Tis the season to be frugal? Consumers are finding their disposable cash at an all time low. The reality of a recession has hit home. Consumers now have to be more discreet than ever or change their ways and change does not come easy. Dining out is still a large part of the American lifestyle but its? trends evolve with the economy.
Many operators in the pizza industry are experiencing drops in sales and therefore profits. How can an operator adapt to the changing times & keep their customer base alive and well? Here are few suggestions adopted from trends seen throughout the restaurant industry.
Rebates ? People love them, like an operator, a consumer looks at the bottom line. How can you offer rebates? Maybe you already do and all you need to do is adopt some consumer friendly language. ?Buy 5 XL pizzas & receive a $5 rebate check good on your next pizza purchase?. A rebate can be as simple as a gift certificate. Obtaining a rebate is a consumer motivation. This tactic can increase the frequency of a consumer?s purchases so they may attain the reward. We tend to call such buying incentives, reward programs, but in trying times consumers? loyalty can wane. Renaming your program will attract a consumer with language they becoming increasingly familiar with. Using gift certificates as your rebate will also heighten awareness of this ?product? on your menu. Statistics show that an average of 16% of gift certificates are never redeemed ? pure profit for you and those that redeem their gift certificates for the full value can usually be up-sold another 15%.
Value Menus ? For years the fast food giants have presented their value menus to masses & found success. It is widely acknowledged that upon taking your family to a fast food joint your wallet becomes $25 plus lighter. You did not experience quality or value yet we still go. Why, because they have successfully positioned themselves as a value meal replacement.
Can we do a similar thing? Sure. Take your quality product and create a 9.99 Menu. I am not advocating deep discounts. I am promoting that you take the time to ask yourself ?What can I offer for 9.99?? This will give the perception that we are not only a quality product but a value too and value is a top concern for consumers in a recession. Try to come with 5 items; a small pizza plus sodas, a medium pizza, an XL pizza with a thin crust and lite cheese (lower food cost, health benefits, a treat without the holiday padding) and so forth. Once we attract the price conscious consumer, the sale comes naturally. Ask yourself, ?Did I order from the value menu the last time I went to a fast food joint??
Another trend we see in fast casual is that 5.99 seems to be the magic number of what the market will bear for a meal. Once again can we apply that to our operation? Can you offer a sandwich, chips and drink for $5.99? It doesn?t have to be a steak or bacon. Why not ham or a veggie or a smaller version of one of your signature items? People are looking for an affordable way to get through these times without making major lifestyle changes. Position yourself to be a reasonable option, earn their loyalty because you do understand their situation. Increase their frequency as you gain top of mind awareness.
Consumer Appeal: Combo ads with added perceived value still remain the most popular in our industry. It now takes a little more to get them in the door, add a tag or ?bottom headline? to your ad. That ?Family Meal Deal? headline is followed by a tag reading, ?Feed a family for only $4 each!? Yes, do the math for the consumer to prove your position in the marketplace.
You may also have to communicate your message in more appealing ways.
Make your pizzeria a trick or treat stop. Bring your kids to my pizzeria on Halloween - receive a 'treat' & get your picture taken with our mascot ( costumed employees....) we will e-mail you a copy of the picture. Thus you 'trick' them into giving you their information & build a quick database - what is a database worth to you? - PRICELESS - make your treat worth it. Marketing cost of the food cost of some pizza, printing cost of a bounce back offer less than $20. The same tactic can be applied to any holiday and is an excellent way to show some goodwill, create traffic, build a database and thus be able to communicate your message in a very cost effective way.
You may not be all things to all people but you can be all things to your customers if you put yourself in their shoes and adapt your persona to appeal to their interests.