Burger King picks new PR agency
Burger King Corp. has named Coyne Public Relations of Parsippany, N.J., as its public relations agency of record.
The Miami-based quick-service chain has assigned Coyne the task of supporting the development of a new integrated communications program to promote the chain’s new marketing initiatives, re-energize the brand and diversify Burger King’s demographic target.
In addition, the agency will provide corporate and executive communications support and nutrition and issues-management counsel.
Burger King’s hiring of Coyne is part of a brand marketing makeover for the 12,300-unit chain. It switched marketing agencies and mothballed its “King” mascot in favor of recent television spots that focus on ingredients.
It also has recently rolled out new menu options, such as oatmeal and soft-serve ice cream desserts, to attract a wider demographic beyond its traditional 18- to 35-year-old male target.
John Gogarty, executive vice president for Coyne’s consumer group, said diversifying the consumer base and re-energizing the brand are the challenges for Burger King.
“For us, that’s the PR challenge,” Gogarty told Nation’s Restaurant News. “And they see that from a marketing standpoint. For years, Burger King was focused on one core audience, and we’re looking forward to working with Burger King to diversify that audience and come up with strong communications and creative to reach consumers.”
Gogarty said Burger King is one of the top brands in the industry.
“We’re excited about the opportunity to work with Burger King. A lot has been written over the last few weeks and months about their efforts to ramp up business,” Gogarty said.
“When we talked to them, one of the things that was apparent is they want to do some great stuff from a PR and in-restaurant standpoint,” he added.
Burger King is the nation’s second-biggest quick-service burger chain, with locations in 78 countries and territories worldwide.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN
Lunch is most popular daypart, but habits vary by generation
Lunch remains the most popular time for patronizing restaurants, recent consumer research shows, but restaurants need to reach a diverse dining-out audience in different ways.
The first “Dining Out” study from group-buying service LivingSocial, released last week, found that consumers eat out at the midday meal more than at any other time.
The survey of 4,000 consumers in the United States found that, on average, Americans eat 2.6 meals at restaurants per week at lunchtime, compared with 1.4 average weekly sit-down dinners and 0.8 average weekly breakfast or brunch visits.
But another study published by Chicago-based research firm Technomic found that different generations of consumers view lunch and their conceptions of value at that meal differently, necessitating many varieties of menu items and price points for restaurants.
For example, according to Technomic’s “Lunch Consumer Trend Report,” the Millennials, or diners aged 18 to 34, are the heaviest users of restaurants at lunchtime and are the diners who use value menus most often.
At the same time, older consumers are likely to be value-conscious, but they tend to order off value menus infrequently when eating lunch out.
“Baby boomers are motivated heavily by value, but other significant motivations include health and quality of food,” said Sara Monnette, Technomic’s director of consumer research. “The most health-conscious consumers skew 45 and older, so their value equation is different than that of a younger person who sees value primarily as a price issue. Older consumers are less likely to perceive value in dollar menu items because of the broader context of their motivations.”
Technomic’s findings are based on the online-survey responses of 1,500 consumers in the United States.
The firm found that fast, portable and inexpensive options at lunchtime were the highest-rated priorities during the workweek for consumers. However, during weekends, restaurant patrons gave greater importance to customization and fresh preparation when evaluating lunch choices.
Although Technomic survey respondents reported they are packing their lunch more during the workweek due to economic concerns, 35 percent report that they still buy lunch at a restaurant at least twice a week.
Another challenge for restaurants is that more than half of all consumers indicated that they skip lunch at least once a week, and about two-thirds said they replace lunch with a snack at least once a week. However, restaurants still can appeal to these consumers by offering more healthful menu items and smaller portions at lower price points, Technomic said.
About 47 percent of all respondents said they stick to the same few restaurants for their lunch visits every week. However, 40 percent said they eat many different things off their favorite restaurants’ menus, meaning that menu variety and customization will continue to loom large for restaurants looking to increase their share of lunchtime traffic.
Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN
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Seven IHOP restaurants in Ohio and Indiana were raided by federal agents on Tuesday under a sealed indictment.
Patrick Lenow, a spokesman for Glendale, Calif.-based parent company DineEquity Inc., said the company was aware of the multi-agency investigation that reportedly included the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, or ICE, and Internal Revenue Service agents.
Lenow said the investigation involved a single franchisee, whom he declined to identify.
“The franchisee and IHOP are cooperating with the investigation,” Lenow said. “It’s our desire to learn more about what it involves.”
According to the Toledo Blade, staffers at the restaurants arrived for work early Tuesday and were greeted by federal agents with guns who were searching the units and carrying out boxes.
Local police later turned away customers while the searches were completed.
Lenow said he was not aware of any arrests made. The investigations were brought by sealed indictment, he said, and the FBI has released only “very limited” information.
When asked whether IHOP locations had been targeted in the past for immigration hiring violations, Lenow said, “Most all chains of all sizes have encountered those issues on occasion.”
News of the investigation was the second event this month to put IHOP in national headlines.
In Carson City, Nev., a gunman killed four customers and wounded seven others at an IHOP restaurant before shooting himself. Three of the victims were uniformed members of the Nevada National Guard.
Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
Analysts give ShopHouse a thumbs up
As the new ShopHouse Southeast Asian Kitchen concept settles into its first full-week of operation, analysts that follow parent company Chipotle Mexican Grill are weighing in with enthusiastic reports of the brand’s growth potential.
Chipotle officials insist there are no immediate plans for a second location for the long-awaited ShopHouse, which opened in Washington, D.C., last week.
However, Jeff Omohundro, senior analyst with Wells Fargo Securities, said in a report the day after the concept’s Sept. 15 opening that he visited and “came away with a positive feeling about the brand and its growth potential for the company.”
Analyst Mark Kalinowski of Janney Capital Markets agreed in a report Tuesday, offering an “enthusiastic thumbs up” after his visit.
Kalinowski argued that the quality of experience and speedy service at ShopHouse could lead to market share gains for the brand, as well as a continuation of “enviable” same-store sales expansion for Chipotle.
ShopHouse is designed with the same create-your-meal format of the fast-casual Chipotle chain, with a menu based on the flavors of Thailand, Vietnam and Malaysia.
Bowls, ranging in price from $6.59 to $7.50, might include noodles, brown or jasmine rice topped with a choice of proteins, vegetables, fresh herbs and sauces. Guests also can build a meal based on a banh mi sandwich, ranging in price from $6.14 to $7.05.
“We were very impressed with the flavor profiles and menu choices, as well as the attractive price points, which we think can be particularly important in the continued challenging economic environment,” Omohundro wrote.
Kalinowski said he thought the quality of food was “simply outstanding,” noting that dishes were a bit spicier than at Chipotle.
“In general, we believe that ShopHouse’s food will appeal to the more-affluent-than-average customer that typically frequents fast-casual restaurants,” he wrote. “We believe that Chipotle’s customer base in general would appreciate the quality of ShopHouse’s food, a factor that should help ShopHouse in the long run as it eventually moves beyond (and potentially far, far beyond) one unit.”
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The analysts noted the early-days presence of Chipotle executives, such as co-chief executives Steve Ells and Montgomery Moran, as well as Nate Appleman, a fine-dining chef who has been intimately involved with ShopHouse’s development.
The restaurant, however, makes no mention of its ties to Chipotle in signage or on the menu.
Although not a concern going forward, Kalinowski pointed to the unit’s narrow rectangular shape, which makes it somewhat difficult for customers to exit easily. However, the high-volume Dupont Circle location may have been too attractive to turn down.
A Chipotle unit down the street generates about $4 million in annual sales, he said, citing unnamed industry sources. Typically, Chipotle locations have an average unit volume of about $1.9 million annually.
Both analysts also praised the new concept’s emphasis on organic ingredients and sustainable meats raised without the use of antibiotics or added hormones, following Chipotle’s “food with integrity” message.
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Centerplate names Gary Prell VP of culinary development
Onsite operator Centerplate has named Gary Prell vice president of culinary development.
In his new role, Prell is responsible for culinary training, including a new chef mentorship program.
He also will facilitate menu development, working with Centerplate’s three senior executive chefs, David Skorka in Dallas; Sean Kavanaugh in Louisville, Ky.; and Orlando Morales in San Diego.
Prell returns to Stamford, Conn.-based Centerplate after having served as president and chief executive of the Professional Culinary Institute, a school in Campbell, Calif., now affiliated with the International Culinary Center, better known as the French Culinary Institute, in New York.
At Centerplate, Prell’s also previously served as manager of catering operations at convention centers in Denver; Washington, D.C.; and Orlando, Fla.
“Gary is a great addition to our culinary team,” Centerplate chief operating officer Chris Verros said. “He comes with strong operational experience, combined with significant culinary education skills having served as both a professor and dean at respected culinary arts schools across the country.”
A graduate of the Culinary Institute of America in Hyde Park, N.Y., Prell was the founding executive chef of Compass Group North America subsidiary Bon App
Q&A: Scott Shotter of Moe’s Southwest Grill
A Moe’s Southwest Grill location at 860 Johnson Ferry Road in Atlanta recently was awarded Certified Green Restaurant recognition from the Green Restaurant Association.
The company-owned store became the city’s third certified green restaurant by installing efficient spray valves and faucets, adding special energy-efficient lighting, applying low VOC paints and coatings, and removing all polystyrene from the restaurant.
The Green Restaurant Association recognizes restaurants that meet the standard of sustainable strategies in categories such as waste, energy, chemical reduction, water, pollution and food.
Nation’s Restaurant News caught up with Scott Shotter, vice president of operations of Atlanta-based Moe’s, and discussed what it takes to go green for a concept with four company-owned stores and 433 franchised units.
There are a lot of different categories for going green. Which was the most challenging to deal with?
Energy. That took the most investment and the most time to get into place. Energy had to do with the lighting package we installed and low-flow toilets and aerators on the hand sinks. That was the most time-consuming and took a lot of resources.
We also plan to implement recycling. We’re reserving that for the next step. We’re in a strip mall and share common garbage disposals, so it’s hard for a single operator in a strip mall to get fellow tenants in line with the recycling program
What did it cost you to implement the green strategies?
Somewhere north of $12,000. That includes upgrading the lighting package and introducing a thermostat that regulates our HVAC. We went after air curtains in our walk-ins and changed toilets to low flush. We had to invest upfront without the understanding what the exact return would be.
Why does it make good business sense to be so energy efficient and green?
We needed to look beyond the business. The return on investment would be two-and-a-half years. It’s the right thing to do and the important thing to do. We know it in the end it will be worth the investment.
What about your food containers and materials?
We’re changing to paper products. We removed polystyrene for our to-go materials and changed to a recyclable plastic.
Have any of you customers said anything at this Atlanta location about the changes?
They noticed we’re using a new queso cup.
Is this a pilot for your franchised locations?
We would like it to be. It’s a good model. There is a payback. We’ll take another six to eight months to figure out the return on investment and get a model that our franchises can get behind. We’ve made some changes to our equipment for the system and it’s filtered into our prototype.
What specifically have you changed?
We changed our ice machine to lower volume on water use. We changed our paint type. We’ve changed optional lighting packages that franchisees can operate. We changed the queso cups from polystyrene to paper. We introduced a new uniform program using uniforms that are made from 95-percent recycled plastic bottles, and we’ll roll that out in November. And the shirts and the hats will be made from this material. It’ll save 2 million plastic bottles from going to the landfill based on our system’s volume in shirts. It’s also 5 percent Lycra, and it’s a sharp-looking uniform.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN
Q&A: Scott Shotter of Moe’s Southwest Grill
A Moe’s Southwest Grill location at 860 Johnson Ferry Road in Atlanta recently was awarded Certified Green Restaurant recognition from the Green Restaurant Association.
The company-owned store became the city’s third certified green restaurant by installing efficient spray valves and faucets, adding special energy-efficient lighting, applying low VOC paints and coatings, and removing all polystyrene from the restaurant.
The Green Restaurant Association recognizes restaurants that meet the standard of sustainable strategies in categories such as waste, energy, chemical reduction, water, pollution and food.
Nation’s Restaurant News caught up with Scott Shotter, vice president of operations of Atlanta-based Moe’s, and discussed what it takes to go green for a concept with four company-owned stores and 433 franchised units.
There are a lot of different categories for going green. Which was the most challenging to deal with?
Energy. That took the most investment and the most time to get into place. Energy had to do with the lighting package we installed and low-flow toilets and aerators on the hand sinks. That was the most time-consuming and took a lot of resources.
We also plan to implement recycling. We’re reserving that for the next step. We’re in a strip mall and share common garbage disposals, so it’s hard for a single operator in a strip mall to get fellow tenants in line with the recycling program
What did it cost you to implement the green strategies?
Somewhere north of $12,000. That includes upgrading the lighting package and introducing a thermostat that regulates our HVAC. We went after air curtains in our walk-ins and changed toilets to low flush. We had to invest upfront without the understanding what the exact return would be.
Why does it make good business sense to be so energy efficient and green?
We needed to look beyond the business. The return on investment would be two-and-a-half years. It’s the right thing to do and the important thing to do. We know it in the end it will be worth the investment.
What about your food containers and materials?
We’re changing to paper products. We removed polystyrene for our to-go materials and changed to a recyclable plastic.
Have any of you customers said anything at this Atlanta location about the changes?
They noticed we’re using a new queso cup.
Is this a pilot for your franchised locations?
We would like it to be. It’s a good model. There is a payback. We’ll take another six to eight months to figure out the return on investment and get a model that our franchises can get behind. We’ve made some changes to our equipment for the system and it’s filtered into our prototype.
What specifically have you changed?
We changed our ice machine to lower volume on water use. We changed our paint type. We’ve changed optional lighting packages that franchisees can operate. We changed the queso cups from polystyrene to paper. We introduced a new uniform program using uniforms that are made from 95-percent recycled plastic bottles, and we’ll roll that out in November. And the shirts and the hats will be made from this material. It’ll save 2 million plastic bottles from going to the landfill based on our system’s volume in shirts. It’s also 5 percent Lycra, and it’s a sharp-looking uniform.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN