allen, senior manager, category and shopper solutions, for Nestle Waters North America, Stamford, Conn.

“Bottled water outsells sodas in 13 U.S. markets today,” she said. “It will be the No. 1 beverage in the country in 2016.”

The opportunity for retailers is to grab as much share as possible of the category while it’s still growing.

“Smartwater is the fastest-growing brand, and private-label [water] is growing on distribution gains,” Allen said. “But … we know that brands bring people into your stores. In fact, 44% of all bottled-water households will only buy branded bottled water.”

To improve water sales, Allen encouraged retailers to offer single-serve packaging for the three main water segments: premium, popular and value waters. She also urged retailers to stock 12- and 24-packs of water. “Nearly 6 million shoppers shop in convenience stores and buy case pack water,” she said. “But only 1% of households buy case water in c-stores. It’s a real opportunity.”

Favoring Flavor
Millennials are helping change another aspect of the beverage landscape: They’re more willing to experiment with new flavors. They join the growing Hispanic demographic in a desire to sample bolder flavors. When you add millennials’ $1.7 trillion in spending power to Hispanics’ $1.2 trillion, the result is a “structural change” to the country’s palate.

“It’s the blending of America,” Modi said. “The white consumer is taking culinary cues from Hispanic, Asian and African-American consumers.”

This led Modi to suggest beverage manufacturers should focus less on low-calorie products and more on new flavors that appeal to this new desire for stronger flavors.

“We’re at a point in the United States where companies are taking ingredients out of their products” to make them seem more natural, Modi said. “Instead, there’s not enough flavor.”

The most obvious and successful evidence of this trend is in the beer and wine categories. One reason: By 2018, 80 million millennials will be of legal drinking age, and 20% of millennials are also Hispanic, according to Darren Tristano, executive vice president of Chicago-based Technomic Inc.

For wine, the move has been toward mixing varietals to create new flavors and indulging the millennial consumers’ sweet tooth.

“The millennial doesn’t want to drink what their parents drink,” said George Ubing, national director of the convenience channel for E. & J. Gallo Winery, Modesto, Calif. For Gallo, the goal of turning wine into a more refreshing beverage has prompted innovation. Leading the way are Barefoot’s lighter, more thirst-quenching line extensions Refresh, Moscato and Bubbly; and a Liberty Creek wine packaged in a Tetra Pak to target on-the-go lifestyles.

Beer’s story has been told many times: The growth is in “better beers”—imports, crafts, higher-end brews from major brewers—as consumers seek more flavor and diversity, even at greater expense.

“There’s a definite shift away from domestic beers,” said Tristano. “Today, it’s craft beers, cider and imports that are growing. When they become too popular, that’s when millennials say, ‘Wait a minute. I want to try something different.’ ”

That, to Modi, is an opportunity. Their willingness to experiment and try new flavors gives retailers permission to “reduce the SKU capacity, but supply newness,” he said. That is, don’t feel the need to stock every variation on a subcategory; instead, stock the most popular and the newest to maintain the fastest-selling brands while providing customers the ability to experiment.

This theory is backed by research that shows a balanced beer portfolio is the most successful way to grow overall beer sales, as outlined by Dean Zurliene, St. Louis-based Anheuser-Busch’s senior director of category management.

“There’s a lot of shifting in the beer mix today,” Zurliene said. “When retailers manage it from a balanced approach—emphasizing both premium beers and crafts—they win 93% of the time.” One reason is the beer buyer’s likelihood to buy both craft and premium beers or spend money on both segments.

“More often than not, someone who drinks craft beer also drinks premium beer, also drinks value beer, and also drinks import beer,” he said. “The craftbeer shopper only spends 32% of their beer money on craft beer.”

This data falls in line with research on the millennial consumer, too. “Millennials are not the most brand-loyal consumers,” said Adrienne Nadeau, senior researcher for Technomic. “They crave variety.”

And providing that variety can be a long-term win for retailers, Tristano agreed. “It’s not loyalty to millennials; it’s frequency,” he said. “If you build the frequency, the habit with this generation, you can grow with them.”


Loyalty Programmes Drive U.S. Restaurant Visits

May 16, 2013

Smart restaurant operators have always endeavored to take care of their most frequent visitors. That may have taken the form of a server simply knowing her customers’ names and whether they took cream in their coffee. Some restaurant managers kept a Rolodex or card catalog of customers, with notes about favourite tables, anniversaries, kids’ names and other key data points. These are still valid tactics, but they require staff and managers with a keen sense of hospitality and a long memory.

Punch cards put the loyalty programme into customers’ hands. Customers carry a card that gets signed, hole-punched or stickered each time they make a purchase. The customers need to keep coming to get that 10th sandwich for free.

Restaurant loyalty programmes evolved with the digital age, and swipe cards or keychain fobs replaced many punch cards. Today these programmes collect valuable data on consumers’ purchases and behaviours, what they like and when they visit. Online and smartphone-based programmes are even more convenient for consumers and enable more data collection on the part of operators.

Consumer Insights on Loyalty Programmes
Current restaurant loyalty programme participation rates in the United States suggest that opportunities are going untapped, and there are lessons to be gleaned for U.K. operators as well.

Technomic’s recent “Market Intelligence Report: Loyalty Marketing” found that while only about one-third of consumers (36%) say they participate in a restaurant-based loyalty programme, 72% say that if the restaurant they visit most often offered a programme, they would sign up. This indicates that there is opportunity for more restaurants to offer loyalty programmes. It is possible that some of these favourite restaurants do have loyalty programmes already; here, the opportunity exists in building awareness about the programme and its benefits.

The prevalence of restaurant loyalty programmes and consumers’ willingness to participate begs the question of why someone would be reluctant to join. Consumers say they are concerned about privacy, and they demand to know how their personal contact information will be used.

  • Fully 70% of consumers say they would be more inclined to sign up for a rewards programme if they could be guaranteed that the restaurant would not pass along their information.
  • Two-thirds of consumers want to know how restaurants intend to use the personal information provided.
  • Forty-six percent say they are concerned about receiving spam or junk mail after signing up with loyalty programmes.
  • And 39% are concerned that restaurants might share their personal information with others.

Technomic asked consumers specifically which personal information they would be willing to provide to join a loyalty programme. While 60% would share an email address, only 43% would provide a home address and only 30% would provide their phone number.

At the same time they explain what their loyalty programme’s rewards are, restaurants should let customers know what they will do with their information. Such transparency can help build trust, which is a good step toward building an emotional connection.

loyalty_chart_1_450

Base: 1,000 consumers age 18+
Consumers indicated their opinion on a scale of 1-6, where 6=agree completely and 1=disagree completely
Source: Technomic 2012 Market Intelligence Report: Loyalty Marketing

Operators will also want to consider who their customers are—or who they are trying to attract as customers. Our research has found that the more income consumers make, the more likely they are to participate in restaurant loyalty programmes. This may be because higher-income groups want to be recognised for the money they are spending.

However, don’t neglect “aspirational” diners, those who go out to eat at restaurants that are just out of their reach for most occasions but are used for special occasions. These consumers may not be your key demographic, but they add up, and you would miss them if they didn’t come at all. Programme tiers could offer different rewards to different customer groups. Aspirational members may be attracted to a reward that simply makes them feel included, such as an offer to try a new menu item and give their opinion. It would tell them that even though you don’t see them every week, you value them and their input.

Developing Programmes That Lead to Loyalty
Technomic recommends three steps to moving toward emotional connections.

  • Set up a loyalty programme, offering enough of an incentive for customers to provide personal information.
  • Use the data gleaned from those users to provide compelling and relevant rewards.
  • Speak to what is important to them to build real loyalty.

Initial communications should focus on free or discounted food or beverages or other giveaways. As the following exhibit shows, the relationship will probably begin as a materialistic one, dependent on regular coupons and discounts and immediate benefits for signing up. Being invited to sign up by the restaurant’s staff or being welcomed by one’s favourite restaurant are incentives that begin to build the relationship between the consumer and a favourite brand.

loyalty_chart_2_450

Base: 358 consumers age 18+ who participate in restaurant loyalty programmes
Source: Technomic 2012 Market Intelligence Report: Loyalty Marketing

Customers don’t want to have to work hard—or at all, really—for their perks. Even when they are willing to sign up for a loyalty programme, they want restaurants to make it as painless as possible. Seven in 10 consumers (71%) would be more likely to sign up for a programme if perks were “effortless,” 59% don’t want to have to print coupons, and 39% don’t want to have to carry a physical card in order to receive loyalty-club benefits.

loyalty_chart_3_450

Base: 1,000 consumers age 18+
Consumers indicated their opinion on a scale of 1-6, where 6=agree completely and 1=disagree completely
Source: Technomic 2012 Market Intelligence Report: Loyalty Marketing

Compared to other consumers, loyalty club members are more likely to be active social media users. While 53% of all consumers “like” restaurant brands on Facebook at least occasionally, 62% of those who participate in restaurant loyalty programmes do the same. Similarly, 19% of all respondents read and/or write restaurant reviews on sites like Yelp, but 29% of loyalty-club members do so. This speaks to the importance of two-way communication with frequent diners.

To successfully communicate with frequent diners, operators must also speak the correct language and use the correct medium. Fully 78% of consumers who have smartphones and participate in restaurant loyalty programmes use their phones to access information or discounts from the programme. It’s no surprise that younger people use their smartphones more often than older consumers. It’s interesting, though, that a majority of consumers 45 and older also use their smartphones to access their loyalty programme. Savvy loyalty-programme operators will use this information and input from their own members to determine the best means of communication.

loyalty_chart_4_450

Base: 230 consumers age 18+ who have smartphones and belong to restaurant loyalty programmes
Source: Technomic 2012 Market Intelligence Report: Loyalty Marketing

Loyalty Membership Drives Restaurant Visits
The good news for restaurants with rewards programmes is that a majority of consumers who participate in loyalty programmes are likely to decide which restaurant to visit based on whether they are a member of that restaurant’s programme. And, just as higher-income consumers are more likely to join such a programme, they are also more likely to base their decision on where to eat on their membership.

Being in a loyalty programme does appear to put the restaurant in consumers’ consideration set, which helps get them in the door. It’s a good first step toward building those emotional connections.

loyalty_chart_5_450

Base: 358 consumers age 18+ who participate in restaurant loyalty programmes
Source: Technomic 2012 Market Intelligence Report: Loyalty Marketing

Darren Tristano is Senior Managing Director of Technomic Inc., a Chicago-based foodservice consultancy and research firm. Since 1993, he has led the development of Technomic’s Information Services division and directed multiple aspects of the firm’s operations. For more information, visit http://www.technomic.com.

Examples of Successful U.S. Restaurant Loyalty Programmes

Incorporating Social Media
Dunkin’ Donuts held a competition to award the title of President of Dunkin’ Nation. Members earned points for checking in via FourSquare and Facebook, and then selected the winner from among the top visitors.

dunkin_275

Offering ‘Important’ Rewards
Understanding customers creates the ability to offer rewards that customers find important. For example, la Madeleine’s Card for the Cure speaks to the core values of the chain’s regular clientele, who are mostly women. The loyalty card costs $35 up front, and gives the customer 10% off all purchases for a year. Additionally, 1% of sales goes to Susan G. Komen for the Cure. The card can be renewed annually for $25.

lm_275

Making Consumers Part of the ‘In Crowd’
Some successful programmes appeal to consumers’ psychological need to be part of the “inner circle.” The Greene Turtle Mug Club enables the chain’s customers to purchase their own mug at their local Greene Turtle restaurant. The mug is assigned a number and stays on display in the unit until the member comes in and orders a beverage. The company boasts that there is an average of 1,000 members per unit.

greene_turtle_275


Many New Yorkers Were Opposed to the Sugary Beverage Ban

December 27, 2012

12-12_0Our athletes went to the Olympics, our science went to Mars, and our people went to the polls. But what of the restaurant industry in 2012? These dozen items from the year had the biggest impact on the foodservice landscape and shaped the industry for a potentially game-changing 2013.

An Economy in Flux

The economic recovery isn’t lighting a fire under anyone’s feet, but the economy did at least improve, albeit slightly.

As of August, the National Restaurant Association’s (NRA) Restaurant Performance Index had been positive for nine consecutive months. It has since been weakening, however, indicating operators are less optimistic about economic conditions going into 2013.

“In the winter quarter [of 2012], we started to see things looking good,” says Bonnie Riggs, restaurant analyst with NPD Group, a Chicago market research company. “We thought we turned the corner. But then gasoline prices increased and people pulled back.”

The Congressional Budget Office’s outlook is for the economy to grow less than 2 percent in 2013. The Conference Board, a business group, is slightly more optimistic, estimating growth at 2.2 percent.

However, if Congress fails to avert a series of tax hikes and budget cuts due in January—the so-called “fiscal cliff”—analysts warn another recession could ensue, which could undo any kind of progress quick-service operators have made.

Health Headaches and Solutions

Health issues continue to impact restaurants, both in menu development and how operators deal with the Patient Protection and Affordable Care Act (PPACA), also known as “Obamacare.”

The U.S. Supreme Court this year upheld the constitutionality of most of PPACA.

Many restaurants may need to undergo some significant cost analyses next year to prepare for a wide range of regulations scheduled to begin in 2014.

“We’re going to see a lot of financial modeling going forward, and deciding how to manage the costs,” says Dennis Lombardi, executive vice president of foodservice strategies at WD Partners, a Columbus, Ohio, design and consulting firm. “It seems the way it may be playing out is to find ways to keep employee hours down and make more of them part-timers.”

One portion of the act that may go into effect in 2013 requires chain restaurants with 20 or more locations to display calories on menuboards.

Many companies have decided not to wait for the law’s implementation, though, including McDonald’s. In September, all of McDonald’s 14,000-plus U.S. restaurants began listing calorie counts on menuboards.

The proactive move by McDonald’s “is a real positive,” says Darren Tristano, executive vice president of Technomic Inc., a Chicago consulting and market research firm.

The calorie numbers “may be more of a shock at first, but when [consumers] return, they will still want to indulge,” Tristano says. “That’s what you do when you go out.”

Meanwhile, all types of limited-service operators began offering better-for-you alternatives, from oatmeal to sweet potato fries.

The Big Soda Ban

Any consumer who plans to visit a restaurant in New York City in March or after shouldn’t expect to buy sugar-sweetened beverages larger than 16 ounces. They’re outlawed.

In a stated bid to combat obesity, the city’s Board of Health instituted the ban at eateries, movie theaters, and other venues.

Restaurants call the action unfair, in part because it still allows larger drinks to be purchased at retail outlets and convenience stores. Whether the ban sweeps across the country, like the city’s earlier action against trans fats, is still up in the air.

“We’ll have to take a wait-and-see approach,” Technomic’s Darren Tristano says. “I suspect if history serves us, it will likely become a political issue … and likely will spread to other cities.”

Commodity Costs Rise

The most severe drought in a quarter century has had a serious impact on U.S. agriculture and food prices. The damage done to corn and other crops was extensive and resulted in higher direct and indirect costs.

Many ranchers are running out of grass. Unable to grow enough feed crops—or unwilling to pay for higher priced feed—they are thinning their herds by selling cattle early. That will likely result in fewer cattle going to market next year, making beef and other proteins more expensive, according to the U.S. Department of Agriculture (USDA).

Wholesale beef prices were already up 10.5 percent by 2012’s third quarter, while poultry prices increased 11.5 percent. Heat stress and higher feed costs are expected to reduce pork production as well, the department says.

“If you look at the USDA forecast for a year ago, there was no contingency for a drought of this severity and duration,” says Hudson Riehle, senior vice president of the NRA’s Research and Knowledge Group.

Interactive Imitation

Consumers increasingly want to know more about what’s in their food, and also desire the ability to customize their dishes more than ever before. For years, quick-service concepts such as Chipotle and Subway have capitalized on this desire by giving guests the ability to craft their own dishes, choosing from an array of fresh ingredients.

In 2012, this build-your-own strategy continued to become more rule than exception, expanding into categories like pizza and even ethnic concepts. Newer brands, such as Pie Five, Atlanta’s Uncle Maddio’s, and Washington, D.C.’s Amsterdam Falafelshop, are now thriving on the model.

“We expect to see this basic model growing,” Tristano says. “Customers want to be part of the process, and the visual impact is important. Interactivity engages the customer. This is an emotional connection that makes loyal fans of these restaurants.”

A New Kind of Trade Down

Most of the restaurant industry suffered during the recession, but fast-casual restaurants still performed well. Folks may not have been eating out as often, but when they did, they were looking for quality and value. Many found those attributes at Chipotle, Panera Bread, and their fast-casual peers.

Numerous full-service restaurant companies took notice.

“Casual-dining chains continue to look at whether they have a limited-service opportunity,” Lombardi says. “It allows them to extend the reach of their brand, and in some cases move into areas where full service may not work as well.”

Abuelo’s Mexican Restaurant is one of the latest casual chains to open a fast-casual offshoot, which it did this year with its Abuelo’s Taqueria in Lubbock, Texas. The menu items and pricing are focused on promoting frequent dining.

The opening comes on the heels of several new ventures launched by casual chains in late 2011, including Red Robin’s Burger Works and Pizza Inn’s Pie Five.

Pie Five, which makes handcrafted pizzas in five minutes, has more than a half-dozen corporate-owned locations in the Dallas area.

“We will be looking at other markets [in 2013] from a corporate standpoint, as well as domestic and international franchising,” says Madison Jobe, senior vice president and chief development officer for Pie Five and Pizza Inn.

Other chains launching fast-casual units included Steak ‘n Shake, with its Signature unit in New York; Shoney’s, with Shoney’s On the Go; FATZ, with Tablefields Market Kitchen; and global beef bowl giant Yoshinoya, with Asiana Grill Yoshinoya.

Ethnic Flavors Gain More Exposure

Americans have made Italian, Mexican, and Chinese cuisines their own, so why not something like Vietnamese or Indian?

Pho, a noodle soup, and banh mi, a sandwich typically made with French bread, are some of the latest cultural dishes to hit the mainstream, often with a U.S. twist.

“People were drawn first by the pho, but now banh mi is very popular, especially as a reimagined American sandwich,” says Melissa Abbott, senior director of culinary insights for The Hartman Group, a research and consulting firm in Bellevue, Washington.

“You have a sandwich on really good French bread filled with really fresh ingredients,” she notes. “It has a flavor that is heightened by various fresh herbs and vegetables.”

Tin Drum AsiaCafé, which has 11 units in the Atlanta area, serves cuisines from around Asia, including pho. Owner Steven Chan says the chain had banh mi on the menu a decade ago and may bring it back “because it’s getting popular again.”

Giving an American twist to Indian food is what Qaiser Kazmi is doing in Washington, D.C. His restaurant, Merzi, features Indian-inspired cuisine with U.S. touches. For example, Merzi serves tandisserie chicken, which is tandoori chicken cooked rotisserie style.

“Our cuisine is not directly from India,” Kazmi says. “We would never leave skin on chicken back there. But I fell in love with rotisserie chicken and wanted to combine that with something that has Indian flavors.”

The Reverse Food-Truck Trend

For Kim Ima, opening the Treats Truck Stop in Brooklyn last year was the logical next step for the owner of a popular food truck.

“I like that I had established my business before opening the storefront,” she says of her truck, the Treats Truck, which has served treats and drinks since 2007. The restaurant offers homey comfort food for breakfast, lunch, and dinner.

Food-truck operators across the country, from Boston to Los Angeles and Houston, are similarly turning to brick and mortar.

In the five years since the gourmet food-truck phenomenon began on the coasts, thousands of these vehicles have hit the nation’s streets, giving budding restaurateurs a relatively inexpensive entry into the business. But it’s not easy.

“You’ve got this small space, gas costs, repairs, weather, licensing—all kinds of issues,” says David Weber, president of the NYC Food Truck Association. “So a lot of food-truck entrepreneurs, once they develop a brand, are looking for more stability. It’s logical to take their concept and give it a home.”

The Future of Social Media is Here

Now that many restaurants have found ways to take advantage of Facebook, Twitter, and YouTube, they’ve moved on to other, newer social media platforms, such as Pinterest.

Pinterest is akin to a visual bulletin board, where images can be “pinned” to virtual boards. They can be downloaded to the board or can be taken from (and linked to) other websites.

Dunkin’ Donuts, for example, uses photos on Pinterest to link to various events, as well as products, including limited-time offers.

“Pinterest seems a way for the social media strategy to involve more of the customer and the community,” Tristano says. “Instead of pushing out from the company, this is trying to draw customers in to be part of it, to have a shared experience.”

Don’t Forget Boomers

While focusing on Millennials is all the rage, many restaurant operators also understand that Baby Boomers still make up a lot of the nation’s buying power. Members of the generation are looking to dine at places that feature unique flavors and provide plenty of value.

“It’s really the Boomers and those over 65 that are keeping the [restaurant] industry from experiencing a decline,” NPD’s Riggs says. “Boomers are increasing their visits to all restaurant types, but particularly quick service … and fast casual.”

Of course, younger diners typically will be the first to hear about new and exciting limited-service restaurants.

“The Millennial kid knows where the cool stuff is and will tell mom and dad to try it,” Abbott explains. “They are more tapped into the social network. But the parents are increasingly curious to try new places. In the past, that may not have been so.”

Exploring the IPO

One major quick-service restaurant company went to market this year with a big stock deal, while another chain’s plans to go public didn’t get off the ground.

Burger King took its crown back to Wall Street. The Miami-based company’s shares began trading publicly through an unusual deal in which investment firm Justice Holdings paid $1.4 billion to acquire a 29 percent stake from owner 3G Capital.

CKE Restaurants, the Carpinteria, California, parent of Carl’s Jr. and Hardee’s, had planned a $200 million public offering but delayed it. Concerns were raised about the impact of required health-care costs and rising commodity prices.

“The market was willing to give restaurant companies a premium valuation early in the year,” says R.J. Hottovy, restaurant industry analyst with Morningstar in Chicago. “A lot of them were operating at peak margins. Since then, there have been some concerns about the industry’s fundamentals.”

Brand Evolution Continues

Quick serves are always tweaking their images, but there were some major changes in store for menus at some larger chains in 2012.

One of the most notable chains to do this was Burger King, where an array of new menu items, including smoothies, salads, chicken wraps, and specialty coffee drinks, were added to broaden the brand’s customer base. That was the first part of a four-pillar, $750 million strategy Burger King announced in the spring.

Taco Bell also welcomed major menu innovations. The Irvine, California–based brand launched the highly successful Doritos Locos Tacos, featuring shells made with the taste and flavor of Doritos snack chips. Then the chain rolled out a Cantina Bell line of upscale burritos, bowls, and sides created by noted chef Lorena Garcia.

Taco Bell also introduced breakfast at about 800 West Coast locations.

“What Taco Bell has done is a testament to product innovation,” says restaurant analyst Hottovy. The chain “remains in its core competency, broadens its appeal, and takes the pricing point upward.”


Fantasy Football Restaurants

December 12, 2012

© 2012 Sarasota Herald-Tribune. Provided by ProQuest Information and Learning. All Rights Reserved.

Area bars ramping up to tackle fantasy football league business

On fall Sundays, beer, Buffalo wings and draft boards are king — especially if you are a fantasy football fan.

To entice those fantasy players to leave the comfort of their couches and PCs, Southwest Florida restaurants and sports bars are ramping up freebies and other gimmicks, all in an effort to build customer loyalty and boost business before the winter tourist season kicks in fully.

Analysts say fantasy leagues can reap benefits that last long after the first pick of the NFL draft.

“These leagues continue on throughout the year, providing the perfect reason for repetitive business for restaurants with multiple televisions and an atmosphere for the games,” said Darren Tristano, executive vice president with Technomic, a Chicago-based food consulting firm. “There is great opportunity for restaurants to benefit from this.”

Fantasy football is a mostly online game, with supporting mobile apps, in which players create virtual leagues and “draft” actual professional players from NFL teams to form their own franchise.

With a team in place, players go head-to-head with each other every week, collecting points based on how well their drafted players perform in the actual pro games that week. Just like in the NFL, the fantasy team with the most points wins.

In this region, restaurant and bar owners estimate there are thousands of fantasy football participants, who tend to be rabid fans with more discretionary income than typical sports fans. To win their loyalty, venues have begun leveraging the innate advantage they have by offering multiple televisions for viewing multiple games simultaneously — together with NFL-related food and drink specials. The trick is to show as many games as possible, all at once, so fantasy participants can keep track of as many of “their” players simultaneously.

These guys are serious

At Siesta Key Oyster Bar on Oyster Boulevard, customers sit at tables based on the game of their preference each Sunday, said owner Keith Cipielewski. It is so serious that seating charts are coordinated a week in advance, so staff can coordinate which games will play on which of the restaurant and bar’s 15 televisions.

“It keeps us in touch with the locals,” Cipielewski said. “Plus it starts at a time that is traditionally slow for us, around the end of the summer, and brings more people in.”

SKOB, which is known for being a Chicago Bears fan hangout, also invites fantasy football players to a draft party every year.

Cipielewski said participants have received free merchandise, too, such as a punch card that rewards frequent customers with free beer.

Fantasy football benefits restaurants through the loyalty a fan feels to a certain establishment,” said Tristano, the Chicago consultant.

“For fans, there’s a reason to go back there now on a more repetitive basis for games on Monday, Thursday and Sunday,” Tristano said, referring to expanded NFL playing days throughout the season.

Restaurants have a really great opportunity to build on that loyalty through relevant promotions to keep them coming back.”

Gecko’s Grill & Pub, a Sarasota restaurant in the Landings, has done just that to capture repeat business. Fantasy football fans can win prizes such as free grills, deluxe tailgating chairs and club- level Tampa Bay Bucs game tickets every week, general manager Mike Ferrara said.

The restaurant also hosts its own football pool, in which participants have the chance to win free beer for a year by picking the most winners during the course of an NFL season. For the fantasy football draft itself, Gecko’s offered bottomless chips and salsa to all league participants.

“We try to amp it up all the way to Super Bowl Sunday,” Ferrara said. “It seems like everyone is on a fantasy football league these days, so we want to entice them to keep coming back.”

Chains in on action

Local bars and restaurants are not the only ones trying to capitalize on fantasy football.

In 2010, pizza chain Papa John’s hosted a contest on its Facebook page, asking players worldwide why they thought their league was the best.

The contest winner received an all-expenses-paid trip to the 2011 NFL Draft in New York City. This year, adult arcade chain Dave & Buster’s hosted league parties that included a free pro football weekly fantasy football guide and a free CBS network draft kit. Buffalo Wild Wings, likewise, gave away draft kits that contained league championship pennants, draft boards, player stickers and koozies. Sandwich maker Quiznos offered free fantasy draft boards on its Facebook page that leagues could use during at-home draft parties. The chain also included coupons, like 20 percent off catering purchases of $50 or more, and $5 small sub combinations.

A declining fan base?

But it is sports bars that have really gone after fantasy football leagues as a way to boost business.

At FinnDaddy’s, a sports bar on Beneva Road, the fantasy football crowds have thinned this year, but the bar still draws a decent crowd, owner Mark Lapidus said.

“It could be my competition is cheaper or more people are just staying home,” he said. “We still have good locals, though, that come in every week to watch all of their players.”

Each year, Lapidus hosts draft parties for local leagues, where he offers less-expensive prices on beer and food and gives out complimentary draft boards. But with the success of fantasy football has come a flood of competition, making it more difficult for bars and restaurants to keep regulars coming back.

“There are so many kinds of players trying to get in on the big- screen business that it is causing the crowd that’s looking for the games on Sunday to be splintered up through all the alternatives,” said Michael Terry, a professor with the University of Central Florida’s Rosen College of Hospitality.

“It’s not just local sports bars anymore, but the buffalo wing chains and even the newer craft beer bars,” he added. “They are all taking a piece of this pie.”

At the Gecko’s on Clark Road in Sarasota, NFL viewing has fallen victim, somewhat, to demographics. General manager Mark Stewart says more people come in now to watch college football games on Saturdays. His theory is that fewer people in Southwest Florida have a pro team to cheer for.

“The problem is that no one in Sarasota roots for the home team,” he said. “No one is from Florida, so they’re fans of teams in other states. But for college football, people are ready to root for Florida or Florida State.”__


The Donut’s on Us Today, Say National Chains

July 13, 2012

Published: Friday, 1 Jun 2012, By: Katie Little, News Associate

There may be no such thing as a free lunch — but if you’re eyeing a free donut today, you’re in luck.

In honor of National Donut Day, Dunkin’ Donuts and Krispy Kreme Doughnuts are running in-store promotions on Friday and taking part in the opening and closing ceremonies at their respective stock exchanges, the NASDAQ and the New York Stock Exchange.

At participating Dunkin’ Donuts locations, customers can score a free donut of their choice with the purchase of any beverage. On Twitter, the company will also post donut trivia questions, and users who answer correctly will be entered for a chance to win one of six $50 gift cards.

Meanwhile, Krispy Kremes in the U.S. and Canada will give away a free donut of any variety with no purchase necessary.

The Nasdaq, whose opening bell Dunkin’ rang this morning, has unofficially changed its name to “NASDDAQ” and incorporated the company’s pink and orange ‘D’ letters along with a sprinkled donut into its logo. Krispy Kreme will stop by the NYSE to ring the closing bell.

In New York City, Entenmann’s Bakery will hand out free donuts at Madison Square Park and present a $25,000 check to The Salvation Army, which will be providing free coffee to celebrants.

National Donut Day was first established by the charity in 1938 in Chicago as a way of honoring the “Donut Lassies” who served soldiers the treats during World War I and helped raise money during the Great Depression.

The events’ organizers will also share a proclamation letter from Mayor Bloomberg in honor of the holiday. The event comes just one day after Bloomberg announced a proposed ban of the sale of sweetened drinks larger than 16 fluid ounces at restaurants, movie theaters and delis. If approved, the controversial plan could be implemented as soon as next March.

Despite their confectionery names, these companies rely on more than merely donuts to fuel their businesses.

“I think what we have seen is chains like Krispy Kreme, Tim Hortons and Dunkin’ Donuts that have shifted from being traditional donut chains to serve broader occasions and day parts,” said Darren Tristano, executive vice president at Technomic.

Despite the strength of the cupcake trend, Tristano said that sales in the donut industry have been relatively stable. He added that this continued donut popularity speaks to the rise of snacking and eating during off-peak occasions.

Dunkin’ has responded to this demand by expanding its line of bakery sandwiches. Michelle King, Dunkin’ Brands’ director of global public relations, said breakfast sandwiches are already popular with customers, who have been purchasing them throughout the day.

“All are familiar with a twist and cater to our busy guests who are snacking more frequently throughout a ‘clockless day,’ ” she said about the new sandwiches.

Although Dunkin and Krispy Kreme carry many similar products, Dunkin has enjoyed stronger sales and location growth compared to Krispy Kreme, according to Technomic estimates. At Dunkin’, U.S. sales grew 23 percent from 2007 to last year while Krispy Kreme sales fell 13 percent during the same period.

Part of Dunkin’s success is due to the popularity of its coffee product.

“In fact, we don’t even classify them as donuts anymore,” Tristano said about Dunkin’. “We have them in the coffee café category.”

Companies place added emphasis on coffee since it typically carries a higher margin than items, such as donuts. Customers who incorporate a restaurant serving coffee into their daily routine often go to that chosen store every day and may purchase additional items while there. “By providing coffee and other products in addition to donuts, industry operators hope to attract consumers to their stores more frequently,” said Agata Kaczanowska, lead industry analyst at the research firm IBISWorld.

In September, Krispy Kreme announced the launch of three signature coffee blends. The company has also stepped up its expansion efforts internationally; it recently announced new development agreements in India and Russia.

This international push follows declines in U.S. store locations in both 2008 and 2009, according to Technomic data. The company added one net domestic location last year.

“The issue with Krispy Kreme was that they broadened so much, you could get them at the grocery stores, the convenience store, so why would you get them at the restaurant?” Tristano said.

In addition to promoting coffee to drive sales, donut shops are reacting to another trend to boost revenue, Kaczanowska said.

“Another tactic that donut stores are using to boost consumer interest is offering smaller donuts, which have fewer calories and less fat,” she said. “These appeal to health-conscious consumers that may indulge more often when smaller portions are offered.”


Wings: A fan favorite beyond March Madness, says Technomic

April 18, 2012

Chicago, March 14, 2012, PRNewswire – Even if your favorite college basketball team falls out of contention, the March tourneys still provide an excellent excuse to gather around a platter of your favorite chicken wings. But the excuses don’t end with March. Wings have remained a year-round favorite, exhibiting substantial innovation and room for growth according to recent research from restaurant consultants Technomic. 

“Wings and sports have long been a winning combination—and more than 10 percent of all wing-based limited-time offers are game-day promotions,” says Technomic Executive Vice President Darren Tristano. “However, wings’ overall appeal comes from their ability to suit consumers’ desire for customization, including traditional and global flavor options from sweet to super hot, and for portion flexibility, serving as snacks, starters, entrées and sides. And they are fun finger foods that are easy to share, so they lend a social aspect.”

In its new Category Close-Up: Wings report, Technomic delves into its MenuMonitor online menu-tracking resource and finds that 36 percent of the Top 500 restaurant chains offer wings, and that number has grown year after year.

Of particular note is the extent to which restaurants have innovated in the wing category:

  • Wing flavors and sauces found on menus range from Buffalo and barbecue to the tequila-lime-barbecue at Quaker Steak & Lube and the Raspberry Ice—a sweet and tangy blend of raspberry and horseradish—at Hurricane Grill &Wings.
  • Buffalo/hot sauces are the most commonly menued wing sauces. Among these types, the less-spicy mild and medium sauces have declined as Buffalo and “extra-hot” varieties have grown. 
  • Wing concepts offer an average of 18 different sauces. Hurricane Grill lists more than 30, as does Wild Wing Café. Variety is also found at chains not focused on wings—Beef ‘O’ Brady’s and Cheeseburger in Paradise, for example, each offer 12 options.
  • Sweet-style barbecue sauces are more popular than spicy-style barbecue sauces, though preferences vary heavily by region. Consumer preference for sweet sauces indicates opportunity for flavors such as sweet and sour, honey-chipotle and maple-brown sugar.
  • Fully 28 percent of wing-focused limited-time offers promote new wing flavors, offering operators a compelling method to drive sales while testing new wing varieties.
  • Boneless wings are on the rise. And, interestingly, as restaurants have added them, the incidence of traditional wings has not decreased. Operators have found boneless wings appeal to a new consumer—one who does not enjoy the finger-licking aspect of traditional wings.

Chicken wings are among the most popular menu items, but also one of the most difficult to classify and analyze. Technomic’s Category Close-Up: Wings provides restaurants and industry suppliers with a thorough review of wing menu trends, pricing, sizing, sauces, accompaniments and limited-time offers, in addition to consumer perceptions of the leading wing chains and other related consumer research.  

To learn more about this report, please visit Technomic.com or contact one of the individuals listed below.

Contacts

Press Inquiries: Darren Tristano, 312-506-3850, or dtristano@technomic.com

Purchasing Details: Heather Nelson, 312-506-3855, or hnelson@technomic.com

About Technomic

Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.

Source: Technomic, Inc.


Pizza chains feed into March Madness

April 11, 2012

 

Although it’s not quite up to Super Bowl level, March Madness provides a boon for pizza businesses as well, and plenty of chains have geared promotional campaigns toward NCAA college basketball fans …

Tags: Domino’s Pizza, Food & Beverage, Marketing / Branding / Promotion, Online / Mobile / Social, Operations Management, Papa John’s, Pizza Hut, Pizza Toppings, Trends / Statistics

1331912880 – Alicia Kelso

Although it’s not quite up to Super Bowl level, March Madness provides a boon for pizza businesses as well, and plenty of chains have geared promotional campaigns toward NCAA college basketball fans.

The timing of the tournament is ideal, as restaurants across all segments take advantage of increased spending this month from holiday gift cards being honored, said Darren Tristano, executive vice president at market research firm Technomic.

“Many chains are using LTO’s in March to launch springtime menus, seasonal offerings and especially items to entice consumers who are looking for a venue for March Madness,” he said.

According to CSMonitor, during the college basketball tournament – which spans about two and a half weeks – Americans consume 52 million slices of pizza, which equates to more than 100 acres of pizza a day. Here is what some pizza brands are doing to cater to bracket junkies.

March Madness deals

Domino’s Pizza, the Official Pizza of the NCAA, kicked off its March Madness promotion earlier this week before the first tip-off. The Road to Domination is now featured on the chain’s Facebook page, where fans can play for the chance to win more than 200,000 prizes, including new Parmesan Bread Bites and Pepsi products.

The grand prize is a trip for two to the 2013 NCAA Men’s Final Four.

To play, fans simply enter their picks for each round of the tournament. Each correct pick could net a prize. Fans can make as many picks as they want, and also can invite their social media friends through the Road to Domination app.

The NCAA tournament is big enough for Papa John’s to introduce a brand new pizza in time for the occasion. The Buffalo Chicken Pizza was unveiled earlier this week and features a combination of creamy ranch sauce, all-white sliced chicken strips, crispy bacon, fresh-sliced onions and 100-percent real cheese made from mozzarella, all topped with a spicy buffalo sauce.

A large version is now available for $10 at Papa John’s restaurants nationwide and online. It will be available through the end of April.

“America told us that they wanted Buffalo Chicken and that bacon was a favorite. We’ve combined the two and delivered an exciting new pizza just in time for basketball tournament season. We think that this is a pizza all fans will agree upon,” said Andrew Varga, chief marketing officer for Papa John’s International Inc.

Also, Papa John’s offered a March Madness promotion this week for its loyalty members, which included any large specialty pizza at regular menu price and a second medium one-topping pizza for 64 cents, in recognition of the 64-team tournament.

Although it hasn’t happened yet, Little Caesars will offer families a free order of Crazy Bread at participating restaurants on March 19 if any 16-seeded team beats a 1-seeded team in the tournament.

Little Caesars isn’t the only major pizza chain betting on a Cinderella upset in the early rounds of The Big Dance. Pizza Hut also has committed to a pizza giveaway if a No. 16 seed outlasts a No. 1 seed.

Such a first round upset has never happened in the history of the tournament.

Additionally, the Pizza Hut 10 Seed Bandwagon will support the No. 10 seeded schools in honor of the new $10 Dinner Box by hosting parties for their fans. Pizza Hut “adopted” the four No. 10 seeds – Purdue, West Virginia, Virginia and Xavier – and the chain’s 10 Seed Bandwagon will descend on each school’s campus to feed each school’s fans. $10 Dinner Box pre-game parties also will be hosted in the cities where the teams are playing.

“We are again cheering for the underdogs in this year’s tournament rooting for the ultimate upset and with the launch of our new $10 Dinner Box we are backing the No. 10 seeds to go all the way,” said Kurt Kane, chief marketing officer at Pizza Hut.

Flippin’ Pizza recently opened up its third annual “Create-A-Pie” March Madness, inviting fans to create their own pie for prizes. Submissions earned three points for recipe submissions, and one point for every “like,” “share” or “comment” on the brand’s Facebook page.

In conjunction with the NCAA March Madness, the 16 pies with the most points will make-up the Savory Sixteen, as well as determine their seed. The winning pie will be featured in all Flippin’ Pizza stores, nationwide, during the month of April.

Snappy Tomato Pizza is holding a tournament-themed promotion, “Snappy’s Fiery Four,” that offers guests a free 5 oz. bottle of Frank’s RedHot Sauce if they order the 20 Hot Wings or 1 lb. of Boneless Wings; a new Buffalo chicken hoagie; a large Buffalo chicken pizza; or a large spicy chicken ranch pizza.

Tony C’s Coal Fired Pizza is likening itself to the tournament’s underdogs with its new Pizza Madness promotion on Facebook. Every user who likes the brand on Facebook will receive a 12-inch, two topping coal-fired pizza of their choice, valued at $12, when they redeem it at Tony C’s in Bee Cave, Texas, outside of Austin.

The purpose of the promotion is to get people to compare Tony C’s pizza to national chains.

“We want to educate our guests about the difference between coal-fired pizza and the pizza offered by national chains and other Italian restaurants in the neighborhood,” said Tony Ciola, owner of Tony C’s Coal Fired Pizza. “Just like the Cinderella teams who have made history during March Madness, we are confident that our little gourmet pizza restaurant in Austin will win guests over to love coal-fired pizza versus what’s offered by others.”

Other brands – such as Hungry Howie’s, Hunt Brothers and Donatos – have facilitated March Madness –themed conversations on their Facebook pages to generate consumer engagement.

Donatos even went so far as to offer “bracketology” tips for its fans, including:

  • Don’t pick a No. 16 seed to beat a No. 1 seed;
  • Pick at least one No. 12 seed over a No. 5 seed;
  • Don’t base your picks on mascots (tried that…didn’t work)
    • Don’t go overboard on upsets;
  • Don’t write off schools that you haven’t heard of
  • Pizza is the time-tested best food to eat when picking
    your brackets

St. Patrick’s Day

Some pizza operators went even further with their creative efforts this month, offering St. Patrick’s Day specials such as green beer and clover-shaped pies.

A shop in Birmingham, Ala., called Slice Pizza & Brew, has introduced a new specialty pizza called Pot Luck of the Irish, topped with corned beef, cabbage, potatoes and poached eggs.

Connie’s Pizza has a special St. Patrick’s Day menu, complete with St. Patty’s Wings tossed in a spicy green sauce, and green beer.

Some Mellow Mushroom locations are featuring $3 green beer pints for the Irish-themed holiday.

Oakdale, Minn.-based Randy’s Premier Pizza offers a Clover Leaf pizza for St. Patrick’s Day. The pizzas are made thin crust, pan, Chicago-style deep dish or Chicago stuffed. They’re available year round.

Read more about marketing and promotions.

Read original article here.


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