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Fine-dining restaurants — often viewed solely as special-occasion venues — have a unique challenge when it comes to staying front of mind with customers.
But for two of the three chains in this category, Ruth’s Chris Steak House and McCormick & Schmick’s, happy hour promotions have proven to be important vehicles for keeping them on their guests’ radars in between birthdays, anniversaries and expense-account meals.
Conrad Lyon, senior equity analyst at B. Riley & Co., who covered Portland, Ore.-based McCormick & Schmick’s before the brand became private last year after Houston-based Landry’s Inc. bought it, said that the chain’s happy hour was “a huge driver.”
The 77-unit chain offers drink and food specials from 3:30 p.m. to 7 p.m., including draft beers starting at $4, $6 wines and cocktails, and menu items, such as Shrimp Ceviche and Blackened Chicken Sandwiches, starting at $1.95.
No. 2, Morton's the Steakhouse
“The corporate customer would just go to town on these things,” Lyon said, noting that the chain also likely gained tailwind when fans of the happy hour had to decide where to go for expense-account occasions.
Ruth’s Hospitality Group chief executive Mike O’Donnell, in announcing the Winter Park, Fla.-based company’s most recent quarterly earnings, credited the chain’s Sizzle, Swizzle & Swirl happy hour for continuing to drive traffic.
The promotion features food starting at $7 and beer for between $3 and $5. It’s available at 45 of the chain’s 65 corporate restaurants as well as more than 20 franchised locations in the 137-unit system, according to Helen Mackey, director of beverage strategy.
The Ruth’s Classics fixed-price dinner offerings also contributed to driving traffic, O’Donnell said, noting that he focuses on traffic rather than margins to drive revenue.
Ruth’s Chris also has teamed up with beverage promoters to hold a series of food-and-drink pairing dinners, the largest of which, featuring the wines of Napa Valley and scheduled for March 14, was slated to have 87 participating restaurants.
Although most of the dinners have featured wine, whiskey dinners have been held, as well, and individual units have paired with craft-beer makers for special dinners. Mackey said the dinners keep customers engaged with the brand.
No. 3, McCormick
Chicago-based Morton’s the Steakhouse has a happy hour, too, called the Power Hour, but the 70-unit steakhouse chain, which also was acquired by Landry’s last year, relies more on reputation and word-of-mouth to attract customers.
Morton’s has expanded its menu and also has created targeted promotions. Last year, the chain collaborated with the cable television History channel to cross-promote the miniseries “The Men Who Built America,” in a move to reinforce Morton’s image as a place of brokering power.
History, which targets well-to-do, educated consumers, fit perfectly with Morton’s demographic, Landry’s vice president of marketing Kris Guthrie said at the time.
More on Fine Dining:
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Contact Bret Thorn at [email protected].
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