Skip navigation
Panel: Value-driven promotions require careful execution

Panel: Value-driven promotions require careful execution

DALLAS —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“It used to be that value was a marketing slogan,” said Phil Costner, chief operating officer of La Madeleine. “Now it’s a necessity. It’s ante to get in the game.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Costner shared his thoughts during a panel discussion at the Menu Trends & Directions conference here. Other panelists were Andrew Dismore, senior director of product innovation for Denny’s Corp.; David Groll, corporate chef for McAlister’s Corp.; and Amy Alarcon, director of culinary innovation for Popeyes Louisiana Kitchen. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

The key to a successful promotion is defining value as not only low prices, but also quality, Dismore said. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“When I first got to Denny’s, value was [defined as] more food than you can possibly eat on a regular basis—and three pancakes,” he said. “That’s not going to work anymore. Abundance can be value, but I wanted to incorporate fresh ingredients not commonly found in family dining and create an experience that can’t be created at home.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

He cited the chain’s Grand Slamwich, which contains three types of breakfast meats and maple spice bread as something that customers were unlikely to fix in their own kitchens. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Dismore also talked about how the chain aims to create offerings that are in sync with its customers’ lifestyles. Denny’s rock-star theme late-night menu is a perfect example of that, he said. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“The guests in the restaurant on a Sunday morning are probably different from the guests there late at night,” he said. “[Late-night diners] are not there after a study break or the ballet, but let’s embrace that. Let’s learn about them.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

The Popeyes chain uses its deals as an opportunity to showcase the chain’s quality food, Alarcon said. In one offer, a customer can get five chicken wings for $2.99, but it’s not just the price that makes it valuable, she said. Because the chicken is marinated for 12 hours in the stores, hand-battered and fried fresh, customers feel they’re getting more bang for their buck. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“It’s a tremendous value to the customer when they see how much goes into it,” she said. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

McAlister’s Deli, which does not discount items or offer coupons, also strives to add value in less tangible ways. Groll said the chain has had great success with its “choose two” feature, which allows customers to select a pair of items from among its soups, salads and sandwiches. That option accounts for 24 percent of total sales, he added. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Most important, he added, the offering, which is priced at $5.99, gives customers a sense of choice and value, without sacrificing the chain’s financial needs. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“The margin we created at that price was very favorable,” Groll said. “Even the franchisees liked it.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

For La Madeleine, value is a three-pronged concept comprising price, quality and overall experience, Costner said. Like McAlister’s, La Madeleine also allows customers to pair two menu items, which gives customers the impression that they’re getting their money’s worth without pursuing a traditional discounting approach. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

He also discussed the importance of having a fast and flexible research and development process, so the company can make adjustments quickly and take calculated risks with the menu and operations. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Food trends expert Nancy Kruse looks forward to culinary future

DALLAS—Korean crossover, meals on wheels, culinary crowd sourcing and trickle-up recipe development are among the current food trends that will remain relevant in the future, said food trends expert Nancy Kruse during the recent Menu Trends & Directions conference here. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Watch for Korean beef ribs, kimchi and rice bowls, said Kruse of the Atlanta-based Kruse Co. and a columnist for Nation’s Restaurant News. In addition, operators serving these foods may be increasingly hitting the road in mobile units. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“There are some cool concepts,” Kruse said, mentioning the well-known Kogi truck in Los Angeles. “Pay attention to these guys and see what can work for you.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Furthermore, Kruse suggested engaging the consumer in the development process of new menu items using contests and social media, or “word-of-mouth on steroids.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Finally, she said that many operators would be looking to research and development executives as the new shining stars, as trends trickle up from fast food to fine dining. She noted upscale chefs who have gone the casual route lately by opening hot dog and burger joints.— Pamela Parseghian —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“We’re a soup, sandwich, salad and baked-potato restaurant. We’re not saving lives here,” he said. “We can take some chances.” —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Popeyes’ Alarcon echoed the sentiment, saying the research and development has quickened industrywide. What used to take 12 to 15 months, might now take just nine to 12, she added. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

In order to be effective, the R&D process also must have a laser focus, from ideation to execution to marketing, Denny’s Dismore said. Clearly prioritizing projects and menu marketing within the company ensures that the message won’t eventually be lost on customers. —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

“Think about going to a restaurant and there are so many menus and table tents on the table that you can’t even find a place to put your plate,” he said. “It’s noise, and it’s lost.”— [email protected] —Value-driven promotions are a near necessity in the current economic climate, but they must be tailored carefully to a brand’s image to maximize success, executives from four restaurant chains said recently.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish