Several national chains, pumped up by marketing campaigns that showcase indie-rock bands or special after-hours menus, have found new opportunities in the hours following the dinner daypart.
But while late-night operations can add incremental profits, foodservice strategist Dennis Lombardi of WD Partners in Columbus, Ohio, says extended hours aren’t right for every operator.
“It’s really a function of how well the brand is perceived as filling a late-night need,” Lombardi says. “Family-oriented chains like Boston Market comes to mind as one you wouldn’t think of for late night.”
It’s also important that the franchisee community is amenable to the idea, as Burger King Holdings Inc. discovered last year. Objecting to their franchisor’s June edict that franchisees must stay open until at least 2 a.m., some Burger King operators are suing for the right to close sooner.
The franchisor says the extended hours are a response to consumer demand in “a 24-hour society where people no longer work traditional 9-to-5 days,” and cited the late hours as “one of the factors contributing to our strong financial performance.”
Another important ingredient for successful late-night operations is a thorough security plan, Lombardi says. Drive-thru-only service can help keep employees secure, he notes. Brightly lit parking lots, posting signs that read “only $25 cash inside,” installing security cameras and alarms, and keeping multiple employees visible from outside all can help create an atmosphere that discourages troublemakers.
Some late-night success stories include:
El Pollo Loco .For several years now, the quick-service chain based in Irvine, Calif., has avoided Burger King’s problems in issuing a blanket edict on extended hours, and designed its late-night program to be highly flexible and optional for franchisees. The chain stays open an extra hour only during Daylight Savings Time, only at units with drive-thru windows, and only in a few key markets such as Los Angeles, where more than 200 units participate, and Las Vegas, says chief marketing officer Karen Eadon. The late hours are promoted through window clings at stores, packaging, and TV ads that state participating stores are open until midnight, serving a full menu. Customers are a mix of older shift workers and young males, Eadon says. El Pollo Loco finds the longer hours pay off in more sales throughout the late evening. The late hours are promoted through window clings at stores, packaging, and TV ads that state participating stores are open until midnight, serving a full menu. Customers are a mix of older shift workers and young males, Eadon says. El Pollo Loco finds the longer hours pay off in more sales throughout the late evening. “You build your sales in the hours preceding that final hour,” Eadon says, “because people start to rely on the fact that you’re open.” Denny’s .Always open 24-hours, family chain Denny’s recently took steps to build traffic in its after-hours daypart. In May it branded the late-night time Denny’s All Nighter and supplemented its regular offerings with a special menu available from 10 p.m. to 6 a.m. Denny’s, based in Spartanburg, S.C., shifts into a different mood after 10 p.m. now with rock music playing and servers switching to jeans and black t-shirts instead of their traditional uniforms. Another facet of the All Nighter campaign is an adopt-a-band feature—touring bands submit a song to the contest and if selected receive free Denny’s food while on the road. The band connections and different restaurant ambience are both ways of drawing the key 18-to-24-year-old male late-night diner, says company spokeswoman Mary Puissegur. Denny’s took its late-night menu differentiation further in August and October by introducing two limited-time Rock Star menus of specialty food items created by up-and-coming rock bands, such as the Hooburrito, designed by alt-rock band Hoobastank. The selection includes chicken strips, pepper-Jack cheese and crispy onions. Singer Katy Perry designed an ice cream shake called the Hot n’ Cold Cherry Chocolate Cappuccino. Puissegur says the Rock Star menus have been so successful that some of the items may be incorporated into the regular All Nighter menu. Taco Bell .Taco Bell in Irvine, Calif., also recently turned to rock music as a way to promote its established Fourthmeal late-night campaign, which began in early 2006. The 5,600-unit chain’s core audience is young males, making the chain a natural for the after-dinner daypart. Last fall, Taco Bell introduced a rock music-oriented campaign, Feed The Beat. At The touring bands’ food choices can influence concertgoers and help spread the word about the brand. Pinnella notes one band spontaneously took their entire audience to Taco Bell after playing a small venue in Pittsburgh. “This is a great way for us to connect that late-night mind-set with music that indexes very high with our target demographic,” he says.