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Restaurant Responses to COVID-19

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Restaurant Responses to COVID-19 Restaurant Responses to COVID-19 In-Market Examples MARCH 2020 Classified - Confidential Intro & Core Themes With the foodservice industry shifting to off-premise, we are seeing tremendous creativity and innovation in the market, as restaurants find new ways to continue to drive their off-premise business. We have collected examples of these great ideas across different channels and the country, in order to share with our partners. Our hope is that these best practices also spark new ideas to help you during these uncertain times. They are divided into 5 Main Themes. Please click on the images below to be taken to each section: 2 Classified - Confidential Communicate the Safety Measures Communications Who is doing it: Multiple What it is: • Restaurants are proactively communicating their safety measures to consumers • Pizza Hut documenting prep process, Papa John’s documenting the delivery process • O'Charley’s and others posting videos, images of tamper-evident packaging now in place Customer Rationale: • Encourage ordering by providing guest with some peace of mind Guest Rationale: • Peace of mind that food is safe and secure 3 Classified - Confidential Communicate the Safety Measures (cont’d) Communications 4 Classified - Confidential COVID-19 Website Update Communications Who is doing it: CircleK (similar approach taken by most restaurants) What it is: Proactively addressing COVID-19 by dedicating a portion of their website to it. Customer Rationale: • Ensure their customers are taking extra sanitary measures to react to COVID-19 Guest Rationale: • They can feel safer about their visits to CircleK 5 Classified - Confidential Free Delivery Off-Premise Promotions Who is doing it: Multiple What it is: Many restaurants are offering free delivery, some with a minimum purchase requirement. Customer Rationale: • Removes barrier for guest as delivery shifts from convenience to necessity Guest Rationale: • Save some money on overall order, which can add up when placing frequent delivery orders 6 Classified - Confidential Free Delivery (cont’d) Off-Premise Promotions 7 Classified - Confidential Uber Eats BOGO Free Dinner Deals – Tinn Lizzy’s Off-Premise Promotions Who is doing it: Tinn Lizzy What it is: Buy one entrée, get a second entrée for free Customer Rationale: • Drive traffic to restaurant via the delivery occasion Guest Rationale: • You are incentivized to purchase meals from this restaurant because you get two meals for the price of one, saving money, or essentially half off the price. 8 Classified - Confidential Save $X by spending $X Online Off-Premise Promotions Who is doing it: Multiple What it is: Run a promotion where you save $x if you spend more than $xx via an online/mobile order, or rewards program order. Customer Rationale: • Increase ticket Guest Rationale: • Savings on group/family orders 9 Classified - Confidential 20% off To-Go Orders Off-Premise Promotions Who is doing it: Red Robin What it is: Receive 20% off your Pick – Up order through March 29th Customer Rationale: • Increase ticket • Message to guests that they are open for pick-up even though dining rooms are closed Guest Rationale: • Provides savings for guests when they pick-up at a RR location 10 Classified - Confidential FREE Pizza with Gift Card Purchase Off-Premise Promotions Who is doing it: Blaze Pizza What it is: Purchase $20 worth of gift cards online to share, and receive an 11” pizza on your next online order Customer Rationale: • Drives sales dollars to the restaurant now, as well as traffic with the FREE Pizza with most consumers ordering multiples right now • Also drives potential new users to the brand with the gift card Guest Rationale: • Great deal, and way to earn a Free Pizza while showing some COVID Kindness should they give the gift card to someone else 11 Classified - Confidential Take 25% Off Your Next Order Off-Premise Promotions Who is doing it: Jack in the Box What it is: Receive 25% off your App order Customer Rationale: • Drive traffic Guest Rationale: • Provide incentive to order via Facebook ad 12 Classified - Confidential Let Us Buy Dinner Tonight Off-Premise Promotions Who is doing it: Fatburger What it is: A social contest where guests can enter to win dinner and free delivery for the whole family Customer Rationale: • Drive traffic, awareness and engagement Guest Rationale: • A fun way to engage with Fat Burger at no cost to guest 13 Classified - Confidential Fried Chicken and Chill Off-Premise Promotions Who is doing it: Popeyes What it is: Announced through a video shared to Twitter on March 22, the “Fried Chicken and Chill” campaign claims to offer a no-strings-attached streaming login for 1,000 customers. Popeyes claims it will be “sharing” its Netflix password with all 1,000 of them. Customer Rationale: • Drive guests to purchase off-premise from Popeyes • Driving awareness for off-premise for Popeyes Guest Rationale: • Free Netflix password 14 Classified - Confidential Longhorn Family Meal Deals Off-Premise Promotions Who is doing it: Longhorn Steakhouse What it is: Promoting family Meal Deals to Curbside To-Go Customer Rationale: • Dining room closed or minimized. FSR has larger party makeup and more sharable entrées. Guest Rationale: • I can feed my family for $9 p/person. I can pick it up to minimize exposure to others. 15 Classified - Confidential Panda Express X Feeding America Off-Premise Promotions & Community Support Who is doing it: Panda Express What it is: On 3/16, Panda Express partners with Feeding America, as they contribute $2MM to the effort to ensure no family goes hungry. The donation comes from the Panda Cares Foundation and co-founders, Andrew and Peggy Cherng. On 3/20, Panda Express activates an offer of $20 Family Meal through its own website. For $20, you get 2 sides and 3 entries. Offer lasts till 4/17. Customer Rationale: • Feeding the community and driving top-of-mind awareness and consideration for Panda Express. Guest Rationale: • Convenient food ordering and pick-up. • Participate in the Great American Takeout; building the Panda Express as America’s favorite to-go destination. Impact: • Increased online ordering; increase check size. 16 Classified - Confidential 2 Free Kids Meals Off-Premise Promotions Who is doing it: Burger King (other doing similar offer) What it is: BK is giving away 2 free kids meals with any purchase made via the Burger King app Customer Rationale: • Provides exposure to delivery and to-go capabilities • Provides food to kids who may have been on school lunch programs and don’t have access to much food Guest Rationale: • A very low cost option for a meal for kids 17 Classified - Confidential Free Kids Meals Off-Premise Promotions Who is doing it: Multiple What it is: Free Kids Meal (often with purchase requirement) Customer Rationale: • Drive Traffic/Transactions Guest Rationale: • Savings on group/family orders 18 Classified - Confidential Re-engineering their offerings + packaging Off-Premise Promotions Who is doing it: Red Cow What it is: Re-engineering their most popular foods items into “multi-packs” (e.g. Burger 4 packs) Customer Rationale: • Drive efficiencies in operations & support family dining Guest Rationale: • Quick and easy to order & understand the financial impact of feeding multiples 19 Classified - Confidential Hitting on a Consumer Hot Button & Off-Premise Targeting a Price Point Promotions Who is doing it: Luna Grill What it is: Resonating with consumers who are tired of cooking & clearly demonstrating how they can feed their family for $40 Customer Rationale: • Drive efficiencies in operations & support family dining Guest Rationale: • Quick and easy to order & understand the financial impact of feeding multiples 20 Classified - Confidential Build New Carryout Routine Off-Premise Promotions Who is doing it: Roy Rogers What it is: Communication to increase awareness of #carryoutwednesday Customer Rationale: • Drive Traffic / awareness of off-premise Guest Rationale: • Support industry event/program + awareness of RR modes of operations 21 Classified - Confidential Operator Led Delivery Evolving Business Formats Who is doing it: Chick-fil-A, Panera, others (many started previous to 2020) What it is: Vertically integrated delivery model in place of or supplementing third party delivery provides. Customer Rationale: • Provides a new revenue stream to operators via delivery with no third party commissions • Helps keep team members employed as they take on delivery responsibilities. • Operators also have quality control over the full delivery process. Guest Rationale: • The quality service and food from restaurants you love, at your door 22 Classified - Confidential Family Style Menus Evolving Business Formats Who is doing it: Multiple What it is: Promoting family style menus with set menu of large portions to feed a family. O’Charley’s is taking their top entrée items & creating meal bundles that will feed families of up to 6 people (entrée + 2 sides & rolls). Customer Rationale: • Drive higher ticket, simplified operations for prep Guest Rationale: • Easy all in one meal for the family from a vendor that doesn't normally do carry out orders. • Suitable for the whole family. 23 Classified - Confidential Family Style Menus (cont’d) Evolving Business Formats 24 Classified - Confidential Consumers stepping in to organize food Evolving truck delivery to their community Business Formats Who is doing it: Neighbors got together a food truck & helped coordinate orders What it is: Communities coming together to support the local business Customer
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