• IDEAS & INNOVATION •
WHAT TO KNOW ABOUT THE ECONOMY
Next, Felix had to determine what drives guests to the brand, which he found was “great food served in gener- ous portions at good value.” Hence, the 3 for Me menu offers guests a starter, beverage, and entrée for as little as $10.99. But half of the guests who buy the 3 for Me deal do so at higher price points of $14.99 or $16.99. Felix said value doesn’t just mean a low price, but “what you get for what you pay,” which was why customers were willing to upgrade for more premium items. As CMO, Felix leaned into some of the chain’s key mar- keting assets, including the popular Baby Back Ribs jingle, which he had Boyz II Men sing again in a recent commer- cial, and also sponsored a NASCAR car. Although he acknowledged that few chains have the resources to do that, they can leverage their social media presence, no matter their size. For example, Felix noticed a customer in Georgia who placed a huge order to cater her wedding and shared it on social media, so Chili’s launched wedding catering and offered it for free to the first three people who proposed in a Chili’s restaurant. The result was more than 700,000 media impressions. But that was nothing compared to the cheese pull vid- eos of their fried mozzarella. “There were like 50 million views in May,” he said, and they got another 50 million once the Nashville Hot option was “leaked.” He said those successes don’t require a lot of money but instead understanding what their customers crave. But people don’t, or at least probably shouldn’t, live on fried mozzarella alone, and the third CREATED talker pre- sented a strategy to make nutritious food convenient and affordable. Nicole Portwood, CMO of drive-thru chain Salad and Go, discussed that company’s vision for bringing nutri- tious food to as many people as they can. “Americans are fed up with food inflation,” she said, adding that the current prices make it hard “for people to eat, let alone eat well.” At least in the past, fast food was cheap, if not the healthiest option, she said. And although there are now plenty of salad concepts, they’re even more expensive than traditional quick-service options. Salad and Go is “everything that the fast-food industry has been missing,” she said. It offers high-quality ingre - dients and better-for-you items, such as ranch dressing made with aquafaba, a chickpea derivative that reduces its calorie count. Prices for a salad with protein start at $6.79. That’s because the Arizona-based chain has large cen- tral kitchens that wash, cut, and prepare everything and then ship them to small-footprint stores of around 750 square feet. The model cuts down on real-estate costs as well as labor, since they can be run by as few as three em- ployees. “We make this accessible to so many people who have been left behind” by our modern food system, she said. Salad and Go has invested hundreds of millions of dol- lars in its infrastructure, and is now up to 150 locations. It’s looking to expand to states with the highest obesity rates, to “ensure that customers have the full spectrum of choice.”
Michael Halen, senior restaurant analyst at Bloomberg Intelligence, discussed recent economic trends and their impact on restaurant sales.
WINNING IN TOUGH TIMES
George Felix, SVP and CMO of Chili’s Bar and Grill discusses how the brand has drawn on its storied history, iconic pop culture references and “Chili Head” culture to revitalize the brand.
‘GREENS FOR EVERYONE’
Nicole Portwood, CMO of Salad and Go, discusses her mission to revolutionize fast food and democratize healthful eating — without the high price tag.
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