While overall food spending is still down from pre-recession years, consumers are more likely to eat out at lower-priced restaurants rather than not eating out at all. According to QSR Magazine, many quick-serves feel prepared to handle the potential threat of a second recession with a continued focus on value-added offerings.

QSR Magazine also points out that the current state of the economy has generated two camps of consumers: free spenders and controlled spenders. Quick serves are now challenged to appeal to both groups through their marketing initiatives.

With continuing changes in consumer spending, marketers are compelled to be more creative in their efforts to reach customers. We’ve seen our customers evolve their marketing strategies to address these changes, and the following three approaches have been successful:

Market the value of your offering, rather than the price alone.

As conscientious spending has increased, consumers are seeking the best value for their money. Businesses increasing prices in our recovering economy should be especially cognizant of the perceived value of their offering. As Leslie Kerr of Intellaprice LLC recommends, remind your customers that your product’s value is not intrinsically connected to price.

In a similar vein, tailor your marketing efforts to your consumers’ current priorities. As NAWBO explains in this article, images of connectedness with family and friends now resonate with consumers more than the individualistic focus of campaigns characteristic of previous decades.

Build a relationship with your local community.

We can’t emphasize the value of Local Marketing enough. Particularly during this time of changing spending patterns, it is critical that brands build a foundation of loyal customers within their communities.

We’ve seen a substantial increase of Local Marketing efforts within our client base—including a large increase in the quantity and volume of localized promotional signage.

Marketers are also taking advantage of new strategies to attract and retain local customers, including social couponing sites, such as Groupon. Despite recent debates about the impact of daily deals on sustaining return customers, a survey recently released by Cornell University’s Center for Hospitality Research shows that daily couponing sites are effective in generating new customers that are likely to return. For more information about the survey results, read the full article from FastCasual.com here.

Integrate all of your messaging and marketing tactics.

With ever-increasing options for digital marketing and a sense of information overload on the rise, it’s increasingly important to communicate a consistent message across all of your marketing platforms. If you rely on only one vehicle to deliver your promotional messaging you may be missing an opportunity to solidify your brand with your consumer.  For example, communicating your social media presence and current offers via in-store print pieces that display your social media handles, along with any messaging around existing campaigns is an effective means to reinforce your messaging and appeal to a broader demographic.

Combining the above practices will bolster your marketing efforts and allow you to effectively respond to consumers’ changing needs.

What are your thoughts on responding to economic changes and shifts in consumer behavior? Would you add any suggestions to my list?

Has your business participated in a cause marketing campaign? I welcome your comments in the forum below.

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.

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.

Many stores make the mistake of considering on-site marketing as a secondary focus, when in reality it should serve as a primary consideration. The author points out that in-store marketing tactics are the “last opportunity to influence a sale,” and that without it, product sales can rapidly decline.

The article also quoted a source and pointed out the importance of specific customization for each individual location—or as we refer to it: Local Marketing. As we’ve mentioned many times in past blog posts and videos, intelligent profiling and local marketing tactics can enable restaurants to speak to the local tastes and preferences of their unique clientele, while insuring that locations get materials they can actually use. Doing this correctly drives revenue, significantly reduces waste, and saves restaurants over 20% in costs.

Strategic placement of POP marketing coupled with thoughtful customization of messaging and materials catering to factors such as demographics, language, and local ordinances delivers a powerful punch—this article certainly validates this statement.

With our current focus on location profiling, this article was very timely. You can read it in its entirety here.

What are your thoughts on in-store POP marketing? Please feel free to share your experiences and feedback here in the comments.

The author, Graciela Eleta conveyed some remarkable statistics regarding the 25 to 34-year old Hispanic market—over the next 5 years this age range is expected to grow 13.5%.  Compare this to the non-Hispanic market, which is expected to increase a mere 0.5%, and you can see the significance of the statistic.

Eleta went on to say that this demographic will contribute to 89% of the total US population growth, and that by 2015, one of every four adults will be Hispanic.

Eleta’s article resonated with me because it ties closely into our strong belief in the importance of local marketing and intelligent profiling. With hard-hitting numbers like these, it simply doesn’t make sense for brands and operators to approach marketing in a generic fashion. To do so would be missing a prime opportunity to reach this demographic.

To read this article in it’s entirety, you must have a subscription to the print version of Nation’s Restaurant News. If you’re interested in subscribing, you can do so here.

What are your thoughts on these statistics? Are you reaching out to the Hispanic demographic with your marketing?

One of the greatest franchisee frustrations centers on local marketing and the struggle to obtain marketing materials targeted to their particular location and demographics. Too often, operators are provided with little or no local marketing support—when they are, the options they receive are ineffective. The issue is driven by the lack of attention that local marketing receives as a part of the overall marketing plan of the brand. > Click here to read the full article.