While we were thrilled to hear that Forbes named our client, Smashburger, one of “America’s Most Promising Companies”, we can’t say that we were surprised. Smashburger not only made the list—they topped it.

According to Forbes, much of Smashburger’s success can be attributed to its innovative approach to menu items, focus on customer service, and investment in its employees. This winning combination catapulted the Smashburger brand, enabling it to compete with QSR giants such as McDonald’s and Wendy’s.

We’d like to congratulate Smashburger on this incredible achievement. We look forward to supporting their continued growth as a valued business partner.

You can read the Forbes article on Smashburger in its entirety here.

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?

Dain Pool, Pool's Restaurant Group

One of the breakout sessions I attended was titled “Young Guns”, and it focused on the fact that many baby boomers’ children are coming of age and looking for their own business opportunities. The panel consisted of QSR’s Sam Oches (moderator), Dain Pool of Pool’s Restaurant Group, Jonathan Wagner of Two Trucks, LLC, and Donald Boroian of Francorp, Inc.

All three panelists agreed that while millenials form a complex group of people, they are generally divided into two groups: those who are comfortable operating under franchisee guidelines, and those who are not. Donald Boroian stated that the young guns are not as interested in brands as they are in the latest concepts. They buy from a personal preference point of view—contemporary identity is important to them. It’s as though they’re the “anti-brand” generation, and contemporary movements appeal to them. Franchisors should bear this in mind throughout their efforts to attract this demographic.

The food truck trend emerged several times throughout the panel’s discussion. Jonathan Wagner of Two Trucks, Inc. took his

Jonathan Wagner, Two Trucks, LLC

father’s brand—Johnsonville Sausage—and featured it in his food truck concept. Wagner’s business model is a perfect representation of how the young guns are developing ideas from what they’ve learned growing up and evolving them. Food trucks appeal to the anti-corporate mindset that so many of the second-generation franchisees embrace.

Other hot concepts discussed included second-generation Mexican food (Chipotle, for instance), healthy, chopped foods and salad venues, and breakfastfoods and sandwiches.

Dain Pool and Donald Bororian both agreed that when seeking quality young gun franchisees, franchisors should examine the candidate’s past level of responsibility, look for strong leadership qualities, and marked passion for the food industry. They cautioned everyone to beware of the disgruntled young gun who is simply trying to get out of his parent’s shadow. Bororian advised,

“Look for kids who live, eat and breathe the business.”

Not surprisingly, the panelists mentioned the importance of targeting second-generation franchisees through social media and search engine optimization.

Donald Boroian, Francorp, Inc.

I found it interesting that Donald Boroian, who has over 40 year of experience in the food service industry, and the two young gun panelists: Jonathan Wagner and Dain Pool, all agreed on virtually every point discussed during the panel—despite the generational gap. Further, they allmentioned the importance of listening to franchisees, customers, and employees, and adapting your offerings and services based on their input. Adapting quickly to change and adjusting your marketing message to your local customers and their specific preferences is key to succeeding in today’s environment.

Did you attend the Young Guns panel at Dine America? If so, I’d love to hear your thoughts.