NASHVILLE TENN. O’Charley’s has changed its advertising dramatically in an effort to attract consumers who are dining out less or choosing to eat at cheaper quick-service restaurants. So far, however, the strategy isn’t working for the other chains, and Nashville-based O’Charley’s is waiting to see if its ads fare better. —Like larger competitors in the troubled casual-dining segment,
O’Charley’s and its franchisees, which have some 230 restaurants in the Southeast and Midwest, are awaiting results from a new series of three TV spots that are unlike any previous commercials for the chain, said vice president of marketing Dawn Boulanger. —Like larger competitors in the troubled casual-dining segment,
The goal of the campaign, created by the Buntin Group of Nashville, is to increase traffic by regular customers and lure new and less-frequent patrons into the restaurants by focusing on O’Charley’s signature soft rolls. —Like larger competitors in the troubled casual-dining segment,
Customer counts fell 6.2 percent during the third quarter ended last Oct. 7, O’Charley’s Inc said. Same-store sales at corporate stores dipped 1.7 percent. The company had projected a same-store sales decline in the fourth quarter of 1 percent to 3 percent. —Like larger competitors in the troubled casual-dining segment,
In recent months such chains as Applebee’s Neighborhood Grill & Bar and Chili’s Grill & Bar drastically altered their ad campaigns to shore up sales. Applebee’s uses a talking apple in its TV spots and Chili’s features a huge, red chile pepper in ads, with both chains seeking to raise awareness and differentiate their brands from the competition. —Like larger competitors in the troubled casual-dining segment,
But neither chain has seen improved sales since the campaigns broke last fall. Same-store sales at the 1,419-unit Chili’s, a division of Brinker International Inc., fell 2.4 percent during the second quarter of fiscal 2008, according to the company. Systemwide same-store sales at Applebee’s, the 1,976-unit chain recently acquired by IHOP Corp., fell 2.9 percent during the last three months of 2007, IHOP reported. —Like larger competitors in the troubled casual-dining segment,
O’Charley’s soft-roll focus aims to cut through the clutter of casual-dining commercials, Boulanger said. TV spots for casual-dining restaurants are so alike, she asserted, that if logos were removed consumers could not tell who the advertiser was. —Like larger competitors in the troubled casual-dining segment,
One spot in the humorous O’Charley’s campaign shows a woman losing her dress when it gets caught in an escalator. She covers herself with shopping bags, and a hand holding a basket of rolls suddenly appears. She laughs and says to two shoppers who are gawking at her, “Is it cold in here, or is it just me?” —Like larger competitors in the troubled casual-dining segment,
A voice-over says, “It all starts with the rolls, and it only gets better from there.” —Like larger competitors in the troubled casual-dining segment,
A second spot shows a man out for a power-walk falling into an open manhole. He’s also offered a basket of rolls to ease his plight. —Like larger competitors in the troubled casual-dining segment,
Both spots also promote other menu items. —Like larger competitors in the troubled casual-dining segment,
“We’re serious about what we do, but that doesn’t mean we can’t have fun on the way,” Boulanger said. —Like larger competitors in the troubled casual-dining segment,
O’Charley’s will devote most of its media budget to TV, Boulanger said. She declined to say what the budget is, but called it “a drop in the bucket” compared with spending by competitors. —Like larger competitors in the troubled casual-dining segment,
O’Charley’s had long considered focusing on rolls in its ads because customers are passionate about them, Boulanger said, citing focus-group findings that rolls are a top attribute of the brand. —Like larger competitors in the troubled casual-dining segment,
“I felt we could do a little more conceptual-based campaign,” said Buntin Group executive creative director Matt Horton. “We take something very true about the brand and drive home the food.” —Like larger competitors in the troubled casual-dining segment,
Buntin vice president Wade Breaux said a key element is missing from TV spots by O’Charley’s competitors: “Everyone’s promoting food, food, food without any emotional attachment to it. We’re not trying to drive people to have rolls, but those rolls represent the start of a good experience. It’s a promise and a guarantee to deliver everything good that O’Charley’s represents.” —Like larger competitors in the troubled casual-dining segment,
O’Charley’s and other casual-dining chains are changing their marketing tactics as the segment continues to lose customers to quick-service chains and fast-casual brands that have improved food quality and lower prices, said Arjun Sen, president of Denver-based Restaurant Marketing Group. —Like larger competitors in the troubled casual-dining segment,
“What the casual-diners are trying to do is say, ‘Let’s put an end to this and redefine ourselves,” he said. —Like larger competitors in the troubled casual-dining segment,
But O’Charley’s, Applebee’s and others should not try to steal customers from each other, Sen said, because “then you’re trying to sell the [casual-dining] category, and the category is collapsing.” —Like larger competitors in the troubled casual-dining segment,
The chains ought to target consumers of other restaurant segments, he said. —Like larger competitors in the troubled casual-dining segment,
However, marketing consultant Raymond L. Coen of Pacific Palisades, Calif., isn’t convinced that using such ad symbols as Applebee’s talking apple and Chili’s big chile pepper will improve sales, or that O’Charley’s focus on rolls will spike customer traffic. —Like larger competitors in the troubled casual-dining segment,
“With the use of icons, if it isn’t done remarkably well, it doesn’t stand out,” he said. —Like larger competitors in the troubled casual-dining segment,
Most ad icons fail to establish a relevant link to the brand, and by themselves are not enough to motivate people to eat at a particular restaurant, he added. —Like larger competitors in the troubled casual-dining segment,
“New [menu] items, different ingredients, dramatic icons that make you love the restaurant—those things motivate people,” Coen said. —Like larger competitors in the troubled casual-dining segment,
He questioned O’Charley’s decision to focus on rolls, based on its focus-group finding. —Like larger competitors in the troubled casual-dining segment,
“There’s no correlation between what people say in a focus group and actual purchasing habits,” Coen said. —Like larger competitors in the troubled casual-dining segment,
O’Charley’s plans to run six TV spots this year to support limited-time promotions, Boulanger said, and has launched its first microsite,
Boulanger said store managers and employees “have been thrilled” with the new campaign because it’s a departure from typical commercials showing food being prepared and served. —Like larger competitors in the troubled casual-dining segment,
She’s also confident that the focus on rolls as a prelude to a good meal will bring in customers. —Like larger competitors in the troubled casual-dining segment,
“The roll itself is just very endearing,” she said. —Like larger competitors in the troubled casual-dining segment,
