🍷 Restaurant Roundup - 7th March 2024
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🍔 How Wendy's Used Comedy and Creativity to Drive Brand Awareness
The Burger Files Podcast from Wendy’s in the UK, is a spoof true crime series with a comedic twist, investigating real-life bad burger stories “to seek truth and justice.”
By blending Wendy's brand messages of uncompromising quality and experience with the humorous approach, the podcast engaged Wendy's advertising-sceptical audience through captivating storytelling, reinforcing Wendy's reputation as a bold challenger brand.
💡 This initiative is a fantastic example of the importance of authentic storytelling, humour, and creativity in captivating modern consumers, particularly younger demographics.
Restaurants can use Wendy's lessons from Wendy's innovative approach by embracing unconventional formats such as podcasts and blending entertainment with brand messaging to differentiate themselves.
Gen Z's digital habits offer a roadmap to untapped marketing territories for hotels and restaurants. While mainstream brands have extensively explored platforms like YouTube, Instagram, and TikTok, emerging digital channels and strategies offer fresh marketing opportunities yet to be fully utilised by many in the hospitality industry.
Platforms like Discord and Twitch, traditionally associated with gaming, have shown significant crossover potential for community building. These platforms facilitate real-time, engaging experiences tailored to virtually host events, Q&A sessions with chefs or hotel staff, or sneak peeks behind the scenes in a kitchen or luxury suite.
Given the gaming industry's massive popularity among Gen Z, hotels and restaurants can collaborate with popular streamers or create their own channels to showcase their offerings, engage with potential young customers in a comfortable space, and build brand loyalty.
Learn more: Hospitality Buyer Personas
Sources: Campaign Live
🍕 Domino's Makes a Comeback with Refreshed Loyalty Program
Domino's Pizza has seen a resurgence in its delivery sales thanks to its "Hungry for More" marketing strategy.
The pizza chain reported a 2.8% increase in same-store sales in the fourth quarter of 2023, driven by growth in delivery and takeaway orders. This success is partially attributed to its partnership with Uber Eats, which has allowed Domino's to tap into the aggregator marketplace and reach new customers.
With a 3% sales mix of Uber orders expected by the end of 2024, Domino's proves that innovation and customer-centric strategies can lead to success in the competitive restaurant industry. The company's new loyalty program has also contributed to its comeback.
💡 The campaign's strengths lie in reaching new customers and incentivising loyalty. However, a potential weakness could be the reliance on third-party delivery platforms, which might erode profit margins. Customer response has been positive, which is reflected in the sales uptick.
Embracing customer-centric strategies and technology is key to success in today's competitive restaurant landscape, as demonstrated by Domino's. Launching a successful loyalty campaign for your restaurant starts with truly understanding your customer's needs and preferences and ensuring the rewards offered hit the mark.
The sign-up process should be straightforward and accessible, using technology like social media and mobile apps for convenience. Rewards, such as discounts, exclusive deals, or freebies, must be compelling and varied to encourage repeat visits. Equally important is promoting your program effectively across all available channels, including social media, email, and in-store signage, to ensure maximum participation.
Regularly update your offerings based on customer feedback and data insights to keep your loyalty program engaging. By making customers feel valued and appreciated, you're incentivising repeat business and fostering a community of loyal patrons, which is instrumental in driving long-term success for your restaurant.
Learn more: Hospitality Marketing Trends 2024
Sources: NRN
🍽️ Diners are Trading Down: What It Means for Fast Casuals and QSR
As diners continue to tighten their budgets, many are opting for more affordable options when it comes to eating out. This trend has led to a shift in consumer behaviour, with people trading down from casual and fast-casual restaurants to quick-service establishments.
Leading brands like Taco Bell, Dunkin', Arby's, and Pizza Hut already implement this strategy by revamping their value menus and promotions. However, with the market becoming increasingly saturated, simply launching a new value menu or deal won't cut it. Marketers must find ways to stand out and reach customers at the right time with the right message.
💡 Effective restaurant marketing strategies in 2024 must prioritise connecting with target audiences, attracting new customers, increasing visit frequency, and fostering loyalty.
You need to make sure that your value proposition shines through every digital touchpoint, providing customers with compelling reasons to choose your brand for their dining needs.
Learn more: Restaurant Marketing Audit
Sources: QSR Magazine
💲 Wendy's Confirms No Price Hikes During Busier Periods
Wendy's is stepping back from their plan to implement dynamic pricing. After receiving backlash from the media, the fast-food chain clarified that they have no intention of raising prices during peak hours.
Senator Elizabeth Warren responded on X, tweeting, “Surge pricing means you could pay more for your lunch, even if the cost to Wendy’s stays exactly the same.”
The company explained that their digital menu board investment would allow for more pricing flexibility, but any potential test would be focused on improving the customer experience and offering value and discounts during slower times of the day.
"Wendy's didn't handle this well," says Vicki Morwitz, a professor at Columbia Business School. "It seems they didn't think sufficiently about how consumers would react or about the best way to use dynamic pricing."
Burger King responded quickly, offering customers a free Whopper or Impossible Whopper in a 48-hour time frame, saying "Surge pricing? Well, that's new. Good thing the only thing surging at BK is our flame!"
💡 As the restaurant industry continues to evolve and embrace technology and payments, businesses must strategise carefully to ensure that innovations benefit customers and the bottom line. And as Burger King demonstrates, try some newsjacking when the opportunity arises!
Sources: Restaurant Business Online Axios USA Today
💯 Calories on Menus in Pubs and Restaurants Could Save 9,000 Lives
A recent study by the University of Liverpool has found that extending the policy of displaying calories on menus to all food outlets in England could prevent over 9,000 heart disease-related deaths over the next two decades.
Obesity and cardiovascular disease have become alarming health concerns in recent years. To address this, restaurants can help their patrons make healthier choices by providing calorie information on their menus. By doing so, diners can make informed choices and potentially reduce the risks of these health conditions.
In the Middle East, Saudi Arabia has introduced mandatory calorie labels on menus to combat obesity as part of its Vision 2030 health initiatives. This policy aims to help consumers make more informed choices about their food intake. Some larger chain restaurants and international franchises operating in the UAE have voluntarily started to provide calorie information on menus. However, mandatory measures are not currently in place.
💡 To adapt to evolving consumer preferences, restaurants and pubs should consider incorporating health and wellness into their marketing strategies. This approach can not only enhance the well-being of their patrons but also allure health-conscious clientele. Establishing trust in a restaurant's ability to offer both delicious and nutritious meals can significantly increase the likelihood of becoming a staple in the daily routines of Generation Z.
Learn more: Psychology in Hospitality Marketing
Sources: Evening Standard The National Khaleej Times
That’s a wrap for the week! I'd love to hear your feedback and suggestions for future topics.
Here's to Your Success 🥂
Exciting insights in this Restaurant Round-Up! The strategic moves by Wendy's and Domino's are truly impressive.