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Sandwich players’ latest promotions pitch value, health, loyalty

Sandwich players’ latest promotions pitch value, health, loyalty

Value has been on the minds of the Second 100’s sandwich players more than usual because of the slowing economy, and that consciousness has become a major driver of menu strategies.

Whether they specialize in sub or deli-style sandwiches, burgers, taco or burritos, second-tier chains in the segment are targeting frequent users by offering special promotions and constantly adding new products. Some are bringing back popular limited-time offers from the past instead of concocting new ones.

“You need to have a value in a lunch offering whether the economy is good or going through a rougher patch,” says Jeff Smit, president of Blimpie Subs & Salads, which is owned by Scottsdale, Ariz.-based Kahala Corp.

Blimpie’s current value promotion is its large, 12-inch sub in four varieties for $5 instead of its normal $7.50 to $8.50 price. Same-store sales rose 10 percent in just the first three weeks of the promotion, Smit says.

On the premium side, Blimpie is rolling out a new Super Stack sandwich that has double the quantity of meat for less than double the price. For smaller appetites, Blimpie is testing mini subs, called Deli Sliders, in those Wal-Mart stores where it operates and in “one of our core markets,” Smit says.

Schlotzsky’s Deli also is testing smaller portions that are partially aimed at slower times of the day when customers may be seeking between-meal snacks. Chief executive Kelly Roddy says the test is in the very early stages and is expected to broaden the customer base to those consumers who shy away from a $9 check average.

The chain also is expanding its co-branding strategy with sister chains Cinnabon and Carvel to boost sales in the breakfast and afternoon dayparts, Roddy says.

Several chains are extending their salad lines, both with permanent and limited-time formats because of increased consumer interest. Qdoba Mexican Grill, for instance, is “enhancing salads year-round,” says spokeswoman Karen Guido, noting that many of the salad ingredients also are used in Qdoba’s signature burritos. A new salad expected to become a permanent addition is the Ancho Chile BBQ Salad, and last summer’s Grilled Chicken Mango Salad has temporarily reappeared.

SANDWICH CHAINS RANKED BY U.S. SYSTEMWIDE SALES U.S. SYSTEMWIDE FOODSERVICE SALES*(BY FISCAL YEAR, IN MILLIONS) *Actual results, estimates or projectionsSource: NRN research

 
LATEST-YEAR RANK PREC.-YEAR RANK CHAIN FISCAL YEAR-END
LATEST PRECEDING PRIOR
1 1 Krystal Dec. ’07 $440.6 $445.5 $422.6
2 3 Jason’s Deli Dec. ’07 427.3 372.3 330.0
3 2 Checkers Dec. ’07 411.0 400.7 396.7
4 7 Qdoba Mexican Grill Oct. ’07 348.0 265.0 220.0
5 4 Baja Fresh Mexican Grill Dec. ’07 345.0 342.0 359.0
6 8 McAlister’s Deli Dec. ’07 306.9 260.0 207.1
7 12 Moe’s Southwest Grill Dec. ’07 290.0 230.0 184.0
8 6 Taco John’s Dec. ’07 281.0 278.0 253.0
9 5 Blimpie Subs & Salads Dec. ’07 270.0 317.9 327.4
10 9 Wienerschnitzel Dec. ’07 252.7 251.0 240.0
11 11 Taco Cabana Dec. ’07 243.8 232.3 218.0
12 10 Rally’s Hamburgers Dec. ’07 242.7 248.3 236.0
13 15 Johnny Rockets April ’08 231.0 209.0 199.2
14 13 Schlotzsky’s Deli Dec. ’07 230.0 214.0 210.0
15 14 Braum’s Ice Cream & Dairy Stores Dec. ’07 210.8 210.0 206.5
16 16 A&W All American Food Dec. ’07 200.0 200.0 200.0
17 17 Taco Bueno Dec. ’07 197.7 173.2 158.6
    TOTALS:   $4,928.5 $4,649.2 $4,368.1

SANDWICH CHAINS RANKED BY GROWTH IN U.S. SYSTEMWIDE SALES(Year-to-year percentage change) *Actual results, estimates or projectionsSource: NRN research

 
LATEST-YEAR RANK PREC.-YEAR RANK CHAIN FISCAL YEAR-END LATEST* VS. PRECEDING PRECEDING* VS. PRIOR
1 3 Qdoba Mexican Grill Oct. ’07 31.32 20.45
2 2 Moe’s Southwest Grill Dec. ’07 26.09 25.00
3 1 McAlister’s Deli Dec. ’07 18.04 25.54
4 4 Jason’s Deli Dec. ’07 14.77 12.82
5 6 Taco Bueno Dec. ’07 14.15 9.21
6 10 Johnny Rockets April ’08 10.53 4.92
7 12 Schlotzsky’s Deli Dec. ’07 7.48 1.90
8 7 Taco Cabana Dec. ’07 4.95 6.56
9 14 Checkers Dec. ’07 2.57 1.01
10 5 Taco John’s Dec. ’07 1.08 9.88
11 17 Baja Fresh Mexican Grill Dec. ’07 0.88 -4.74
12 11 Wienerschnitzel Dec. ’07 0.68 4.58
13 13 Braum’s Ice Cream & Dairy Stores Dec. ’07 0.38 1.69
14 15 A&W All American Food Dec. ’07 0.00 0.00
15 8 Krystal Dec. ’07 -1.10 5.42
16 9 Rally’s Hamburgers Dec. ’07 -2.26 5.21
17 16 Blimpie Subs & Salads Dec. ’07 -15.07 -2.90
    AVERAGE:   6.73 7.45

Blimpie, too, is introducing more salads, including antipasto, chicken Caesar and club versions, all with an upgraded romaine and iceberg lettuce blend.

An all-you-can-eat salad bar, $6.79, is Jason’s Deli’s answer to demands for value and lower-fat, lower-calorie foods.

Sister drive-thru chains Checkers and Rally’s Hamburgers began the year with the launch of their Double Value Menu, featuring 10 items starting at $1, including seven double burgers, chicken and fish sandwiches, or combo choices priced at two for $3, $4 or $5.Among new items are additions to the chains’ toasted-melts line, as well as the Philly Cheese Steak Burger and the Texas Toast A1 Cheddar Burger.

Krystal is just starting to test miniature toasted sandwiches on Texas toast instead of hamburger buns and also has been selling a lot of new drinks and shakes, including new flavors of its Krystal Freeze and Krystal MilkQuake.

SANDWICH CHAINS RANKED BY NUMBER OF U.S. UNITSYEAR-END NUMBER OF UNITS**Actual results, estimates or projectionsSource: NRN research

 
LATEST-YEAR RANK PREC.-YEAR RANK CHAIN FISCAL YEAR-END
LATEST PRECEDING PRIOR
1 1 Blimpie Subs & Salads Dec. ’07 1,233 1,583 1,637
2 2 Checkers Dec. ’07 484 461 445
3 3 Taco John’s Dec. ’07 431 430 410
4 10 Qdoba Mexican Grill Oct. ’07 395 318 250
5 5 Krystal Dec. ’07 391 403 420
6 9 Moe’s Southwest Grill Dec. ’07 383 324 267
7 4 A&W All American Food Dec. ’07 371 406 449
8 7 Wienerschnitzel Dec. ’07 356 355 344
9 6 Schlotzsky’s Deli Dec. ’07 355 385 378
10 8 Rally’s Hamburgers Dec. ’07 340 351 354
11 11 Baja Fresh Mexican Grill Dec. ’07 291 298 299
12 12 Braum’s Ice Cream & Dairy Stores Dec. ’07 274 276 285
13 13 McAlister’s Deli Dec. ’07 246 218 181
14 14 Johnny Rockets April ’08 194 177 166
15 15 Taco Bueno Dec. ’07 187 165 145
16 16 Jason’s Deli Dec. ’07 177 158 144
17 17 Taco Cabana Dec. ’07 150 146 140
    TOTALS:   6,258 6,454 6,314

SANDWICH CHAINS RANKED BY GROWTH IN NUMBER OF U.S. UNITS(Year-to-year percentage change) *Actual results, estimates or projectionsSource: NRN research

 
LATEST-YEAR RANK PREC.-YEAR RANK CHAIN FISCAL YEAR-END LATEST* VS. PRECEDING PRECEDING* VS. PRIOR
1 1 Qdoba Mexican Grill Oct. ’07 24.21 27.20
2 2 Moe’s Southwest Grill Dec. ’07 18.21 21.35
3 4 Taco Bueno Dec. ’07 13.33 13.79
4 3 McAlister’s Deli Dec. ’07 12.84 20.44
5 5 Jason’s Deli Dec. ’07 12.03 9.72
6 6 Johnny Rockets April ’08 9.60 6.63
7 9 Checkers Dec. ’07 4.99 3.60
8 8 Taco Cabana Dec. ’07 2.74 4.29
9 10 Wienerschnitzel Dec. ’07 0.28 3.20
10 7 Taco John’s Dec. ’07 0.23 4.88
11 14 Braum’s Ice Cream & Dairy Stores Dec. ’07 -0.72 -3.16
12 12 Baja Fresh Mexican Grill Dec. ’07 -2.35 -0.33
13 16 Krystal Dec. ’07 -2.98 -4.05
14 13 Rally’s Hamburgers Dec. ’07 -3.13 -0.85
15 11 Schlotzsky’s Deli Dec. ’07 -7.79 1.85
16 17 A&W All American Food Dec. ’07 -8.62 -9.58
17 15 Blimpie Subs & Salads Dec. ’07 -22.11 -3.30
    AVERAGE:   2.99 5.63

Many companies continue to eliminate trans fats, with Qdoba, Blimpie and Jason’s Deli recently reaching their goals of having 100-percent trans-fat-free menus. While only New York City and a couple of other municipalities require chains to be completely free of the artificial oils most chains have voluntarily found alternative substitutes for them for use in all of their locations.

Qdoba is promoting both value and its new loyalty program this summer by offering program participants a free entrée after buying five, instead of the 10 normally required.

“We recognize that times are pretty tough right now, and we want to do something to help ease the pain,” Guido says.

Second 100 chains see slowed sales growth for second consecutive year

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