Saturday, July 7, 2018

Red Robin resets the Price Value Service Equilibrium to Drive Sales

Removing price as an obstacle to drive sales is the new electricity for Red Robin a fine fast, fine burger, or sit down restaurant according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  
In a new marketing campaign called #BurgerMath Red Robin is leveraging Price to garner incremental customer visits and trial. .Red Robin CEO Denny Post stated “The goal is to make it stone-cold easy for our guests to say ‘Yes’ everyday to visiting Red Robin, and to unlock greater frequency and share going forward.” ..“This is only the first of many messages to come contrasting our everyday value with others,”
While unemployment is a record low levels Red Robin is leveraging its brand invitation with new electricity looking to garner those consumers who are ready to move up from fast food to fine casual according to Johnson. 
What is your brands new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” Red Robin CEO Denny Post understands that.
Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, urban clothing, grocerant positioning, price,  branded relevant messaging, autonomous delivery, cashier-less retail, cash-less payments, digital hand held marketing. This program has all of that.
Foodservice retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different.  That will require brands to embrace new fresh food partnerships more now than ever before according to Johnson.
Grocerant positioning works as Red Robin’s off-premise sales rose by 40% year over year during the quarter, revealed CFO Guy Constant. Delivery, takeout and catering now account for 9.4% of overall sales, added Post.
However, the typical off-premise check tends to be a little lower than what patrons would spend for a comparable dine-in order because it’s not likely to include a beverage, said Constant. Off-premise customers “do add on a little more, but the nonalcoholic beverage incident does make it a little bit lower than what you see in dine-in,” he said.
So just what is your New Electricity? Success does leave clues  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email:

No comments:

Post a Comment