DEL MAR Calif. In a test of whether free wireless Internet access can improve sales or guest perceptions of value, customers at select Denny's restaurants here and elsewhere in Southern California are receiving such connectivity in exchange for their attention and some personal details.
The pilot test of so-called "WiFi" Internet access is being conducted by members of the Denny's Franchisee Association, or DFA, and start-up media services and marketing company Joe Media Inc. of San Diego. Joe Media is one of Dove Canyon, Calif.-based DFA's "allied partners," or sponsor and preferred merchant.
WiFi access has been available within a growing number of restaurant and coffee bar chains in recent years. Some, such as Panera Bread, offer such access as a free amenity. Others, including Starbucks Coffee, have turned their stores into access points for users of paid services, the owners of which share revenues with the foodservice operators. In still a third WiFi business model, some chains, McDonald's among them, offer free or discounted WiFi access for promotional purposes but, in general, support a user-pay model and share revenues with the networking services provider.
Seven franchised Denny's branches in the San Diego and Los Angeles markets were involved in the WiFi test as of Sept. 25. Plans call for adding dozens more in the Southern California, Florida, Texas and North Carolina markets in the near term, according to Joe Media chief executive Christian Braemer. He said his organization has received hundreds of letters of interest about the project from Denny¹s operators.
Participating restaurants get their WiFi equipment and networking services without charge from Joe Media. In turn, Joe Media sells sponsorships and advertising for videos and landing pages navigated by users of the free service. Internet access sessions are limited to 30 minutes during the pilot test to keep users from "camping out," or tying up tables for extended periods during rushes.
When asked about consumer usage patterns or numbers, Braemer, citing the relatively brief duration of the test, said, "It is too early to give a good picture of activity."
Amanager at the Del Mar restaurant said that after the first few weeks of the trial, up to a dozen people were using the WiFi service daily across all shifts. She said she's heard no users complain about the requirement that they watch a video and answer some general questions before accessing the Internet.
If there is "a drawback," the Denny's manager indicated, it would be the tendency of some WiFi users to "camp out."
After the test, the "camping out" issue can be addressed through usage policies set by the owner-operator of each restaurant, such as limiting guests to shorter access periods during the busiest times of the day, Joe Media's Braemer said.
Explaining the Joe Media usage process and business model, Braemer said, "Customers get access to the network for free in exchange for watching a 20-second video, logging-in, then being redirected to a third landing page with advertisements targeted to their user profile. This process takes roughly 90 seconds total."
Braemer said that during the test, user profiles are created through user answers to questions about their age, gender and residential ZIP code. None of the questions asks for personal identifiers, so users "won't have to worry about being spammed" or being sent annoying e-mail marketing notes once they leave the restaurant, he added.
Of the data generated by the log-on questions, the Joe Media executive said, "We plan to make this information available to the franchisees and advertisers alike." He said his company "plans to ask additional questions of the consumer in the future to build a more complete profile."
The WiFi service is being promoted at the test restaurants by means of door signage and flyers within the facilities, among other steps. Initial external marketing includes a partnership with the Hotel Savings Directory, a lodging guide and coupon vehicle. Through that partnership, the Denny's units involved in the test are promoted in Hotel Savings Directory and the publication is a featured sponsor on the Joe Media log-on landing page, Braemer said.
Log-on instruction cards are available in the participating restaurants to help guests avail themselves of the complimentary service.
At least initially, Joe Media sources said, the company is targeting as advertisers and sponsors vendors that supply Denny's. Braemer said the WiFi network is an effective point-of-sale marketing tool and so, for example, an ad by a Denny's soft drink supplier may spur an in-restaurant Internet user to order that particular beverage on the spot.