I was trading air-guitar licks the other day with Bluto Pilkbean, the imaginary childhood friend who helped me invent the flying car and a way of extracting super-human strength from Twizzlers. He’s recently made a name for himself in the fanciful field that’s filled many a restaurateur’s daydreams of late, the silver bullet.
“Pilkbean,” I said after we’d decided not to take the Sports Illustrated swimsuit models to dinner, “do you really buy this malarkey? So many things are stacked against the industry that all the experts are calling this a perfect storm. An operation is going to soar out of hell just by adding sliders or upgrading its coffee?”
“This from the person who believed he could obliterate all homework by electrifying Silly Putty,” he retorted. “Besides, you’re forgetting that most adapters combine the magic pills. McDonald’s is focusing on breakfast and beverages. Taco Bell is embracing cheap-o deals and new drinks and breakfast. Applebee’s is not only touting sliders and bargain-rate lunches, but also inviting customers to submit videos for a new campaign. It’s a matter of mucho mojo, mi compadre.” Pilkbean had never been quite the same since the trip to Tijuana.
“Who cares if you offer five or 50?,” I responded. “What does it get you other than one turn of consumers’ heads?”
“A point of differentiation.”
“For how long? If these killer plays do anything, everyone and their cousin copycats ‘em. It’ll be curbside takeaway or the Bloomin’ Onion all over again.” I looked to see if he was reaching for his combination death ray pistol/Pez dispenser, because I had him now.
“There’s always something new,” he noted calmly.
“Such as?”
“Well, right now some fast-casual chains are adding table service. All kinds of concepts are giving away food to bolster traffic. Eat ‘n Park and Chipotle are supposedly looking to use more local ingredients. Red Lobster just announced that it’ll give space on the menu to a dish created during one of those cooking-contest shows.”
“Isn’t that exactly what Friday’s did?”
“Well…maybe. But there’s talk of going even farther afield. Some concepts are talking about radical steps like upgrading service, renovating dining rooms, or”—he actually shivered at this point—“trying to hire and retain the best employees. Gives you goose bumps, doesn’t it?”
“You’re an idiot,” I assured. “Now let’s get back to work on our Red Sox immobilization spray.”
Monday, June 23, 2008
Daydream believers
Monday, April 07, 2008
How lemmings draft a menu
Listen: That crunch you hear is the sound of quick-service chains squashing their points of differentiation. Instead of learning from the tragic blunder of casual dining, players one click down the service spectrum are just as avidly turning their menus into clones of the competition’s line-up. If they haven’t already copycatted McDonald’s Snack Wrap, vis-à-vis Wendy’s, Sonic, and KFC, it’s only because smoothies, premium coffees and espresso-based drinks are higher on their To Develop list. And that’s after deciding how to join the discounting binge.
In the currrent environment, you can readily understand why a chain copies a sure-fire hit for someone else. But it clearly speaks to a dearth of cleverness and creativity within the sector. Instead of analyzing why a certain product appeals to consumers and then crafting an alternative that sates the same desire, even contenders with considerable marketing knowhow are merely giving a twist to what’s already selling well.
The follow-alongs are not only betting that lightning will strike twice, but leaving themselves vulnerable to the upstart that hatches a true New Idea. If a newcomer hits on the next Bloomin’ Onion, fajita, Blizzard, chicken nuggets or smoothie, the old guard is cemented into the role of hawking commodities. How much pressure on prices can a concept take when costs are squeezing margins from the other direction?
The copycats would be better served by staying attuned to what makes their concept unique and then nudging their menus in the direction in which public tastes are moving. Leapfrogging to a far afield idea just because it worked for another player is like trying to make it as a rock star by covering last week’s hits.
Friday, April 04, 2008
A different sort of Big Mac attack
Fast food is getting less respect these days than Kevin Federline’s acting abilities, even from quick-service chains themselves. Marketing campaign after marketing campaign is disparaging the fare as the sort of mass-produced plastic you won’t have to choke down at ______ (insert the name of whatever family, casual or fast-food chain is airing the ads, be it McDonald’s, Denny’s, Taco Bell, Bonanza/Ponderosa or KFC). Invariably, the spots proceed to point out that you don’t have to pay more, in time or money, for “real” food.
Much of the mud is being flung at fast-food breakfasts, which have been selling like, well, hotcakes. Denny’s current campaign blasts them explicitly as fake, unlike the true platters you’d find at the home of the Grand Slam.
McDonald’s touts its McSkillet Burrito as “a sit-down-style weekend breakfast you can eat on the go.” Translation: The real food you’d buy after church at a Denny’s, available every day via a drive-thru.
Panera Bread is bragging that its new breakfast sandwich line is a morning option “made by bakers, not microwaves.” In Tuesday’s announcement of the rollout, CEO Ron Shaich crows that “we’ve developed a hand-crafted, made-to-order grilled breakfast sandwich that literally breaks the mold.”
Chains of all stripes are equally adamant about differentiating their lunch and dinner fare from fast food. The campaign that broke Monday for Bonanza and Ponderosa touts the sister chains’ buffet specifically as an alternative to burgers and that lot. Give it a try, the promotion stresses, “because great tasting meals aren’t served in a wrapper.” It slams quick-service value meals in particular, asserting that they’re "not much of a value or a meal.” Curiously, however, the effort subtly promotes visits to a quick-service chain. The budget steak brands are inviting patrons to submit a bag or receipt from a fast-food place to get a break on the price of the buffet. Eat at a burger or fried chicken joint one day, the promotion suggests, and you can have unlimited fresh fare the next day for $5 at lunch or $8 at dinner. “This is an incredible alternative to getting lunch or dinner in a bag at a drive-thru window,” says Sheryl Randolph, senior director of marketing for the pair.
Here again, even the major fast-food brands are scrambling to showcase products you wouldn’t associate with fast food. Taco Bell describes its Fiesta Platters as “a complete real meal solution,” “the favorite dishes of a sit down Mexican meal in a convenient and portable plate.” Promotional materials also stressed the price: a mere $4.99, or probably less than you’d spend in a full-service place.
Sister concept KFC is sounding a similar tune for its new Kentucky Grilled Chicken. President Gregg Dedrick proudly cites research indications that consumers view the fast feeder's new non-fried option as a "step above fast food."
All of the initiatives echo what Carl’s Jr. did several years ago with its Six Dollar Burger, a sandwich touted as being as good as the burger you’d spend $6 to get in a casual-dining restaurant, available at just over half that price from the West Coast stalwart. You’d think it’d be the most zealous proponent of the movement. Yet the CKE Restaurant holding is one of the few quick-service burger brands not to adapt the café-caliber coffee that consumers can now find at almost every other player of size. Nor is Carl’s racing to develop the Jamba Juice-caliber smoothies you’ll soon be able to buy at fast-food places ranging from a Taco Bell to a Dairy Queen.
If Carl’s is once again astutely gauging which way the pendulum will swing, the key question could be how long fast food remains the standard against which all chains, even the brands most readily affiliated with that style of fare, are favorably gauging what they serve.
Thursday, March 20, 2008
A grande serving of what?
There had to be a secret message encoded in Howard Schultz’s presentation yesterday, because even Mike Tyson would know better than to pin Starbucks’ turnaround to rickety measures like adding a new coffee roast or installing a newfangled coffee maker. And let’s not forget the pledge to do more for the environment and the startup of a social-networking site. But maybe the real message of his address to shareholders was blurred by all the specifics. If you step back and view the elements as a package, it’s clear Schultz is taking a bold gamble. The one-time coffee-carafe salesman is trying to infuse the brand with more showbiz than the industry has seen since the heyday of eater-tainment.
Schultz described Starbucks’ purchase of a company that makes a new type of coffee brewer, a device called the Clover, as the most dramatic of the steps he and other execs detailed for investors. The machine supposedly makes a cup of coffee superior enough to justify a price of more than $2.50. Schultz said he saw it being used by a place in New York that charged $7 a cup. But how it generates the nectar of the bean may be as important as the quality of finished brew. Starbucks described the machine as a cross between a French press pot and a vacuum-style coffee maker, which provides a bit of a show with every cupful that’s produced.
Similarly, Starbucks disclosed that it’s rolling out a new espresso maker that gives the baristas more control over the coarseness of the coffee grind and the way the milk is steamed. Not coincidentally, the devices are not as high as the machines currently being used, which will allow patrons to see their drinks being made, and possibly even interact with the coffee maker.
Even the new frequent-guest program has some dazzle to it. Guests present their cards to be wowed a little by the service they’re then given. The benefits rendered don’t sound that amazing. Free half-and-half or soy milk? Whoa. But the give-and-take about the freebies does give the counter servers and baristas a chance to strut their stuff a little.
The bland-sounding moves that Schultz disclosed yesterday may prove anything but. It’s a bit of razzle-dazzle from someone who could prove to be a very adept ringmaster.
Wednesday, February 27, 2008
The night Starbucks went cold
At 5:31, a manager escorted two customers to the door, apparently explaining why the Starbucks would be closing. As she was saying good-bye, two more people tried to squeeze past her into the café for their after-work caffeine fix. They, too, apparently hadn’t heard that all 7,100 Starbucks in the United States would be closing yesterday evening for what the media alternated between calling a massive teach-in and a chainwide coffee break.
But before the unit on 57th St. in New York could move to a refresher on how to make a killer cup of coffee, the staff had to fend off customers first. The manager had locked the door and taped a cardboard sign to the window, explaining that the store was closed. But every time employees would open the door to lug a back of trash to the curb, a few more patrons would blithely push through the door, oblivious to the sign and the historic shutdown of the whole chain. Each time they’d be shepherded out by the manager, who seemed as cheerful as a 7-year-old at her birthday party.
Of course, those patrons could have satisfied their caffeine craving for a mere 99 cents by trekking just a few blocks. In an absolutely brilliant stroke of guerilla marketing, Dunkin’ Donuts cut the price of its espresso-based drinks for the afternoon and night to under a buck. Sure, the doughnut specialist might’ve snagged a few Starbucks aficionados who presumably could switch allegiance. But the real benefit was the publicity. Starbucks’ three-hour closure drew a ton of coverage in every sort of media imaginable. By tying into that event in a sly way, Dunkin’ made sure that its name was in the second paragraph, if not higher. Starbucks took the sales hit and snagged its share of hoopla. But Dunkin’ was right there with it.
One more accolade to bestow on the matter: The Chicagoist website, for coming up with the headline, All Starbucks Closing Tonight for 3 Hours, Apocalypse Imminent.