Food Service Promos Blog
92% of restaurant chains to raise menu prices in 2014
The irony here is that I know foodservice manufacturers are trying to figure out how to increase sales…while news of operators facing tight margins and price hikes keep surfacing. Manfacturers have a tremendous opportunity here to create loyalty and add new accounts!
IFMA has stated in their reports, same with Technomic, that independent operators are seeking some kind of relief or value added partnership from their food suppliers. Well, before you start losing more revenue to local suppliers (because local means less shipping costs) you may want to consider reaching out to your current customers and potential new ones with a creative and attractive rebate program.
Consider that we know:
A friend of mine who works for an agency and does marketing for a major foodservice manufacturer whose brands you have definitely heard of, told me some news the other day. On a recent rebate campaign that operators participated in, they were given a choice: Choose a cash (check) rebate or choose points redeemable for merchandise, from one of the popular reward programs.
Well, the results were eye-opening: The manufacturer received hundreds of operators who participated in the program and 100% of them chose cash over points.
Let me repeat that: ALL of them chose cash.
Now, allow me to state that I am not here to bash reward programs. They offer a great service that is a logical way to retain loyalty. However, as a foodservice marketer in a down economy where independents (who are most likely to participate) are struggling to survive – I am recommending to put money behind your own cash rebates, especially considering the very hefty fees to have your brand be a part of a rewards program.
This strategy makes a great deal of sense for a number of reasons. Consider: