The companies in the restaurant
industry are trying to find different ways to increase sales after the slump in
revenue that comes with lower incomes and a higher unemployment rate. In an effort to increase sales, many
restaurants are teaming with new musicians to help attract certain markets to
their stores. Some restaurants will have
musicians create original works that advertise for the store. The Darden Restaurant chain, Longhorn Steakhouse,
has been teaming up with country music artists such as Kenny Chesney since 2005
(Jargon & Smith, 2012). The chain
has created promotions that attract new customers by allowing them to enter for
a meeting with the musicians. The
musicians also perform at new-store openings to make more customers come to the
event. This type of relationship helps
both companies. By combining their
markets, both the restaurant and the musician have the potential to increase
their customer base. I believe that this
will affect the industry by causing more restaurants to try these types of
promotions.
Recently, the Starbucks chain tried
to increase their sales by creating buzz for their seasonal drink, the Spiced
Pumpkin Latte. This, according to
Fleisher (2012), can backfire when there isn’t supply to match the demand. The latte debuted this year on September 4th,
and customers were frustrated by Starbucks’ inability to keep up with the
market demand for the fall drink. Many
customers have had to leave the store unsatisfied after waiting for almost a
year for the pumpkin latte. The shortage
has caused some stores to turn to an instant version of the drink, but this
substitute is quickly running out as well.
I think this will impact the industry by making restaurants do more
research about their target consumers.
Hopefully in the future restaurants will be more prepared to supply
enough of their goods to meet the market demand.
Cited Sources:
Fleisher,
L. (2012, October 5). Halloween horror story: the case of the missing pumpkin
lattes. The Wall Street Journal, pp. A1, A10.
Jargon,
J., & Smith, E. (2012, September 25). Restaurant chains, singers team up to
sharpen brands. The Wall Street Journal, pp. B6.
I find it very interesting how certain restaurants are trying to increase their sales by teaming with musicians. It is a very new and creative strategy that I believe will definitely increase their customer base.
ReplyDeleteI have personally experienced the pumpkin latte shortage at Starbucks and fully believe that this situation will cause the company to lose a large amount of its customers due to its insufficiency. Starbucks has been a thriving company, but unfortunately its inability to satisfy customers might cause a negative impact on its future growth.
I agree with Jenna, this was very interesting. I am curious about what other companies have chosen as their methods to gain more sales. I think these restaurant's methods are good examples of companies making their product more personal to the consumers and is another way to build a relationship with them.
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