Archive for April, 2011

Chick-fil-A’s Model Approach to Cause Marketing

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By: Doug Fergusson
April 29, 2011 | 3 Comments

cowsforjapanIn the last post, I defined cause marketing as one component of Local Marketing that benefits both a corporation and its nonprofit partner.

There are many ways for franchisors and franchisees to engage in cause marketing. Joe Waters, author of a blog dedicated to cause marketing, provides a thorough overview of the different types of cause marketing campaigns companies deploy. Several types I’ve seen in our industry include point-of-sale, or when businesses solicit shoppers for donations; purchase-triggered donations, when companies donate a portion of profits; and message promotion, when a business uses its resources to promote a cause. Recent examples of successful cause marketing campaigns in the QSR/Fast Casual industry include Smashburger’s timely “Help Japan” program, Bojangles’ annual Shamrocks Against Dystrophy fundraiser, and the “Brew-lanthropy Project” at Seattle’s Best, which provides a $5,000 donation and free coffee to customer-nominated charities across the nation.

Synq Solutions is a proud collaborator with CKE Restaurants, Inc. in the Pink Star Fundraiser, an effort to raise money for breast cancer programs and awareness. We support the program’s marketing in a number of ways, including through the donation of commemorative pink Happy Star® cutouts that customers purchase for $1.

Another of our clients, Chick-fil-A, is especially versed in successful cause marketing on a local level. Each Chick-fil-A location offers events and programs unique to their location. A good case study is the Chick-fil-A location in nearby Decatur, Georgia. This restaurant leverages connections with local schools, from elementary schools to Agnes Scott College down the street, to raise funds for education, and most recently, relief for Japan. Every Monday this location reaches one of their target demographics, parents with young children, through Family Night. Complete with a Chick-fil-A Cow appearance, parents and kids receive discounts on meals in exchange for participation in various fun and community-inspired events. Events include science experiments, guest speakers about careers, and collaborative efforts with local nonprofits. Family Night is only one example of this franchise’s outreach; the location also sponsors a weekly college night with discounts for students, as well as other special events for families.

Founded on principles of servant leadership, it doesn’t surprise me that Chick-fil-A is a leader in cause marketing. According to a Fast Company article on Chick-Fil-A’s leadership, president and chief operating officer Dan Cathy said, “The closer top management is to the customer, the more successful an organization is likely to be.” This leadership approach seems to be paying off; Chick-fil-A has grown to become the second largest quick-service chicken restaurant chain in the United States, with over 1,500 locations. The Chick-fil-A website states that system-wide sales in 2010 reached $3.5 billion, an 11.37 percent increase over the chain’s 2009 performance. With continued focus on engaging local communities to give back to their neighbors here and abroad, I believe Chick-fil-A will continue to grow.

Do you have questions about cause marketing or how Synq Solutions can help with your campaign? If so, please let me know in the forum below.

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An Introduction to Cause Marketing

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By: Doug Fergusson
April 22, 2011 | No Comments

Starbucks-New-LogoA topic that has emerged in recent discussions with clients and prospective clients is cause marketing. This subject is of particular interest to me because of my role in developing the technology Synq uses to help clients leverage Local Marketing campaigns. In this post, I’ll delve into several frequently asked questions about cause marketing. If you have additional questions, I invite you to leave them in the comments section below this post.

What is cause marketing?

Cause marketing, also called cause-related marketing (CRM), engages profit-generating companies and nonprofits. Through successful cause marketing, both organizations gain exposure that enhances brand awareness. Cause marketing is not based on a donation; rather, the relationship between the corporation and nonprofit is mutually beneficial.

An example of cause marketing that is especially relevant today is Starbucks’ celebration of Earth Day—customers who purchase coffee or tea today will receive a free reusable mug. If you’re ahead of the curve and already have a reusable mug, you’ll receive a free cup of coffee. Starbucks is using a variety of media to promote this celebration, from blog posts to video to Facebook.

What is the difference between local marketing and cause marketing?

I’ve discussed Local Marketing in depth in our blog series on the topic, and define it as the strategy and actions that communicate to your customers in a manner, and with a message, that is relevant and meaningful based upon localized differences. The goal of Local Marketing is to drive favorable customer behavior as a result of this more targeted communication.

Cause marketing is one component of local marketing, as it facilitates a company’s community involvement. While every local marketing campaign is not a cause marketing campaign, many cause marketing campaigns are local marketing campaigns.

How do I get started?

If you’re a franchisor or franchisee, the following questions modified from cause marketing expert Paul Jones may be helpful as you choose your nonprofit partner:

  • Does the program or organization’s mission have broad appeal?
  • Will your customers know anything about the organization? If so, do they have a positive impression of the organization’s work?
  • Does the program or organization have unique appeal?
  • Does the program or organization have the support of influential franchisees?
  • Is there a ‘fit’ with your company?
  • Does the program or organization fulfill its mission well?
  • Are they efficient with their resources?
  • Can you promote your relationship with the organization in the media?
  • Can they help you with promotions?
  • Do you have budget or resources to help them produce and distribute campaign materials?
  • Do they have connections in the markets most important to you?
  • How will the organization acknowledge your store’s efforts?

In upcoming posts, I will expand on tips for getting started with cause marketing and dissect a successful example of a cause marketing campaign within the QSR/Fast Casual industry.

Do you have questions about cause marketing? If so, please let me know in the comments section below.

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An Update on Caloric Regulations for Menu Labeling

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By: Randy Naegele
April 15, 2011 | No Comments

Sandwich and measuring tapeOn April 1, the U.S. Food and Drug Administration (FDA) published proposed rules for nutrition labeling of standard menu items in restaurants with 20 or more locations (as well as bakeries, coffee shops, and certain grocery and convenience stores). The calorie count for each item must be posted in a clear and conspicuous manner on in-store menus and drive thru menu boards. This federal standard will replace any local and state menu labeling legislation.

With consumers eating a third to half of their meals in restaurants, the law is intended to provide the same information that has been available on packaged goods since the 1990s. The hope is that consumers will make healthier choices based on their dietary needs.

The FDA has opened a 60 day window for input on the proposed policies, and final regulations should be determined by end of year. Once the regulations are finalized, all chain restaurants will have 6 months to comply. As many of our clients prepare for their regular menu board updates, some may be inclined to wait on the final regulations before refreshing their menus and menu boards.

While we’ve already seen some of our clients impacted by the patchwork of local nutrition labeling laws enacted over the past few years, these new federal regulations will affect all of our QSR and Fast Casual clients. The process of gathering nutritional information and redesigning menu boards can be complex, especially if ingredients differ by region or location.

To learn more about the updates, click here to see the Labeling and Nutrition section of the FDA’s website. To submit input on the proposed regulations, visit http://www.regulations.gov. Comments must be submitted by June 6, 2011 to be considered.

What are your responses to the new regulations? Do you have any questions concerning Synq’s capabilities regarding the caloric requirements? If so, I’m happy to respond to them in the forum below.

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Notes on an Inspiring Restaurant Leadership Conference

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By: Glenn Haertel
April 8, 2011 | No Comments

I was impressed by the large representation of executives at this year’s Restaurant Leadership Conference, one of the biggest in recent years, with more than 1,500 professionals in attendance. The conference was a great facilitator of dialogue between restaurateurs, while presenters shared best practices and innovative ideas.

One presentation I particularly enjoyed was Linda Duke’s Restaurant Marketing Leadership panel. Her overarching message was that leading brands are flexible and able to modify their approach to changes in the market environment.

To communicate the importance of a flexible approach, panelists explained that there are more complexities than ever before in marketing to the restaurant consumer. Marketers must consider the political and economic environment, including changing caloric regulations and the growing interest in healthy options. Restaurant demographics are also changing; recent research unveiled an unexpected emerging trend of young adults cutting back on restaurant spending. On a positive note, the percent of food dollars consumers are spending on restaurants has risen considerably since 1955, from 25% to 49% today.

One panelist, Rachel Phillips-Luther, Vice President of Marketing and Brand Innovation for Kona Grill, discussed brand perception in the marketplace. She encourages management executives to become intimate with their brand in order to determine how to best market it. She explained that you need to understand the customer, their perception of your food and what they think of your restaurant. Once you’ve done the research, you’ll be on the path to developing a clear, cohesive message in your brand marketing.

Another theme that emerged throughout the conference was local marketing. Local marketing is critical to any brand. It can supplement a brand’s national campaign while speaking directly to the tastes and preferences of local customers. A wide range of brands are using local marketing to respond to competition, support community sponsorships, as well as generate trial and frequency.

Additionally, several presenters covered the role of social media in restaurant marketing, emphasizing that it should be used as one component of a holistic approach that capitalizes on the strengths of traditional marketing practices.

Overall, the atmosphere at the conference was upbeat, with attendees walking away from presentations feeling motivated and excited about the wide realm of possibilities for improving their businesses.

If you were able to attend this year’s conference, what were your takeaways? Please let us know in the comments section below.

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