Applebees Pitch Brief
19
NEW BUSINESS PITCH See you tomorrow January 2017
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Transcript of Applebees Pitch Brief
NEW BUSINESS PITCH
See you tomorrow
January 2017
NAME BRAND PITCH TYPE
Creative
MARKET DATE
December 15 , 2016
The Data You Need to Win This Pitch
DESCRIPTIONApplebee's is stuck in a prolonged sales slump and is, once again, searching for a new creative agency after working with Barkley for less than a year.Changes in leadership and new advertising and communications agency relationships have not ignited sales at Applebee's Neighborhood . Applebee's
is owned by DineEquity Inc., which also owns the IHOP chain, and is the country's largest casual dining chain with nearly 1,900 U.S. restaurants.Applebee's sales at longstanding U.S. locations have declined in the first three quarters of 2016 following declines in the third and fourth quarters of
2015. Such sales have now fallen in five consecutive quarters after five consecutive quarters of gains that came to a halt in mid-2015.
Applebee's is Searching for a Creative Agency,
again.
thU.S.
Client Profile / Market
Applebee’s International, Inc., is an American company which develops, franchises, and operates the Applebee's Neighborhood Grill and Bar restaurant chain.As of December 2015, there were 2,033 restaurants operating system-wide in the United States, one U.S. territory (Puerto Rico) and 15 other countries, all owned and operated by franchisees. The company is headquartered in Kansas City, Missouri after moving from Lenexa, Kansas in September 2011. On September 3, 2015, it was announced that owner DineEquity would be consolidating its headquarters for Applebee's and IHOP to DineEquity's Glendale, California location. As a result, President Steven R. Layt chose not to relocate and resigned effective September 4, 2015.
The Applebee's concept focuses on casual dining, with mainstream American dishes such as salads, shrimp, chicken, pasta, and "riblets" (which is considered Applebee's signature dish). All Applebee's restaurants feature a bar area and serve alcoholic beverages (except where prohibited by law).
FINANCIAL OVERVIEW- Source: AccessConfidential.com -
COMPANY BACKGROUND
MAIN COMPETITORS
2015 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
4,700
33,595
-
-
-
+4%
Mr. Darin P. Dugan
Senior Vice President, Marketing and Culinary
Ms. Mindee (Elam) PluguesVice President of Marketing
Communications, Applebees
DECISION MAKERS by
(913) 890-0767
Casual Dining in the U.S.
$ 58BTOTAL
CASUALDININGSALES
- Technomic -
TOP CASUAL DINING CHAINS
CHAIN NAME 2015 U.S. SALES ($000) 2015 U.S. UNITS
Applebee’s 4,739,442 1,878
Olive Garden 3,743,000 841
Buffalo Wild Wings 3,567,155 1,145
3.5%SALES
GROWTH
- Technomic -
Casual Dining in the U.S.
11,894Total Casual Dining Units in the U.S.
+1.5%Unit GrowthIn 2015
$4.4MAverage Estimated Sales Per Unit in 2015
- NRN.com -
- NRN.com -
- NRN.com -
TOP & WORST
% Sales Growth
+16.3%
-3.7%
Estimated Sales Per Unit
$11.3 Million
$1.7 Million
Casual Dining in the U.S.
Casual Dining is losing shares to other segments like Limited Service Restaurants.
Sports Bar concepts, steak specialists and brands with a contemporary adult beverage programs
tend to lead the Casual Dining segment’s growth.
Restaurantvisits
In 201590%
Other Restaurants
10%Casual dinners
2% Casual Dining Restaurantsvisits drop
$7.5bSALES
+8.1%SALES GROWTH
2,676UNITS
+4.3%UNITS GROWTH
SPORTS BARS PERFORMANCE IN 2015
A Closer Look at the Casual Diner
ONCE A WEEK OR MORE OFTEN
49%45%
38%
49%
HISPANIC WHITE AFRICAN AMERICAN ASIAN
FREQUENCY BY ETHNICITY
45%Americans eat at a Casual Dining Restaurant at least once a week or more.
Thinknow Research
Statista.com
Thinknow Research
Statista.com
74.1% $13.75
60% 40%
Consumers choose casual dining restaurants
for dinner
Average eater check
of Asian casual dining visitors go to spend time
with the family
Casual dining consumers visit upscale casual dining restaurants at least once a
month
Consumer Picks
NRN.com
NRN’s Consumer Picks Report ranks casual dinner chains by
consumers’ ratings over 10 attributes including: Food
Quality, Cleanliness, Service and Atmosphere.
The overall score is weighted by the importance customers
place on each attribute.
1 The Cheesecake Factory Varied Menu 74.2
2 The Melting Pot Varied Menu 73
3 Bonefish Grill Seafood 71.7
4 Red Lobster Seafood 71.1
5 Romano’s Macaroni Grill Italian / Pizza 70.5
RANK CHAIN SEGMENT OVERALL SCORE
Sales 2015
$2,5 M Average Sales
Per Unit
Stats: Applebee’s
1,860 Outlets in
the US
% change
$4.7B +4%
Applebee’s Rated by Consumers
NRN.com
Consumers Rating(NRN Consumer Picks Report)
Rank 31
Overall Score 58.8
Food Quality 65.7
Value 45.5
Cleanliness 62.1
Service 61.1
Manu Variety 63.4
Reputation 60.1
Atmosphere 58
Craveability 46.9
Likely to Recommend 62.4
Likely to Return 56.1
One reason DineEquity has said Applebee’s is having trouble is
that consumers aren’t perceiving as much value
Same-store sales decline in the 3Q 2016
5 straight quarter of same-store sales
Applebee’s Playing With Fire
Applebee's installed new wood-fired grills across
every single location across America.
Applebee's is converting to USDA Choice steaks
and is hand cutting them in house on a daily basis.
The move changed the flavor and taste profile of
40% of menu itemsInvestment onthe initiative
(including advertising spending)
$75M
Fast Food industry in numbersTaking on Delivery
In May ‘16, Applebee's and SkipTheDishes, North America's fastest growing food delivery networks, announced an official nationwide
delivery partnership.
For the first time, select Applebee's restaurants will begin offering delivery with live GPS tracking in major cities across North America,
with plans to expand to additional cities in coming months.
Working with a third party delivery service has been found to raise restaurant sales volume by 10% to 20%.
AMERICANS AND FOOD DELIVERY
51%
26%
300%
Americans use delivery services to purchase meals from casual dining restaurant.
Order takeout or delivery at least once a week
Growth of digital ordering and delivery compared to dine-in traffic since 2014.
CASUAL DININGRESTAURANTSCONSUMERS
QUICK DEFINITION:Casual Dining Restaurant Consumers
Our Casual Dining Restaurants Consumers demographic
refers to consumers eating at Applebee’s’ top competitors, like Olive Garden, Buffalo Wild Wings, Chili’s Grill & Bar and
Outback Steakhouse. We’ve excluded Applebee’s fans in order to better highlight the differences between Applebee’s current fans and the
consumers buying the competition.
10%
20%
0
30%
13-17
• • •
• • •
18-24 25-34 35-44 45-54 55-64
55%FEMALE
50%MARRIED
43%WITH
CHILDRENFOODIES
177.8
MOTORLOVERS
139.7
FASHIONLOVERS
133.4
BEAUTY & WELLNESS
141.2
87%
Casual Dining Restaurant Consumers
Compare the Casual Dining ConsumersDemographic with Applebee’s Audience
Applebee’s audience overlaps with our
Casual Dining Restaurant Consumers demographic by 80% in top interests, including:
Beauty & Wellness, Fashion, Food and
Motors
CASUAL DINING CONSUMERS:BEAUTY & WELLNESS
Applebee’s audience over indexes as Beauty & Wellness
Aware (160.0)
They are enthusiastic about cosmetics (cosmetic
connoisseurs 179) and physical activities (Active & Fit 162.0)
Hair care products collect very high popularity points (169.1)
COSMETICSCONNOISSEURS
158.6ACTIVE & FIT
152.7
BEAUTY & WELLNESSAWARE141.2
CLICK HERE TO SEE TOP BEAUTY BRANDS
HAIRCARE
144.5
APPLEBEE’S AUDIENCE CROSSOVERS
CASUAL DINING CONSUMERS:FOOD
Applebee’s audience over indexes as Foodies
(Foodies 184.4).
They are highly over indexing on the Self-Conscious Snackers
trait (186) .
Like Applebee’s competitors’ audiences they are Social
Drinkers (134.8) and they are interested in Gourmet & Specialty Foods (190.0).
CLICK HERE TO SEE THEIR FOOD BRANDS
SOCIALDRINKERS
FOODIES177.8POPULARITY
SELF-CONSCIOUSSNACKERS157.9 POPULARITY
147.3 POPULARITY
GOURMET & SPECIALTYFOODS
166.0 POPULARITY
APPLEBEE’S AUDIENCE CROSSOVERS
Motors is another interest shared by the two audiences
analyzed.
Applebee’s fans are more attracted by cars. Indeed
they over index as Car Experts (147.6).
Racing Drivers are slightly over indexing (115.0)
CASUAL DINING CONSUMERS:MOTORS
MOTORLOVERS
157.9POPULARITY
MOTORCYCLES
136.3POPULARITY
RACING DRIVERS
122.0POPULARITY
CLICK HERE TO SEE THE TOP MOTORCYCLE BRANDS &
RACING DRIVERS
APPLEBEE’S AUDIENCE CROSSOVERS
Applebee’s’ audience is less interested in fashion (142.1).
They heavily over index as Swayable Shopaholics (182.6).
They are in love with accessories (181.0) and are interested in
Athletic Apparel (133.5)
CASUAL DINING CONSUMERS:FASHION
SWAYABLESHOPAHOLICS
182.6POPULARITY
FASHIONLOVERS
173.9POPULARITY
ATHLETICAPPAREL
134.4POPULARITY
TOP APPAREL RETAIL STORE
KNOWMORE
APPLEBEE’S AUDIENCE CROSSOVERS
CONSUMER INSIGHTS SUITE
Discover more about Applebee’s consumers
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