Why Are Some Restaurant Chains Struggling?

It isn't technology.

Some of the smartest folks I've met in retail are involved with loyalty programs for one or more chains.  Using technology at the table to enhance the relationship between the retailer and the customer.

These chains are struggling because their menus are too loaded in fat, salt, and calories according to one analysis.  Worth the read.  Here is one revelatory quote:

While fast food has received plenty of flack from nutrition-savvy critics, the biggest culprits when it comes to calories, salt, and fat are often sit-down, casual dining joints.

A Big Mac contains 540 calories. Buffalo Wild Wings' Cheese Curd Bacon Burger contains 1,620 — before you add fries or sides.

Read that again.  The burger alone is 1,620 calories.  You only need about 2,000 calories in a day.  What in the world are they doing over there?

Here is the full article:

http://www.businessinsider.com/health-concerns-show-why-casual-dining-is-failing-2017-7

Happy Reading,

J.W. Gant

Chili's CMO: Be Our Digital Guest

Great little article over on CMO.com that focuses on an interview with SVP and CMO for Chili's Restaurants, part of Darden, Inc.

Read on:

http://www.cmo.com/articles/2016/2/19/cmo-interview-chilis-cmo-krista-gibson.html

Here is a snippet from the piece:

America is currently undergoing a “food movement,” where consumers are much more conscious of what they eat and where it comes from. This naturally impacts the casual dining space and is an absolute consideration for Chili’s Grill & Bar, not only from a menu perspective, but also in how it markets to consumers.

Indeed, Chili’s SVP and CMO Krista Gibson said monitoring and meeting consumer expectations at a time when the definition of health and wellness is changing is one of her top priorities. In this exclusive interview with CMO.com, Gibson also spoke about her goals and plans for Chili’s digital guest experience, the company’s new loyalty program (with numbers to prove its success), and where the company is in its digital transformation journey.

Loyalty programs in pay at table restaurants.  A dream for some folks, a nightmare for others.

Happy Reading,

J.W. Gant

Blaze Pizza and Mobile Payments

I'm a fan of Blaze Pizza, even though I've never set foot in one of their establishments.  The "fast-casual" style for pizza is a compelling business case.  Some friends in Tallahassee, FL have had a chance to try it and give it a thumbs up.

They are moving in to mobile in a big way.  Following the now standard approach blazed by Starbucks they are combining mobile payments with their retail app.

Read on:

http://www.mobilecommercedaily.com/blaze-fires-up-new-app-mixes-payments-and-loyalty

Here is a snippet from the piece:

Build-your-own pizza chain Blaze Fast-Fire’d Pizza is following big-name restaurants with a new mobile application that pairs loyalty with payments, reflecting the growing ubiquity of mobile food strategies.

The pizza chain is hoping to become a big player in mobile commerce and drive sales through its new app that allows customers to order, earn rewards and pay directly within its platform. With other big food retailers such as Starbucks, Dunkin’ Donuts and White Castle adopting mobile ordering, Blaze is hoping to stay update with trending technologies.

Happy Reading,

J.W. Gant

BRotD - Entry 0241 Restaurant Loyalty as Extension

Best Reading of the Day

I've spent a bit of time talking with the digital team at Brinker's, heading the Chili's work on tablets, et. al. Quality group of folks doing really interesting work around customer engagement.

This interview with VP Wade Allen caught my eye and is a great read. I've found Wade to be a smart competitor with interesting new ideas in this space and his views should be made a note of.

http://adexchanger.com/advertiser/chilis-loyalty-new-audience-extension/

Here is a snippet from the piece:

What do loyalty programs and paid media have in common?

Not a lot, at face value. Loyalty marketing has long been relegated to card-based, point-of-sale programs and customer retention. It was always the stuff of database marketers and direct mail – not user acquisition.

But that’s starting to change. Coalition loyalty programs or “co-ops,” such as American Express’ Plenti program, aim to bridge the gap between traditional and digital, as well as upper and lower funnel marketing.

Happy Reading,

J.W. Gant

Mobile Apps that Work

McDonald's has been in the news quite a bit recently.  This one focuses on the success of their mobile app and the use of appropriate incentives to drive customer engagement and participation.

http://www.mobilecommercedaily.com/mcdonalds-7m-app-downloads-highlights-effectiveness-of-welcome-incentives

Here is a snippet from the piece:

During this week’s earnings call, McDonald’s revealed it has seen more than seven million downloads of its mobile application since the fall 2015 launch, proving that welcome offers are directly correlated to high registration rates.

The food and beverage marketer introduced the app to United States markets approximately three months ago, after experiencing a lackluster year in sales. The seven million-strong downloads, however, have been able to fuel consumer purchasing behavior by prompting users to activate their welcome offers in-store.

Happy Reading,

J.W. Gant

Chili's Tabletop Tablets

The work being done by the folks over at digital in Brinker, and the Chili's banner, is quite excellent but possibly unproven in this space.  That makes it innovative and interesting.  So how is it doing?

Here is a story from the folks at Mobile Commerce Daily:

http://www.mobilecommercedaily.com/how-chilis-tabletop-tablets-are-driving-charity-donations-and-loyalty-signups

Here is a snippet from the piece:

Chili’s Grill and Bar is leveraging its tabletop tablet devices to make it easy for customers to donate to its annual fundraiser for St. Jude’s Children’s Research Hospital, and is rewarding those who have signed up for its mobile loyalty program with bonus points for each donation made.

To celebrate its thirteenth year participating in the campaign, the food marketer has partnered with band Lady Antebellum to encourage guests to donate to the charity of choice, which treats childhood cancer and life-threatening illnesses. However, consumers will likely be swayed to open their wallets by the promise of receiving additional loyalty points each time they use an on-site tablet to donate to the cause.

Happy Reading,

J.W. Gant

Outback Steakhouse Mobile Payments

Another restaurant is enabling mobile interaction with their customers and a pay at the table mobile payments option.  The well-known steakhouse chain Outback Steakhouse is joining in:

http://www.pymnts.com/news/2015/outback-steakhouse-beefs-up-with-mobile-payments/#.VcIQm_NVhBc

Here is a snippet from the piece:

Dining chain Outback Steakhouse is on track to release a smartphone app by the end of the year that will let customers pay their tabs at the table, with the help of their smart devices.

Nation’s Restaurant News said Tuesday (Aug. 4) that executives from Bloomin’ Brands, the parent company of the chain, unveiled the plans that day during a conference call with analysts.

Happy Reading,

J.W. Gant

NCR Pay? Borders Restaurants and Mobile Payments

Have you ever heard of NCR Pay??  Nope.  If you are in the biz you'll know who and what NCR is.  National Cash Register is one of the big players in point of sale systems. I had no idea they were building a payment system, for mobile payments.

http://www.mobilecommercedaily.com/on-the-border-promotes-mobile-pay-at-the-table-via-in-store-signage

Here is a snippet from that piece:

The restaurant chain recently integrated NCR Corporation’s mobile payment solutions to enable diners to pay the bill on their personal devices at their leisure and refrain from waiting for their server. Now, the brand is putting up in-store signage on tables to ensure that all consumers are aware of this offering and also understand how to use it, a move which other food marketers would be well-advised to follow.

Can there be too many mobile wallets?  Maybe not. I do believe consolidation is coming however.

Happy Reading,

J.W. Gant

Pizza Hut Goes Digital

Retailer after retailer is making the move to customer engagement through digital and mobile.

Pizza Hut is the next to move.

http://www.zdnet.com/article/pizza-hut-eyes-digital-data-transformation-in-pizza-wars/

Here is a snippet from the piece:

In the pizza wars, the food and taste comparison serves merely as table stakes. The real war will be won via technology.

At least that's what Yum! Brands' Pizza Hut is hoping. As Domino's Pizza positions itself as a food delivery company armed with technology, digital engagement tools and mobile ordering, Pizza Hut is in the middle of a digital transformation that---from an information technology perspective---offers a little bit of everything.

• An emphasis on customer data and engagement to replicate Yum's success with marketing to Taco Bell customers.

One of the executives charged with helping Yum Brands get to this level spoke with me about doing their mobile app a year and a half ago.  While that opportunity never came to fruition I've been curious what Pizza Hut is up to ever since. I wish them luck, though I prefer the local pizza joints so commonly found in the Greater Boston Area.

I think the large national chains are going to have to do everything to head off the rise of fast casual now coming in to the pizza realm along with examples such as Chipotle and Five Guys Burgers.  Here is one great story on that:

http://www.businessinsider.com/pieology-pizza-business-story-and-expansion-2015-6

Here is a snippet from the piece:

The fast-casual pizza restaurant is the fastest-growing chain in America, according to data compiled by Technomic.

Pieology has 60 units in 11 states. The company expects to nearly double that number by the end of the year. 24 new locations are anticipated to open by the end of the summer.

Pieology's founder, Carl Chang, told Business Insider the company started when he identified a problem in the pizza industry.

"Pizza for us was somewhat broken," Chang, who is the brother and former coach of professional tennis player Michael Chang, said.

Happy Reading,

J.W. Gant

Panera Mobile Loyalty

Panera is a mover and shaker in the digital retail realm and is the focus of a great story on Mobile Commerce Daily:

http://www.mobilecommercedaily.com/westfield-panera-execs-how-mobile-influences-future-of-in-store-digital-sales

Here is a snippet from that piece:

Executives from Panera Bread and Westfield Group claimed at CXNYC 2015 that mobile has a critical role in driving the future of commerce at shopping centers and restaurant locations, thanks to disruptive innovations and the growing use of technology such as beacons.

During the “Innovating the Customer Experience” session, the executives discussed their respective brands’ innovation efforts, highlighting how personalization and customer loyalty are paramount in rolling out new digital initiatives. Panera Bread has experienced momentous growth in mobile as a result of its mobile ordering and Rapid Pickup option, as well as the MyPanera Rewards platform.

Happy Reading,

J.W. Gant

Restaurants Surpass Supermarkets

Wow, this is really pretty amazing news in many ways.  For the first time since records have been kept, starting in 1992, the U.S. is spending more at restaurants than at supermarkets.

Wow.

Here is a good story on the subject:

https://www.yahoo.com/food/in-first-americans-spent-more-in-restaurants-than-112803758886.html

Here is a snippet on that piece:

More than two decades ago, Americans spent $162 in groceries for every $100 they spent in restaurants. But this past January, they spent nearly equal amounts of money in both places: $50.475 billion in restaurants and bars, and $50.466 billion in grocery stores.

I'm wondering what the folks at Target and Walmart are thinking.  As they continue to move aggressively towards the traditional supermarket shopper, that shopper is increasingly moving towards restaurants.  Will we see full-blown restaurants inside of Walmart and Target in the coming years?

Happy Reading,

J.W. Gant