Americans Turning to Restaurants, Not Grocery Stores, for Mealtime

April 30, 2015

by Mark Fisher

http://www.daytondailynews.com/news/news/americans-turning-to-restaurants-not-grocery-store/nkxP2/picture

Restaurants cater to younger diners who are leading the trend
The Census Bureau reports that in March, for the first time since such records have been kept, Americans spent more money in restaurants than in grocery stores. Millennials led the charge. Local restaurant owners, including Dan Young owner of Young’s Jersey Dairy, say they’re not surprised about shift occurring in the dining scene in this region and across the country.

For the first time since the government started keeping track in 1992, Americans—led by those in the millennial generation—spent more money last month in restaurants and bars than they did in grocery stores.

This region’s restaurant owners say they’re not surprised at the shift in spending patterns, and they’re taking steps to attract younger diners.

Dan Young, CEO of Young’s Jersey Dairy and the Golden Jersey Inn in Clark County north of Yellow Springs, said today’s families work long and sometimes unpredictable hours and have limited time to spend together.

“Yes, they can get a nice meal from the grocery store, but if your ‘together’ time is limited, who wants to spend that time preparing the meal?” Young said. “Why not meet your family or friends at a local restaurant and enjoy each other’s company while choosing from a much wider selection of food than you typically would at home?”

The U.S. Department of Commerce reported last week that Americans spent $52.3 billion at restaurants and bars in March, and $49.7 billion in grocery stores—the first time grocery spending lagged restaurant/bar expenditures.

The National Restaurant Association reported earlier this month that despite extreme weather in many parts of the country, its “Restaurant Performance Index” (RPI)—a monthly barometer of the the health of and outlook for the U.S. restaurant industry—held steady in February, which also marked the 24th consecutive month in which the RPI signified improvement in key industry indicators.

Hudson Riehle, senior vice president for the restaurant association, said restaurant operators are increasingly optimistic about business conditions and potential sales growth in the months ahead. About 59 percent of restaurant operators expect to have higher sales in six months, compared to the same period in the previous year, up from 57 percent the previous month. In contrast, only 4 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, restaurant association officials said.

The association offers advice to restaurant managers on its web site on how to cater to the twenty-somethings and early-thirty-somethings who are increasingly likely to let others prepare their meals.

“Millennials view dining out as a social event (i.e. a chance to connect),” the association says on its web site. “They prefer to eat at restaurants with a lot of choices and lower price points. They tend to favor fast food, deli food and pizza restaurants over coffee shops, high-end dining and casual dining.

“Equally important for restaurateurs to remember is that millennials can be moving targets. While they develop brand attractions and support reward and loyalty programs, their allegiances can be very flexible according to their circumstances.”

Young, whose restaurant and ice cream shop are geared toward families, said diners in the 25-to-34 age group are “eager to try new tastes, probably because they have been exposed to more variety growing up.”

“Plus, with today’s amazing technology, it just takes a few tweets or texts and you can be visiting a nice restaurant with family and friends in a few minutes,” Young said. “Spontaneous is so much easier than when most of the 25-to-34-year-olds were born —when the family had one, maybe two phones at home, and families had to plan out the day ahead of time.”

Shanon Morgan, president of the Miami Valley Restaurant Association, agreed that technology — and in particular, social media — are stimulating restaurant and bar business, especially among younger diners.

“It’s much cooler to check in at the local tap room than the local grocery store,” Morgan said.

Jay’s Restaurant in Dayton’s Oregon Historic District has begun advertising more heavily on social-media sites and has launched “happy hour” specials on Tuesday and Wednesday in part to attract more younger diners, according to Amy Haverstick, Jay’s Restaurant’s owner, who is herself the mother of a 2-year-old.

“People my age, the couples are working full time, and they’re finding the easy way out — it’s all about convenience,” Haverstick said. “Life just seems to be a lot more fast-paced for our generation.”

Darren Tristano—executive vice president of Technomic, a Chicago-based food service research and consulting firm—said his company’s research “continues to show that the millennial consumer has integrated dining away from home deeper into its identity compared to older generations. They appreciate the socialization and the lifestyle element that restaurant visits bring to their overall quality of life.”

Tristano said members of the millennial generation “continue to use restaurants with great frequency, and as their spending power builds, so will their dining (expenditures). Favorable employment and disposable income growth trends along with lower gas prices are fueling the return by many younger consumers to restaurants.”

Millennials, Tristano said, “are the future, and along with them, the key to many restaurants’ future.”
________________________________________
Americans’ shifting spending patterns
March 2015
Restaurants and bars: $50.4 billion
Grocery stores: $50.1 billion
February 2015
Restaurants and bars: $50.0 billion
Grocery stores: $50.4 billion
March 2014
Restaurants and bars: $46.8 billion
Grocery stores: $49.1 billion
Source: U.S. Department of Commerce


A Big Production

December 12, 2014

Legacy chains employ large-scale marketing stunts to generate long-term buzz.tim-hortons_2

This summer, Canadian coffee chain Tim Hortons made quite the splash: The brand covered one of its Québec locations in blackout materials to promote its new dark roast coffee. Equipped with night-vision goggles, employees handed guests samples of the brew, and the action was all captured in two-minute videos, later posted on YouTube to the tune of 2.6 million–plus views.

Tim Hortons’ head marketer, Peter Nowlan, found the experience a big success for the chain. “The dark roast is Tim Hortons’ first new blend in the company’s 50-year history, and we wanted to put it to the ultimate test: allowing guests to try it in the dark, limiting their sense of sight, and enhancing their senses of taste and smell,” he says.

Large-scale marketing stunts like these are few and far between, but when a quick-service brand does employ them, consumers take note.

“Many brands, especially older legacy brands, have to work harder to stay relevant to a younger generation of less loyal customers constantly looking for what’s cool and what’s next,” says Darren Tristano, executive vice president at Technomic. Whatever the expense to companies may be, the resulting public-relations blitz usually pays dividends, he adds.

Advertisers today are focusing heavily on social media and buzz marketing, so anything a brand does locally on a grand scale will likely be shared and tweeted to people far and wide, Tristano says. “This reminds consumers about brands and their role within the restaurant industry,” he says.


Brisket Channel proves to be ultimate reality TV

August 27, 2014

Article by: David Phelps, Star Tribune

© 2014 Star Tribune

Remember the Brisket Channel on Duluth TV?

It was on for 13 hours and five minutes over the Memorial Day weekend.

It turned out to be quite a hit, once reruns made it to YouTube. Nearly 400,000 viewers tuned into the Internet version of the smoked brisket marathon developed for Arby’s by the Minneapolis ad agency Fallon.

So popular was the website that each unique visitor spent an average of 38 minutes on the site, watching a brisket slow cook in the same manner that Arby’s prepares brisket for its customers. It also helped that visitors had a chance to win one of $20,000 in prizes that included a 10-gallon hat, lasso and beef-scented candles.

“We were blown away by that,” said Matt Heath, Fallon creative director, of the viewership.

And the client was pleased. “Thirty-eight minutes is longer than a lot of TV shows,” said Jeff Baker, Arby’s senior brand experience director. “It was a great idea based on simplicity.”

Besides setting a Guinness record for the longest TV commercial, the brisket show and limited brisket sandwich offer set the stage for Arby’s new “we have the meats” advertising campaign that Fallon launched earlier this month.

Results for the fledging ad campaign so far are inconclusive. But Rocky Novak, Fallon’s managing director, said: “We’re seeing a lot of social media love.” Arby’s said it does not release sales figures. But when it first made the brisket sandwich limited-time-offer available in October of 2013, “we declared it the most successful [limited-time offer] in the brand’s 50-year history,’’ said a spokesman Wednesday.

Gone as Arby’s pitchman is Bo Dietl, the former New York City police detective who was the face and voice of Arby’s for nearly two years. To quote Dietl from a commercial for Arby’s fish sandwich, “Really?” Yeah, really.

In fact, the new Arby’s commercials are faceless. The only human element seen by viewers is of a person from the shoulders down wearing a chef’s jacket. A roast beef or turkey or corned beef sandwich is the star of the commercial.

“The LSR [limited service restaurant or fast food] industry is not hyper-focused on food. There are a lot of entertainment factors,” said Heath. “We wanted to see how close we could get to the food. We didn’t want to put a face in there. It’s about the finished product.”

Among the tag lines used for the new set of Arby’s commercials are “this is meatcraft,” “fear not the meats,” “meats crafted with a heavy hand” and “it will change you.”

“We feel like we have an incredible heritage of meats and that presenting them in a simple way was the best way,” Baker said in an interview earlier this week.

Brand overhaul

Arby’s new advertising campaign will be accompanied by a new branding campaign that the Atlanta-based company announced in June. The branding effort includes remodeled exteriors, revitalized interiors and staff training.

Based on some consumer testing, Arby’s message and image could use a little retooling.

According to the food industry consulting firm Technomic, sales and market share at Arby’s have declined in each of the last two years, placing the roast beef king a distant second behind Subway in the non-hamburger sandwich sector and ahead of a hard-charging Jimmy John’s.

“Arby’s is considered to be unique because its about roast beef, not hamburgers, not chicken. We’re talking about an older, nostalgic brand,” said Darren Tristano, executive vice president for Chicago-based Technomic. “Clearly there are some advertising opportunities and some innovative opportunities.”

Novak said the new Arby’s advertising campaign is all about what goes between a bun or two pieces of bread in the Arby’s kitchen.

“The main takeaway first and foremost is that this is about the meat that is put in the sandwich,” Novak said.

Tristano said Arby’s scores well with consumers on a number of metrics, including service, decor and “craveability.” But it doesn’t score so well on prices, healthy options and “advertising that makes me hungry.”

“By focusing on what differentiates you, that creates memorable and creative advertising,” Tristano said. “Freshness gives you a stronger feel of healthiness.”

And credit for a new Arby’s feel may come down to a Texas-smoked brisket that took 13 hours to cook and five minutes to carve.


In breakfast wars

August 7, 2014

Taco Bells boldmarketing pays off with big sales

Maureen Morrison

(c) 2014 Crain Communications, Inc. All rights reserved.

IS TACO BELL’S BREAKFAST giving McDonald’s a wake-up call?

The Yum chain’s launch in late March went directly after McDonald’s with marketing that aggressively framed the Golden Arches as hopelessly outdated, and trumpeted Taco Bell as the next generation of fast-food breakfast. Its cheeky TV ads used real-life Ronald McDonalds proclaiming their love for Taco Bell’s morning fare.

The first clue to whether this audacious play is paying off came during Yum’s second-quarter earnings. Yum Brands CEO David Novak said breakfast comprised around 7% of sales in the quarter and that the company expects it will add anywhere from $70,000 to $120,000 in annual sales per restaurant.

Projecting sales using those numbers, Taco Bell could stand to reap an estimated $375 million to $641.5 million in first-year sales from breakfast.

“McDonald’s does more breakfast sales in the U.S. than Taco Bell does total sales globally,” said Darren Tristano, exec VP at Technomic. Even so, “McDonald’s has to pay attention,” he said.


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.


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


McLent? Fish Hits Fast Food Menus for Holidays

April 23, 2013

fishIf you suspect there’s something fishy going on at your favorite fast-food joint, you’re probably right. The countdown to Easter is on, and that means everyone from McDonald’s to Quiznos is cashing in on the Catholic tradition of skipping red meat in favor of fish during Lent. This year, several chains have created new menu options for customers during this, the holiest of seafood seasons.

Darren Tristano, executive vice president of food service research and consulting firm, Technomic, told Nation’s Restaurant News that most restaurant chains should consider having some kind of fish or non-meat option for people observing Lent in order to prevent a loss of traffic during the season. Many chains are taking that advice and running with it this year.

McDonald’s, the largest of the fast-food chains, introduced a new item this year in addition to its popular Filet-O-Fish sandwich. Its snack-size Fish McBites are a guilt-free option for believers as well as those concerned with the environment, as they have been certified 100 percent sustainably sourced from the Marine Stewardship Council. The packaging for the Fish McBites, as well as the Filet-O-Fish sandwich, carries the council’s blue “eco-label.”

Other chains are also picking up on the trend of disclosing the sources of fish items on their menus. This season, Wendy’s is promoting its Premium Fish Fillet by advertising its 100 percent North Pacific cod origins. And Culver’s, a Midwestern fast-food chain, is selling a seasonal Northwoods Walleye sandwich.

“That’s part of the overall trend to improve perceptions of food and ingredients through marketing,” Tristano said, “so certain regions get called out. Marketers have enhanced perceptions with the way they’ve described menu items for years. Is it more appealing during Lent? Probably.”

Other chains that are getting creative with their Lenten offerings this year include Quiznos, which is promoting its Lobster and Seafood Salad sub, and Carl’s Jr. and Hardee’s, whose brand-new Charbroiled Atlantic Cod Fish sandwich has arrived right on time for the seafood season.


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.”__


Little Caesars revives famed ‘Pizza! Pizza!’ ads; After 15-year national absence, No. 4 pizza chain reinstates tag, character to restore fun in category

October 23, 2012

MAUREEN MORRISON; (c) 2012 Crain Communications, Inc. All rights reserved.

Get ready for a lot more “Pizza! Pizza!”

Little Caesars is launching its first national campaign in 15 years, once again putting its iconic “Pizza! Pizza!” tagline and Little Caesar character front and center.

Ed Gleich, senior VP-global marketing, who joined Little Caesars in October, said the chain is using national media to “amplify” the “Pizza! Pizza!” tagline. “We’re in every state, and it was time to tie media together,” he said, adding that it was a matter of “being efficient and getting more for our investment.” Local buys had been used when there was no national campaign.

The campaign, launching this week and created by BFG 9000, will include TV, radio and digital, as well as local print. Horizon Media handles media services. “It seems like everyone got really serious about pizza all of a sudden, talking about artisanal pizzas and apologizing for the way their pizza was made,” said Gerry Graf, founder and chief creative officer at BFG 9000. “But if you take a step back and look at pizza, it’s fun.”

In one TV spot, two teenagers approach their grandfather and say, “Hey, Grandpa, we got this large pizza for five bucks,” to which the man responds, “Well, paint me blue and call me Babe.”

“Pizza! Pizza!” was introduced in 1979 to promote the chain’s “two great pizzas, one low price” offer, and was popularized about 10 years later by Cliff Freeman & Partners, the chain’s agency until 1998.

“Pizza! Pizza!” is no longer being used to promote a two-pizza offer, but most Americans know the tagline, “so you wouldn’t just throw that out and present Little Caesars in a new way,” said Mr. Graf.

The main promotion nowadays is its $5 large pepperoni Hot-N-Ready pizza, as well as its $8 large three-meat pizza.

Mr. Gleich said the Little Caesar character and tagline have “extremely strong positive brand perceptions. … [It] may have started out [as a] pizza promotion, but it’s evolved to stand for Little Caesars.”

The chain had the benefit of a low price point throughout the recession, and so was less affected by hard times than rival chains, said Darren Tristano, exec VP at Technomic. “They’ve been able to grow the brand with a price point [that was] an affordable option for most Americans. … They really stand for value more than any other brand.” A recent Sandelman & Associates survey rated Little Caesars the best value for the money.

Its growth came after a tumultuous ‘90s and early 2000s. In 1996 Little Caesars had an estimated 4,800 locations in the U.S., according to Technomic. Its highest estimated U.S. sales were nearly $2 billion in 1992. But as chains like now-No. 3 chain Papa John’s went public and began expanding, competition in the pizza space became fierce. As Pizza Hut, Domino’s, Papa John’s and No. 4 Little Caesars duked it out, discounting became prevalent.

The chain, privately owned by Ilitch Holdings, was also at odds with franchisees, who filed a lawsuit in 1999 claiming that mandatory contributions to national ad campaigns didn’t benefit them and that they were forced to use a company-owned supplier whose quality had decreased. A settlement was reached in 2001.

By 2002, Little Caesars had an estimated 1,343 units; the next year it eked out $650 million in U.S. sales. Measured-media spending followed suit. In 1997, the chain spent $36.8 million in the U.S., according to Kantar Media. By 2001, the chain had slashed that to less than $3 million.

But it has built back up to 3,500 units in 2011, as estimated by Technomic, with nearly $1.5 billion in systemwide U.S. sales, and media spending increased to $22.4 million. Little Caesars was the third-fastest-growing chain in the U.S. in the three years ended fall 2011, adding 826 units in that time, according to NPD Group.


South Florida restaurants stagger promotions through slow summer months

September 11, 2012

By Justine Griffin, Sun Sentinel, 9:01 PM EDT, June 14, 2012

South Florida restaurants are looking for new ways to keep customers coming back through the hot summer season.

It’s a cycle that the restaurant industry in South Florida has come to anticipate as the snowbird community heads north in late spring. This year, more restaurants are using summertime holidays, likeFather’s Day, as a way to bring people back into their dining rooms.

“You’re seeing more restaurants crafting discounts around summer holidays and events, like Cinco de Mayo and Father’s Day, when people are more likely to go out,” said Darren Tristano, the executive vice president of Technomic, a restaurant consulting firm.

Big City Tavern on Las Olas Boulevard and City Oyster & Sushi Bar in Delray Beach are offering Father’s Day promotions for the first time this year, said co-owner of Big Time Restaurant Group, Todd Herbst.

“We decided we wanted to try something different this year,” Herbst said. “Mother’s Day is always a big holiday for us, but we figured we would try and see how Father’s Day would hold up in comparison.”

The average person will spend $117 on dad for Father’s Day, according the National Retail Federation, as compared to the $152 per person spent on Mother’s Day.

All four Big Time Restaurant Group establishments will be offering 50 percent draft and bottled beer with the purchase of an entree on Father’s Day, and kids under 10 eat free. Big Time also owns Grease Burger Bar and Cellar Wine Bar & Grill in West Palm Beach.

“Slow seasons give restaurants ample opportunity to promote new products, where customers can go out and try new dishes,” Tristano said. “It gives customers just one more reason to go out.”

Big City Tavern in Fort Lauderdale will be pushing their endless mimosas on summer lunch menus and wine down Wednesdays, which offer half off bottles of wine under $99, Herbst said.

“All of this is geared toward locals,” Herbst said. “We get a steady stream of tourists who come in, but we want to have something to offer those that live here.”

Mario Ristorante Italiano and Wine Bar in Coconut Creek is offering a summer weekday dining promotion for the first time in the restaurant’s five-year history, said owner, Mario Spina.

“The last few summers have been the worst I’ve ever seen,” said Spina, who’s worked in the industry in South Florida for more than 30 years.

The promotion is a three-course dinner for $26.95 offered Monday through Thursday between 5 and 6:30 p.m. The savings are more than 30 percent off the regular priced items on the menu, he said.

Tundra, an ice-themed restaurant that opened late last year on Las Olas Boulevard, recently dropped menu prices by 20 percent to keep locals coming back, owner David Berman said.

Palm Beach Restaurant Week showcased several dozen restaurants in the county last week. Miami Spice, a month long dining out promotion, will run Aug. 1-Sept. 30, and Dine Out Lauderdale runs Oct. 1-Nov. 8.

Copyright © 2012, South Florida Sun-Sentinel