Marketing + merchandising = money: marketers tell their secrets

Cheers, April, 2004

Everyone says it's important to market well, but how does an operator know when a program is successful? That was the challenge to a panel of restaurant marketers and consultants, who shared success--and failure--stories.

Moderator David Commer, Commer Beverage Solutions, led off with a failure: a 1998 plan to create an adult version of chai. It flopped, because the idea was ahead of its time. "Norman Brinker once said, 'Major in timing. If you get too far ahead of your customers, you'll confuse them. If you're too far behind them, you'll lose them.'"

Commer was more successful with the TGI Fridays Ultimate Margarita program he developed using an 18 oz. glass for sale with the drink. Training cards and store-level server contests were used, as were profitability worksheets to show managers in advance why they would profit. Commer said the program worked because guests and staff understood it and operators got behind it. Using daily tracking at all levels meant managers knew there was constant corporate attention. The program reversed a 20-year decline in beverage mix.

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Barmedia consultant Robert Plotkin said that when planning a promotion, he looks for five things: increase in gross sales, increase in per head spending, increase in brand recognition, a more positive impression and as little server-dependence as possible.

He offered a souvenir drink promotion similar to the Ultimate Margarita as an example. Operators get the markup on the drink and the glass. Plotkin advised using point-of-sale material to promote the event and keeping glasses in sight through display and table tents.

Karen Brennan of Brandscapes offered her experience at Max & Erma's, whose strong bar sales in the 1970s had declined by 1996, when the concept had evolved into a dinner restaurant.

She suggested adding user-friendly glassware, food-friendly beverages and server-friendly drink preparation. Max and Erma's, then serving Mexican food and burgers, focused on beer, Mexican appetizers and Margaritas. A new drink was added every few months. The result: increased specialty drinks by 10%, and a reversal of a 14-year decline in beverage sales.

Patrick Henry, head of Patrick Henry Creative Promotions, cited recent work with Lone Star Steakhouse. Country singers Brooks and Dunn's tour was scheduled to visit many cities with Lonestar units, so PHCP developed a 60-day promotion in which customers could win backstage passes to the concerts. Coors, official sponsor of the duo, tied into the promo. More than 13,000 guests entered and sales of Coors increased by 12%. CDs and videos went to managers, and it became one of the highest-grossing promotions for Lone Star.

Greg Rees of Olive Garden discussed the concept's two most successful beverage aspects: the granita and wine programs. "We learned we could keep growing our spirits as well as our wine if we merchandised it." Specialty drinks turned out to have the same appeal to guests as wine, but improved merchandising skills were needed.

It took guest and employee research to originally discover why Olive Garden wasn't selling much wine a few years ago, and the company discovered guests were unfamiliar with and a bit intimidated by it. Executives developed a sampling program in unit lobbies for waiting guests, and continued sampling tableside. They also added a wine host to manage samplings.

The program has been successful, Rees said, because it had well defined objectives, aligned strategy at all levels, used guest and employee research, used vendor insight and brand-building merchandising and continually trained employees.

Glen Schmitt of Marketeam talked about promotions for concepts not associated with beverage alcohol, like Sizzler, which had low alcohol sales because guests weren't even aware wine and beer were available. Promotions like "Grilled and Chilled" (Heinekens and burgers) and "Tender and Tasty" (Steak and Sutter Home Wine) changed that. Banners, flags, server stickers, and incentives for the staff helped considerably.