Home is Where The Heartland Is: Re-Branding and Reopening a Roger’s Park Icon

Capstone IMC Plan

Spring 2019 Caroline Boissoneault

Introduction Founded in 1976 as the self-proclaimed “Heart of Rogers Park”, Heartland cafe was a cherished neighborhood spot for events, live music, and a wholesome meal among local students and residents. Heartland Cafe offered a variety of traditional cafe offerings in their extensive menus covering breakfast, lunch, and dinner, as well as a variety of vegetarian, vegan, gluten-free, and other dietary options. At Heartland, these dietary options were embraced and not an afterthought, as the restaurant aimed to cater to the community as a whole while supporting local farmers. In addition to a full-service restaurant, Heartland Cafe was also host to a natural foods market, where customers could find everything from produce, to organic beauty products, to locally brewed kombucha (Heartland Cafe). Sadly, the end of 2018 also marked the end of Heartland Cafe as the neighborhood knew it, as it was closed by current owner Tom Rosenfeld, who took ownership of the business in 2012. Despite this, it is clear that the closing of Heartland Cafe also created a huge gap in the local restaurant market for a business that caters to those with alternative diets, as well as community members seeking a satisfying yet healthy choice to start or finish their day. For these reasons, the following integrated marketing communications plan will detail a cohesive promotional strategy for the re-branding and reopening of Heartland Cafe, ensuring its success and continuing place as a community icon for the generations to come.

Situation Analysis

Service Category Heartland Cafe is best classified as a single location, full-service restaurant. Unlike chains or franchises, these businesses have fewer than ten locations and employ waiters and waitresses who serve customers their food and beverages in some manner. Due to these characteristics, these establishments are typically family owned and operated, and encompass both fast-casual and high-quality service models (IBISWorld, 2018). While the single location, full-service restaurant industry suffered during the United States financial and economic collapse of 2008, as Americans had less disposable income to spend on non-essential goods or experiences such as dining at restaurants, the single location, full-service restaurant industry rebounded with an estimated $169.2 billion in revenue in 2018, and an annual growth rate of 3.7% between 2013 and 2018. In addition to this revenue, the single location, full-service restaurant industry is also one of the largest employers in the United States, with over 165,000 business responsible for paying approximately $61.3 billion in wages are paid by this industry each year.

Within the industry, individual restaurants are typically segmented according to the type of cuisine they prepare and serve to their customers. In 2018, Asian restaurants held the largest industry segment at 25%, followed by American restaurants (22.5%), European restaurants (15%), and Mexican restaurants (13.6%). Also included are designations for seafood restaurants, pizzerias, and steakhouses (IBISWorld, 2018). Competition One of the most important factors to consider in the re-branding and re-opening of Heartland Cafe is local competition, and how the restaurant will differentiate itself within the market. In order to do so, insight into the local market is required. Figure 1.2 samples the most prominent competition within the Rogers Park neighborhood, in both the single location, full-service and chain categories. This list was compiled by cross-referencing multiple restaurant review sites including Yelp, Chicago Eater and Zagat, the primary companies located in the Chicagoland area provide an insight into what the industry landscape may look like in one particular area. It is also important to note that competition to the cafe’s small market includes local grocery stores such a Morse Market, Devon Market, Aldi, Jewel-Osco, and Whole Foods among others. Figure 1.2: Local Restaurant Competition (Rogers Park, Chicago)

Restaurant Name Number of Locations

Average Price Point ($-$$$$, with $ being the lowest cost per meal)

Category Rogers Park Location

Nori 3 $$ Asian (Sushi) 1235 W. Devon Ave.

Ann Sather 3 $ American (Breakfast)

1147 W. Granville Ave.

Blaze Pizza National Chain $ Pizzeria 6550 N. Sheridan Rd.

Raising Cane’s Chicken Fingers

National Chain $ American (Fast Food)

6568 N. Sheridan Rd.

Onward Chicago 1 $$$ American 6580 N. Sheridan Rd.

bopNgrill 2 $ Asian (Korean) 6604 N. Sheridan Rd.

Chipotle Mexican Grill

National Chain $ Mexican 6600 N. Sheridan Rd.

Taste of Peru 1 $$ Peruvian 6545 N. Clark St.

Smack Dab 1 $ American (Breakfast)

6730 N. Clark St.

Sauce & Bread Kitchen

1 $$ American 6338 N. Clark St.

Bulldog Ale House

11 $$ American 6606 N. Sheridan Rd.

Uncommon Ground

2 $$ American (Organic)

1401 W. Devon Ave.

As one can see, Rogers Park is a highly competitive area in the restaurant business. That being said, many offerings are cheaper, chain restaurant options with less of a focus on healthy options or vegan, gluten-free alternatives. For this reason, a re-branded Heartland Cafe has a unique niche where it can thrive. Consumer Trends & Market Conditions The three most prominent trends in the single location, full-service restaurant industry surround health and wellness, social media use, and diet trends, all of which can be utilized in Heartland Cafe’s favor.

● Social Media Use in Restaurants: Generation Z and Millennials are becoming increasingly known to document their eating habits on social media platforms, as coined by the phrase “the phone eats first”. They are increasingly seeking restaurant spaces with design and an aesthetic they deem to be “instagramable”, in addition to the contents of the establishment’s menu. According to a Mintel report from June 2018, “The concept of eating with your eyes is not new, but in a social media-driven era consumers are not just looking for something that might taste good, it must photograph well, too. Instagram and Snapchat drive the strongest association with social media-inspired menu items being colorful, coinciding with the visual basis for these platforms. Social media trends surrounding rainbow and unicorn based food solely revolve around the color of a dish and over a photo worthy touch to everything from bagels to milkshakes. The popularity of “Millennial pink” has similarly impacted a variety of foods from sweet to savory. For restaurants, this creates a significant opportunity for creating popularity around an everyday menu item, simply by focusing on a colorful presentation” (Mintel, 2018). Depending on the audience of a particular SLFS restaurant, these aspects of dish presentation may be important to take into account.

● Health Consciousness: More and more consumers are becoming more conscious of what they are putting into their bodies (and showing their followers online), and are demanding more healthy options and alternatives when they choose to dine out. However, this isn’t a fading fad either. Forbes writes, “Global sales of healthy food products, in fact, are estimated to reach $1 trillion by 2017, according to Euromonitor. While the health fads

and trends have come and gone (remember oat bran in the 1980s or low-fat everything in the 1990s?), this time the category appears to have serious stamina”, citing Nielsen’s 2015 Global Health Survey who found that, “All demographics—from Generation Z to Baby Boomers--say they would pay more for healthy foods, including those that are GMO-free, have no artificial coloring/flavors and are deemed all natural” (Forbes, 2015). This will be an important trend for many SLFS restaurants to tap into, as it has the potential to create more income and buzz surrounding their establishment.

● Special Dietary Requirements: Special diets that have gained prominence in recent years include veganism and vegetarianism, gluten-free, dairy-free, and the keto diet, among others. General Mills cites gluten-free foods as a valuable opportunity in the market, with “an estimated $8.8 billion in US retail sales in 2014 with predicted growth of $10.6 billion in 2015” (Forbes, 2015). This trend will be important for all food service businesses to embrace, as they will continue to see an increase in customer demand for these kinds of alternative options when they dine out.

SWOT Analysis The below analysis evaluates both the internal and external challenges and opportunities Heartland Cafe may face during its re-branding and re-entry to the local market (see Figure 1.1). Heartland’s biggest strengths and recommended areas of focus are in its unique offering when compared to other local establishments, as well as its proximity to Loyola University Chicago’s campus. Additional opportunities come in the form of partnerships with local organizations such as local farmers markets and beach events. The most prominent threats to the success of Heartland Cafe’s rebranding come from the higher price point associated with small businesses and health food alike, and any preexisting assumptions that may linger from the original Heartland brand. However, this challenge can also be used to the restaurant’s advantage, as they are already well known and trusted within the local community. Figure 1.1: SWOT Analysis Strengths Weaknesses

Internal Forces

• One of the only restaurants in the area catered specifically to vegan, vegetarian, and gluten-free consumers

• Heartland’s existing position within consumers minds, which will take time to transform

• Attached market drives additional revenue

• Large patio space is not usable during Chicago winters

Opportunities Threats

External Forces

• Proximity to a college campus is an ideal target market

• Price competition between lower pricepoint, chain restaurants

• Thriving local farmers markets provide possibilities for collaboration

• The future development of other health-oriented restaurant locations

Objectives

A reasonable goal for this re-branding and re-opening campaign is to increase online engagement with the Heartland Cafe brand and reach 60% of the target audience population at least once each week by at least one form of paid or earned media. Targeting young local professionals and students with content during Summer and Fall months: when the most plentiful produce is available and many food-related events occur. Targeting the “Budding Professional” and “Sustainable Student” using social media and other local news outlets should be the most lucrative due to the higher rates of social media use in these groups (Mintel, 2019).

Target Audience Recommended and Rationale Target Audience Recommended Because of Heartland Cafe’s well-known identity in the Rogers Park community, it is important in re-branding to create a more captivating message that will connect with local residents in a new and exciting way. The “Budding Professional” and “Sustainable Student” are the two most effective consumer profiles to target as Heartland Cafe seeks to reinvent its brand and revitalize its business. For the initial launch of this re-branding campaign, students and young professionals between the ages of 18 and 25 years old with an annual household income of $50,000 or more should be targeted. These consumers are shown to spend the largest portion of their annual income on dining out, as well as being more likely to be concerned with the mission of the businesses they purchase from, a strong selling point for the Heartland Cafe brand (QSR, 2012). Target Audience Description Amanda, age 25, is a “Budding Professional” in her third year working full time at a Chicago-based advertising agency. She loves to explore local foodie spots and share them with her social media followers but also likes to stick to her budget as she works toward building her savings and paying her student loans. While her commute from her downtown office to the Rogers park apartment where she lives leaves her short on time in the evenings, she knows that it is time to leave her college days of late night pizza behind her. She is committed to building healthy habits, but only feels they are practical if they fit into her busy schedule and tight budget. John, age 19, is a first-year “Sustainable Student” at Loyola University Chicago studying Environmental Science. He has always loved hiking and biking in his home state of California and was thrilled to find so many peers with similar interests and sustainability concerns in his program. Working part-time at a coffee shop, his budget is limited but he is excited to seek out new restaurants that cater to his vegan diet on the weekends with friends. The offerings of the Loyola dining halls don’t always fit with his dietary needs, so he is also seeking a place that offers pre-made meals or delivery in a pinch, and is easily accessible by public transportation. Target Audience Rationale Generally speaking, full-service restaurants tend to draw from a community with a moderate to high socioeconomic status due to their more expensive nature when compared to fast food

restaurants or preparing meals at home. This is generally defined by households with a total annual income of $100,000 or more per year (IBISWorld, 2018). Additional accessibility concerns that affect the demographics of SLFS restaurants include food deserts and public transportation availability, as well as options for food delivery or take out. More broadly speaking, there are several larger demographic trends to take into consideration when assessing the food service and restaurant industry as a whole. According to a report written by Quick Service Restaurant (QSR) Magazine in 2012 using data collected by The Food Institute, the consumer spending the largest portion of their food expenditure away from home is under 25 years old and Asian or Caucasian, with an annual household income of $50,000 or more. Being located near a university, it is ideal for Heartland Cafe to follow a two-fold approach with two distinct target markets. The first being “Sustainable Students”. Attending a private university with an emphasis on environmental sustainability, it is fair to infer that these students both have a concern for eating sustainably and a willingness to pay a slightly higher price point for food that supports such practices. Additionally, it will be valuable to target the “Budding Professional” as someone who may have more financial flexibility and an increasing concern for their health as they leave their college years behind.

Message Strategy Product Positioning: Heartland Cafe’s offering of full-service dining, a carefully curated market, and easy grab-and-go options make health a priority, not an afterthought. Catering to a variety of dietary concerns and sustainability initiatives, the Heart of Rogers Park is a restaurant of and for all community members. Reasons to Believe:

● New offerings including To-Go Market Meal Kits for students and busy professionals and a loyalty program and pre-ordering system located on the cafe’s website

● An impressive array of healthy offerings that keep a variety of dietary concerns in mind ● Partnerships with local organizations display Heartland Cafe’s commitment to being a

community leader, not just a community member ● The rich local history that comes with the Heartland Cafe brand, with simultaneously

being vigilant in keeping up to date with their customers’ changing needs Key Messages: The Heart of Rogers Park, making a healthy and sustainable diet accessible for all community members.

Media Channels Social Media Social Media will be an important platform for Heartland Cafe to utilize in response to trends in “foodie” culture and sharing one’s meals online. This low-cost media channel will allow Heartland to efficiently disseminate content while strengthening their new brand identity and voice. These interactive platforms will also allow them to gather customer feedback in real time and make any necessary changes.

Print Media: Newspaper Print media, particularly newspapers and online news publications, will also be an important media channel for Heartland Cafe to use to their advantage. Many consumers consult newspapers and online publications when seeking new restaurants to visit (Mintell, 2019). Many local students also reference publications such as the Loyola Phoenix, therefore making this type of media crucial in reaching Heartland’s target audience. By publishing materials such as press releases, earned media coverage through this media channel is also a potential source of publicity for the re-branding of Heartland Cafe.

Creative Tactics Creative Execution 1: Social Media Materials Figure 2.1: Instagram Feed Example

Figure 2.2: Instagram Post Example

A re-branding of Heartland Cafe’s Instagram presence, along with other social media platforms including Facebook and Twitter, would be tailored to increasing follower engagement and excitement surrounding the cafe. A coordinated, well-planned feed would include sharing user-generated content, as well as series such as “Monthly Product Spotlight” to feature new market items and “What’s in My Bowl” to share employee favorite market meal kits and restaurant dishes. Creative Execution 2: Press Release and Media List Figure 3.1: Sample Media List for Press Release

The media list for this type of communication would include both Chicagoland publications, as well as neighborhood-specific outlets. Also included would be influential Chicago food, lifestyle, and health bloggers.

Figure 3.2: Press Release

Schedule Figure 4.1: Sample Media Calendar (One Week)

Monday, July 8th

Tuesday, July 9th

Wednesday, July 10th

Thursday, July 11th

Friday, July 12th

Saturday, July 13th

Sunday, July 14th

Day 3/7 of the week-long lead up introducing the re-branding and re-opening of Heartland Cafe on social media (Key Messages of the Day: New Product Offerings to be available in the market) ------------------ Publish press release regarding grand re-opening scheduled for Saturday (7/13)

Day 4/7 of the week-long lead up introducing the re-branding and re-opening of Heartland Cafe on social media (Key Messages of the Day: Partnership with Glenwood Sunday Market, find gluten-free baked goods there every Sunday)

Day 5/7 of the week-long lead up introducing the re-branding and re-opening of Heartland Cafe on social media (Key Messages of the Day: Find us at Taste of Chicago!) ------------------ Sneak preview of new menu items and market meal kits available at both during the opening day of Taste of Chicago food festival (new Heartland Cafe merchandise is also sold here)

Day 6/7 of the week-long lead up introducing the re-branding and re-opening of Heartland Cafe on social media (Key Messages of the Day: Feature photos and takeaways from the Taste of Chicago Booth) ------------------ Scheduled teaser interviews with local news outlets. Have owners and local produce provider available for interviews and comments.

Day 7/7 of the week-long lead up introducing the re-branding and re-opening of Heartland Cafe on social media (Key Messages of the Day: Feature photos and takeaways from the Taste of Chicago Booth)

Grand re-opening to be announced on all platforms ------------------ Invite local news outlets for morning brunch event before a noon opening event

Post an event recap to all social platforms, calling for patrons to review their experience online (Google Reviews, Yelp, etc…) ------------------ Temporarily add opening photos to the website landing page

Figure 4.2: IMC Activities Overview Calendar

January February March April May June

Heartland Cafe hosts lead up event to grand re-opening. Patrons can purchase and paint a small tile to be featured in the construction of the new space. A portion of the proceeds are donated to local food pantry.

July August September October November December

Grand re-opening is advertised in social and traditional print media. A sneak peek into new offerings are featured at a booth during the Taste of Chicago food festival

The newly opened Heartland Cafe hosts partnership event with Loyola University Chicago during orientation sessions. Includes educational sessions about eating healthy in college, followed by group lunch.

Advertising is placed in local publications and social media platforms positioning Heartland Cafe as an easy, healthy option for back to school time

Variety of fall events are advertised on social media and on community sites to maintain traffic as the seasons change. These include kombucha, coffee and craft beer tastings, cooking classes, and educational programs for children on healthy eating

Measurement

In order to deem whether this rebranding campaign has been successful in achieving its objectives, it is important to determine measurements of success that are quantifiable and reasonable. In terms of social media campaign measurement, Heartland Cafe currently has 948 followers on Instagram as well as approximately 14.4k likes on their Facebook page. As a measurement of success, a goal can be set to increase their follower and like counts to 1,500 and 15.5k respectively. This being said, it will also be important to track page visits and engagement statistics through Instagram and Facebook analytics, in order to assess how they fluctuate over time and how to generate increased traffic on these platforms.

Reviews on restaurant review sites such as Google, Yelp, and Grubhub will also be essential to a successful re-opening and re-branding, as these sites are often where customers turn when seeking a new restaurant recommendation. As a goal, Heartland Cafe can strive to achieve 85% of new reviews at 4 out of 5 stars and above and aim to reply to every new review that is posted. Additional sources of measurement can include the number of new customers registered with the new loyalty program, as well as the percentage of customers that are returning, meaning they place more than one order through the website and program.

Works Cited

Gagliardi, N. (2015, February 20). Consumers Want Healthy Foods--And Will Pay More For

Them. Retrieved from

https://www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthy-foods-

and-will-pay-more-for-them/#72feb14b75c5

Heartland Cafe, heartlandcafe.com/.

Hyland, R. (2018, December). Single Location Full-Service Restaurants in the US. IBIS World.

Retrieved February 6, 2019, from

https://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1678

Kelter, D. (2018, June). Social Media in Foodservice US. Retrieved February 6, 2019, from

http://academic.mintel.com/display/860527/

Meet Your Consumer. (2012, November 12). Retrieved from

https://www.qsrmagazine.com/consumer-trends/meet-your-consumer

Spencer, H. (2018, October). Restaurant Decision Making Process US. MintelI. Retrieved

February 6, 2019, from https://data-mintel-com.flagship.luc.edu/databook/860819/#Q1