QSR Insights: Papa Murphy’s Missed Dough Opportunity

PizzaWhile some stand firm on one end or the other, many of us have a love-hate relationship with cooking. I’m one that bounces around. When I have time, I love it. It’s therapeutic. But when I’m exhausted from a long day at the office, well, I’m not a huge fan.

The other night I decided to cook but with a little help from my friends at Papa Murphy’s. My husband and I were in the mood for pizza, but I wanted to put my own spin on it.

So I went into the new Papa Murphy’s location down the street and ordered a large deLITE size dough—a sign I was leaning towards the more loving end of my relationship with cooking.

After placing my order, the young guy behind the counter looked a little confused and turned to the lady next to him for guidance. She immediately stepped in to explain they don’t sell just the dough. Stunned, I jumped in to let her know that I’ve been buying the dough for years at the other location a few miles away.  The nice lady proceeded to tell me that she was from corporate, and that other store was going against policy.

As I turned for the door in complete disappointment, I started to wonder about the motivation behind their corporate policy.  Do they think their role as America’s pizza provider will diminish if they sell the dough?

I say au contraire. Restaurants, from quick serves to fine dining, that can satisfy a variety of needs and allow me to have flexibility depending on what’s going on in my life are the ones that are irreplaceable. I still go to Papa Murphy’s for those times when I’m having a more “hate” relationship with cooking, to truly just “Take ‘N’ Bake.” So why turn down the opportunity to play a part in my culinary adventure when I’m in the cooking mood?

Embrace how you fit into your customers’ lives, don’t try to control it.  You might uncover new opportunities. Papa Murphy’s could become an even bigger hero for families who want to make their Friday night extra special by creating their pizza together. By supplying the dough and a few pointers on mastering pizza making, Papa Murphy’s still remains the true pizza artist but allows for their customers to co-create.

Any healthy relationship evolves over time. So the next time your customer wants you to play a slightly different role than normal, think twice before turning them down. Otherwise, they might replace you.

Photo credit: Jessy Rone

QSR Insights: Franchisee Satisfaction Matters

In QSR, many brands operate with a model that’s dependent on franchisees to successfully execute national or corporate marketing efforts. But from time to time, franchisors launch new campaigns and one or more of negative outcomes occurs.

The corporate effort drives traffic in-store but:

  1. Traffic is below franchisee expectations.
  2. Low margins on the advertised item don’t lead to a bigger basket which may reflect challenges in upsell/cross-sell of the advertised item.
  3. The promotion doesn’t build consumer loyalty and the immediate sales increase isn’t sustainable long-term.

There’s natural tension built into a “conflict relationship” as each party is required to adopt their perspective:

  • Franchisors are responsible for looking at the brand from a macro level.
  • Franchisees are responsible for looking for the brand at a micro level.

According to Michael Seid at MSA Worldwide, “conflict can occur because the parties don’t always have the same goals.”  Further, from time to time, the products advertised aren’t as successful as planned or the advertising doesn’t connect with consumers.

The opportunity then is to develop an ongoing, robust discussion with franchisees.  This allows them to be aware of the plan even if they may not agree.

Seid says Arby’s “met this challenge” when they worked to launch the Market Fresh Sandwich line. Even though they struggled for a time, an open dialogue with franchisees about the operational problems ultimately led to solutions that made the effort successful for both parties.

Five secrets to having success in conflict situations:

  1. Treat the franchisees with respect.
  2. Listen objectively to their concerns.
  3. Talk to them even if you disagree.
  4. Form a Franchise Advisory Council (FAC) and engage them in both macro level and micro level discussions.
  5. Seek ideas that will drive traffic and build brand loyalty when possible.
QSR Insights: Remote Sampling—Thinking Outside the “Box” (get it?)

The three most important things to a successful QSR are, in order: location, location and location. PSFK recently featured a really simple, innovative, brilliant design of a portable kitchen—complete with sink, cooking surface, utensils, table and chairs. And it got me thinking: QSR remote sampling needs to be re-thought.

Why do so many marketing-driven remote sampling ideas get killed by operations-driven approval committees? Typically for product quality concerns. No way around it—it is really, really hard to replicate a restaurant’s food-prep capability in a remote location.

I get it, perfectly understandable—because most remote sampling concepts are conventional ideas for building trial/awareness of specific menu items. But why is remote sampling always tasked with the same goal of trial and awareness?

That’s far too limiting in terms of what remote sampling can do. Here are a few questions to consider regarding remote sampling:

  • What can remote sampling accomplish beyond trial and awareness of existing or future menu items?
  • How can remote sampling improve a restaurant’s accessibility beyond its permanent locations?
  • What can be “sampled” other than food?
  • How can remote sampling demonstrate a brand essence?
  • What, ultimately, does successful remote sampling look like?

Let the portable kitchen be a reminder that anything is possible with a little imagination, innovation and courage to push conventional thinking…starting with remote sampling!

Photo credit: Pop Culture Geek

QSR Insights: The Impact of Daily Deals on Business

In November 2008, a deal-of-the-day website named Groupon launched. Heard of it? Yes, we all know and have likely used Groupon or the many competitors that have been established since.

QSR Magazine points to a 2011 study by ForeSee that showed 65% of online shoppers subscribe to at least one daily deal email. Two-thirds of these subscribers had purchased a deal in the last three months and 89% of them redeemed it.

So we can see that these deals are popular among consumers but how are they impacting your business?

The daily deal has changed the way consumers buy and a result, the way businesses think about using these incentives. In a time when consumers are more aware of their spending, the daily deal has traditionally provided the opportunity to generate trial. The discounts are significant and, based on the statistics above, many consumers take advantage of those savings.

While these deals may encourage trial initially, it becomes a challenge for businesses to hold on to the deal hunters and turn them into loyal customers. The consumer mindset is to wait for another deal that will inevitably come through with the next email.

What was once a reliable short-term tactic has made merchants stop and think about the long-term impact on their profit.  As a result of hesitation, new options for businesses have sprouted up recently.  Enter the next iteration of the daily deal known as the inverted deal.

According to another recent QSR Magazine article, the “inverted deal” does everything right that the daily-deal model does wrong. The discount is delivered to consumers when they buy something for the first time. Like a credit, it is baked into the payment versus pre-paid up front. Consumers make their purchase decisions before the discount is applied so they are aware of the full price value of the item or service.

In addition, the credit is thought of as bonus savings so consumers are more likely to spend more than the deal amount. After the initial savings, repeat visits encourage progress toward additional credits and savings. This model resembles a loyalty program more than the daily deal ever did.

There are several companies and mobile apps popping up that utilize this model. Time will tell if these become as widespread as Groupon. One thing is for sure, there are now more choices for you to find the best solution for your business.

QSR Insights: Quick Serves Are A Hot Spot for Politicians

Typically restaurants tend to shy away from being blatantly political; however, serving a candidate a bite to eat can provide undeniable advantages. With the competitive landscape today, restaurants may want to do some campaigning of their own as a drop-in by a politico may deliver some significant unpaid media exposure resulting in driving traffic and possibly a new batch of consumers.

The politico/QSR relationship is nothing new. During President Clinton’s White House race in 1992, it became very well known that he liked to follow his morning run with a stop at McDonald’s for a coffee and chat with dine-in guests.

As a recent QSR Magazine article noted, “although McDonald’s never capitalized on Clinton’s visits, it resulted in media exposure estimated at more than $7 million and ‘indicates that it is all right to go to McDonald’s,’ according to a 1992 Advertising Age story.”

Most recently, Pizza Ranch has been the popular destination for presidential candidates traveling Iowa. Both Michele Bachmann, the Minnesota representative, and former House speaker Newt Gingrich visited Pizza Ranch outlets during the month of July. Although this emerging popularity was unsolicited, Pizza Ranch is reaping the rewards as their name, logo, signage, staffing, and customers are popping up in newspaper photos and television shots.

“These types of visits give celebrity status to the restaurant, which resonates in the small towns across Iowa where Pizza Ranch restaurants stand. As a result, Pizza Ranch gets put in a different category,” says Sherri Fishman, head of Illinois-based Fishman Public Relations, which guides the PR efforts of Pizza Ranch and many other quick serves.

So how can operators truly leverage these visits?

Lorne Fisher, head of Fish Consulting, a Florida-based PR firm that advises Dunkin’ Donuts, Popeyes and Firehouse Subs suggests that, “Operators offer the candidate the restaurant’s signature dish or a novel product the restaurant is seeking to promote.” He went on to explain that these visits, “Are not a strategy for long-term success but an opportunity to induce additional gains.”

It’s no surprise that politicos are selecting quick serves instead of trendy, pricey eateries as common stops on their campaign trail. These calculated moves are designed to suggest that the candidates are just like the rest of us and cognizant of the economic times. Whether that changes Americans’ perceptions of the candidates remains to be seen, but the impact of a politician’s visit on the restaurant is unquestionable.

Photo credit: MANDEL NGAN/AFP/Getty Images | Source: Laura Hadden

QSR Insights: In QSR, It’s Easy To Find Your Heavy Users

When you’re looking for consumers to cultivate, it makes sense to target the ones who are already big fans. Figure out how to keep them coming back even more often and you’re on to something.

Heavy users are the lifeblood of any brand—be it a retailer, package goods company or restaurant chain. The first step in building comp sales starts with your heavy users. And, if you’re smart about it, you’ll find them right in front of your face.

Yesterday I went in to Baskin-Robbins with two of my children for an evening treat. When I paid, I was given a card with six different offers on it for my next visit. The kid behind the counter told me that these cards were for customers who spend $10 at a single visit. Works for me!

The visit to B-R with the kids followed our dinner at California Pizza Kitchen. There, our server asked us if we come in very often. I said yes, so she handed me a sweepstakes “envelope” that I can’t open until I return and the manager opens it for me. If I open it before then it is void. What can I win? Mostly lots of deals on food. But the big come-on is $25,000. I am not opening it until I go back.

If the heavy users aren’t already in your place, you can advertise for them. Rite Aid is. They’re running TV commercials saying that they have a program where, once you hit a target spending number for the year, you get 20% off everything in the store. Including prescriptions!

In this age of Facebook pages, tweets, and countless other new media promotional opportunities, some of the lowest tech options may offer the biggest ROI with heavy users.

What methods have you used successfully to reward and encourage heavy users?

Photo credit: J.Y K

QSR Insights: QSR Fundraisers Can Do More Than Buy Band Uniforms

In my 40+years in the restaurant marketing business, I have seen my share of local store marketing programs. Most of them better qualify as charitable contributions than sales generators. Ads in high school newspapers/yearbooks fall into that category in my opinion.

I believe that local store marketing programs should generate MEASURABLE traffic results. I want to see increased footprints for every local marketing dollar I spend.

One of the best opportunities for driving local traffic through local store marketing is with fundraisers for organizations —from school bands to Girl/Boy Scout troops to church groups. Actually, the list of potential organizations is almost endless.

By finding ways for these organizations to use your restaurant(s) as the mechanism for raising money for their project, you will build a lot more than local goodwill. You will build traffic and sales!

Here are just two ideas:

  • Make your parking lot available for a car wash.   The kids will stand on the curb and waive customers in.  The customers can grab something to eat or drink while their car is being washed. Maybe you offer a car wash special. And, the kids will eat and drink while they’re there, too.
  • Create a special coupon book for fundraisers.  The book may have 10 or so deals in them and the book itself has a value based on the savings. The organization buys the books at a discount, giving them a “profit” when they sell them to consumers.

These types of programs are win/wins. The organization raises money and you build both sales and goodwill.

Photo credit: Q4 Radio Guy