FESmag

Amelia Levin

Creative Measures
August 4, 2008

The media seems saturated right now with talk about the "struggling economy" and "restaurant woes." In an effort to avoid saturating it more, let’s focus on the positive steps restaurants and foodservice operators are taking to overcome sagging sales.

The article I wrote, "The Ever-Expanding Day Part," which went out last week in the July edition of The Specifier, discusses how many operators, particularly large chain restaurants, have sought to build sales during their traditionally off-peak dayparts. For example, Wendy’s, Arby’s and potentially McDonald’s, have expanded their breakfast programs, while Taco Bell and Burger King are staying open later, having added late-night menus to capitalize on hungry party-goers. 

Here are some other tidbits I’ve found since then that shed light on some of the creative measures operators are taking to boost sales.

Looking to capitalize on consumers’ desire to eat food they perceive as being more healthy, Dunkin’ Donuts has added a section called DDS Smart to its menu. DDS Smart will feature new and existing menu items that contain nutritionally beneficial ingredients and have 25-percent fewer calories, sugar, fat or sodium than comparable products. Menu items making their debut in the DDS Smart section are two breakfast flatbread sandwiches: a turkey sausage egg-white sandwich and a vegetable one. Both are less than 300 calories and feature nine grams of fat or less.

Dunkin’s flatbread sandwiches were already an indication that the chain was expanding its lunch day part, but now it seems the chain has been expanding beyond its traditional demographic, namely the working class male, to attract health-focused women spanning all ages, and in some cases, their children.  This has seemingly been an area that Starbucks has cornered, with its introduction of "skinny lattes," smoothies, as well as salads, wrap sandwiches and low-fat breakfast sandwiches. But with $3 and $4 lattes and $5 or $6 sandwiches at Starbucks, this is a smart move by Dunkin' Donuts to introduce just as healthy items for women on the go and women (or men and especially children now) watching their weight at much lower price points.

T.G.I. Friday’s launched "Give Me More Stripes," a members-only free food initiative, whereby frequent diners sign up to receive one point for every dollar spent, and then after the points add up, receive free food, like chips and dip, hummus and chips and other appetizers. For every $100 spent, you get a coupon for food worth up to $8, and you get a one-time front-of-the-house line pass after signing up. Customers can even customize the look of their stripes cards.

Now that’s one way to get customers to keep coming back. And, the "members-only" language creates an aura of exclusivity not unlike trying for weeks to get those priceless reservations at the new hot restaurant in town. It’s classic consumer psychology that even works in the dating world — creating something that’s hard to get. And it’s a direct marketing jackpot.

Papa Johns introduced mobile web ordering, a system that enables consumers to set-up an account or place an order from their cell phones. The program works using the text messaging function available for most cell phones. Texting is a phenomenon, of which I am a part, that has redefined the notion and payment plans of most cell phones, it seems. As e-mail has virtually replaced face-to-face contact, texting has virtually replaced actually calling someone to talk on the phone. It’s easier, faster and more efficient. And now, with the widespread popularity of iPhones, more consumers, particularly the Gen Xers, Gen Ys and Millenials, will use their phones to accomplish as many tasks as possible.

Papa John’s clearly recognizes this growing "trend" is really anything but a trend, and is seeking to capitalize on it. It’s a smart move, and something operators need to consider in order to drive sales amidst our "flailing economy."

Posted by Amelia Levin on August 4, 2008 | Comments (0)