Restaurant Marketing in the Digital Age

WHITE PAPER

Restaurant Marketing
in the Digital Age

Technological tools are changing the marketing landscape for restaurant
operators. Here are some insights from one of the landscapers.

By Richard Slawsky | Contributing writer, Fast Casual

DEVELOPED AND PUBLISHED BY: SPONSORED BY:

WHITE PAPER

Restaurant Marketing
in the Digital Age

Technological tools are changing the marketing landscape for restaurant
operators. Here are some insights from one of the landscapers.

By Richard Slawsky | Contributing writer,
Fast Casual

SPONSORED BY:

The world of marketing has changed dramatically over the past 20 years or so, with the
old standbys of TV and newspaper ads supplanted by technological tools such as social
media, loyalty card programs and data-driven digital signage.
Nowhere are those changes more apparent than in the restaurant industry. And when
combined with the development of new ordering channels such as mobile and online,
marketing a restaurant in the digital age can be an ever-shifting target.
Those changes are creating a host of opportunities for savvy marketers to leverage
technology to reshape and grow their brands.
Franchise industry veteran Jane McPherson, for example, brings more than 20 years
of marketing experience, primarily in the franchising space, to her new role as senior
vice president of marketing for Las-Vegas-based Capriotti’s Sandwich Shop. Capriotti’s
operates 106 company-owned and franchise locations in 16 states, including the District of
Columbia, and specializes in cold, grilled and vegetarian submarine sandwiches.

© 2017 Networld Media Group | Sponsored by Capriotti’s Sandwich Shop 2

One of the company’s signature sandwiches, the Bobbie, was voted “The Greatest
Sandwich in America” by AOL.com in 2009. The sandwich, named after a relative of
the founders, is made with pulled turkey and topped with cranberry sauce, stuffing
and mayonnaise.

McPherson’s previous roles include serving as the senior director of marketing for
submarine sandwich chain Quiznos, where she helped fuel an aggressive growth
strategy resulting in 900 percent growth for the brand. Following that, she served as chief
marketing officer for Denver-based SpyderLynk Mobile Marketing & Technology. Prior
to joining Capriotti’s, McPherson served as the Vice President of Marketing for Famous
Brands International, where she led the revitalization of the TCBY and Mrs. Fields brands.

Although McPherson’s plate is more than full, she did take some time to offer her insights
to Fast Casual into the role technology plays, and will play, in restaurant marketing.

Today’s marketing challenges

Restaurant marketers are trying to figure out the role technology will play within the
service industry while addressing and supporting the needs of their brand in the near term,
McPherson said. Today’s marketing leaders must have a firm handle on the capabilities
and current limitations of technology combined with a solid understanding of the role of
digital marketing within a multi-channel strategy.

“The skills, capabilities, resources and strategies
required for success at every level of today’s successful
restaurant brands have increased exponentially over
the last few years, and will only accelerate in the future.
Understanding what the options are, and choosing
the best path forward based on each particular brand,
will require restaurant brands to act much like a tech
company as anything else.”

— senior vice president of marketing for Capriotti’s Sandwich Shop

© 2017 Networld Media Group | Sponsored by Capriotti’s Sandwich Shop 3

The balancing act of providing innovation while controlling risk is complicated, though,
and marketers need to be able to make quick decisions, learn what works and what
doesn’t, and constantly be improving their efforts.

“Tech companies often rely on the ‘fail forward fast’ motto when it comes to testing and
iterating their way forward, and that is becoming the hallmark of the great restaurant
brands of tomorrow,” McPherson said.

Marketing with technology

A comprehensive multi-channel approach that coordinates marketing, operations,
customer engagement and loyalty programs is critical, McPherson said. Top brands such
as Amazon, Southwest Airlines and Panera have educated consumers to expect to be
able to get whatever they want, where and whenever they want it.

“This goes for every demographic group imaginable whether they want to come in and
dine with us, pick up their order or have it delivered or catered, pay quickly and easily, and
track their rewards seamlessly,” she said. “At the same time, we are in the service industry,
and many consumers still prefer the personal approach.”

Making all of these systems work together and making them all available at any time
or place creates a number of challenges and opportunities for any restaurant brand,
including Capriotti’s.

In addition, the importance of leveraging social media grows by the day. It’s a rare
restaurant these days that doesn’t have a Facebook page. Social media channels such as
Twitter and Instagram have become standard marketing tools as well.

© 2017 Networld Media Group | Sponsored by Capriotti’s Sandwich Shop 4

Unfortunately, though, many operators forget that social media is all about the
conversation, not driving a desired transaction. As a result, they don’t obtain the maximum
benefit possible from their social media efforts.

“At Capriotti’s we want to engage our customers with content that is interesting and
meaningful to them and their lives,” McPherson said.

“We have done this incredibly well in the last few years, even winning first place in the
Franchise Leadership Conference Star Award for Social Media in October,” she said. “We
call our fans CAPAddicts because of their loyalty to and love for the Capriotti’s brand. That is
an incredible 40 plus year heritage for us to build on through our social media channels.”

The future of mobile in restaurant marketing

Companies such as Starbucks, Chipotle and McAlister’s Deli are finding success with
mobile ordering, often to such a degree that they’ve needed to redesign restaurants or
adjust operations to handle the influx of business and decrease congestion. Chipotle, for
example, has added a second make line to many of its 2,250 restaurants to handle mobile
and online orders, while Starbucks and McAlister’s have adjusted operations to help
alleviate crowding while customers wait for orders placed via a mobile device.

Although mobile ordering is just beginning to make inroads in the United States, it’s a fact
of life in many other countries. So much so that it offers a glimpse of what we can expect
to see in the next few years.

© 2017 Networld Media Group | Sponsored by Capriotti’s Sandwich Shop 5

In many countries, even the smallest transactions are completed on a mobile phone.
People often receive their compensation or payments for services rendered, conduct all of
their banking, pay all of their bills and order all of their goods and services on one device.

That trend continues to spread and will likely shape the US restaurant industry going forward.

“The interesting thing you discover when you travel abroad is how advanced many
countries already are in their mobile technology, even in those that were once considered
third world markets,” McPherson said.

“For many restaurant brands upwards of 90 percent of their revenue is conducted through
mobile ordering,” she said. “All you have to do is look to these countries where the majority
of transactions are already performed on smartphones to see where we are headed.”

Where she plans to take Capriotti’s

Having served in marketing leadership roles for several franchise brands that have grown
into household names with national and international presence over the past 15 years,
McPherson has a deep appreciation for the critical elements that drive success in the
restaurant industry.

© 2017 Networld Media Group | Sponsored by Capriotti’s Sandwich Shop 6

In her new role, McPherson will be responsible for initiating and implementing new
technology concepts to aid in marketing efforts such as the Capriotti’s rewards app and
new online ordering methods to fuel increased sales at the store level. She will also be
spearheading a major marketing initiative to promote Capriotti’s catering services. Her
extensive background in restaurant technology and marketing will be pivotal as the brand
continues its innovation and growth efforts.

To help realize her goals, Capriotti’s has recently brought in a number of new highly
experienced marketing partners to support the company as it continues its march toward
becoming a national brand.

“Our ownership investors and board members are also incredibly supportive and helpful,
insuring that we have the appropriate resources and strategies in place to optimize our
potential,” McPherson said. “I don’t think that there has ever been a more exciting time to
be at Capriotti’s, and I am incredibly thankful to have some of the best franchise partners to
work with as our management team takes Capriotti’s forward and builds something special!”

About the sponsor:

Founded in 1976, Capriotti’s Sandwich Shop is an award-winning fast-casual sandwich franchise that remains true to its
40-year tradition of slow-roasting whole, all-natural turkeys in-house every day in a welcoming atmosphere. The Bobbie®,
Capriotti’s signature sub, was voted “The Greatest Sandwich in America” by thousands of readers across the country and
reported by AOL.com. Capriotti’s currently has 100 locations in 18 states, and plans to expand to 500 locations nationwide
by 2025. For more information on the Capriotti’s franchise opportunity visit ownacapriottis.com/. Like Capriotti’s on
Facebook, follow on Twitter or Instagram.

© 2017 Networld Media Group | Sponsored by Capriotti’s Sandwich Shop 7