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McAlister's CEO: We don't spend much on marketing because of our catering program

Many of McAlister's catering customers are first-timers who buy into the brand after the experience.

June 4, 2014

McAlister's CEO Frank Paci spoke about some of the brand's sales drivers, including a sharpened focus on higher quality menu items and guest service. Even though the brand "priced up" for the menu upgrades, McAlister's guests showed they were willing to pay a little more.

"After the menu upgrades, our AUVs went from $1.250(M) to $1.5(M), which makes for better unit-level economics," he said.

The extended menu also appeals to McAlister's broad demographics; from "college campuses to residential areas, from 18 year olds to 65 year olds," Paci said.

The broad menu fits into the brand's successful catering program, which he calls a "groundroots marketing program."

"It's really a pay-for-sampling program. We don't spend a lot on marketing," he said, adding that a lot of catering customers are first-time customers who are exposed to the brand for the first time.