Keep them coming back for moreKeep them coming back for more

Fern Glazer

Industrywide traffic growth may be projected at less than
1 percent for 2012, but the task of driving up guest counts is not impossible if operators focus on customers who are likely to visit any time of day, according to new data from The NPD Group.


During a four-week period ended Sept. 30, 23 percent of customers at the top 10 quick-service chains were multidaypart users, according to NPD. Although the group is a relatively small one, multidaypart users accounted for 39 percent of all visits to the top 10 quick-service chains during the same period. Those customers made an average of seven visits per person, or an average of 4.6 visits per chain. In comparison, during the same period, single-daypart users made an average of 5.1 visits per person, or an average of 2.2 visits per chain.


“The [consumer] confidence thing is really wreaking havoc [in the industry],” said Bonnie Riggs, an analyst with Port Washington, N.Y.-based NPD. “If the industry is going to grow less than 1 percent, what ways are there to drive business? Getting multiple-daypart users is one means — a big means, actually.”


She added, “Even though they are a small percentage of buyers, they almost account for twice the volume of their size — and that’s where the growth is going to come from.”


Multidaypart users visit at all dayparts, but the biggest opportunity for growing this group and its frequency is at the morning meal, NPD found. While 43 percent of multiple-daypart users at the top 10 quick-service chains visited at lunch and dinner in a four-week period in 2010, only 28 percent of multidaypart users visited during the morning meal and another meal occasion.


Specifically, 12 percent of multidaypart quick-service users visited at a combination of morning meal and evening snack, NPD found. Eleven percent dined out at morning meal and lunch, and 5 percent did at morning meal and dinner. Eleven percent dine out for three or more dayparts, while 7 percent eat at a QSR for lunch and evening snack, and another 7 percent do so at dinner and evening snack. 


“Morning meal is growing, so that’s something to capitalize on in building multiple visits,” said Riggs. 


Among the biggest concerns for operators considering expanding into new dayparts is that it will cannibalize their core business, but Riggs said that is not the case.


“We find that building on multidaypart users does not erode core business,” said Riggs. “If the industry isn’t going to grow, you are not going to increase reach, penetration. This is one way of building traffic.”



New business dawning


Given the lingering economic downturn, some quick-service operators already have worked to increase multidaypart usage at their restaurants — many by adding breakfast.


In the past few years several quick-service operators have introduced breakfast or expanded their breakfast menus to give consumers another reason to visit — and to grab a piece of McDonald’s and Starbucks’ morning market share.


Last fall, Burger King rolled out new breakfast items, and more recently, Wendy’s started testing breakfast items in its Columbus, Ohio, stores. Other operators are taking a product-based approach, introducing limited-time offers and new products to drive customers back to their brands at different times of the day.


One of the most notable forays into the breakfast daypart was that of Milford, Conn.-based Subway. The sandwich giant began serving prepared-to-order breakfast sandwiches in the spring of 2010. Subway kicked off its launch with a bounce-back coupon designed to entice customers to sample the new morning offerings. 


“Our regular customers are very happy we started breakfast, as it gave them another time of day to come to Subway,” said Tony Pace, chief marketing officer of the Subway Franchisee Advertising Fund Trust. “Breakfast is a substantial portion of our business, and it has continued to grow.” He did not elaborate on the percentage of sales breakfast comprises.


Subway’s latest tactic to keep its customers coming back at multiple dayparts is a buy-one-get-one offer at breakfast. Launched Nov. 1, the month-long promotion allowed customers to get either two breakfast sandwiches or a breakfast sandwich and a lunch sandwich for the price of just one.


In addition, the sandwich chain each month has promoted a different variety of its signature $5 Footlong sandwiches. In December the featured footlong will be the Western Egg & Cheese sandwich.


“You want traffic wherever you can get it,” said Pace. “You’ve got to try to make sure people know your offering can be appropriate for other dayparts.”


While many operators have worked to build their breakfast business, some are looking beyond the early hours for a boost.


Last fall, Jamba Juice, which operates more than 400 smoothie outlets and franchises approximately 300 more stores, launched its “Better Start. Better Day” campaign as a way to draw customers’ attention to its breakfast offerings. The plan worked, with the chain reporting that traffic and same-store sales have increased during the breakfast daypart. Earlier this year, the Emeryville, Calif.-based chain also introduced Whirl’ns, a line of flavored frozen yogurts. The new product has increased evening daypart sales at stores that offer it, according to officials.


“Having great-tasting and better-for-you products that address multiple dayparts is essential to meeting consumers’ needs and for continuing to grow comps,” Susan Shields, Jamba Juice’s senior vice president and chief marketing officer, said in an e-mail.


In addition to adding breakfast items like steel-cut oatmeal and wraps, the chain also repositioned its Ideal Meals — smoothies made with either soy milk or yogurt and topped with whole fruit, organic granola and fresh bananas — now calling them Fruit & Yogurt Blends to better cross all dayparts, including snack. 


Similarly, Minneapolis-based Caribou Coffee began offering a breakfast platform in September 2010, followed by a lunch platform in August 2011. 


So far, the addition of premium breakfast and lunch foods — including offerings such as seven-grain oatmeal and grown-up grilled cheese sandwiches made with such ingredients as smoked Gouda, chicken and caramelized onions — has proven successful, according to chain officials.


“We all know the huge challenges in the current economy to grow traffic,” said Mauricio Loria, Caribou’s director of brand insights. “Our food initiatives have been fundamental to grow our sales and overcome a recessive economic environment.”