Restaurant chains support franchisee fundraising efforts in the community

Nation's Restaurant News, Nov 22, 2004

"It might be chili for a chili supper fundraiser for the high school football team, or free milkshakes for all the kids who made the honor roll," he elaborates.

Steak n Shake, which is headquartered in Indianapolis, franchises 60 of its 425 restaurants.

Rotelli Pizza & Pasta Inc., which is based in Boca Raton, Fla., also focuses its charitable giving on schools. The company distributes coupon books to the schools, which the students sell for $19.95 per book, 51 percent of which is given back to the school. The coupons offer discounts and free entrees and pizzas.

"The schools love it because there is absolutely no out-of-pocket cost to them," says Iris Zayas, director of marketing, who contrasts this kind of donation with other fundraising activities schools typically engage in.

"A lot of other stuff that the school does with Christmas coming around, for example, when they sell the Christmas candies [involves] out-of-pocket [expense] for the school because the school has to purchase all of the items. Then, when the goods get bought, the school keeps a certain amount of money."

The franchisees distribute these coupon books in their own markets. Rotelli prints the books to distribute to the schools.

"It's just like a turnkey operation for them," Zayas says.

Involvement in community causes can be so promising that even chains with new franchising programs believe such activities have potential across their systems.

"We're big believers in those kinds of programs and obviously if they're right for our company stores, they're more than likely going to be right for our franchise stores," says Scott Terraciano-Spence, vice president of marketing for Taco Bueno Restaurants LP.

Taco Bueno Restaurants operates about 125 quick-service Mexican eateries in Texas and Oklahoma and has just begun its franchising program.

The chain's integrated marketing plan capitalizes on a strong media mix, including television, radio, direct mail and the web, as well as event sponsorships.

"We do tons of these kinds of programs," Terraciano-Spence says.