Restaurant Responses to COVID-19

Classified - Confidential

Restaurant Responses to COVID-19

FROM WEEK OF 4.5.20

In-Market Examples

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Intro & Core ThemesWith the foodservice industry shifting to off-premise, we are seeing tremendous creativity and innovation in the market, as restaurants find new ways to continue to drive their off-premise business.

We have collected examples of these great ideas across different channels and the country, in order to share with our partners. Our hope is that these best practices also spark new ideas to help you during these uncertain times.

They are divided into 5 Main Themes.

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Hand-Washing Stations in Drive-Thru

Who is doing it:

Chick-fil-A

What it is:

Chick-fil-A is stepping up its COVID-19 safety measures by installing handwashing stations at all drive-thru and mall locations by April 11th, as the CDC has maintained that the best way to stop the spread of the deadly novel coronavirus is to wash hands with soap and water

Customer Rationale:

Reassuring guests that CFA is taking measures to keep their employees safe.

Guest Rationale:

Guests feel better about going through the CFA drive-thru, with new hand-washing stations

Safety/Operations

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‘How-To-Guide’ for Safe Delivery

Who is doing it:

Carl's Jr.

What it is

An Insta story "how-to" guide for minimum contact delivery, plus a code for free delivery

Customer Rationale:

Remind guest that delivery is still available and that extra precautions are being taken to ensure guest safety

Guest Rationale:

Peace of mind that there is a safe solution for meal delivery

Communicationsand Safety

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Enabling “Curbside” In QSR To Meet The Needs Of The Traveling Truck Drivers

Who is doing it:

Burger Kind & McDonalds

What it is:

Enabling truck drivers to order through the app & call their vehicle “home” for curbside delivery

Customer Rationale:

Capture sales of the traveling truck drivers

Guest Rationale:

Need food quick & vehicles don’t fit in the drive-thru (and of course can’t walk up and get food) – finding a meal solution that works for my job is not easy in this time

Communications

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Levity in Marketing Communication

Who is doing it:

Jack in the Box

What it is

“We are Here For You” message & reminder that stores are open

Customer Rationale:

• Drive traffic of Drive Thru, Pickup and Delivery

• Brand awareness push

Guest Rationale:

Enjoy humor and levity that “Jack” brings and feeling of ‘in-this-together’ brand loyalty

https://www.ispot.tv/ad/nkeQ/jack-in-

the-box-covid-19-we-are-here-for-you

Communications

https://www.ispot.tv/ad/nkeQ/jack-in-the-box-covid-19-we-are-here-for-you

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Overtly Communicating COVID-19 & Safety Measures Front & Center

Who is doing it:

TGIFridays & Chick-fil-A

What it is:

The first thing consumers see when they interact with their website, app, etc. they are focused on communicating what they are doing to keep consumers & their crew safe

Customer Rationale:

Drive consumer confidence by being overt in their messaging

Guest Rationale:

Consumers feel more self assured these companies are taking precautions for themselves & their employees

Communications


Consumer Messaging and Promotions

Who is doing it: SONIC

What it is: Consumer Messaging to reinforce

• drive-ins are open and contactless ordering via mobile app and dining in car.

• Downloadable family fun packs – We are all in this together

• Discounted Wacky Packs

Customer Rationale: Drive Traffic

Guest Rationale: Enjoy the comforts of Sonic as you always have in your car and leverage contactless ordering with the mobile app. Value Kids meals to feed the kids and downloadable fun packs to keep them busy.

Communications

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Meal Bundle

Who is doing it:

Multiple

What it is:

Many restaurants are offering complete meals to ensure guests have an entree, side and beverage.

Customer Rationale:

• Reduces clicks needed to complete a full order.

• Increased add on’s of high margin items like beverages and side

• Allows featuring of high margin meal bundles

Guest Rationale:

• Convenience of one click complete meal ordering

Off-Premise Promotions

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Meal Bundle Examples

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Making Dinner Fun & Engaging With Kids

Who is doing it:Uno

What it is:Uno launched a $5 make-your-own pizza kit for kids that includes crust, sauce, cheese, pepperoni, instructions, crayons and a pizza coloring sheet. The kits had previously been offered for dine-in only, but are now available for delivery and takeout. The chain is giving away 1,000 of the kits to Boston-area kids so they can host virtual birthday parties via web conference.

Customer Rationale:Drive revenue & engagement in a “new” normal

Guest Rationale:Create a positive moment for the family & great price point to feed the kids


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Helping Families Feed The Family Economically

Who is doing it:

Olive Garden

What it is:Kids meals for $1 with the purchase of and adult entrée (limit 2)

Customer Rationale:

Capture attention with deeply discounted price & drive revenue

Guest Rationale:

Find affordable ways to feed that family through take-out/delivery


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Supportive Partnership Messaging

Who is doing it:

Cinnabon

What it is:

Post encouraging people to support pilot by buying Cinnabon cinnamon buns at their stations, which in turn supports the truckers who rely on pilot stops.

Customer Rationale:

Encourage purchases at an outlet still getting traffic

Guest Rationale:

Support pilot employees by providing them business and they will keep supporting the truckers and others who are keeping the country going


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Give a Gift Card, Get a Gift Card

Who is doing it:

Cracker Barrel

What it is:

Buy a $50 gift card for someone else, get a $10 bonus card for own use before May 15th

Customer Rationale:

• The giving spirit is important now, and the $10 incentive for the giver to buy their own meal is also high

Guest Rationale:

• An added incentive to gift someone a meal


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Discount Gift Cards, Encourage Giving

Who is doing it:

Panera

What it is:

Save 20% on gift cards. Messaging encourages giving cards to others.

Customer Rationale:

Provide incentive to purchase cards alongside occasions for gifting them

Guest Rationale:

An added incentive to gift someone a meal


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Family Meal Deals

Who is doing it:

McAlister’s

What it is:

Family Meals for 4 that includes a gallon beverage

Customer Rationale:

Drive ticket, tap into need for family meal solutions

Guest Rationale:

Provides a cost effective meal for families


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Connect With Consumers “Where They Are – In The Moment”

Who is doing it:

TGIFridays

What it is:

Speaking to the needs of consumers in their “new normal”

Customer Rationale:

Connect with consumers in a real way by focusing on their new “homeschool” normal – while offering free kids meals

Guest Rationale:

Connection with TGIFridays b/c they “get me” right now & kids eat free


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Movie Theatre Supporting Restaurants In Their Tenant Community

Who is doing it:

My Santikos Theatres

What it is:Order from one of My Santikos Theatre tenant community partners and get a free My Santikos Theatre regular popcorn

Customer Rationale:

Help support the “business community” around them & get credit in the minds of consumers for doing good

Guest Rationale:

Get a little something extra for supporting these local businesses


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Easy To Grasp Specials

Who is doing it:

El Fenix

What it is:

Establishing a daily special with an easy to understand price point (entrees + margaritas)

Customer Rationale:

Make the offer simple for consumer to understand & show execution of a new delivery category (margaritas)

Guest Rationale:

Easy to understand the offers & financial impact


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Get Free Add-ons With An Order

Who is doing it:

Velvet Taco

What it is:

Adding “freebies” with the order

Customer Rationale:

Capture attention with a “free” offer

Guest Rationale:

Reduce price/person by getting a valuable “free” offer


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Driving Loyalty Through Enhanced Offers

Who is doing it:

Chick-fil-A & Jason’s Deli

What it is:

CFA is adding +20% bonus points during the month of April to consumers loyalty program

Jason’s Deli is giving consumers back 4% toward future orders

Customer Rationale:

Drive loyalty & orders through enhanced loyalty offer

Guest Rationale:

When faced with where to purchase food increase in loyalty points could be a key driver


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Leaning Into Underserved Dayparts With A Family Bundle

Who is doing it:

Taco Cabana

What it is:

Communicating the breakfast daypart in new way consumers really understand (Sundays are for sleeping in)

Customer Rationale:

Drive underserved daypart with family bundle

Guest Rationale:

Find a solution for a daypart where there isn’t many options right now


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Driving Future Visits & Provide High Value “Free” Offer On Grubhub

Who is doing it:

Studio Movie Grill

What it is:

Every Grubhub order includes two free movie tickets to Studio Movie Grill & 10% of the order proceeds (the food order) go to Studio Movie Grill employees

Customer Rationale:

Drive future visits & give back to employees

Guest Rationale:

Utilize Grubhub more frequently because of the FREE movie ticket offer


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Surprise & Delight with Every Order

Who is doing it:

Jack in the Box

What it is:

Something Extra by “Staying in the Box”

Customer Rationale:

A free item is added to delivery orders is an effective way to surprise and delight customers and encourage repeat visits

Guest Rationale:

Reason to return and sampling opportunity


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Virtual Date Night

Who is doing it:

Chipotle

What it is:

Chipotle is inviting guests to order pick up or delivery, download Zoom backgrounds of their restaurants and connect via video chat with loved ones as if they are eating in the restaurant together

Customer Rationale:

Encourage parties to order meals whether they are together or apart –maintain brand love by replicating in-restaurant experience

Guest Rationale:

Connect with loved ones over a 'shared' meal/experience


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Great American Takeout

Who is doing it:

Jack in the Box, Pieology, Carl’s Jr., QDOBA, Baker’s Drive Thru

What it is:

Great American Takeout

Customer Rationale:

Easy opportunity to participate in a traffic driving event with charitable ties. Drive take out/delivery transactions and support the restaurant industry

Guest Rationale:

Opportunity to support the restaurant industry, charitable causes, and win enticing prizes


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Great American Takeout – Loyalty Rewards

Who is doing it:

Chicken Salad Chick

What it is:

Offering triple loyalty points for purchases made on 4/7 (as part of Great American Takeout)

Customer Rationale:

• Taps into Great American Takeout movement and drives people into loyalty program to take advantage of the reward

Guest Rationale:

• Support a good cause and get to loyalty rewards faster


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Holiday-Specific Family Meal Kit

Who is doing it:

True Food Kitchen

What it is:

Easter Brunch Basket that includes a collection of items to help guests create from scratch at-home brunch for 4-5 people. Includes a bottle of Cava and 2 signature brunch recipes.

Customer Rationale:

Drives sales during a holiday that would otherwise be a high volume day

Guest Rationale:

Provides a holiday meal solution for a single-family gathering as consumers remain socially distant

Evolving Business Formats

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Holiday-Specific Meals

Who is doing it:

Multiple

What it is:

Feast-sized meals for specific holiday occasion (Easter in these examples)

Customer Rationale:

Large ticket-item and can take pre-orders to sufficiently prep

Guest Rationale:

• Fully prepared, high quality meal for an occasion that otherwise may have been potluck style with extended family/friends

• Note: This could be done for local / regional holidays coming up in April/May (Mother’s Day Brunch?)


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Adding Groceries To All Of Their Ordering Platforms

Who is doing it:

Panera

What it is:

Making Panera Grocery easy to engage with for consumers

Customer Rationale:

Finding new revenue streams to drive business

Guest Rationale:

Rapid pick-up & contactless delivery available – most grocery delivery services have long delays


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Offering A Separate Site As A Online Grocery Store

Who is doing it:

Showmars

What it is:

Website built as online grocery store

Customer Rationale:

Provides a simple user experience that mirrors other online grocery services

Guest Rationale:

Get grocery essentials in a user friendly format, while supporting local restaurant


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Marketplace w/ How-To Videos

Who is doing it:

Moe’s Southwest Grill

What it is:

Moe’s Market is offering bulk sales of proteins and sides, and providing how-to videos for meal ideas posted via Instagram

Customer Rationale:

• Provide group/family with components for full meal solutions

• Provide visually appealing how-to instructions that make the meal occasion into an activity

Guest Rationale:

Makes the meal more fun with DIY approach, but still great quality ingredients


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Kids Entertainment

Who is doing it:

Jamba Juice

What it is:

Posting PDF pictures for coloring (kid and adult friendly)

Customer Rationale:

Connect with potential guests by offering an activity that can provide a few minute break

Guest Rationale:

Any form of fun activity for kids is welcome to try and fill the time at home



Freaky Fresh Bread on Demand

Who is doing it: Jimmy John’s

What it is: Finding bread can be difficult right now.That's why we're making our fresh-baked French bread available to you & your family for Pickup or Delivery.

Customer Rationale: Drive Traffic, Check, and sell core equity.

Guest Rationale: Difficult to find bread at the grocery store – now able to get fresh bread at Jimmy John’s!



Family Style Specials

Who is doing it: Rusty Taco

What it is: Family-Style Specials featuring:

• 6-Taco Family Pack (six Handmade Tacos and a side of Chips, Salsa and Queso)

• 10-Taco Family Pack (10 Handmade Tacos and a side of Chips, Salsa and Queso)

• Family Breakfast Taco Bar (Builds 12 Tacos) - Build your own breakfast tacos. Includes a pan of eggs, cheese, tortillas, and salsas.

• Family Taco Bar (Builds 12 Tacos) - Choice of freshly prepared meat + tortillas, garnishes, limes & salsa.

Customer Rationale: Drive Traffic and Check

Guest Rationale: Providing full family customized meal options.


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Bring Restaurant To The Community

Who is doing it:

Chicken Salad Chick

What it is:

Setting up dates/times for drive-thru style pickups within community neighborhoods

Customer Rationale:

• Reduce barrier for those who may not be able to drive to location for pickup and don’t want to or can’t order via third party delivery

Guest Rationale:

Convenient to set up a delivery to own neighborhood

New Pick-Up Routines

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Driving Business Despite Dine-in Closures

Who is doing it:

Wing Stop

What it is:

Wingstop’s digital business model proved effective through the early weeks of the COVID-19 pandemic, as U.S. same store sales jumped 9.9 percent in Q1. Although the brand saw overall transactions slide as the virus became more prevalent, a rise in average ticket offset those losses. The favorable results are due to Wingstop’s off-premises business representing 80 percent of sales before the pandemic.

Customer Rationale:

Driving off-premise business, while dining rooms are closed

Guest Rationale:

Leveraging a customer that does off-premise well

Off-Premise Growth

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Supporting Health Care Workers Community Support

Who is doing it:

Fatburger, Chicken Salad Chick

What it is:

Brands thanking and offering free meals to first responders on the front lines dealing with the current health crisis

Customer Rationale:

Supporting the local community in time of need

Guest Rationale:

Being a great community partner in hopes of encouraging others to do the same

55%

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Supporting Frontline Workers

Who is doing it:Chipotle

What it is:10% of gift card sales will be donated to Direct Relief, an organization with a mission to improve the health and lives of people affected by poverty or emergency situations by mobilizing and providing essential medical resources needed for their care

Donating 100,000 burritos to Healthcare Heroes with sticker messages of thanks

Customer Rationale:Give back to healthcare workers, secure funds via gift cards during financially challenging time, to be redeemed at later date

Guest Rationale:Support Chipotle and Healthcare Workers – Two birds, one stone

Community Support

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Global Employee Relief Fund

Who is doing it:

Starbucks

What it is:

Starbucks on Wednesday launched a $10 million global relief fund to support employees “facing extreme hardship” because of the coronavirus.

Customer Rationale:

Helps support their employees in need

Guest Rationale:

Guests are noticing how customers are treating their employees and who is giving back

Community & Employee Support

Restaurant Responses to COVID-19

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