Friday, January 24, 2025

Grocers vs. Restaurants: Can Kids Eat Free Platforms Succeed Everywhere?

 


Kids Eat Free promotions have long been a cornerstone for family-oriented restaurants like IHOP and Denny’s, offering a compelling traffic-driving incentive for parents. However, as guest traffic declines across restaurant categories, this once-exclusive restaurant strategy is now being adopted by non-traditional fresh food retailers, convenience stores (C-stores), and even grocery store delis. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® thinks it’s time to delve into whether this strategy works across all sectors, updated with food industry facts and new insights into marketing to children.

Kids Eat Free: Is It Right for Your Business?

The immediate answer to whether these promotions work is simple: yes, they drive traffic. However, a better question is whether this strategy aligns with your business goals. "Free" is always appealing and can pull in customers, but profitability must remain a priority. Restaurants are now joined by grocers experimenting with similar tactics.

Take Kroger’s innovative Kids Fresh Friends program. Launched last year, the program provides kids with a card enabling them to get a free piece of fruit each visit. Ken McClure, customer communication manager for The Kroger Co., reported that in its first eight weeks, the program distributed nearly 40,000 pieces of fruit—close to 5,000 pieces per week. The initiative shows how grocers can leverage these strategies not just to attract families but also to subtly drive sales in other categories. Meanwhile, United Supermarkets in Texas and national chains like Whole Foods and PCC Markets offer kids free healthy snacks such as apples, oranges, and bananas every day.


Restaurants, Grocery Stores, and C-Stores: Tailoring the Approach

The Kids Eat Free model may not always guarantee customer loyalty. Restaurants typically add strings to the deal, such as requiring an adult meal purchase or limiting the number of free meals to two children per adult. These provisions aim to mitigate potential losses, but overuse of such promotions can devalue the product. For example, if families perceive kids’ meals as worth $0 today, why should they feel comfortable paying $5 tomorrow? Worse, ongoing promotions can create dependency, prompting backlash when they’re discontinued.

C-stores and grocery store delis could carve out a more sustainable model by bundling value-added options with healthy snacks or meal components. For example, offering “Lunchbox Builder Kits” featuring fresh fruits, mini sandwiches, and a juice box for free with an adult meal purchase could appeal to parents while driving cross-category sales.


Marketing to Kids: Key Insights Across Channels

1.       Convenience Stores:

o    Snack-centric branding with “fun-sized” or “grab-and-go” healthy snacks targets kids and parents alike.

o    Tie-ins with popular sports or cartoon characters can build interest and make healthier options enticing.

o    Loyalty programs for families could reward repeat purchases while promoting value and excitement.

2.       Restaurants:

o    Balancing indulgence with health-conscious offerings can cater to parents seeking occasional treats for kids.

o    Interactive experiences, such as coloring menus or themed meal nights, enhance engagement and increase dwell time.

o    Seasonal promotions like “Kids Eat Free Summer Specials” can drive urgency without creating dependency.

3.       Grocery Store Delis:

o    Building family-centric deli meal bundles with complementary items for parents and free snacks for kids can deliver convenience.

o    Engaging in-store displays showcasing kids' favorite meals or snacks next to healthy options subtly reinforces better choices.

o    Digital campaigns highlighting back-to-school lunch solutions attract busy parents and ensure cross-category sales boosts.


The Economics of "Free"

While the success of a Kids Eat Free platform may vary, planning is essential. Here are actionable tips for implementing this promotion:

·         Cost Analysis: Calculate exactly how much extra traffic is needed to break even. Track food costs and guest-count spikes to monitor return on investment.

·         Marketing Outreach: Ensure the promotion is well-publicized through social media, local radio, or direct mail to maximize reach.

·         Strategic Duration: Limit promotions to specific time frames, like summer months or school vacation periods, to keep expectations in check.


Long-term Opportunities

Instead of viewing Kids Eat Free as a temporary traffic solution, businesses can integrate it into loyalty-building strategies. Programs like Kroger’s Fresh Friends can be scaled by emphasizing health, sustainability, and convenience. Similarly, innovative promotions in grocery stores and delis can position these sectors as viable alternatives to restaurants for affordable family dining.

As families continue to juggle rising costs and packed schedules, the Kids Eat Free platform—when paired with fresh food innovation and strategic marketing—has the potential to transform not just dining occasions but how families source convenient and affordable meals.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

If You Want to Build

SHARE OF STOMACH

Kids Matter



No comments:

Post a Comment