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Rebranded Huddle House takes on QSR neighbors

Rebranded Huddle House takes on QSR neighbors

ATLANTA Huddle House. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Sure, the 430-unit chain has redesigned its menu, spiffed up the interiors of its restaurants and launched one of its largest promotions in recent years. But those moves were designed to strengthen the chain’s ability to combat its most potent competitors: quick-service chains. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Huddle House admits to feeling competitive pressure from other family-dining chains, but it has staked claims in locales that larger direct rivals and casual-dining competitors haven’t exploited. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

“We are in such smaller markets that typically the competitor across the street will be a QSR,” said Robyn Bailey, Huddle House’s chief marketing officer. “We are a little different based on our market niche.” —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

The chain’s average check is $5.62, she said, about the same price of a meal at a fast-food restaurant. But Huddle House counts on the diversity of its menu and the ambience of a sit-down restaurant to lure customers who might otherwise grab a quick burger and fries for lunch or dinner. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

“Our value is one of the best things to offer,” Bailey said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Huddle House’s value-focused strategy has paid off in strong sales growth, even though its marketing traditionally has been more subdued than that of family-dining and quick-service competitors. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

The chain aired two flights of TV spots last year and will do two flights this year, Bailey said. But even with such minimal advertising, the chain’s systemwide sales rose 8.1 percent for the fiscal year that ended in April, according to Nation’s Restaurant News’ Second 100 report. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

That percentage gain topped IHOP’s increase of nearly 7 percent from last year, Steak n Shake’s jump of 4.8 percent and every other family-dining chain’s sales gain. The larger chains have felt competitive pressure from not just within their segment but also from casual-dining chains. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Because sales increases are hard to hold on to, Huddle House has taken steps to raise brand awareness and generate more traffic and sales. In July it completed the systemwide introduction of a new menu design and launched a promotion with instant prizes and a grand prize of $100,000 to reward loyal customers and keep them coming in, Bailey said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Huddle House “completely scrubbed” its old menu to make it a “tour guide” of the chain’s most popular items and some new menu choices, she said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Top-selling items, like the signature Big House Breakfast Platter, are highlighted with larger photos, and such new items as chicken-fried steak receive prominent display. The food photography also is of a higher quality than it was on past menus, Bailey said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

In prerollout testing, annualized gross profits of the restaurants involved rose between $18,000 and $22,000, she said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

The chain added a handful of items—onion rings, a waffle platter and country-fried steak—which are highlighted on the menu with colorful photos. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

To support the menu rollout, Huddle House launched the “Chance to Win $100K” promotion to drive repeat traffic. In addition to offering the $100,000 grand prize, Huddle House is giving away instant food prizes, tickets to next year’s Daytona 500 race and sportswear. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

The menu redesign is a component of Huddle House’s drive to give its restaurants a cleaner, brighter look, Bailey said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

All of the chain’s new restaurants have the new look, and about half of the older ones have been redesigned. The interiors have more of a diner feel, with tables, window frames and breakfast bar stools done in red, a stainless-steel backdrop behind the breakfast bar, and green and white floor tiles with red accents. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

The new menu, interior and $100,000 giveaway are part of larger goal: a stronger brand image for Huddle House, Bailey said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

“We need to build our brand image and brand awareness, and all of these are tools to get there,” she said. “As we are expanding we want to make sure we have a newsworthy reason to attract people, especially in a new market where they haven’t heard of Huddle House.” —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Like other chains looking for a brand awareness boost, Huddle House became a NASCAR sponsor for the first time earlier this year. A continuation of the sponsorship next year is “certainly on our radar,” Bailey said. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

Allied Capital Corp. recently committed $124 million to complete the acquisition of Huddle House and finance future growth. The chain’s stronghold currently is the Southeast, but it has expanded into Ohio and Indiana and has units as far west as Texas and Oklahoma. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

As the chain expands, Bailey said, she would like to increase the frequency of TV campaigns, which are funded through a franchisee advertising fee of 1 percent of gross sales. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

She also intends to continue addressing consumers’ shifting taste preferences by making additional refinements to Huddle House’s menu. —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

“It’s a living, breathing document,” she said. “We need to stay relevant with consumers.” —Other family-dining chains have revamped their menus and altered their marketing strategies to thwart casual dining’s invasion of their turf, but not

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