STARBUCKS: KING OF RESTAURANT LOYALTY
The Daily News of TV Sales
Monday, October 9, 2017
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STARBUCKS: KING OF RESTAURANT LOYALTY
SMALLER CHAINS CAN SCORE WELL ALSO In a business where sales results have been soft for
several straight quarters, earning loyalty from your best customers has become vital. And in the challenged restaurant business, a new study from Foursquare finds that Starbucks leads the top 50 chains in gaining that loyalty.
The Quick-Service Restaurant Loyalty Index is based on foot traffic trails, not customer perceptions, with data coming from a panel of users that have been active on Foursquare apps for at least a year and have opted-in to provide location awareness. Loyalty is measured in four metrics: visit frequency, market penetration (the percentage of quick-serve customers measured for regions where the chain operates), share of wallet (the percentage of total QSR visits the chain captures) and a "fanaticism threshold," the number of visits required to be in the top 1% of a chain's customers.
While big chains took all the top five spots in the rankings (Starbucks, McDonald's, Dunkin' Donuts, Tim Hortons, and Chickfil-A) Foursquare found that size does not guarantee success. Regional brands such as Whataburger (number six of the 50 brands studied) and The Coffee Bean & Tea Leaf (number eight) each made the top ten along with Sonic Drive-In, Taco Bell and Panera Bread.
Restaurants known as breakfast brands generally scored high, proving how crucial that daypart has become in a chain's success, especially as other research recently conducted in the industry has found the dinner daypart dropping considerably in diner frequency. (The NPD Group recently determined per capita dinner visits averaged 57 in the past year, down 8% in just four years). It's been found that afternoon customers are not as likely to return as often as morning customers, helping produce impressive loyalty indices for big chains like Starbucks, Dunkin' Donuts and Tim Horton's as well as smaller banners such as Peet's Coffee, Krispy Kreme and Einstein Bros. Bagels. QSR notes businesses understand it's much easier to grow a business by getting the existing customer base to come back rather than attracting new customers, and given the habitual nature of breakfast and the frequency and loyalty it drives, the morning daypart may play a more important role in building a restaurant's business than previously thought.
That inclination to the morning may have provided the impetus to Bruegger's being named "The Fanatics' Favorite" by Foursquare at number 15 overall, an impressive ranking given the chain ranked only number 46 in market penetration. Taco Bell was named "The Mover," climbing two rank placings, helped by menu innovations and "some offbeat marketing tactics." But a brand seen as being in trouble was Steak `N Shake, which dropped in fanaticism, penetration and frequency, falling ten rankings in just one year.
ADVERTISER NEWS Costco is on an October-September fiscal year, so the
numbers from last month also complete quarterly and yearly numbers. Excluding gas (which had caused total comps to jump in September), same-store sales were up 7.1% in September, 5.8% for the fiscal fourth quarter, and up 3.7% for the full year......Sears is getting another loan from CEO Eddie Lampert's hedge fund, this time another $100 million for "general corporate purposes." The loan carries an 11% interest rate......The strike against General Motors in Canada continues and Automotive News reports Chevrolet dealers are starting to feel the
pinch on Equinox inventories. As of 10/1, there were 43,453 available Equinoxes in the U.S., down from 74,400 in June. Equinox is one of the top-10 selling vehicles in the country......Kellogg is buying protein-bar maker RXBAR for $600 million, joining other foodmakers in efforts to diversify by picking up healthier options. RXBAR's CEO said the company will continue in business as a separate unit of Kellogg, but hopes to benefit from the parent's distribution, research and development capabilities. Marketwatch notes the top 25 food and beverage companies have lost billions of dollars in market share in the last couple of years, with smaller companies seeing the gains......After giving up a curbside pickup initiative last year, Target is trying again at about 50 locations in home state Minnesota. Drivers use a Target app to tell the store they are on the way and get designated parking spots for store employees to make the transfer...... Walmart has bought Parcel, a New York-based delivery system to handle deliveries both from physical stores and its online site. The plan is to utilize Parcel just for the Big Apple initially, but of course it could be expanded if successful......On a different Walmart note, one of its holiday commercials will take a direct shot at Amazon over shipping costs. Walmart will offer free shipping for orders over $35 and says "We just don't think you should have to pay $99 a year for the privilege of free shipping"......Although the usual practice is for Alimentation Couche-Tard to rebrand acquired convenience stores into the Circle K banner, the acquirer will make an exception when it takes over Holiday Stations and will allow locations to keep the Holiday brand. The chain consists of 522 c-stores (148 franchised) in 10 states......With water now producing higher volumes than carbonated drinks for beverage companies, Coca-Cola is adding another mineral water brand to its portfolio. It's buying Mexican premium sparkling mineral water Topo Chico which is currently available in parts of 35 states but does 70% of its business in Texas. Coke's plan is to "extend its reach while preserving its heritage."
NETWORK NEWS
AVAILS
Saturday Night Live served as a bit of a tribute show
WRGB (CBS) and WCWN (CW 15) in Albany, NY
Saturday night. The program kicked off with an appearance seeks an enthusiastic, highly motivated Sales Marketing
by Jason Aldean, who was onstage at the Route 91 Consultant. We're looking for someone who can connect
Harvest musical festival as the Las Vegas shooting began. with clients and help them achieve business objectives
After speaking about the tradgedy, Aldean performed through effective TV and digital advertising. The ideal
I Won't Back Down, a hit by Tom Petty, who died on candidate will possess excellent communication skills,
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The project is based on a New Zealand
FUN at work, make money, and help local businesses
fbataCwfaslaaiphimganniohrcenrstlriuorudtspsiraooridotdiemtuotinudwtudepdmxpcsepdanuhmrtealepeehtlauitdcaereatscuad-ehyress3,nanuaratjdeidoct6cprdtgnhairhCrsw-vrleaadepoaeyloacearobdniymerfbxitrgsbpomhrcdievaeeprow."epjeaicretlmtmdtcallh-hhnemuaEi,eceodneaeuetdattamelctmiesdinnpvohrl2eraotsfierisiioftc4nslnttercnseyyhheod-pttpgsri)gcaiyneeimotriu.opstlerdoCgenwoTsafftioeoaedslud"uheNulhiwdfnrneuttrt-nhuefyioAtncloronw...ad.erfomeeiliie&onalndnrtomlrrs.r...T.atRirLttoSAkb(ThhiAbybaeTtNiri&erehothnoalmitdohelnBii3RuegoarvspmeelgtolMnrrCeUeseriidisimangsgsmnneoOnwtnh,idbdothndptiCadhacaahhvuaemeailnaeedessseoiescrlpstwrkfrsitbyroeaas'osrlltlyshsspfawToioc.narerfradIssitlpya-aatstetapGtJrnhtvetnatayomioomdehidmntorsoaltrtuafsyurhoysidmgia.soklnniaewaplnvTiieydngcnllthengephe--,gmoFole4nutayfao0uetldlsnsoealeaa?mstwssvnootnnyathaNheiwrafetglaalriahpeBentywyeurtt'assoaeaeoeCacitcudgg.nrghkaea7o.ieeeloeTnxeyagu'smSf,pshsrntVmeaeeeetarnrPtnaoyitoLetmnDSneothgicMxfoelerpyfgoSe,AwworaqregacamsebsTaEiiluelqieothrfxaclhssrufNaCosnusmcaciale.slastrwclieuiaortaotuarT,tneeeeter.etxNtoptohacigireiaddoookdeliSegtiMynn,.eernineCfrnoiMogdvr5sslnaCenayegaLriu+ndstrlmLvlIooiSescfdfwCeifiSeIyonoayvtcvuCeheiKnaraerweelaleaelKaaaGunlroasniectartrnetnwHsttrurehsasHlelLddoufldeeoEasuaeeuEoaiMs,srttngRldmshrpklcRatldaricaataryeEt'aealsiaEan.elnttvwsoolvobiln2dsoeaLhKtfenSiltd+toinsgSoashngIaanieRredhyMulcearaareewraeCeeOvhptp.astdgiviioioeapcp,taeroehTxtneMnsllnvetyyawnRhhasde..dolaKlueieesle,lfnelsIvsDpEssRwNeawEiChtsasaSOahOhegSaOoiBllneoMeeikeErrt7MlSEdeennoskssr...
of the season for Syco, Cowell's production company. AEs who will develop a solid understanding
The script is written by Josh Lieb, who is an executive of our ad products and have strong
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WGAL, Hearst Television's NBC affiliate in the
The project is written by Hale Rothstein and the team of Harrisburg-Lancaster, PA market is seeking a skilled
Danny Segal and Isaac Schamis. It revolves around a Account Executive. Best candidates are driven to make
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The Daily News of TV Sales @
10/09/2017 PAGE 2
BUSINESS BYTES
ACCOUNT ACTIONS
- Costco is expanding its home delivery of food in order Jack in the Box has named Dentsu Aegis Network's Carat
to stay competitive with Amazon and all other retailers L.A. as its media agency of record for traditional and digital
that are rushing into that activity. The warehouse club media buying and planning for the fast-food chain, which
has started to offer two-day delivery on items from its has over 2,200 locations. The selection follows a review
website along with expanding a partnership with Instacart launched this summer and ends a 15-year relationship with
for one-day delivery. But Costco has been seen as being incumbent Horizon Media, which participated in the review
slow to embrace online shopping as it knows customers along with six other agencies, according to AdWeek.
will spend more when they come to stores. "At the Kantar Media says Jack in the Box spent around $24.5
end of the day we would love you to just come in and million on measured media in the first quarter of the year,
buy and take it home," Chief Financial Officer Richard and nearly $92 million in 2016.
Galanti said. But "we would rather lose
it to ourselves" than have other online
THIS AND THAT
sellers take away business, he added. - You might not think online sales
would be important to a company like PepsiCo, but you'd be wrong if that's what you thought. Bloomberg reports the beverage/snack foods company actually
According to reports, Netflix is raising its prices next
month. Wow, that is gonna be quite a burden on whoever's
password I'm using.
LocusPoint Networks has retained Patrick Communications to sell its two Class A television stations, WDVB-CD in New York and WLPD-CD in Chicago. Good timing; with the completion of the Broadcast Incentive Auction, the
has a 200-person unit headquartered
number of television stations in Chicago
in New York City that's dedicated to developing business by focusing on
Seth Meyers
was reduced by six while in New York the number was reduced by ten, leaving
marketing and packaging for online
significantly fewer outlets available to
sellers as well as traditional bricks-and-mortar retailers reach these top markets. Reach Patrick Communications
that are trying to grow their own online business. The two- at (410) 799-1740....The American Action Network is
year-old unit is on pace to hit $1 billion in annual sales this launching a $2 million national television advertising
year and PepsiCo Chief Financial Officer Hugh Johnston campaign pushing Congressional action on tax reform.
says "That business is really growing like crazy. We run it The 30-second spot, Paycheck to Paycheck, urges
more like a tech company than we do a consumer-products Congress to approve tax reform that gives a "simpler,
company, and it's a real star of the portfolio for us right now." fairer tax code," closes loopholes and helps working
- Just how big a threat is Tesla to existing automakers families. The commercials started airing last Friday in
and especially to dealerships, as Tesla avoids the 28 congressional districts nationally...Before there was
existing franchised dealer system? Despite "production Twitter or Facebook or Snapchat or MySpace, there was
bottlenecks" that caused the company to miss goals for AOL Instant Messenger--the `social network' of choice
its Model 3, the company delivered 26,150 cars and for many millennials and Gen Xers throughout the 1990s
SUVs during the third quarter, mostly Model S sedans and early 2000s. AIM is shutting down after 20 years, on
and Model X crossovers. Company founder Elon Mush December 15....By 2022, most people will consume more
had earlier warned the first six months of production of the false information than true information, according to the
new sedan could be "manufacturing hell" as the Fremont, study from research firm Gartner, and reported at NYPost.
California factory learns how to make the vehicle, but the com. This trend will be fueled, in part, by "confirmation
company now says "We understand what needs to be fixed bias," that "leads all people to seek out, select and value
and we are confident of addressing the manufacturing information that parallels what they believe and expect
bottleneck issues in the near-term." Tesla does not use to be proven true," the study's authors, Magnus Revang
dealers to sell its vehicles--it instead utilizes company- and Whit Andrews, found. Generating false information
owned showrooms and online sales and is building a will always cost less than the cost of detecting it. "False
string of charging stations for owners to utilize to re-charge information will consequently outpace true information
its vehicles. Earlier this year, Tesla's stock "market cap" where there is economic or political interest to purvey it,"
surpassed both Ford and General Motors for a while.
Revang and Andrews wrote.
ECONOMIC NEWS The monthly jobs report from the Labor Department was "predictably awful" according to one analyst as the total amount of jobs in the country fell by 33,000 (the first time in seven years the monthly change was a decline). But the loss was clearly hurricane impacted with the leisure and hospitality category down 111,000 jobs alone as hotels and restaurants in Texas and Florida were closed. Retailing was also down but there were gains in transportation and warehousing, seen by Associated Press as a positive sign ahead of the holiday season that's likely to rely increasingly in online shopping.
SATURDAY NIELSEN RATINGS - LIVE + SAME DAY
The Daily News of TV Sales @
10/09/2017 PAGE 3
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