Article

Marketing to small fries isn't child's play

Fast casuals don't need to compromise to market to children.  

April 2, 2007 by Julie Sturgeon — independent journalist, CEOEditor, Inc.

The numbers rolled in by accident: Internal research at the end of 2006 showed executives at Moe's Southwest Grill, headquartered in Atlanta, Ga., that 89 percent of parents view fast casual restaurants as comfortable places to take children. More importantly, 42 percent of the chain's traffic actually bring along the 12-and-under kiddos.

 

The strong draw for the younger diners is Moe's standard "Welcome!" greeting when they walk through the door. "It wasn't like we came up with this angle because it would make the store fun for kids," said Sara Riggsby, director of marketing for the franchise. "We're thrilled to find out it's something that is resonating with the kids."

 

They have good reason. According to the National Restaurant Association, restaurant-industry sales are expected to reach a record high of $537 billion in 2007, with children and teens playing a big role in that 5 percent increase from 2006 sales figures.

 

"Households with children feel a need to reduce stress much more than households without kids," said Hudson Riehle, the NRA's senior vice president of research.

 

The stakes aren't lost on Jeff Cannon, president of The Cannon Group, an integrated marketing and public relations firm that helped launch Energy Kitchen in New York. "The interesting thing about young children today versus five or 10 years ago is that they have a lot more input into what they're eating than they did before," he said. "They also have some discretionary income that allows them to actually start making those decisions."

 

On the other hand, the toy incentives and french fry temptations that worked like a charm for QSRs jar with the fast-casual culture, in many instances. Here's how some owners are getting around that sticking point.

                                                                                      

The food

 

In 2005, officials at the Center for Science in the Public Interest admitted that pressuring government to legislate how companies market food to children isn't likely to go anywhere. Instead, it set its sights on urging private industry to voluntarily heed its Guidelines for Responsible Food Marketing to Children, addressing not only how food is marketed to those under 18, but which foods should be trotted before their hungry eyes. Soda; foods high in saturated or trans fat, added sugars or salt; and large portions made their banned list.

 

"CSPI's guidelines do not call on companies to stop marketing food to children," said Margo G. Wootan, D.Sc., director of nutrition policy at the organization. "However, adhering to the guidelines would require most food manufacturers, restaurants, television stations, magazines, movie studios andadvertising agencies to change their current practices — especially the products that they promote or advertise."

story continues below... advertisement       FastCasual.com E-Mail News Alerts Get the latest fast casual restaurant news and information delivered to your inbox!

That goes for sponsoring educational incentive programs, too.

 

Frankly, the group's spiel draws a collective yawn from the fast-casual segment. Fred Brewer, who is in charge of advertising and marketing for Chicago-based Pockets, says the very nature of the food Pockets sells as its niche precludes ceiling danglers of brownie bites. "We always try to put a healthy approach to it because that's our image," he said.

 

The catered lunch programs he markets to local schools replace cookies with carrot sticks or applesauce. The chicken nuggets prominently displayed on the kid's menu board are the same 97 percent fat-free product he sells to the adults. And his Dino pizza slices? They're made from whole wheat grain, same as the grown-up menu — the difference is he shapes the children's slices to resemble dinosaurs.

 

"We're getting a good response," Brewer said. "We definitely have more families coming into the restaurants, and kid's meals are an item on our menu that has grown."

 

Moe's Southwest Grill, which already considers its kid-sized burritos, quesadillas and tacos healthier than the average restaurant, is discussing adding juice and milk products to the packages this year.

 

"I think across the market, the need for higher nutritional standards is going to be important," Cannon said. "Communication about food quality is going to be important because kids are taking greater responsibility and greater interest in how they look and feel.

 

"Before, price point played a bigger component in the success mix. I think quality and presentation is starting to play a larger role now."

 

The fun

 

Lexington, Ky.-based Fazoli's is proud of the fact trade magazines award it Best Kids Menu in America. But it's how the Italian restaurant chain lures them into contact with its lasagna, spaghetti, ravioli and baked ziti menu that really sells the younger set. One night a week, participating locations reserve an area of the dining room for a kid's night activity, led by a Fazoli's employee.

 

Moe's Southwest Grill also puts a local spin on the activities by inviting the school principal to be its celebrity burrito roller during fundraisers. "Those tend to attract a lot of traffic," said Sara Riggsby.

 

Some stores are set up to hold private birthday parties, too, but it doesn't have to be that involved, Brewer says. He merely puts a fun spin on everyday operating procedures — in this case, the restaurant's kangaroo logo. "We play that up in all of our materials that cater to kids," he said.

 

Still, when it comes to grabbing instant attention, it's tough to beat an old-fashioned bribe, so some fast-casuals have begun exploring how to offer the ubiquitous toy without selling their souls — Moe's Southwest Grill, for instance, started with kids cups, and plans to roll out its first premium incentive in April 2007: a Mini Moe's kiddy bag that contains both the food order and a prize.

 

"We're trying to stay away from the QSR plastic toy that will be tossed or lost under the backseat of the car," Riggsby said. That's why its first program will feature a deck of cards to play favorites like Old Moe (a.k.a. Old Maid) and Moe Fish (as opposed to Go Fish). The message on the bag itself will direct children to the restaurant's Web site.

 

Cannon still isn't convinced this is the way to go. For starters, large QSR chains already have a lock on tying into value products like Harry Potter books. Fazoli's struck a deal with Baby Genius for custom toys to accompany its kid's meals, and also has teamed with Zoboomafoo, School House Rock!, National Wildlife Federation and the Jurassic Park Institute in the quest for more sophisticated, educational premiums.

 

"What fast casual needs to do is incentivize repeat service rather than to generate new sales," Cannon said. "You don't necessarily have to have a toy as long as there are elements to occupy a child's interest. That's the key."

 

In fact, Riggsby's research revealed that something as simple as the upbeat music Moe's chooses to pipe in the background is a hit from a child's point of view. Basic coloring sheets on the back of tray liners, fast-casual executives say, also score a bull's-eye, as it gives active fingers something to do.

 

But whichever philosophy franchises choose to adopt, it's a mistake to talk down to the under-18 crowd. Thanks, in part, to sophisticated electronic games and toys, today's youth considers itself more mature than previous generations. "They're upward aspirational," Cannon said. "They want to see themselves as grown up enough to order adult food even though their portion is less."

 

"We're starting off carefully with this," said Riggsby. "We'll see how it goes, taking the safe path but the right path. Parents with kids under 12 are a third of our business already and where we want our focus to go."