Chains practice premium positioningChains practice premium positioning

Nancy
Kruse

Recent chain menu research and development has been heavily influenced by a trio of “-zations.” Customization allows patrons to mix and match meal components to suit the dining occasion. Miniaturization lets them control both calorie content and check size by means of creative small plates, bar bites and tiny treats. And premiumization provides customers with an affordable luxury, an indulgence that delivers superior value at a popular price point.

Premiumization, in particular, has picked up steam over the past few years. While the phenomenon predates the recession, it has developed into a reliable marketing tactic to convince cost-conscious consumers to treat themselves.

Premium proteins. Meat is both a major cost center and a focal point of operator upgrades. Protein wars have broken out across the industry, and the burger business has become a bit of a battleground.

In 2007, Jack in the Box jumped in with the first 100-percent-sirloin burger offered by a major chain. Angus beef soon became a flashpoint, and while a number of competitors like Back Yard Burgers already offered the product, it was the national rollout of McDonald’s Angus Third Pounders in 2009 that raised the bar on consumer awareness and expectations.

California-based Ruby’s Diner picked up the gauntlet with a promotional Kobe burger that has since been supplanted by pasture-grass-fed, all-natural USDA choice beef.

Sandwich specialist Arby’s pulled off a major coup last year with new Ultimate Angus items made with Angus beef that the chain roasts to medium rare. It was a breakout move in line with Technomic Inc. research that shows about two-thirds of consumers believe that beef or pork products with premium descriptors actually taste better.

The seafood segment has seen similar enhancement, led, not surprisingly, by Red Lobster’s aggressive promotions such as the recurring Lobsterfest. Lobster represents a gold standard that appears regularly in limited-time offerings, including Rubio’s Langostino Lobster Tacos and T.G.I. Friday’s Langostino Lobster Topped Premium Entrees.

The ultimate in protein nirvana may be Outback Steakhouse’s Steak & Seafood Mixed Grill, an up-market mashup of land and sea that puts sirloin steak, shrimp and scallops on the same plate.

Premium peripherals. Other parts of the menu have provided equally fertile opportunities for upscaling. The premium ingredient category is especially active, as at IHOP, where crêpes are topped with Italian chocolate-and-hazelnut sauce, rather than generic chocolate. Wendy’s broke new ground by putting sea salt atop its French fries, while fast-casual Smashburger upped the ante with fries tossed with shaved Parmesan and truffle essence.

Truffles also figured in Romano’s Macaroni Grill’s seasonal Parmesan-Crusted Veal Chop finished with truffle demi-glace, and Butternut Asiago Tortellaci crowned with truffle cream.

Side dishes are really ripe for rehab, and though much of the focus has been on French fries, premium touches appear elsewhere. Good examples include Rock Bottom’s red-ale rice, Smashburger’s flash-fried asparagus spears and Houlihan’s peanut-ginger slaw.

High spirits. The addition of alcohol elevates the image of any dish, and corporate chefs have broken out the bottles in a wide range of applications.

Especially notable is the use of grape varietals to replace the previous, one-size-fits-all “red wine sauce.” Olive Garden braises short ribs in Chianti, and Panera Bread drizzles its Steak & Blue Cheese Chopped Salad with a Cabernet reduction. California Pizza Kitchen offers a Champagne vinaigrette, while Rock Bottom’s dessert list includes rum-butter sauce and stout fudge.

Bourbon has received a boost of late, driven in part by its affinity with both barbecue and burgers. To address that compatibility, Red Robin offered a bourbon-glazed beef patty in its Bacon Swiss Burger holiday promotion. Patrons over 21 could also add a shot to their Gingerbread Shake. Also at year’s end, T.G.I. Friday’s featured rib-eye and salmon marinated in a house-made whiskey brine.

Looking ahead, consumer expectations have nowhere to go but up, as operators have trained diners to expect premium touches. Taco Bell recently began testing higher-end items like corn salsa and seasoned white rice to better compete with fast-casual phenomenon Chipotle, and Wendy’s is also in test with burgers dubbed Black Label, a name that evokes the glamour and exclusivity of good Scotch.

Nancy Kruse, president of The Kruse Company, is a menu trends analyst based in Atlanta. E-mail her at [email protected].