QSR Insights: Quality With A Cause

Chipotle burritoA few days ago, in a matter of hours, Chipotle stock took a tumble to the tune of 6.5 percent. What could cause such a sudden loss in the otherwise stellar valuation and track record of the restaurant industry darling?

A viral video of Chipotle employees misbehaving in the kitchen?

A nationwide shortage of tortillas?

Neither.

Chipotle stock, in the delightful words of The New York Times, fell faster than a lead burrito because of the words of one man, cult financial guru and hedge fund manager David Einhorn.

Einhorn called the company overvalued – and in a macrocosm of self-fulfilling prophecies, investors proceeded to sell, sell, sell at a pace more than four times the stock’s average daily trading volume.

Now, I do not profess to be anything close to a Wall Street savant. I know enough of investing to know that mutual funds rarely outperform index funds in the long run. I also know the stock market, as proven by Mr. Einhorn, is basically a giant mood ring worn by the nation as a whole.

But it was one of Einhorn’s justifications for his bearish take on Chipotle stock that struck a nerve in me in particular. Taco Bell and its new ‘Cantina Bell’ upscale menu, he reasoned, would soon enough lure customers away from Chipotle and its higher-priced offerings.

It smacked of a certain arrogance to the reasoning behind why people eat where they eat. Sure, price plays a large and sometimes deciding factor. But so, too, does quality. And to Chipotle’s credit, quality has evolved to mean much more than taste.

Chipotle embraces and communicates quality as well as any national chain by fusing it with causes that reach well beyond consumers’ taste buds. The company sums its philosophy up with three words: Food with Integrity. It means “finding the very best ingredients raised with respect for the animals, the environment and the farmers.”

In 2011, the company enlisted a London filmmaker to create an emotional stop-motion video packaging up those principles to the tune of a custom Coldplay cover recorded by country music legend and Farm Aid President Willie Nelson. The video debuted on YouTube and after racking up millions of views was repurposed into a Chipotle ad that aired during the 2012 Grammys.

The emotions the video elicits in people are exactly the reason why, in my opinion, Einhorn oversimplified the perceived threat to Chipotle by Taco Bell’s ‘Cantina Bell’ menu. Taco Bell may now be focused on quality, but Chipotle is focused on quality with a cause.

It reminds me of an old Barkley PR (now Crossroads) belief relating to companies and causes: When you stand for something greater than your bottom line, people stand with you.

Chipotle has made what it stands for the forefront of its marketing communication – and consumers recognize it. It’s why I believe they and I will continue to choose Chipotle over Taco Bell when in the mood for quick and quality Mexican food.

Unless it’s after 10 p.m. and alcohol is in the equation. In that situation, all bets are off.

Photo credit: Dion Hinchcliffe

QSR Insights: Embrace and Celebrate Your Quirkiness

Sonic Skater TotThe quick-service market is saturated. It’s hardly a news flash, but it drives home the point that for a company to thrive in the space it must rise above the noise generated by a smorgasbord of competitors. When it comes to capturing market share, it’s less about who yells the loudest (think employees being sent street-side to wave sale signs at passing motorists) and more about which brands’ personalities leave a lasting impression on customers and make them want to come back for an experience unlike others.

Enter the skating Carhop, a SONIC Drive-In tradition and top-of-mind association with consumers. SONIC is unabashedly quirky–and in a good way. Customers enjoy the unique drive-in format, the popular line of plush kids’ meal toys shaped like Tots–and most importantly, the ability for its employees to have fun at work. You may be reading this at a desk or on a mobile device. Think of how much more fun you’d be having if you were reading while on a pair of skates.

The skating Carhop position is considered a brand treasure at SONIC. In order to celebrate it and promote it internally, the company hosts an annual competition each year to crown the top skating Carhop in the country. In addition to an online entry method, SONIC hosts regional submission events across the country to help Carhops get entered and give them an opportunity to shine. Last Saturday, one of those events took place in Phoenix. Amid the crowd of Carhop entrants, we spotted something not seen every day, a skating Tot–or “skater” Tot. It wasn’t there to wave down passing motorists, but simply to bring a little more joy to the crowd in classic, quirky SONIC fashion.

*Crossposted from the Crossroads blog.

QSR Insights: A Day in the Life – Behind-the-Counter Experiences Crucial For QSR PR Pros

On the lotI recently helped our client, SONIC Drive-In, coordinate a video shoot for a new show debuting this summer celebrating the most cherished fast food restaurants in America. Half of the all-day shoot took place inside the kitchen and focused on giving viewers a behind-the-scenes look at some of the brand’s iconic menu offerings.

Once I settled down from the rush of the production (and the sugar rush unleashed by unlimited access to SONIC’s 398,292 unique drink combinations) my thoughts turned once again to how crucial it is for public relations professionals in the quick-serve restaurant industry to experience the operations side of the business.

For any restaurant, but particularly a drive-in format where the customer never sees the kitchen up close, opportunities are few and far between to experience first-hand the teamwork and ordering ballet that take place during every shift.

Not only does it give you a genuine appreciation for the front-line workers in the company, it opens your eyes to new insights and perspective that can directly impact or inspire your work back at the office. A good number of employees at SONIC’s corporate office have worked at least a day at a drive-in. While I haven’t suited up for a shift (my first job as a 15 year old was in fast food, however), I’ll keep looking forward to witnessing the magic in the kitchen and the hard-working folks who make it happen.

QSR Insights: Sonic Drive-In Employee Co-Stars in Consumer-Generated Viral Video

Over the past few weeks, a consumer-generated video involving the Sonic brand has taken root and spread like wildfire on the web.

It started as a playful and spontaneous act of fun when 23-year-old musician and coffee shop employee Giorgio Fareira pulled into a Connecticut Sonic Drive-In with a group of friends and placed their order via a charming and improvised serenade. A friend recorded Giorgio’s performance and posted the video, Giorgio Loves Sonic to YouTube. Within a week, it had eclipsed more than one million views.

From YouTube hits to media coverage, the response to the video has been spectacular. Ellen DeGeneres thought so much of Giorgio’s good-natured talent that she invited him on her show and asked him to spread his musical cheer throughout Los Angeles in a humorous and heartwarming bit.

Looking past the video’s initial appeal, however, those in the restaurant industry should take notice of one aspect in particular: the heartwarming, giggly response from the employee taking the order. It goes without saying that customer service can make or break a guest’s experience. Not only did the girl behind the loudspeaker play an important supporting role in the video’s success, her genuine and real response also reaffirmed the idea that your front-line employees are ultimately the face of your brand. No amount of marketing can overcome that fact.

In the case of Giorgio’s serenade, that quality customer service was front and center and on display to a YouTube audience numbering seven figures.