Forget Barack Obama’s bowling score or John McCain’s choice of running mate. Let’s ask them how they’d steer a hamburger stand to profitability in these turbulent times, which NRN examined last week in its “Weathering the Perfect Storm Economy” special section. Why? Because it’s clear that politicians and restaurateurs are in the same boat, trying to give relief to beleaguered American consumers.
Not only that, but their short- and long-term proposals sound a lot alike, which may help everyone involved in the industry look at potential strategies in different ways.
For instance, recent talk in Washington about a “gas tax holiday” and the economic-stimulus rebates remind me of some restaurants’ recession-era discounting and marketing. As NRN marketing editor Gregg Cebrzynski reported last week, some chains are turning the slumping economy into an opportunity to cleverly market an aggressive deal. Think Bennigan’s “Cash Crunch Lunch” or Taco Bell’s brand-new “Why Pay More” menu. Like the tax rebate or the suggested temporary repeal of gasoline taxes, these plans are designed to spur consumer spending by putting or keeping a few extra dollars in customers’ wallets.
In addition to this economic-survival mentality, government and the restaurant industry share other goals. Both parties recognize deficiencies in the nation’s health care and immigration systems, and while their methods may differ, both restaurateurs and politicians are hustling to produce solutions now.
Now compare such short-term proposals with a few casual-dining chains’ decisions to scale down portion sizes to give their consumers more choices while they control food costs. This efficient, thoughtful strategy strikes me as similar to politicians’ calls to find alternative fuel sources or to reward consumers and businesses for conserving energy. Put another way, being able to order a smaller salad for lunch at The Cheesecake Factory or an entrée off T.G.I. Friday’s “Right Portion, Right Price” menu is like driving a hybrid car instead of a gas-guzzler.
Yet just as there are still tons of giant SUVs on the road as gas approaches $4 a gallon, chains probably still will sell their big-ticket items. Richard Snead, T.G.I. Friday’s chief executive, told me months ago that, for all the Right Portion, Right Price menu’s success in selling smaller items for lower prices, the Jack Daniel’s Grill menu still was the chain’s sales leader. Guests appreciated having more choices, he said, and Friday’s brought in new customers while pleasing longtime fans as a result.
I’m not telling restaurateurs to ditch creative discounts or marketing. After all, I’m not turning down my tax rebate. But consider how people are trying to reduce their consumption of everything from gas to food, and try to provide consumers with the long-term solutions they seek.