Quick Serve & Fast Casual

Editor of QSR Magazine Reveals Highlights of the 2010 Dine America Conference

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The theme of this year’s Dine America executive conference is “Successful Strategies for the New Decade.” I spoke with the magazine’s editor, Blair Chancey, about the event and what attendees can look forward to. Coming out of a recession, she said people want real-life best practices and takeaways that will propel them into the next decade with a positive outlook. Here are some excerpts from our conversation.

Why is this year’s theme so important for the QSR industry?

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What trends will be covered at this year’s conference?

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How are women changing the workplace?

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What is the so-called “silver tsunami”?

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Are you attending this year’s conference? What are you looking forward to discussing?

CFA Meets with Political Leaders to Discuss Small Business Issues

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CFA.v3I recently attended the CFA (Coalition of Franchisee Associations) Forum on Capitol Hill. Several of our client franchisee associations are members of this coalition, and we attended the event to demonstrate our full support. While in Washington, we packed in meetings with congressional members of the Financial Services, Energy and Commerce, and Budget and Ways and Means committees to speak on issues of the new Health Care legislation, the Credit Card Interchange Fee legislation, the Employee Free Choice Act and Climate Policy.

It was a very educational experience to see how things really operate on Capitol Hill. Hopefully the efforts of the CFA will enable our clients and the rest of small businesses to operate without legislative burdens that threaten their livelihood.

For more information on the CFA efforts, visit www.thecfainc.com.

Local Marketing Webinar Series, Part 7

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So you’re about to jump on board with Local Marketing, but you may still have some concerns. In our June 24 webinar, “How to Execute a Successful Local Marketing Campaign,” CKE’s Brad Haley and Synq’s Doug Fergusson talked about best practices that would help ensure any company’s success.

In the first audio clip from our webinar, Doug touches on planning, technology, funding and education:

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In this second clip, Brad talks about the creative process, analyzing results and having an effective production and distribution partner:

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Tell us what success you’ve had with Local Marketing. We’d like to hear from you.

Local Marketing Webinar Series, Part 5

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As we continue our dialog and recap of key topics covered during our June 24 webinar, “How to Execute a Successful Local Marketing Campaign,” we will be highlighting several viewer questions specific to marketing operations. In this first audio clip, CKE’s Brad Haley answers questions about how to motivate franchisees to do local restaurant marketing and how best to communicate to franchisees.

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In this second audio clip, Brad addresses dealing with the differences of market size and localization. Will an LRM campaign that worked in a large city also work in a small community? And in smaller communities, how do you set yourself apart from the competition?

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Tell us what you think. We’d like to hear from you on these issues.

What Local Marketing Can Do For You

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If you didn’t catch our live webinar on June 24, I hope you’ve had the chance to watch the replay of, “How to Execute a Successful Local Marketing Campaign.” CKE Restaurant’s Brad Haley and Synq’s Doug Fergusson discussed the relevancy of Local Marketing and how it is changing the way the QSR industry interacts with its audiences.

If you don’t have time to watch the webinar in its entirety, be sure to read the Twitter stream transcript of the webinar or read our blog where we’ve been posting audio clips from the event. If you have questions of your own, please comment on our Executing Innovation blog as we continue the conversation.

Do You Have What It Takes For Local Marketing?

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If you’ve ever considered local marketing for your brand or wondered how to better leverage the LRM campaigns you are doing, you won’t want to miss our free webinar: How to Execute a Successful Local Marketing Campaign. Registration is now open at qsrmagazine.com/webinars.

Sponsored by Synq and QSR magazine, this webinar will feature Brad Haley, EVP, Marketing CKE Restaurants, Inc. (Carl’s Jr. and Hardee’s) and Synq’s Doug Fergusson, EVP, Solutions.  Brad has successfully deployed Local Marketing tactics to enable his brands to compete more effectively in this very competitive marketplace, while maintaining CKE’s brand standards and messaging guidelines. He’ll reveal best practices, challenges and solutions. Doug will add his experiences working with multiple brands and explain how technology helps streamline this process and makes it easier than ever to execute.

We hope you’ll join us on Thursday, June 24 at 2 – 3 p.m. EDT for what’s sure to be an informative and engaging event!  And if you have questions or topics you’d like our panelists to address, let us know by commenting on our blog.

Notes from the 2010 Restaurant Leadership Conference

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I attended the Restaurant Leadership Conference in Scottsdale, Arizona last month and was inspired by the topics raised. Much of the discussion went back to the unique issues that QSR and fast casual restaurants are dealing with in this economic environment.  For example, while today’s customer seeks value, that doesn’t translate to “cheapest.” Customers have plenty of options and want the best quality for the price. Consumers also expect restaurants to connect with them in a way they will remember, whether it’s greeting them at the door, offering to carry their tray to the table if their arms are full or having an exceptionally clean store. In a nutshell, they want a pleasant experience.

Another theme discussed was the need to increasingly funnel more marketing dollars into local campaigns, but in a way that compliments the national marketing strategy. This ensures brand standards are maintained and messaging is consistent  – yet can speak to the uniqueness of the local market.

With social media so prevalent today, the conference spoke about how important it is to stay connected to your customers. It’s not enough to market your company; you have to engage in a dialogue by speaking with your customer, not to them. Whatever the platform is — blogs, social media sites or microsites — the conversation must go both ways.  And it’s imperative that we monitor the social media sites to collect valuable insights on what our customers are saying.

One final note is that community remains a strong force. Restaurants must be engaged in their community.  There are countless ways to be engaged in and support your community, which could include supporting local schools, participating in charitable events or just volunteering time.  When you invest in your community, you will see a return on that involvement.

RLC was well attended this year, and I look forward to another motivating event next year. If you attended this year’s conference, tell me what you thought.

More Focus on Trends in May

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Having recently returned from the Restaurant Leadership Conference in Scottsdale, Arizona, we’re inspired to keep the dialogue going about trends in the restaurant industry. We’ll be talking about the issues that came out of the RLC conference and what we found of particular interest.  We’re also looking ahead to our local marketing webinar on June 24. Our free webinar will feature Brad Haley, EVP, Marketing CKE Restaurants, Inc. discussing how Hardee’s and Carl’s Jr. have successfully leveraged local marketing, while maintaining a unified CKE message.

Lastly, we are sponsoring the 7th annual Dine America executive conference in Atlanta on September 12-14. This is a must-attend event that always raises the most critical issues facing QSR and Fast Casual restaurants, while sharing innovative ideas and solutions.

Tell us what trends are most impacting your business and join our discussions.

Reducing Consumption with Digital On-Demand Printing

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As sustainability becomes a more prevalent concern in the operations of organizations, companies are constantly looking for ways to reduce their consumption of resources. Businesses take different approaches to achieving this goal. Some companies look for ways to reduce the size of their packaging or to reduce their consumption of fossil fuels. Others, however, seek to reduce or eliminate their waste.

While digital on-demand printing does not solve the world’s resource problem, it does allow companies to reduce the economic and environmental burden of over production for their campaign execution. Print production methods such as offset, screen, rotogravure and flexography require large production runs to offset the cost of setup and to maintain print consistency. To reduce the need to reprint, companies authorize 5% to 10% overruns to account for the loss and damage of items during the execution of a marketing campaign. Digital on-demand printing, however, allows companies to print exactly what is needed and to economically replace single items with consistent print quality when necessary. Thus, there is no excess consumption of resources to produce items and there are no excess materials to dispose of in the landfills.

Let me know how your company is reducing its consumption.

Menu Labeling Compliance: Qdoba Case Study

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qdoba2In this post, I’ll expand on the topic of menu labeling with a particularly relevant case study of one of our clients, Qdoba. Qdoba called on Synq Solutions to handle the printing, kitting, and fulfillment for the January 2010 promotion of their new ‘Craft 2′ and enhanced Kids Menu rollouts. The new Craft 2 menu displays a variety of smaller portion entrees for customers to choose from, with a number of combinations that are 600 calories or less. Qdoba also caters to health-conscious customers by offering a nutritional calculator on their website.

Qdoba’s requirements to present caloric information as well as the varying menu options and price points presented a complex production and fulfillment challenge. To prepare for the Craft 2 and Kids Menu rollout, Synq navigated through the variable data for the pricing and caloric requirements specific to the new menu offerings. In order to accurately account for menu variations within approximately 500 Qdoba locations, our system created over 3,000 unique print-ready files. Our intelligent profiling incorporated every variation imaginable, from price points, caloric information, nutritional verbiage and beverage options. Another challenge was the unique menu board and merchandising hardware per location (33 different sizes needed to be produced to accommodate the various hardware).

Synq’s unique Intelligent Profiling solution captured all of the individual store attributes and allowed Qdoba to rollout the Craft 2 and Kids Menu promotion successfully and within compliance to the various regulations specific to each locale, state, and city.

New Calorie Posting Requirements

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It took our government nine pages of the health care bill that was signed by the president on Tuesday to establish a single national nutritional standard for menus and menu boards. And this doesn’t include additional regulations the Federal Drug Administration is required to propose one year from now.

At least the new federal standards will eventually supersede the patchwork of existing menu labeling requirements. For national restaurants (defined as 20 or more locations), this legislation will require a change in menu design, unless existing local and state requirements already caused operators to undertake this exercise.

The good news for restaurateurs is that the national standard does not go into effect until next year. The bad news is that operators in California, Maine, Massachusetts, New Jersey, Oregon, Philadelphia, and a dozen other localities will be required to comply with varying local and state regulations until that time.

Tell us how you feel about the new federal menu labeling requirements.

The New Consumer

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The “New Consumer” is generating a lot of buzz in the retail community, but who exactly are they talking about? The term is being used to describe a range of changing consumer behaviors that are the result of several trends colliding:

  • Generation Y (ages 10-27) is beginning to drive retail trends
  • Social media has become integral to social interaction
  • The Internet is the starting and ending point for most purchases

Gen Yers are becoming influential because of their numbers (they are the offspring of Baby Boomers) and their ages (teens and twenty-somethings have incredible buying power).  Because of their emerging leadership position, nearly everything they want or purchase becomes fashionable.

Gen Yers are quick adopters of technology and have made the Internet and social media a way of life. They are more likely to text someone than to call them; they use social media such as Facebook and Twitter more than email; and they spend much more time surfing the Internet than watching TV, according to Forrester’s report, “Building Gen Y’s Multichannel Media Profile.”

Many consumers now use the Internet for virtually every purchase. They research products online, often using blogs and forums for additional product information or reviews. They use the Internet to purchase products they will pick up at a brick-and-mortar store (including QSRs). And whether consumers like the product or not, many are eager to post their opinion online, influencing thousands of peers in minutes.

This different way of communicating and socializing is creating some New Consumer needs and eliminating others. It is also changing the retail game when it comes to marketing to these New Consumers. How do you respond to this changing environment? Localizing your store messaging based upon store-specific profiles is one way to speak to New Consumers.

In my next blog, I will explore some ideas about responding to New Consumers.

Synergy of Services

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Even the most creative in-store promotion won’t be successful unless it’s executed properly – and that means it’s quickly delivered to the right place, in the right quantities and in perfect condition. This seems simple enough, but large QSRs and retailers who have thousands of locations, that are all unique in some way, understand the complexity of this task. The critical components of execution — print, fulfillment and shipping – must work together in what I like to call a “synergy of services.”

Throughout the month, we will be examining the issues around “synergy of services,” and how it can lead to greater efficiencies, reduced costs and more time to focus on your core business. We’ll be hearing from industry experts about best practices and innovative solutions that can help your business grow. So join the discussion. We want to hear from you!

Trends Affecting Local Store Marketing

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I’d like to talk about trends in the QSR business and how they will affect Local Store Marketing. Now, you all know about technology, nutrition labeling, green, sustainability, and all those other easy ones. But, there are others.

Let’s start with the building. We began by serving people out of a window. There was no enclosure or even a canopy for the rain. We knew we had to do something when we found several customers frozen to the benches on the side when the spring thaw came. So, we enclosed the window with a winter front. There were still no seats or tables, so we built a restaurant for them to sit in. Customers were in too much of a hurry to sit around, so we built a drive thru. Now they could sit in one line, talk to a box instead of a person, and waste gas. They love it because they can come as they are and get their hamburgers. So, that’s the trend. It’s all about the drive thru.

How about trends in food? It used to be hamburgers, fries, and drinks. But then we had to eat more healthy food. What’s wrong with meat, bread, potatoes, and milk? Okay, so salads. Now mom can get lettuce with two packets of ranch dressing.

At McDonald’s, there was the McLean Deluxe — 93 percent fat free and 99 percent taste free until you put on some cheese and there goes the fat free.

Then there was breakfast. We couldn’t leave nature alone so we made the bacon round and the eggs square. It was an interesting problem in the commercials. Portions became huge like bladder busting drinks. Luckily we are becoming much more sensitive to portion size both from a food cost
angle and nutritionally.

And, then there was Ethnic: Mexican, pizza, fleas knees with your choice of dipping sauce. We have found out that we can’t serve everything, so we are returning to simpler menus, which is helping to speed up service. By the way, breakfast all day is also a trend.

Packaging should be all about food safety, temperature, and convenience, not marketing. Why should your logo turn up in somebody’s rose bushes?

And, then there’s advertising and promotion. You used to promote your store in your trading area. Then the company did it for you with television. Pretty soon the commercials were costing more to produce and run than the profit they brought in. And, 30 percent of viewers have the technology to skip your ads.

You’ve got the same problem in promotion. It used to be you could put Charley Brown’s face on a glass and have an instant success. Then customers figured out they could get a glass at the Dollar Store and it was costing them a lot more to get it at their QSR. So, no added cost promotions now. We are into discounting, dollar menus and competitive comparisons. Loyalty programs are the next trend along with charitable give back programs.

From all the ad and promo trends that are occurring, the answer seems obvious. You have to promote your own store the way you used to, Local Store Marketing. Get back to the basics.

In the old days, the operator was king. He made mistakes but he was never wrong. Unfortunately, there is a new king, Wall Street, the stock price. So, marketing is slave to sales and sometimes profit is forgotten in the confusion. We do dollar sandwiches, dollar any size drinks, and free fries. Can’t make money that way. Promotions that increase sales must also increase profits. And, that’s where Local Store Marketing
comes in.

The operator must become integral to the community. We must get back to speaking at service clubs, sponsoring community events, cleaning up around the stores, being sensitive to local food tastes like condiments. But, most importantly companies must provideLocal Store Marketing ideas and materials with every national program, geared to profit.

We need to find a signage and promotional material solution that allows the store to change its message on very short notice, so the store can react to a competitor or any other situation.

Point of purchase suppliers must profile stores and send only those materials that the store wants, needs, or can actually use. The LSM program must be linked to where the store is both ethnically and economically.

We need to become totally involved with the schools. One hundred dollars spent in a classroom brings you total loyalty. One hundred dollars to a national charity won’t even get you a thank you postcard.

But, don’t forget profit. One day I got a call from a manager in Milwaukee. He had a line out the door and around the building. I congratulated him but he said he was about to go out of business. In an attempt to sell more cheeseburgers, his owner was wrapping a dollar in each sandwich. Cheeseburgers cost about 39 cents at that time. His sales were great, but his profits weren’t.

Number of customers, number of visits, and what they buy equals sales and profits.
LSM can deliver all three if you plan your programs. You market your store today and don’t depend on anyone else. You become Mr. Restaurant in your community.

Roy Bergold is available for speaking engagements. Contact him at roybergold@yahoo.com.

Here’s to a Great 2010

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Greetings!

With a new year well under way, it is the perfect time to reflect on what was a remarkable 2009 and look forward to an even better 2010.

Last year was proof that the marketing execution needs of the QSR, fast casual and retail market place are unique. Some of these requirements might seem simple on the surface, but if you put them all together and then spread them across your entire system, things can get pretty complicated. That’s where we come in. You’ve got multiple menu board systems and sizes – no problem! You’ve got varying price points by market, by franchisee, even by individual location – been there, done that! You’ve got caloric disclosure requirements varying by jurisdiction – Synq’s got you covered. You’ve got all of the above, plus you’re changing your menu, rolling out a complete new pricing structure and you want it changed out overnight – BRING IT ON!

We are also champions of Local Marketing, and we will help you take it from the concept hatched at your agency or in your board room to a completely integrated campaign at your locations. Let us work with you to apply the best practices that can only come from someone focused on this market. At Synq, we eat, breathe and sleep this stuff.

That is why in 2009 we were able to add 7 new major QSR, retail and fast casual brands representing over 12,000 individual locations to our already impressive list of customers. We are extremely flattered and humbled by the trust they have shown in us, and we will serve them with the same dedication as we do all of the 50,000 plus locations we currently serve.

In 2010 we will continue to be your industry partner, focusing on the issues that matter most to you. Beyond print, fulfillment and technology, we will focus on innovative solutions for the QSR, fast casual and retail markets that make your job easier, save time and reduce costs.

Here’s to a great 2010.

Mike