Applebee’s has generated a steady cadence of value offerings to keep consumers’ attention even as they tighten their spending. Those offerings have included 50-cent boneless wings, half-price late-night appetizers and now, 50-cent mozzarella sticks.
The casual dining chain announced today that the mozzarella sticks promotion – at 50 cents each – is available through July 28 for dine-in and to-go guests. Online orders are available in increments of four sticks with a maximum basket count of 10 orders, or 40 sticks. The sticks are served with a side of marinara sauce.
“We believe if we can push the right levers, we’ll be able to work our way through a very challenged environment right now for our guests,” CMO Joel Yashinsky said during a recent interview. “So, you're going to see a continued message around value because of what our guests are having to deal with right now and we want to keep traffic flowing into our restaurants.”
Yashinsky made it a point to note that Applebee’s will balance its value offerings with innovation, such as its new hand-breaded chicken sandwiches.
“The value muscles are working a little bit harder this year because of the situation we’re in, and the innovation muscle gives people the chance to trade up or try something new and we’re excited to bring that forward,” Yashinsky said. “The strategy is to be nimble and be a little bit more focused on value right now.”
During parent company Dine Brands’ Q1 earnings call in May, CEO John Peyton said consumers are becoming more price sensitive, as evidenced by their response to limited-time promotions.
“Guests are trading down for lower-priced items, which is another indicator that guests are managing their wallet,” he said.
At Applebee’s, 28% of orders were tied to a limited-time promotion, up from 19% during the previous quarter. Dine Brands executives said they are encouraged by the value-driven strategy the company has put into place to mitigate consumer pressures because its promotions have been generating profitable traffic. Most consumers who come in for 50-cent wings or mozzarella sticks tend to order additional items. Historically, 93% of Applebee’s Dollarita transactions have another menu item attached, for instance.
“It starts off as a promotion that’s intended to drive traffic and then the marketing team layers choices and upsells other items that start to increase profitability,” President Tony Moralejo said during a recent interview. “Then we present to the franchisees, here’s how we preserve your margins.”
Contact Alicia Kelso at [email protected]
