Restaurant Responses to COVID-19
Transcript of Restaurant Responses to COVID-19
Classified - Confidential
Restaurant Responses to COVID-19
FROM WEEK OF 4.5.20
In-Market Examples
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Intro & Core ThemesWith 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.
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Hand-Washing Stations in Drive-Thru
Who is doing it:
Chick-fil-A
What it is:
Chick-fil-A is stepping up its COVID-19 safety measures by installing handwashing stations at all drive-thru and mall locations by April 11th, as the CDC has maintained that the best way to stop the spread of the deadly novel coronavirus is to wash hands with soap and water
Customer Rationale:
Reassuring guests that CFA is taking measures to keep their employees safe.
Guest Rationale:
Guests feel better about going through the CFA drive-thru, with new hand-washing stations
Safety/Operations
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‘How-To-Guide’ for Safe Delivery
Who is doing it:
Carl's Jr.
What it is
An Insta story "how-to" guide for minimum contact delivery, plus a code for free delivery
Customer Rationale:
Remind guest that delivery is still available and that extra precautions are being taken to ensure guest safety
Guest Rationale:
Peace of mind that there is a safe solution for meal delivery
Communicationsand Safety
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Enabling “Curbside” In QSR To Meet The Needs Of The Traveling Truck Drivers
Who is doing it:
Burger Kind & McDonalds
What it is:
Enabling truck drivers to order through the app & call their vehicle “home” for curbside delivery
Customer Rationale:
Capture sales of the traveling truck drivers
Guest Rationale:
Need food quick & vehicles don’t fit in the drive-thru (and of course can’t walk up and get food) – finding a meal solution that works for my job is not easy in this time
Communications
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Levity in Marketing Communication
Who is doing it:
Jack in the Box
What it is
“We are Here For You” message & reminder that stores are open
Customer Rationale:
• Drive traffic of Drive Thru, Pickup and Delivery
• Brand awareness push
Guest Rationale:
Enjoy humor and levity that “Jack” brings and feeling of ‘in-this-together’ brand loyalty
https://www.ispot.tv/ad/nkeQ/jack-in-
the-box-covid-19-we-are-here-for-you
Communications
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Overtly Communicating COVID-19 & Safety Measures Front & Center
Who is doing it:
TGIFridays & Chick-fil-A
What it is:
The first thing consumers see when they interact with their website, app, etc. they are focused on communicating what they are doing to keep consumers & their crew safe
Customer Rationale:
Drive consumer confidence by being overt in their messaging
Guest Rationale:
Consumers feel more self assured these companies are taking precautions for themselves & their employees
Communications
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Consumer Messaging and Promotions
Who is doing it: SONIC
What it is: Consumer Messaging to reinforce
• drive-ins are open and contactless ordering via mobile app and dining in car.
• Downloadable family fun packs – We are all in this together
• Discounted Wacky Packs
Customer Rationale: Drive Traffic
Guest Rationale: Enjoy the comforts of Sonic as you always have in your car and leverage contactless ordering with the mobile app. Value Kids meals to feed the kids and downloadable fun packs to keep them busy.
Communications
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Meal Bundle
Who is doing it:
Multiple
What it is:
Many restaurants are offering complete meals to ensure guests have an entree, side and beverage.
Customer Rationale:
• Reduces clicks needed to complete a full order.
• Increased add on’s of high margin items like beverages and side
• Allows featuring of high margin meal bundles
Guest Rationale:
• Convenience of one click complete meal ordering
Off-Premise Promotions
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Meal Bundle Examples
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Making Dinner Fun & Engaging With Kids
Who is doing it:Uno
What it is:Uno launched a $5 make-your-own pizza kit for kids that includes crust, sauce, cheese, pepperoni, instructions, crayons and a pizza coloring sheet. The kits had previously been offered for dine-in only, but are now available for delivery and takeout. The chain is giving away 1,000 of the kits to Boston-area kids so they can host virtual birthday parties via web conference.
Customer Rationale:Drive revenue & engagement in a “new” normal
Guest Rationale:Create a positive moment for the family & great price point to feed the kids
Off-Premise Promotions
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Helping Families Feed The Family Economically
Who is doing it:
Olive Garden
What it is:Kids meals for $1 with the purchase of and adult entrée (limit 2)
Customer Rationale:
Capture attention with deeply discounted price & drive revenue
Guest Rationale:
Find affordable ways to feed that family through take-out/delivery
Off-Premise Promotions
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Supportive Partnership Messaging
Who is doing it:
Cinnabon
What it is:
Post encouraging people to support pilot by buying Cinnabon cinnamon buns at their stations, which in turn supports the truckers who rely on pilot stops.
Customer Rationale:
Encourage purchases at an outlet still getting traffic
Guest Rationale:
Support pilot employees by providing them business and they will keep supporting the truckers and others who are keeping the country going
Off-Premise Promotions
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Give a Gift Card, Get a Gift Card
Who is doing it:
Cracker Barrel
What it is:
Buy a $50 gift card for someone else, get a $10 bonus card for own use before May 15th
Customer Rationale:
• The giving spirit is important now, and the $10 incentive for the giver to buy their own meal is also high
Guest Rationale:
• An added incentive to gift someone a meal
Off-Premise Promotions
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Discount Gift Cards, Encourage Giving
Who is doing it:
Panera
What it is:
Save 20% on gift cards. Messaging encourages giving cards to others.
Customer Rationale:
Provide incentive to purchase cards alongside occasions for gifting them
Guest Rationale:
An added incentive to gift someone a meal
Off-Premise Promotions
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Family Meal Deals
Who is doing it:
McAlister’s
What it is:
Family Meals for 4 that includes a gallon beverage
Customer Rationale:
Drive ticket, tap into need for family meal solutions
Guest Rationale:
Provides a cost effective meal for families
Off-Premise Promotions
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Connect With Consumers “Where They Are – In The Moment”
Who is doing it:
TGIFridays
What it is:
Speaking to the needs of consumers in their “new normal”
Customer Rationale:
Connect with consumers in a real way by focusing on their new “homeschool” normal – while offering free kids meals
Guest Rationale:
Connection with TGIFridays b/c they “get me” right now & kids eat free
Off-Premise Promotions
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Movie Theatre Supporting Restaurants In Their Tenant Community
Who is doing it:
My Santikos Theatres
What it is:Order from one of My Santikos Theatre tenant community partners and get a free My Santikos Theatre regular popcorn
Customer Rationale:
Help support the “business community” around them & get credit in the minds of consumers for doing good
Guest Rationale:
Get a little something extra for supporting these local businesses
Off-Premise Promotions
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Easy To Grasp Specials
Who is doing it:
El Fenix
What it is:
Establishing a daily special with an easy to understand price point (entrees + margaritas)
Customer Rationale:
Make the offer simple for consumer to understand & show execution of a new delivery category (margaritas)
Guest Rationale:
Easy to understand the offers & financial impact
Off-Premise Promotions
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Get Free Add-ons With An Order
Who is doing it:
Velvet Taco
What it is:
Adding “freebies” with the order
Customer Rationale:
Capture attention with a “free” offer
Guest Rationale:
Reduce price/person by getting a valuable “free” offer
Off-Premise Promotions
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Driving Loyalty Through Enhanced Offers
Who is doing it:
Chick-fil-A & Jason’s Deli
What it is:
CFA is adding +20% bonus points during the month of April to consumers loyalty program
Jason’s Deli is giving consumers back 4% toward future orders
Customer Rationale:
Drive loyalty & orders through enhanced loyalty offer
Guest Rationale:
When faced with where to purchase food increase in loyalty points could be a key driver
Off-Premise Promotions
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Leaning Into Underserved Dayparts With A Family Bundle
Who is doing it:
Taco Cabana
What it is:
Communicating the breakfast daypart in new way consumers really understand (Sundays are for sleeping in)
Customer Rationale:
Drive underserved daypart with family bundle
Guest Rationale:
Find a solution for a daypart where there isn’t many options right now
Off-Premise Promotions
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Driving Future Visits & Provide High Value “Free” Offer On Grubhub
Who is doing it:
Studio Movie Grill
What it is:
Every Grubhub order includes two free movie tickets to Studio Movie Grill & 10% of the order proceeds (the food order) go to Studio Movie Grill employees
Customer Rationale:
Drive future visits & give back to employees
Guest Rationale:
Utilize Grubhub more frequently because of the FREE movie ticket offer
Off-Premise Promotions
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Surprise & Delight with Every Order
Who is doing it:
Jack in the Box
What it is:
Something Extra by “Staying in the Box”
Customer Rationale:
A free item is added to delivery orders is an effective way to surprise and delight customers and encourage repeat visits
Guest Rationale:
Reason to return and sampling opportunity
Off-Premise Promotions
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Virtual Date Night
Who is doing it:
Chipotle
What it is:
Chipotle is inviting guests to order pick up or delivery, download Zoom backgrounds of their restaurants and connect via video chat with loved ones as if they are eating in the restaurant together
Customer Rationale:
Encourage parties to order meals whether they are together or apart –maintain brand love by replicating in-restaurant experience
Guest Rationale:
Connect with loved ones over a 'shared' meal/experience
Off-Premise Promotions
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Great American Takeout
Who is doing it:
Jack in the Box, Pieology, Carl’s Jr., QDOBA, Baker’s Drive Thru
What it is:
Great American Takeout
Customer Rationale:
Easy opportunity to participate in a traffic driving event with charitable ties. Drive take out/delivery transactions and support the restaurant industry
Guest Rationale:
Opportunity to support the restaurant industry, charitable causes, and win enticing prizes
Off-Premise Promotions
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Great American Takeout – Loyalty Rewards
Who is doing it:
Chicken Salad Chick
What it is:
Offering triple loyalty points for purchases made on 4/7 (as part of Great American Takeout)
Customer Rationale:
• Taps into Great American Takeout movement and drives people into loyalty program to take advantage of the reward
Guest Rationale:
• Support a good cause and get to loyalty rewards faster
Off-Premise Promotions
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Holiday-Specific Family Meal Kit
Who is doing it:
True Food Kitchen
What it is:
Easter Brunch Basket that includes a collection of items to help guests create from scratch at-home brunch for 4-5 people. Includes a bottle of Cava and 2 signature brunch recipes.
Customer Rationale:
Drives sales during a holiday that would otherwise be a high volume day
Guest Rationale:
Provides a holiday meal solution for a single-family gathering as consumers remain socially distant
Evolving Business Formats
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Holiday-Specific Meals
Who is doing it:
Multiple
What it is:
Feast-sized meals for specific holiday occasion (Easter in these examples)
Customer Rationale:
Large ticket-item and can take pre-orders to sufficiently prep
Guest Rationale:
• Fully prepared, high quality meal for an occasion that otherwise may have been potluck style with extended family/friends
• Note: This could be done for local / regional holidays coming up in April/May (Mother’s Day Brunch?)
Evolving Business Formats
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Adding Groceries To All Of Their Ordering Platforms
Who is doing it:
Panera
What it is:
Making Panera Grocery easy to engage with for consumers
Customer Rationale:
Finding new revenue streams to drive business
Guest Rationale:
Rapid pick-up & contactless delivery available – most grocery delivery services have long delays
Evolving Business Formats
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Offering A Separate Site As A Online Grocery Store
Who is doing it:
Showmars
What it is:
Website built as online grocery store
Customer Rationale:
Provides a simple user experience that mirrors other online grocery services
Guest Rationale:
Get grocery essentials in a user friendly format, while supporting local restaurant
Evolving Business Formats
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Marketplace w/ How-To Videos
Who is doing it:
Moe’s Southwest Grill
What it is:
Moe’s Market is offering bulk sales of proteins and sides, and providing how-to videos for meal ideas posted via Instagram
Customer Rationale:
• Provide group/family with components for full meal solutions
• Provide visually appealing how-to instructions that make the meal occasion into an activity
Guest Rationale:
Makes the meal more fun with DIY approach, but still great quality ingredients
Evolving Business Formats
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Kids Entertainment
Who is doing it:
Jamba Juice
What it is:
Posting PDF pictures for coloring (kid and adult friendly)
Customer Rationale:
Connect with potential guests by offering an activity that can provide a few minute break
Guest Rationale:
Any form of fun activity for kids is welcome to try and fill the time at home
Evolving Business Formats
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Freaky Fresh Bread on Demand
Who is doing it: Jimmy John’s
What it is: Finding bread can be difficult right now.That's why we're making our fresh-baked French bread available to you & your family for Pickup or Delivery.
Customer Rationale: Drive Traffic, Check, and sell core equity.
Guest Rationale: Difficult to find bread at the grocery store – now able to get fresh bread at Jimmy John’s!
Evolving Business Formats
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Family Style Specials
Who is doing it: Rusty Taco
What it is: Family-Style Specials featuring:
• 6-Taco Family Pack (six Handmade Tacos and a side of Chips, Salsa and Queso)
• 10-Taco Family Pack (10 Handmade Tacos and a side of Chips, Salsa and Queso)
• Family Breakfast Taco Bar (Builds 12 Tacos) - Build your own breakfast tacos. Includes a pan of eggs, cheese, tortillas, and salsas.
• Family Taco Bar (Builds 12 Tacos) - Choice of freshly prepared meat + tortillas, garnishes, limes & salsa.
Customer Rationale: Drive Traffic and Check
Guest Rationale: Providing full family customized meal options.
Evolving Business Formats
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Bring Restaurant To The Community
Who is doing it:
Chicken Salad Chick
What it is:
Setting up dates/times for drive-thru style pickups within community neighborhoods
Customer Rationale:
• Reduce barrier for those who may not be able to drive to location for pickup and don’t want to or can’t order via third party delivery
Guest Rationale:
Convenient to set up a delivery to own neighborhood
New Pick-Up Routines
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Driving Business Despite Dine-in Closures
Who is doing it:
Wing Stop
What it is:
Wingstop’s digital business model proved effective through the early weeks of the COVID-19 pandemic, as U.S. same store sales jumped 9.9 percent in Q1. Although the brand saw overall transactions slide as the virus became more prevalent, a rise in average ticket offset those losses. The favorable results are due to Wingstop’s off-premises business representing 80 percent of sales before the pandemic.
Customer Rationale:
Driving off-premise business, while dining rooms are closed
Guest Rationale:
Leveraging a customer that does off-premise well
Off-Premise Growth
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Supporting Health Care Workers Community Support
Who is doing it:
Fatburger, Chicken Salad Chick
What it is:
Brands thanking and offering free meals to first responders on the front lines dealing with the current health crisis
Customer Rationale:
Supporting the local community in time of need
Guest Rationale:
Being a great community partner in hopes of encouraging others to do the same
55%
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Supporting Frontline Workers
Who is doing it:Chipotle
What it is:10% of gift card sales will be donated to Direct Relief, an organization with a mission to improve the health and lives of people affected by poverty or emergency situations by mobilizing and providing essential medical resources needed for their care
Donating 100,000 burritos to Healthcare Heroes with sticker messages of thanks
Customer Rationale:Give back to healthcare workers, secure funds via gift cards during financially challenging time, to be redeemed at later date
Guest Rationale:Support Chipotle and Healthcare Workers – Two birds, one stone
Community Support
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Global Employee Relief Fund
Who is doing it:
Starbucks
What it is:
Starbucks on Wednesday launched a $10 million global relief fund to support employees “facing extreme hardship” because of the coronavirus.
Customer Rationale:
Helps support their employees in need
Guest Rationale:
Guests are noticing how customers are treating their employees and who is giving back
Community & Employee Support