IdeaStudio's "Thought For Food" Restaurant Marketing Blog

Social media: Brand aid … or brand illusion?

2011-07-14T08:53:00.000-05:00

A few weeks ago, I had the privilege of attending a major social media conference. Naturally I saw it as a great opportunity to pick up new nuggets of wisdom from first-rate brains. And in this I definitely was not disappointed. Some of the most notable figures in the social media industry presented their thoughts on best practices for adding their sites and services to the restaurant marketing mix.

I also saw the conference as a chance to step away from the incessant everyday chatter about the social media phenomenon and engage in a deliberate and measured assessment of how and when social media might fit seamlessly into our restaurant clients' overall media mix and brand strategy. I wasn't disappointed on this score, either.

It certainly does seem that it's time to reassess social media. Over the past few years, the noise from and about it has grown louder and more confused, partly amped up by the proliferation of networking sites. A ripple that began as MySpace and Twitter, FourSquare and Facebook is now an engulfing tide of networking sites from the generic (Facebook) to the highly specific (the Christian site, Amen Me).

The social media rush has reached such a fever pitch that Wall Street is raising questions about the real worth of players such as LinkedIn, Facebook and Twitter. A July 8 article in the New York Times reported that since going public at $122 per share, LinkedIn stock sunk to a low of about half that and now sits at $99.70, a price that analysts say could be still be inflated by up to 56 percent.

This is reminiscent enough of the first Internet bubble of 2001 to make one wonder whether social networking represents the next cautionary tale of "irrational exuberance," which makes this a good time for brands to think about how they're getting into social media and what they expect to get out of it.

Social media have certainly contributed to the further fragmentation of the media, making it more challenging than ever for brands to reach buyers. One conference presenter noted that in 1965, it took just three airings of a TV spot to reach 80 percent of a target audience. Today, it takes 100 placements to make that connection. Increasingly niched audiences have radically increased the importance of thoughtful brand representation.

What's more, restaurant operators must keep in mind the growing number of device formats available to consumers and consider how their existing and potential customer base might seek, use and share information about their brand using social media outlets on wireless devices.

Currently some 93 percent of Americans have mobile phones, and 43 percent of them use their phones to search for restaurants and bars. As the number of smartphones in users' hands grows (from around 38 percent now to an estimated 90 percent by 2014), so will the search numbers.

An increasing number of consumers also will be carrying wireless tablets and laptops, making mobile apps available to them as well as traditional and mobile web sites. Restaurants must sort through options and features and learn how to use them to advantage.

Finally, restaurant brands must consider how social media has changed the thinking and expectations of customers, and how it has brought about (or at least contributed to) a shift in purchasing demographics. As one conference presenter remarked, social media has changed the way consumers perceive a brand.

It used to be a brand telling consumers what it represented; now the shoe is on the other foot — it is consumers who are defining brands for themselves and others. They're basing their characterizations not on a rundown of brand attributes but on their own experience as users, and sharing those ideas with others in their network. Sometimes there's overlap in the messages, but not always. And here, social media can offer restaurant chains valuable insights that contribute to understanding and self-critique.

All of this is far too much to cover in a single blog. So I'll be covering these topics in several blogs in coming weeks, sharing thoughts on the new media, mobility and devices, market demographics and branding mentality. So keep reading, contribute your own thoughts and questions and enjoy the "deliberate and measured" assessment of social media's role in a new age of branding.

The CEO Apology: A New Kind of Brand Booster?

2011-06-24T15:01:00.001-05:00

"I'm sorry …

So sorry …

Please accept my apology."

These days, CEOs are singing Brenda Lee’s song.

Unless you were comatose or on a shuttle to Mars last January, you would've caught the chatter about Domino's CEO Patrick Doyle's apology advert for products that — judging from focus group comments sprinkled throughout the ad — the pizza-eating public detested. Doyle lamented that his company had forgotten how to produce the kind of great pizza that people actually preferred over "cardboard" crust and sauce like "ketchup."

If you opened the Wall Street Journal on June 7, you probably saw the article featuring Starbucks CEO Howard Schultz discussing the mistakes his company made when it placed growth above great coffee. The company's excesses, he admitted, had resulted in fussy concoctions and frantic expansion that turned off core customers who felt that Starbucks had come unmoored from its hip, homey origins.

And if you've spent 15 minutes in front of the TV lately you cannot have missed BP's 60-second Gulf spill mea culpa featuring BP CEO Tony Hayward in full-on repentance mode: "To those affected and your families, I'm deeply sorry," Hayward mourns. He then promises to make any oil-soaked American shores as good as new, his British intonation weirdly reminiscent of the Orbit Gum Girl ("Dirty beach? Clean it up!")

What are we to make of this recent trend of corporate self-censure? Could we be seeing the latest, most counter intuitive-ever approach to brand building? That might be taking it a bit far. But it does seem that companies — especially restaurant chains — are discovering the power of the apology.

And that's not a bad thing. In the first place, it suits the tenor of the times. After the Great Wall Street Debacle, consumers are feeling used and abused by banks in particular and by all large companies in general. A chain restaurant that can buck up and say, "We admit we haven't always done our best for you, but we’re going to do X to fix that" can generate uncommon goodwill in times like these.

In the second place, an apology can satisfy consumers' desire for connection with a company. A sincere apology credibly delivered (more on that later) can demonstrate that you actually grasp and regret your customers’ frustrations. This, reasons the consumer, is a good basis from which to start a mutually beneficial relationship.

So yes, when an apology is due, it can help build positive feeling about a brand. But glib, "Oh, gee, sorry 'bout that" contrition … not so much. That ranks with zipping in to steal a parking space another driver has been patiently waiting for, then shrugging your shoulders and mouthing, “"h, sorry!" as you nip into the mall. In response to your disingenuous gesture, you can expect the business equivalent of nice key-job from your customers.

To benefit your brand in the end run, an apology must accomplish several missions, many of which must be undertaken even before your CEO wraps his tongue around those three scary syllables, "I'm sorry." Here are five:

Before you apologize, make sure you fully understand the problem. The last thing you want to do is apologize for not meeting certain expectations, only to have customers (or worse, the media) heckle you for not having a clue why people were annoyed with you. Don’t assume you know already what the issue is; believing you knew everything is what gave rise to the problem in the first place.

Commit to solving the problem. Howard Schultz was so determined to fix Starbucks that he jettisoned every distraction — including outside board obligations — in order to concentrate on the immediate task of righting the ship. What's more, he made sure that his vision was also the vision of every other Starbucks employee from C-level to store-level, going so far as to close stores early to retrain baristas. That's Problem-Solving 101: Everyone takes ownership; everyone takes action.

Implement the solution before issuing an apology. People don't want to be told that BP will clean up the spill; they want to know that BP has stopped the flow of oil that's causing the spill. At best, vague promises are written off as self-serving noise. At worst, they deepen consumers' cynicism about your intentions and motives. If you want people to think you're serious about making things right … make things right.

Make your apology credible. That means no spin. When KFC president Roger Eaton apologized (sort of) for his company's bungled free grilled chicken promotion, he represented the problem as a good thing. In a video released by KFC, Eaton explained that people were so crazy for the taste of KFC's new grilled chicken and the response had been so positive, they were going to have to modify the coupon program. His painfully over-the-top performance seemed to indicate that this rationalization rang false even to him. "Really? The problem was that the promotion was too popular and not that it was so poorly planned that it couldn’t be properly executed? Who knew?" Uh, everybody knew. Even KFC, which has since carefully scrubbed the Web to remove every embarrassing trace of the Eaton video.

Once the apology has been issued, continue to work on building trust. Encourage customers to return with offers that show your appreciation for their business (Starbucks announced recently that it will offer unlimited free Wi-Fi). Keep core customers loyal with deals aimed at them (more on Starbucks: The company also has announced free access to subscription-only online sites such as The Wall Street Journal, starting this fall).

Above all, stay vigilant to ensure that problems don't reemerge. If you have to keep issuing apologies, you're going to start looking awfully inept; and at some point, even offers and deals can't overcome the deficit. Eating a little humble pie is one thing. Putting it on your regular menu is quite another.

The brand you live is the only one they'll love.

2011-02-25T09:44:00.004-06:00

It sounds complicated, but it’s not. It boils down to this: sincerity. And it’s fundamental when it comes to your efforts at community involvement.

Before you roll your eyes and get all, “Duh!” think how often you’ve heard the complaint, “We always do things for the community, but it never does us any good.”

This is a sincerity issue, manifest in two mistaken assumptions: 1) giving is a reciprocal agreement; 2) all “do-gooding” builds (and lives) your brand.

In the first place, if it’s reciprocal, it’s a trade. In the second place, “community involvement” is more than giving away a pair of dinners in a church raffle. This is only a brand-builder if you intend to do it two people at a time.

Teaming your family concept with an ecumenical group to host “Family Dinner Night” with a chunk of the proceeds going to a local food bank -- that’s building your brand while living it.

The larger problem for many chains is that community involvement is both transitory and as self-servingly transparent as the emperor’s new clothes. People feel played, and they don’t like it.

It’s how I feel when I look at the recently revamped website for a large deli concept.

The chain has conspicuously branded itself as a healthy food outlet, with 41 references to “organic” in its menu, plus a litany of stuff its food is free of — MSG, nitrites, coloring, dyes, transfats, fructose, etc.

But this “healthy option” branding isn’t corroborated by community efforts such as healthy eating education, local organic purchasing programs or community garden sponsorships. One blog recounts a visit by management to a distant, gigantic farm where much of the company’s produce is grown. Nowhere does this blog contain the word “organic.” Brand not lived.

The site does offer information about “community partner programs” that discount meals to seniors and church groups, and give well-behaved schoolchildren free lunch cards to use at the restaurant (presumably taken there by their parents who also presumably will buy a meal). In reality, none of these “partnerships” is designed to do anything but bring in business.

See what I mean? Not feeling brand life here.

So how can your chain honestly, authentically live its brand through meaningful community involvement?

Get involved. Not with any cause du jour, but with one that clicks with your customer base and corresponds to your brand’s character and values.

A great example right now is Nathan’s Famous Frankfurters, which is teaming with the Pittsburgh YWCA to build a franchise in that organization’s downtown location. Both benefit: the YWCA from a new revenue stream and Nathan’s from a high-visibility, high-traffic store in partnership with a nonprofit whose brand is likewise built on the idea of American opportunity.

That’s not just living your brand. That’s living it large.

Let me say here that if you can’t readily define your customer base, character and values, back up and figure them out with a brand study. Before you live your brand, know what makes your brand live. Also, if you intend to define (or redefine) your brand through community involvement, re-read the example above.

One more thing: enact your program company-wide. Set the parameters and provide the energy at the top level to ensure that all locations live the same brand. They don’t have to do exactly the same things, but they must support the same fundamentals: customer base, character and values. And really, most franchisees will be glad not to have to invent their own programs.

So, here are the steps, simply stated:

Choose an organization or cause that you care about, that your customers care about and that wants your help;
Get involved — join a committee, coach a team, serve on the board, encourage employees to give their time (if you really want to live your brand, make at least some of this paid time);
Volunteer your restaurant as host-sponsor for events (e.g., the Family Dinner Night mentioned earlier). Offer ideas — your organization doesn’t know what all you can do;
Look into “alternative opportunities” — kiosks, carts, food trucks or a mobile kitchen — for events in which your organization participates. This can further the partnership and introduce your brand and values to entire new audiences.

Think big. Think creatively. You’ll think up amazing brand-living, brand-building opportunities.

What Restaurant Chains Can Learn from Haggis

2010-03-23T11:34:00.008-05:00

It may be the most maligned food on the planet - and the least marketed: haggis, a strictly Scottish dish made of minced sheep organs and suet mixed with spices, bound together with oats and stuffed back into the stomach of the hapless ovine.

This offal-filled orb (which looks as if it might burst open at any moment to reveal a screeching baby Alien) is then boiled for three hours before being served.

To Americans, haggis is as foreign as food gets. Fish and chips, corned beef, bangers and mash, shepherd’s pie — we can get any of these British imports at the “authentic” English pub in town. But Haggis? Not so much.

Recently, a restaurant marketing colleague of mine took a trip to Scotland. Naturally, everyone wanted to know if she was planning to try haggis. Not wanting to be labeled a culinary coward, she vowed that she would.

Still, everyone was jut a little surprised when she returned and said that she had, indeed, tried haggis at The Dome restaurant in Edinburgh. We were ever more surprised when she said that it was actually pretty good.

She counted off three things that made for that successful experience: 1) The Dome offers haggis as an appetizer-sized (i.e., “safe”) portion; 2) the restaurant presents this appetizer in a fabulous golden-crispy phyllo shell; 3) they accompany it with an amazing whiskey sauce.

For my colleague, this was a culinary triple play. Without taking a huge risk, she discovered a tasty, “not at all grody” new dish. The Dome’s chef had made it easy for her to be adventurous.

Which brings us to the problem with floundering casual American restaurants.

Right now, they’re playing it too safe in their marketing and promotion strategies, having decided that Americans only want “familiar and comfortable” in a down economy. But this is true only to a point.

Even in belt-tightening times, most middle class Americans want to feel just a little more cosmopolitan than the schlub next door. They’re willing to take risks on new flavors — just not wild, expensive ones.

Instead, they’ll try familiar dishes with a fresh take on the flavor profile or a new style of presentation, interesting new appetizers that allow adventuring on a budget, new sauces or sides that update an entrée without reinventing it from scratch. This is exactly what the Dome did with haggis. And for them, it was an easy win.

For the casual American restaurant, incremental changes allow freshening of the menu without an expensive overhaul. They give customers a reason to sit up and take new interest. They get word of mouth promotion going. And they send a subtle message to all that this *&^%$#@ recession can’t go on forever.

Elevating the American Palate

2010-03-05T09:43:00.005-06:00

Just as the American population has always been a melting pot of nationalities, so has the American food scene been a simmering stew of flavors, ingredients and cooking methods.

Initially, our palates were shaped by immigration from the British Isles and Germany, which gave us solid, hearty fare such as sausages, porridge and pot roast with potatoes. Eventually, Italian newcomers brought their spicy tomato sauces and pastas … and pizza, now the most popular food in America

Waves of Chinese immigration in the second half of the 1800s added Americanized Asian cuisine. Chinese ex-railway workers opened “chop suey houses,” where diners could find cheap, filling fare. American movies of the depression era are peppered with references to chop suey shops.

But the real push to incorporate new flavors and approaches to foods can be pegged to the 1960’s, when Boomer hippies rejected the meatloaf-and-Jell-o traditions of their parents in favor of exotic cuisines discovered during a global quest for peace, love and brownies flavored with a Middle-Eastern herb known as hash.

Boomers’ jones for the new and undiscovered was conveniently accommodated by new waves of refugee immigration from war-torn and economically distressed countries such as Vietnam, Somalia, Ethiopia … and of course the ever-increasing numbers of immigrants from a country much closer to home — Mexico.

America’s food horizons were further expanded by the introduction of more open trade agreements and more efficient and cost-effective shipping methods in the 80s and 90s. These two factors allowed even mainstream restaurateurs and groceries to stock previously unheard of ingredients — kiwi fruit, guava, sweet tamarind, wasabi, daikon, and lichis, to name a few, as well as additional varieties of already familiar fruits, vegetables and seasonings.

Subsequent generations have embraced the global palate, encouraged by their Boomer parents and an explosion of global information on the Internet. Today, Gen Y (or Millennials, as they’re also termed) boasts a sophisticated palate and an infinite appetite for the new and different.

Given the huge size and increasing earning power of the Millennial generation, restaurants have no choice but to continually introduce different and unexpected flavors. Ten years ago, who’d heard of chai? (Actually, “chai” is just the Indian word for tea; it’s the masala spice that separates it from your English Breakfast “cuppa”.) Today, chai can be found on the menu at McDonald’s.

As a marketing group catering to the restaurant industry, IdeaStudio has seen continuing innovation from our restaurant clients. The most successful have done well not necessarily by overhauling their menus, but instead by updating familiar foods with more strongly flavored ingredients such as aioli, asiago cheese and garam masala, or with those previously considered “upscale,” such as balsamic reductions, prosciutto and Portobello mushrooms.

In a world where cosmopolitan is now commonplace, “the usual” has become “the passé.” Restaurants must remain alert to keep their flavor profiles trend-driven and interesting. As the globe continues to shrink and cuisines continue to overlap and meld, the successful restaurateurs will be those who are first to adopt new flavors and most innovative in finding ways to introduce them to the American palate.

The Discount Dilemma

2009-05-07T14:44:00.004-05:00

Last November 4, you could’ve just about made a day of it: free Starbucks Coffee and a Krispy Kreme donut for breakfast; a free Chick-fil-A sandwich and Ben & Jerry’s ice cream for lunch. If you were ambitious, you no doubt could have found a local dinner freebie, too.

Nice for you. But the question remains whether it actually did that bevy of beneficent businesses any good. Starbucks continues to shutter stores. And though Krispy Kreme stock has rebounded, recovery has not kept pace with the broader markets. Shares languish at less than one-eighth of their former selves.

Ben & Jerry’s is still dogged by a loss of indy prestige, having “sold out” to multinational conglomerate Unilever. Chick-fil-A was already blowing the doors off and arguably didn’t need a sales boost.

So what is the ultimate goal of deep discounting and freebies, exactly?

Well, duh. We all get that the paramount motive is to boost sales. But there are peripheral motives, as well. There’s reassertion of brand identity — hipness, empathy with the customer, social awareness, off-the-wallness or whatever. There’s the idea that deep discounts open the door to add-on sales and give profits a jolt, regardless of whether discount customers become regulars. There’s the hope that if you can just get people to cross your threshold, they’ll discover/rediscover what they’ve been missing and add/return you to their list of favorite places. And finally, there’s the big, uncategorizable, unquantifiable factor called “buzz,” aka “free publicity.”

Anyone will tell you that buzz is beautiful. But the people who launched the “Got Milk?” juggernaut can also tell you — though they’d probably rather not — that despite 15 years-worth of priceless publicity (attested by 1.4 million Google hits) and mostly flattering imitation, the popularity of milk has increased exactly zilch. During the year of the Milk Board’s biggest-ever ad spending increase, the corresponding change in milk consumption was (drum roll, please) -0.01 percent.

Like hordes of other bargain-lovers last election day, I flashed my “I voted” sticker and claimed my free Starbucks brew (via drive-through, so no in-store experience, no add-on temptation), then went back to buying my coffee at the same old place, where I kick-start my caffeine high with a bigger, better-tasting cup of coffee at a smaller, more palatable price. Starbucks won my appreciation … but not my business.

So what do QSRs need to consider before launching a freebie or deep discount?

1) Understand exactly what you expect from your effort. Is it brand awareness … renewal … reinforcement … redefinition? Honestly assess whether this promotion will deliver the desired results.

2) Be realistic about a likely return on investment. What’s the typical promotional spike for your business? Will a deeper discount bring you more dramatic returns … or diminishing ones?

3) See if you can package a promotion that actually increases your margins. An item that’s perceived as a good value by customers doesn’t have to be a money-loser for you, as Subway has demonstrated with its popular five-dollar footlong sandwich.

4) Consider the potential long-term effects of deep discounting. Are you setting a precedent for cheap deals that your customers will expect you to continue? Or are you tying your promotion to a one-time event, thus making it clear that this is a truly special thing?

5) Consider whether the promotion you have in mind is consistent with your brand. Even a prestige brand can promote value without diminishing itself, but the way the promotion is structured is a large part of this. You must judge whether a freebie, lagnappe, BOGO, coupon, pris fixe or frequency reward is the best fit with your brand status.

6) Finally, factor in consumer skepticism. When Quizno’s launched its Torpedo sandwich to combat Subway’s $5 footlong, savvy diners compared the two head to head, then took to the blogs, deriding the Torpedo as “a sandwich on a breadstick.”

Which illustrates the other side of buzz: the old saying that “all publicity is good publicity” ain’t necessarily so in this Internet age. If you hope to generate scads of free buzz with deep discounts and freebies, just keep in mind that you can get less than you pay for.

Time to UNthink “Free”?

2009-05-07T14:24:00.012-05:00

In the world of unintended consequences, KFC takes the prize with its Kentucky Grilled Chicken meal giveaway, unleashed this week with a word from Oprah Winfrey. To read a KFC spokesperson’s follow-up comments, one might infer that an angry consumer reaction was, well … UNthinkable. But was it? In developing the promotion, KFC seems to have left potential problems “UNthought”:

• The instant gratification problem. KFC apparently figured they could average out traffic with a coupon good for two weeks. But “I want it now,” is deeply ingrained in human nature. When the word went out to more than 7 million viewers of Oprah, fans practically sprinted to their PCs, immediately overloading both Oprah and KFC Web servers. Then they texted the news to non-Oprah-watching friends and Tweeted it to the rest of the world as they drove to the nearest KFC.

• The technology problem. Servers overload. Computers don’t all work the same way. Printers print differently from one to another. Coupon seekers reported myriad difficulties in accessing a Web site and printing a coupon. Some had to download special software, cited by one Web professional on a blog as evil “malware.” Others got caught in an endless loop as they tried to get to the coupon from Oprah’s Web site. Still more were told that they had printed their allotted number of coupons before they had even gotten one to print successfully.

• The fraud problem. Print quantities can be “gamed” via PDFs and screen captures. It can be hard to tell the difference between a black and white coupon produced by a printer and one produced by a copier. KFC laid itself open to unlimited fraud by making available a coupon that could be easily mass produced. While some customers reported that they were not allowed to print more than the designated four coupons, others reported printing (or copying) dozens.

Even after the official coupon-printing period had expired, I was easily able to track down a PDF online and print a coupon. Is it valid? I have no idea. There are dozens of conflicting online reports about coupon barcodes, with some sources reporting that there is only one — from the viral PDF I found, perhaps? — and others mentioning coupons with unique bar codes.

I could find no information on the KFC Web site specifying that my coupon must have a unique barcode. All I know is that I have an official-looking printout with a dot-scan barcode (as required in small print) and that my coupon has not been “photocopied, mechanically reproduced or altered” (as forbidden in small print). So why shouldn’t it be honored?

• The franchisee problem. Overwhelmed by the response to the giveaway, KFC franchisees scrambled to devise a workable plan for their restaurants. Some sought to limit giveaway hours to times when traffic was lower. Some designated a certain number of “promotional” meals and refused to honor coupons after they’d reached that number. Others — either misinformed or prevaricating — said that certain coupon bar codes were invalid (see above), or that coupons not printed in color would not be accepted.

The thing is that none of these caveats appears on the coupon. Most consumers have no clue about how franchising works and they couldn’t care less. They just know that the restaurant they’re in has a sign with Colonel Sanders’ face on it and that means their coupon should be accepted.

• The readership problem. The pieces of chicken to be included in the consumer’s free meal were specified in 4-point type as “managers choice.” That didn’t prevent irritation among consumers who wanted white meat, but got dark meat instead. Likewise, “while supplies last” was all but unreadable by anyone with less than 20/15 vision.

• The entitlement problem. When you tell people they’re getting something for free, something strange happens inside their heads. Suddenly, they assume it is owed to them. When they don’t get it (especially after having spent literally hours — as some did — trying to print a coupon), they get M-A-D, MAD. It does not matter to them that they’re not paying for their meal. They have invested time, energy and anticipation in a promise from KFC. And they expect a return on that.

• The time problem. When hundreds of customers converge on a QSR and demand service, the Q just falls right off, leaving customers to experience long and exasperating wait times. And this isn’t only happening to coupon-bearing customers who might be willing to accept a little inconvenience in exchange for a free meal. Regular, loyal, paying customers also become the victims of coupon chaos and their relationship with the franchise can be permanently damaged as a result.

• The blog problem. KFC has yet to apologize to customers for issues with the promotion and Oprah’s Harpo Productions has yet to even acknowledge them. Meanwhile, the ether is crackling with recriminations from thousands of commentators who have nothing good to say about either sponsor. Instead of praise, bloggers are posting unhappy personal experiences touching on every aspect of the giveaway, and reporting on angry throngs of disappointed customers at KFC locations. As a National Public Radio commentator dryly observed, you do not want “to spend the day after what should have been your moment of triumph clarifying that ‘there was no riot.’”

Clearly, KFC failed to give adequate critical thought to the particular difficulties that they and their franchisees might encounter in executing a meal giveaway promotion. The resulting damage to their brand caused by this thoughtlessness will not soon be repaired. As it turns out, the domain name of the franchise’s micro site, unthinkkfc.com, may be the only be part of this campaign that makes sense to customers.

Update (5/8/09):

If they couldn't save face, they could at least try to salvage profits ...

Working harder than he should've to sound happier than he ought to have been at finding himself in the midst of a PR debacle, KFC President Roger Eaton appeared yesterday in a video posted to YouTube and announced that the company was suspending its free meal coupon offer.

To quote the great Claude Raines, "I'm shocked. Shocked!"

With painfully forced enthusiasm, Eaton describes the "overwhelming response" to the promo and enthuses that "Clearly, America loves the great taste of Kentucky Grilled Chicken." Well, no, that's not clear at all. Clearly, America loves free stuff, but how can they know they love the taste of KGC if they can't redeem their coupons?

Eaton cheerfully goes on to explain that due to a level of response that KFC "never expected" (um ... why? They were offering people $20 worth of free food, for cripe's sake.) the company was forced to implement a new rain check procedure by which customers could request a replacement coupon in the mail.

Then, once again, KFC proceeds to bungle its communication.

"Please bring your coupon to a KFC restaurant or visit KFC.com and in exchange we'll send you a rain check for another time," Eaton promises.

The implication is that one may apply for a raincheck on the Web. Ix-nay on the Eb-way. The site directs visitors to take their coupon to KFC. So a trip to the store is mandatory. The bloggers are already grousing.

Additionally, Eaton consistently refers to "coupon" and "meal" in the singular case, though the original promotion offered four free meal coupons per person. So, can I send four coupons? If I do, will I receive four rain checks or just one? Is KFC just addicted to cliffhanger endings, or did they not anticipate this question?

One would hope that KFC might take away a few lessons from this week's free meal fiasco. Nope, apparently not. With its latest communication, the company now ensures that the bad taste its Kentucky Grilled Chicken promotion has left in consumers' mouths will linger for quite some time to come.

2009-03-25T10:10:00.003-05:00

The Frugal Diner: Here to stay?

Could the worst of the bust be behind us?

It’s hard to say. As of today, the Dow is up almost 20 percent from its abysmal low of March 9. Despite the daily dire pronouncements from CNN that we could still be on the brink of economic catastrophe, fears of the Later Greater Depression seem to be receding.

On the other hand, a Nation’s Restaurant News article today announced that consumer spending had taken a significant dive in early March, down more than 10 percent compared to January and February and more than 32 percent compared to the same period a year ago.

But that was early March, and as stated above, the Dow has moved convincingly northward since then.

Whether now or months from now, we can be sure that the market will recover and consumer confidence will rebound. When this happens, the death grip that even the comfortably flush have maintained on their wallets will ease.

To which restaurateurs from all corners reply, “Yes, but by how much?”

As Americans climb out of the consumer confidence basement (feeling a little like Auntie Em venturing out of the root cellar after an F5) … then what? Will optimism swiftly return and have consumers spending again like there’s no tomorrow? Or will caution prevail and keep consumers saving like there’s definitely a tomorrow … and it’s going to be absolutely terrible?

Most economists agree that the economy will show signs of recovery in the second half of 2009. Almost all also agree that increases in consumer spending will be more gradual than in past recessions, when spending has come roaring back based on pent-up demand. This time, it was consumer demand — specifically for credit and real estate loans — that created the bubble that burst so suddenly and dramatically.

So the likely answer is that consumer spending will resume … but with the housing market still gasping for air, working Americans desperate to bolster their diminished 401k plans and a pervasive sense of national animosity toward conspicuous consumption, spending won’t begin to reach previous levels for years, not months.

As markets and jobs stabilize, consumers will slowly but surely begin to trade up again in their choice of restaurants, just as they traded down when things were looking grim. But with a bit more hesitation this time. A key component of this trade-up will be the attraction of greater perceived value at more expensive establishments.

The best way to encourage this perception is to continue to promote the value-oriented menus, pris fixe dinners, two-for-one specials and combos that helped keep restaurateurs from losing loyal customers from defecting during the downturn.

The message, of course, must be freshened up from the “we’re helping you in hard times” mantra that consumers have heard throughout the recession. A new, optimistic message will be in order.

Additionally, restaurateurs will need to consider freshening the offers themselves to come across as being responsive to a changed outlook; diners will be looking for something new, a break from the value-menu staples that got them through their budget crisis. As long as that break doesn’t look too dramatic. And this presents an excellent opportunity to begin to walk margins back to a more comfortable place. “Walk” being the operative word.

Your new message, new look, new offerings and new specials will signal to your customers that you’ve weathered the downturn with them and are looking forward, just as they are, to better times to come.

Even if they don’t come quite as quickly as any of us would like.

What Do You Do When the Party’s Over?

2009-02-25T00:01:00.004-06:00

Lent begins today. So? Why mention this in a restaurant blog unless it’s a reminder to stock up on fish fillets?

Well … actually, Lent is worth mentioning because it presents a fitting parallel to the economic climate restaurants find themselves in just now: After the mad abandon of the Mardi Gras party, a period of sober reflection.

Right now, plenty of operators are dazed and wandering in the desert of diminished expectations, wondering exactly when the refrain changed from “We’re in the Money,” to "Brother, Can You Spare a Dime?" and when — if ever — they’ll hear “Happy Days Are Here Again.”

All they know for sure is that it was Fat Tuesday and then, suddenly, it wasn’t.

But the thing about Lent is that we’re supposed to wind up better for having spent 40 days in a process of self-reflection, right? This is absolutely key, and dazed wandering absolutely does not count as self-reflection. So, the question becomes “What do we do during this time of consumer self-denial?”

The answer lies in a three-step process:

1) Stop wandering. In difficult times, the natural reaction is to bounce from gimmick to gimmick hoping that one will appeal to some demographic group that still has cash they’re willing to part with.

Stop. Just stop.

If consumer perceptions are hard to change in good times, they’re downright impossible to budge in hard times. If you’ve built your image as a family place, do not think that you will begin to draw millennials by firing up Jack Johnson on the PA and mentioning WiFi next to the $1.99 kids meal promo in your next FSI.

You are what you are. This is the time to refine your focus, not redefine it.

2) Start thinking. So, okay. Things are slower. Be still. Sit. Breathe. Take time out while you have it and contemplate where you were (and how you got there), where you are now (and why), and where you want to be when the music starts again. Because it will. It always does.

Make a list. Make many lists. There’s nothing more clarifying than seeing your thoughts on paper.

Who loves you? Why? What have you historically done exceptionally well? What do you do that nobody else can? How can you communicate this to the people who love you … and others like them who have not yet discovered you? How can you help them justify spending money on your products?

Remember: It’s the economy that’s changed, not the consumer. People still crave the same things, still aspire to the same experiences. Your task is to figure out how to package your products with empathy — that is, to appeal to your customers’ traditional cravings in a way that allays their insecurity about spending.

3) Begin planning. The U.S. economy will revive. Consumer confidence will return. Give consideration now to what you will need and want to implement when the time comes, from POS systems to marketing materials to franchising packets. In the process of looking ahead, you’ll uncover not only long-term objectives, but also some surprising short-term opportunities.
Again, it’s that pen and paper concept. When you begin to formalize plans, all sorts of related ideas and opportunities emerge.

Finally, during this time of self-reflection, consider this: the further you hold a looking glass from yourself, the more you see in it. Have someone with considerable distance from your enterprise hold the mirror for you — and the earlier in your “wilderness experience,” the better.
A responsible outside marketing and promotions specialist will certainly help you in the process of refining, list-making and preparing. And they’ll do it within the context and perspective of your broader market, not with just a close-up view to your brand.

Start now. This could take more than 40 days. And you’ll want to be ready when the music starts again.

A Downturn Is a Terrible Thing to Waste.

2008-11-18T16:05:00.012-06:00

If you're one of the many casual dining restaurant operators who are terrified about the state of the economy, I've got some encouraging news to share.

I just returned from the Restaurant Finance and Development Show a week ago and what did I learn there? Things are going to get better for the restaurant industry next year.

Yes, that's right.

Here's why:

The downturn will weed out weaker competition. Primarily, this group is made up of single-unit "mom and pop" restaurants, but it also includes inefficient chain operators. Once the dust settles, customers with fewer dining options will be yours to capture.

Real estate opportunities are everywhere. Boarded-up "A" locations are up for grabs at a discount. So, keep your eyes open!

Pretty soon aging baby boomers will be succeeded by a larger, untapped demographic group: Millennials. This is great news for restaurants because millennials have no desire (and no idea how) to cook! Instead, studies show they travel in packs to QSR, fast-casual and casual restaurants.

Higher unemployment gives you the opportunity to upgrade your people. Highly qualified individuals will be looking for employment at all levels and in all positions.

If you want to turn things around, you can't just wait out the storm. You have to put forth serious effort and, probably, make major changes. Here are my recommendations:

Conduct research to determine who your real core customers are, and why and how they use your concept. (Most operators think they know this, but they don't!) I recommend Perception Testing, a qualitative research instrument offered by the top restaurant marketing firms. It will reveal truths about your concept that you never even suspected.

Based on what the research reveals, take a hard look at your branding. It must be one-hundred percent aligned with your core customer! If it's firing on all cylinders, stick with it. If not, find a trusted chain restaurant marketing firm to fix it.

If you don't have one, invest in a new, professionally produced custom photo library. Do not cut corners in this area. People eat with their eyes, so give them top quality fare. Spend what it takes to get a mouth-watering "menu" of shots that will last for years to come. (See our white paper about this at www.ideastudio.com).

Examine your trade dress. Is it time to modernize? If you want to succeed in downturn, you must be up with the times!

Stay top-of-mind. Expand your marketing with promotions built around existing menu items that are operationally easy to execute. I'm a big believer in LTOs that utilize a variety of mediums, including inexpensive ones such as e-mail and four-walls marketing and PR events. But don't try to create your promotion on the cheap; hire a good marketing firm to do it.

Step up your service. Every guest should be greeted upon entering or leaving your restaurant. If your customers feel especially appreciated, they'll tell their friends. (On the other hand, if they feel they haven't been treated well, they'll tell the whole world!)

So how will you respond to this economic downturn? Will you hunker down, slash costs and hope for the best? Or will you seize an unprecedented opportunity and position yourself to ride high on the upswing? You can be sure that the most agile and assertive operators today will be the powerhouses of tomorrow.

Why Your Food Photography Doesn't Sell Your Food.

2008-10-29T16:28:00.013-05:00

If you're doing food photography the right way — paying what it takes to hire an expert food photography team with a specialized food photographer, food stylist and art director — then you can pretty much ignore this post.

For you other guys who aren't doing it the right way (and you know who you are), I've got a bone to pick with you!

You're probably falling back on one or more of these rationalizations:

I get a cheaper price by using a general photographer.
Why hire a stylist when we have a corporate chef to style food?
I want to cram a boatload of shots into a shoot day and specialists don't like that.
Why pay a premium to shoot a bunch of photos we might not end up using?
We bought an expensive digital camera and lights, so we can do it ourselves.
Our foodservice company gives us pictures for free, so why pay?

For the record, none of these wash.

Nearly every restaurant marketing or operations manager will swear that the food is what makes their restaurant. So why do they place so little importance on making their food absolutely irrresistible to potential and core customers in photographs?

The only way customers will realize how "craveable" your menu offerings are is to see them. And the better they look in pictures, the better your customers know they'll taste. In fact, along with price and cuisine, the appearance of your food is the chief criterion a diner uses to measure you against your competitors.

After 15 years of doing restaurant promotions, I can cite plenty of before-and-after stories of double-digit sales increases that followed when resources were properly allocated to food photography.

Given that a relatively small investment can pay impressive and almost immediate dividends, I'm baffled that so many large, established chains are willing to skimp.

What's wrong with this picture?