This should sound familiar: Restaurant upstarts take a commodity product you’d find on any menu, raise the quality and price, and cultivate a cult-like following.
After Starbucks did it with coffee, McDonald’s eventually responded with McCafe, a line-up that promises quality beverages at a much lower price. By all accounts, it’s been a smash.
So Big Mac isn’t waiting as long to employ the same defense against upscale burger purveyors like Five Guys, Smashburger and Bobby Flay. The rise of the so-called premium burger segment is providing McDonald’s with the cover to slide higher quality choices into its mix and trump the newcomers on price, COO Don Thompson explained last week.
“Frankly, I think it’s good for us,” he told investors. “It's a benefit because those premium burgers have higher margin and we've got some of those same premium burgers.”
Translation: It’s McCafe on a bun.
Thompson noted that the tack is already working with McD’s Angus one-third-pound burgers. Expect to see more choices in that price and quality strata, he advised during the analysts conference call.
Thompson noted that those new choices could be imported from McDonald’s operations in Europe, including the 1955, a burger the chain is marketing in Germany with a fictional pedigree. Commercials suggest the oversized bacon burger was invented by a housewife in Chicago, whose recipe was just recently discovered by a McDonald’s crewmember in Deutschland.
“Europe has already tested the 1955 very successfully,” Thompson observed.
He also mentioned the Big Tasty, another premium choice that McDonald’s started offering in Europe, with and without bacon, around the start of 2011.
Thompson didn’t mention the Pub Style Burger, a product that drew considerable attention from bloggers after word leaked of its test in the Midwest. But he did note that many of the analysts on the call were aware of some U.S. initiatives featuring premium burgers.
“I'm really looking forward to us having even more premium burgers,” he commented.
Price-wise, the entries will be positioned as a value relative to burgers of comparable quality. Thompson said McDonald’s can afford to undercut the competition because of “our supply chain and the efficacy of it.”
He also noted that the premium play will extend to chicken. Some U.S. markets are already offering premium chicken sandwiches.
Showing posts with label burgers. Show all posts
Showing posts with label burgers. Show all posts
Monday, July 25, 2011
Friday, May 13, 2011
A kick to fast food's buns
The quest for better burgers isn’t leaving the bun behind.
The sandwich upgrades underway at several major fast-food brands focus as much on the bread as what’s between it. The perfect example: Wendy’s, whose buns are about to be buttered.
And toasted, stressed Roland Smith, CEO of the chain and its parent company, Wendy’s/Arby’s Restaurant Group. The chain’s new Dave’s Hot ‘n Juicy cheeseburger line will be served on a toasted, buttered bun, Smith explained to financial analysts during a conference call this week. That twist will make the burgers better than the ones sold by Five Guys and In N Out, he asserted.
Indeed, he made that boast at least three times to the investors participating in the call.
Because the chain will install toasters for the burgers, it can also use a buttered, toasted foundation for its new chicken sandwich line, or what Smith called the Gold line.
The sandwiches will also feature what he described as a better fillet, a better marinade, and better breading. Still, he stressed the importance of the new bun in setting the offering apart.
A better bun is also one of the selling points for McDonald’s new premium chicken sandwich. It features what the chain calls a honey wheat bakery-style roll, and is also toasted.
It’s the latest step in McDonald’s march toward better bread. Its premium Angus burger line is similarly served on a bakery-style roll.
Jack in the Box is similarly using what it calls a bakery-style roll for its sirloin burger.
Clearly the fast-food sector isn’t living by the patty alone.
The sandwich upgrades underway at several major fast-food brands focus as much on the bread as what’s between it. The perfect example: Wendy’s, whose buns are about to be buttered.
And toasted, stressed Roland Smith, CEO of the chain and its parent company, Wendy’s/Arby’s Restaurant Group. The chain’s new Dave’s Hot ‘n Juicy cheeseburger line will be served on a toasted, buttered bun, Smith explained to financial analysts during a conference call this week. That twist will make the burgers better than the ones sold by Five Guys and In N Out, he asserted.
Indeed, he made that boast at least three times to the investors participating in the call.
Because the chain will install toasters for the burgers, it can also use a buttered, toasted foundation for its new chicken sandwich line, or what Smith called the Gold line.
The sandwiches will also feature what he described as a better fillet, a better marinade, and better breading. Still, he stressed the importance of the new bun in setting the offering apart.
A better bun is also one of the selling points for McDonald’s new premium chicken sandwich. It features what the chain calls a honey wheat bakery-style roll, and is also toasted.
It’s the latest step in McDonald’s march toward better bread. Its premium Angus burger line is similarly served on a bakery-style roll.
Jack in the Box is similarly using what it calls a bakery-style roll for its sirloin burger.
Clearly the fast-food sector isn’t living by the patty alone.
Restaurant publicity stunts are alive, but not well
A pink ass seldom sells restaurant meals, or at least not outside of certain neighborhoods in New York and San Francisco. But that didn’t divert the marketing ploy from express-line entry into the Restaurant Publicity Stunts Hall of Fame, which might have to open a whole new wing after recent weeks.
Indeed, we may be in a Golden Age of restaurant stunts, a reflection of the need to offset shrinking (or non-existent) marketing budgets with outrageous actions. That factor is changing the very nature of stunts. No longer are they single events, over and done in a flash.
Consider, for instance, how a newcomer to the better-burger market tried to set itself apart from the spatula-wielding pack. Twenty-three-year-old Lakita Evans decided to call her Waco, Texas, outlet Fat Ho. Its specialties include a Sloppy Ho, a.k.a. a brisket sandwich, and a Supa Dupa Fly Ho.
Evans hit the mark. Papers across the nation have reported on her venture, invariably focusing on the name and her age rather than the quality of the food and service.
Many of the reports noted that she was opening a pimp’s walk away from the Gospel Café, a ploy practitioner in its own right.
Neither should (or would) be confused with Buns, a burger joint in Chapel Hill, N.C.
And don’t expect to find More Than a Mouthful Burgers, the signature line of Hooters, a pioneer of the suggestive-name approach.
But the all-time winner of the double-entendre approach has to be Pink Taco, which, some of Reality Check’s readers in stained raincoats have informed me, is slang for female genitalia.
But the gynecology-inspired concept didn’t stop there. Last week, in honor of Cinco de Mayo, the Los Angeles casual restaurant decided to post something decidedly Mexican outside its tony Century City location. It took a donkey, or what patrons of the Gospel Café might know from their bible readings to be known also as an ass, and painted it pink.
The animal was staked outside the mall restaurant, “Pink Taco” written on its flank in what looked like a finger-painting endeavor.
The restaurant got attention, for sure. But unfortunately some of it came from animal-rights advocates, who moved in like vice cops staking out Charlie Sheen’s house. The restaurant agreed never to use a live animal in its promotion again.
But take heart: There’s still a respect evident among restaurant stunt-pullers for the classics. KFC, for instance, used the timeless stunt setting of a skyscraper’s upper floors to call attention to its new $5 bundled lunch meals. At noon today, someone dressed as Col. Sanders will rappel down 38 floors of a Chicago building to deliver lunches to window washers dangling outside the 40th floor.
Reports that the chain considered a flag-pole sitting contest could not be confirmed.
Even more conventional is what Arby’s is doing to introduce its new Grilled Chicken & Pecan Salad Sandwich and wrap—ironically, like KFC’s new lunch deal, a product intended to draw customers away from Subway.
The chain will give away free sandwiches and wraps to customers who buy a 22-oz. soft drink anytime before May 23. Patrons are then invited to vote for which they like better, the Arby’s sandwich or Subway’s Orchard Chicken Salad sub.
There’s been no response from Subway. Maybe it’s thinking up its own stunt.
Indeed, we may be in a Golden Age of restaurant stunts, a reflection of the need to offset shrinking (or non-existent) marketing budgets with outrageous actions. That factor is changing the very nature of stunts. No longer are they single events, over and done in a flash.
Consider, for instance, how a newcomer to the better-burger market tried to set itself apart from the spatula-wielding pack. Twenty-three-year-old Lakita Evans decided to call her Waco, Texas, outlet Fat Ho. Its specialties include a Sloppy Ho, a.k.a. a brisket sandwich, and a Supa Dupa Fly Ho.
Evans hit the mark. Papers across the nation have reported on her venture, invariably focusing on the name and her age rather than the quality of the food and service.
Many of the reports noted that she was opening a pimp’s walk away from the Gospel Café, a ploy practitioner in its own right.
Neither should (or would) be confused with Buns, a burger joint in Chapel Hill, N.C.
And don’t expect to find More Than a Mouthful Burgers, the signature line of Hooters, a pioneer of the suggestive-name approach.
But the all-time winner of the double-entendre approach has to be Pink Taco, which, some of Reality Check’s readers in stained raincoats have informed me, is slang for female genitalia.
But the gynecology-inspired concept didn’t stop there. Last week, in honor of Cinco de Mayo, the Los Angeles casual restaurant decided to post something decidedly Mexican outside its tony Century City location. It took a donkey, or what patrons of the Gospel Café might know from their bible readings to be known also as an ass, and painted it pink.
The animal was staked outside the mall restaurant, “Pink Taco” written on its flank in what looked like a finger-painting endeavor.
The restaurant got attention, for sure. But unfortunately some of it came from animal-rights advocates, who moved in like vice cops staking out Charlie Sheen’s house. The restaurant agreed never to use a live animal in its promotion again.
But take heart: There’s still a respect evident among restaurant stunt-pullers for the classics. KFC, for instance, used the timeless stunt setting of a skyscraper’s upper floors to call attention to its new $5 bundled lunch meals. At noon today, someone dressed as Col. Sanders will rappel down 38 floors of a Chicago building to deliver lunches to window washers dangling outside the 40th floor.
Reports that the chain considered a flag-pole sitting contest could not be confirmed.
Even more conventional is what Arby’s is doing to introduce its new Grilled Chicken & Pecan Salad Sandwich and wrap—ironically, like KFC’s new lunch deal, a product intended to draw customers away from Subway.
The chain will give away free sandwiches and wraps to customers who buy a 22-oz. soft drink anytime before May 23. Patrons are then invited to vote for which they like better, the Arby’s sandwich or Subway’s Orchard Chicken Salad sub.
There’s been no response from Subway. Maybe it’s thinking up its own stunt.
Tuesday, January 25, 2011
Snapshot from southern Cal
Restaurant veteran John A. Gordon was kind enough to pass along what he saw and heard at the recent ICR XChange Conference, a powwow in southern California for restaurant companies and investors specializing in the field. The meeting is different from most financial conferences because the presenters include private companies as well as public ones. In this case, that meant a peek inside such interesting up-and-comers as Le Pain Quotidien, a bakery-café concept, and Ignite Restaurant Group, the multi-concept parent of Brick House Tavern + Tap and Joe’s Crab Shack.
Gordon proved to be as astute in observing as he is in analyzing restaurants’ financial situations, a skill that has made him a popular source for those of us who write about the industry. He passed along these insights from the conference:
The mood of the conference was upbeat, with most of the presenters citing positive sales trends. Generally, they indicated that traffic is still weak, but the damage is being tempered by rising guest tabs.
Smashburger drew the most probing by the investors in attendance, despite the concerns voiced by some that the “better burger” segment may be overcrowded.
One extreme down note: Participant Steve West asserted that casual dining traffic will never rebound to pre-Great Recession levels, a result of the shakeout being too anemic.
Domino’s CEO Patrick Doyle noted that many of the chain’s franchisees are unable to grow because of a funding drought. The stores aren’t throwing off sufficient cash flow to justify a rubber-stamped loan, and banks are reluctant to touch any franchisee except the larger ones with whom they’ve done business over a long stretch.
A Sonic executive offered the hindsight that the drive-in chain should have included fewer items on its dollar menu, and promoted them in a more nuanced fashion. The budget line translated in some patrons’ minds into diminished quality.
Chipotle and BJ’s Restaurants, two of the industry’s high achievers, cited a lack of desirable real estate sites and a shallow pool of labor talent as curbs on growth. Others cited rising gasoline prices and escalating food costs.
Texas Road House, Chipotle and Krispy Kreme all cited an effort to shrink their back-of-the-house areas, part of an overall effort to reduce the footprint of new units.
My thanks to John, a principal in Pacific Management Consulting Group, for passing along his observations. You can get more of his food from thought at John's blog,
Gordon proved to be as astute in observing as he is in analyzing restaurants’ financial situations, a skill that has made him a popular source for those of us who write about the industry. He passed along these insights from the conference:
The mood of the conference was upbeat, with most of the presenters citing positive sales trends. Generally, they indicated that traffic is still weak, but the damage is being tempered by rising guest tabs.
Smashburger drew the most probing by the investors in attendance, despite the concerns voiced by some that the “better burger” segment may be overcrowded.
One extreme down note: Participant Steve West asserted that casual dining traffic will never rebound to pre-Great Recession levels, a result of the shakeout being too anemic.
Domino’s CEO Patrick Doyle noted that many of the chain’s franchisees are unable to grow because of a funding drought. The stores aren’t throwing off sufficient cash flow to justify a rubber-stamped loan, and banks are reluctant to touch any franchisee except the larger ones with whom they’ve done business over a long stretch.
A Sonic executive offered the hindsight that the drive-in chain should have included fewer items on its dollar menu, and promoted them in a more nuanced fashion. The budget line translated in some patrons’ minds into diminished quality.
Chipotle and BJ’s Restaurants, two of the industry’s high achievers, cited a lack of desirable real estate sites and a shallow pool of labor talent as curbs on growth. Others cited rising gasoline prices and escalating food costs.
Texas Road House, Chipotle and Krispy Kreme all cited an effort to shrink their back-of-the-house areas, part of an overall effort to reduce the footprint of new units.
My thanks to John, a principal in Pacific Management Consulting Group, for passing along his observations. You can get more of his food from thought at John's blog,
Thursday, February 25, 2010
BK's new breakfast items--and ongoing pricing mess
Any commandos looking for near-term work in the Miami area? Some of us are considering a raid on Burger King’s headquarters to rescue the chain’s menu-development team. Management must be working them 24/7 to get the sort of product output we’ve been seeing, and the volume is about to increase with the rollout of several new breakfast items.
Those additions will include a new muffin sandwich and a breakfast bowl, according to executives of Carrols Corp., the chain’s largest franchisee and a likely sympathizer with our mission. In talking with investors today, the officials indicated they’re not exactly overjoyed with the products pouring out of the franchisor’s test kitchens.
Indeed, analysts were advised during the conference call that Carrols can’t provide them with a general outlook for its Burger King restaurants because of “uncertainty regarding the impact of new product introductions,” in the words of CFO Paul Flanders.
He and his colleagues explained that next in the staging area for BK are a number of higher-priced items, including ribs and additions to the XT premium burger line. Although Carrols is “cautiously optimistic” about the sales prospects for those additions, the ka-ching may not be as loud as BK hopes because of tight consumer spending and widespread discounting by competitors, said president Dan Accordino.
Carrols noted that its BK units were selling only 24 Steak House XT burgers a day, though supporting advertising had yet to begin. Still, “I’m not certain that the units are going to be terribly significant,” said Flanders.
That’s not to say aggressive discounting has worked well for BK, either, Accordino remarked. He cited the chain’s controversial $1 double cheeseburger, a product other franchisees have slammed as a giveaway that costs them money.
The bargain-priced item isn’t delivering sustained sales, contrary to the chain’s hopes, Accordino explained. Orders have tapered off since the deal was introduced last fall, with comp sales at Carrols’ BK units falling about 8% year-over-year during the first six weeks of 2010, the stock analysts learned.
Even with that decline, the $1 double accounts for 10% of sales at Carrol’s BK units. However, “while we're selling a lot of sandwiches, our incidence of drink and fry add-ons is not that high, making the gross profit contribution less appealing than we had hoped,” Accordino said.
That’s on top of the margin damage fellow franchisees had feared, he indicated.
The assessment is damning for BK because Carrols was one of the franchisees that remained loyal to the home office after fellow licensees sued to kill the double deal. The franchisor eventually agreed to reformulate the sandwich, taking out a slice of cheese and holding the $1 price. The true double cheeseburger (two patties, two slices of cheese) is being repriced at $1.19.
That overhaul will bring the $1 sandwich’s food cost below 50%, said Carrols CEO Alan Vituli. More importantly, he suggested, the $1.19 double cheeseburger might wean customers off what BK has termed “extreme affordability.”
“What we’re experiencing is that extreme affordability is converting too many of our core customers to extreme bargain seekers with no interest in looking beyond the extreme market,” Vituli said.
Those additions will include a new muffin sandwich and a breakfast bowl, according to executives of Carrols Corp., the chain’s largest franchisee and a likely sympathizer with our mission. In talking with investors today, the officials indicated they’re not exactly overjoyed with the products pouring out of the franchisor’s test kitchens.
Indeed, analysts were advised during the conference call that Carrols can’t provide them with a general outlook for its Burger King restaurants because of “uncertainty regarding the impact of new product introductions,” in the words of CFO Paul Flanders.
He and his colleagues explained that next in the staging area for BK are a number of higher-priced items, including ribs and additions to the XT premium burger line. Although Carrols is “cautiously optimistic” about the sales prospects for those additions, the ka-ching may not be as loud as BK hopes because of tight consumer spending and widespread discounting by competitors, said president Dan Accordino.
Carrols noted that its BK units were selling only 24 Steak House XT burgers a day, though supporting advertising had yet to begin. Still, “I’m not certain that the units are going to be terribly significant,” said Flanders.
That’s not to say aggressive discounting has worked well for BK, either, Accordino remarked. He cited the chain’s controversial $1 double cheeseburger, a product other franchisees have slammed as a giveaway that costs them money.
The bargain-priced item isn’t delivering sustained sales, contrary to the chain’s hopes, Accordino explained. Orders have tapered off since the deal was introduced last fall, with comp sales at Carrols’ BK units falling about 8% year-over-year during the first six weeks of 2010, the stock analysts learned.
Even with that decline, the $1 double accounts for 10% of sales at Carrol’s BK units. However, “while we're selling a lot of sandwiches, our incidence of drink and fry add-ons is not that high, making the gross profit contribution less appealing than we had hoped,” Accordino said.
That’s on top of the margin damage fellow franchisees had feared, he indicated.
The assessment is damning for BK because Carrols was one of the franchisees that remained loyal to the home office after fellow licensees sued to kill the double deal. The franchisor eventually agreed to reformulate the sandwich, taking out a slice of cheese and holding the $1 price. The true double cheeseburger (two patties, two slices of cheese) is being repriced at $1.19.
That overhaul will bring the $1 sandwich’s food cost below 50%, said Carrols CEO Alan Vituli. More importantly, he suggested, the $1.19 double cheeseburger might wean customers off what BK has termed “extreme affordability.”
“What we’re experiencing is that extreme affordability is converting too many of our core customers to extreme bargain seekers with no interest in looking beyond the extreme market,” Vituli said.
Wednesday, September 30, 2009
Random thoughts III
When everyone’s giving away food that’s remarkably similar in the first place, service becomes the real way of differentiating restaurant chains that compete at a given price level. That underappreciated fact was underscored today by coverage of how both Boston Market and Chili’s are trying to shake off their lethargy.
A USA Today story revealed that Boston Market is moving toward the classic fast-casual model by testing table delivery. Guests place their order, take their seat, and wait for the food to be brought to their table.
CEO Lane Cardwell also noted that the concept will strive to be more of a true market, vis-à-vis Eatzi’s and the gourmet food shops that inspired both it and Boston Market.
Meanwhile, the Wall Street Journal ran a super-premium story on how Chili’s is hoping to get its pizzazz back. Last week the chain started serving a different sort of burger, made from chuck and formed by hand to retain more of the meat’s juices, the article noted.
It also reported that the recipe for its Baby Back Ribs has been rewritten. The ribs are now smoked for a longer stretch, using pecan instead of mesquite to impart more flavor.
Service enhancements are also part of the revitalization effort. The story noted that restaurant-level employees were required to partake of a distance-learning program on service. Among the upshots is a requirement that servers now look all guests in the eye and cite new features of the menu.
A USA Today story revealed that Boston Market is moving toward the classic fast-casual model by testing table delivery. Guests place their order, take their seat, and wait for the food to be brought to their table.
CEO Lane Cardwell also noted that the concept will strive to be more of a true market, vis-à-vis Eatzi’s and the gourmet food shops that inspired both it and Boston Market.
Meanwhile, the Wall Street Journal ran a super-premium story on how Chili’s is hoping to get its pizzazz back. Last week the chain started serving a different sort of burger, made from chuck and formed by hand to retain more of the meat’s juices, the article noted.
It also reported that the recipe for its Baby Back Ribs has been rewritten. The ribs are now smoked for a longer stretch, using pecan instead of mesquite to impart more flavor.
Service enhancements are also part of the revitalization effort. The story noted that restaurant-level employees were required to partake of a distance-learning program on service. Among the upshots is a requirement that servers now look all guests in the eye and cite new features of the menu.
Friday, February 6, 2009
More news (and specifics) from BK
Burger King’s new Steakhouse XT (for “extra thick”) burger will be introduced region by region beginning this month, Burger King CEO John Chidsey said yesterday during a conference call with financial analysts. He also revealed that a multi-market test of ribs is about to commence.
Both items are prepared on BK’s new batch broiler, which apparently eliminates the necessity to cook one item at a time on the chain’s signature flame broiler. Because the traditional flame broiler has only one conveyor-belt track, each item gets the same cooking treatment. The new broiler has several tracks, with variable speeds, enabling some items, like a thicker burger or ribs, to get more cook time.
The batch broiler is currently in about 62% of the chain’s North American units, Chidsey said. The new equipment, he noted, also uses less electricity and gas.
When the new broilers were unveiled in 2007, executives said the devices use about half the energy of the equipment they replace. That yielded savings quantified back then at $600 per store per year. Presumably that payback is even higher today, given how energy prices have changed in two years.
In addition, technology experts have talked about a new generation of BK kitchen equipment that gives off less heat than what it would replace. With less ambient heat coming from the kitchen, a unit’s air conditioning system doesn’t have to chug as hard to maintain a comfortable temperature, yielding additional efficiencies. It’s unclear if the new batch broiler is among that batch of heat-retaining apparatus to which the experts were referring.
In trying to sweet-talk investors, Chidsey also disclosed that at least 20% of North American BK restaurants, or roughly 200 units, would be open 24/7 by the summer.
But the most astounding revelation was his off-hand remark about Flame, the Whopper-inspired cologne that was initially offered around the year-end holidays. It sold out within three days, Chidsey said.
Both items are prepared on BK’s new batch broiler, which apparently eliminates the necessity to cook one item at a time on the chain’s signature flame broiler. Because the traditional flame broiler has only one conveyor-belt track, each item gets the same cooking treatment. The new broiler has several tracks, with variable speeds, enabling some items, like a thicker burger or ribs, to get more cook time.
The batch broiler is currently in about 62% of the chain’s North American units, Chidsey said. The new equipment, he noted, also uses less electricity and gas.
When the new broilers were unveiled in 2007, executives said the devices use about half the energy of the equipment they replace. That yielded savings quantified back then at $600 per store per year. Presumably that payback is even higher today, given how energy prices have changed in two years.
In addition, technology experts have talked about a new generation of BK kitchen equipment that gives off less heat than what it would replace. With less ambient heat coming from the kitchen, a unit’s air conditioning system doesn’t have to chug as hard to maintain a comfortable temperature, yielding additional efficiencies. It’s unclear if the new batch broiler is among that batch of heat-retaining apparatus to which the experts were referring.
In trying to sweet-talk investors, Chidsey also disclosed that at least 20% of North American BK restaurants, or roughly 200 units, would be open 24/7 by the summer.
But the most astounding revelation was his off-hand remark about Flame, the Whopper-inspired cologne that was initially offered around the year-end holidays. It sold out within three days, Chidsey said.
Tuesday, January 13, 2009
Simon didn't say 'do that'
The following is a public service announcement to the nation’s casual restaurant chains.
Have you lost your minds?
Part of the reason you’re currently living a blues tune is a lack of differentiation in your menus. Every concept could rename itself That Place Serving a Bloomin’ Onion, Nachos, Fajitas, Burgers, Spinach Dip and Margaritas, and it wouldn’t be lying. A follow-the-leader approach led everyone toward a cliff.
So how are you trying to right the situation? Consider the latest promotion from Applebee’s: A $9.99 sirloin served with two sides. In a stunning coincidence, the LongHorn casual chain is also featuring a $9.99 steak dinner as of this month. And Outback has been selling a 6-oz. sirloin as part of a dinner for a penny less than $10 for a number of weeks. What are the odds???
At least Ruby Tuesday and T.G.I. Friday’s, two concepts that had their starts as “fern bars” (youngsters, ask your folks, but DO NOT bring up leisure suits), are resisting the temptation to copycat. As Ruby CEO Sandy Beall told investors last week, “We believe our burgers offer [an] incredible, differentiated and value category that resonates well with our guests.”
Okay, the chain also noted during the conference call that it was pushing a $5.99 burger with all-you-can-eat fries. But it’s sticking with a key point of differentiation. I mean, what other casual chain offers burgers? It’s not like Chili’s or Red Robin are known for that item.
And Friday’s? Well, consider the promotional head-turner it started pushing yesterday. Here’s the headline from the announcement: “T.G.I. Friday's Restaurants Unleash The 'Ultimate' Burger.”
I think I need a margarita. Or a ‘Rita. Or maybe a Lobsterita.
What are the odds???
Have you lost your minds?
Part of the reason you’re currently living a blues tune is a lack of differentiation in your menus. Every concept could rename itself That Place Serving a Bloomin’ Onion, Nachos, Fajitas, Burgers, Spinach Dip and Margaritas, and it wouldn’t be lying. A follow-the-leader approach led everyone toward a cliff.
So how are you trying to right the situation? Consider the latest promotion from Applebee’s: A $9.99 sirloin served with two sides. In a stunning coincidence, the LongHorn casual chain is also featuring a $9.99 steak dinner as of this month. And Outback has been selling a 6-oz. sirloin as part of a dinner for a penny less than $10 for a number of weeks. What are the odds???
At least Ruby Tuesday and T.G.I. Friday’s, two concepts that had their starts as “fern bars” (youngsters, ask your folks, but DO NOT bring up leisure suits), are resisting the temptation to copycat. As Ruby CEO Sandy Beall told investors last week, “We believe our burgers offer [an] incredible, differentiated and value category that resonates well with our guests.”
Okay, the chain also noted during the conference call that it was pushing a $5.99 burger with all-you-can-eat fries. But it’s sticking with a key point of differentiation. I mean, what other casual chain offers burgers? It’s not like Chili’s or Red Robin are known for that item.
And Friday’s? Well, consider the promotional head-turner it started pushing yesterday. Here’s the headline from the announcement: “T.G.I. Friday's Restaurants Unleash The 'Ultimate' Burger.” I think I need a margarita. Or a ‘Rita. Or maybe a Lobsterita.
What are the odds???
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