DE DUTCH : BC RESTAURANTS SUCCESSFULLY WEATHER TOUGHER ECONOMIC CLIMATE
Franchisor profilesAuthor :
Client
By: W.K. Waring – President, De Dutch Pannekoek House Restaurants Inc.
It is now a long accepted fact that the Canadian economy is in a downturn and recent reports especially for British Columbia have noted that its economy is continuing to slide as evidenced by the growing trade deficit, rising unemployment rates, declining exports and dropping retail sales. A current statement in March by Douglas Porter, deputy chief economist with BMO Capital Markets, predicted that Canada may have a ways to go to weather the turbulence as it is expected to emerge out of the recession in very late 2009 and then slowly recover.
The country’s restaurant sector has braced itself and with the ability to be flexible and adaptive has addressed the tougher economic climate with entrepreneurial and innovative strategies quickly and successfully. In fact, according to a survey conducted by the BC Restaurant and Foodservice Association, BC restaurants experienced year-over-year sales gains every month in 2008 except for January and December. In December however, the decrease in sales can be attributed to the far more than usual snow fall resulting in diners’ hesitancy to venture out. And early indicators this year show positive results as well as January 2009 experienced a 4.2 % increase in restaurant sales compared to sales in January 2008.
It is reported that restaurants are stepping up marketing efforts while keeping an eye on costs. Restaurants are also getting creative with their marketing efforts including for example the implementation of promotions featuring specials such as fixed-priced, full course menus, mid-week discounts and special priced entrée and beverage pairings.
DE DUTCH PANNEKOEK HOUSE FORECASTS
De Dutch Pannekoek House, a restaurant franchise based in British Columbia has weathered the harsh economic climate well so far with same store sales for 2008 reported to have increased 8% over 2007. Same store sales so far this year are also 3% higher than the same period in 2008.
De Dutch Pannekoek House Restaurants, founded in BC in 1975, currently has 19 locations in Calgary, Alberta and BC’s Lower Mainland, Vancouver Island, Fraser Valley, Okanagan, and Cariboo. The restaurant has successfully carved a niche in the competitive food service sector specializing in breakfast, brunch and lunch offering our customers a unique blend of European ethnicity in our menu items. The Pannekoek, a 12" in diameter Dutch-style pancake, is our signature dish and continues to draw loyal customers.
We attribute our success in weathering these challenging times to two key factors: 1) we are accurately and firmly positioned to effectively benefit from emerging restaurant trends and 2) we have quickly implemented innovative marketing activities at both the system and store level.
DE DUTCH PREPARED FOR THE STORM
A survey of almost 1,000 current and potential restaurant customers conducted by De Dutch in the summer of 2008 concluded that De Dutch is well positioned in relation to key emerging restaurant trends thereby ensuring our strength to successfully weather these more challenging times.
1) Breakfast is increasingly recognized as being important to one’s overall health and quality of day. And while current foodservice research indicates that eating breakfast throughout the day has emerged as a trend, our survey results indicate that De Dutch is recognized as THE breakfast place among a percentage of the BC population. The highest percentage of all survey respondents noted that they eat at De Dutch most often when they eat out for breakfast during the week and also on weekends.
2) Customers seek comfort in the current economic climate and especially for breakfast. Our survey results noted that De Dutch is highly recognized as providing filling and comforting food items on the menu and offering a relaxing and comfortable dining experience.
3) It is a current and on-going trend for consumers to rely on their perception of value and not just price when deciding which brands to buy. Our survey reported that De Dutch is highly recognized for serving quality ingredients that taste great but also offer good value for the money.
4) Consumers are increasingly demanding locally grown ingredients and are proud to support local businesses. De Dutch has gained an immensely loyal customer base which recognizes and values the company as founded and based in BC serving quality local products whenever possible.
DE DUTCH BATTLES THE STORM
While De Dutch entered these turbulent times with a solid foundation, we also quickly increased our marketing efforts and more importantly implemented innovative marketing activities that didn’t cost much but delivered top results.
Just two examples of new and creative marketing initiatives this year include the following.
SHROVE PANNEKOEK TUESDAY
"Shrove Pannekoek Tuesday” is our annual charitable event that takes place each Shrove Tuesday or Pancake Tuesday in support of the Canadian Breast Cancer Foundation.
In our planning stages this year for the 12th annual Shrove Pannekoek Tuesday on February 24th, we confirmed that we would contribute $2 from every Pannekoek sold and each location was committed to implementing community-based promotions to generate additional funds, but we knew we needed to get exceptionally creative with the promotion of the event to ensure that we could still raise as many funds as possible in these challenging economic times.
Through brainstorming and extending deep into our network of contacts we partnered with the BC Home + Garden Show and sponsored the "De Dutch Best of Breakfast Celebrity Cook-Off” to launch the show on opening day which was perfectly scheduled one week before our own Shrove Tuesday charitable event.
During the live event at the show which draws 50,000+ attendees throughout the five days, we competed against two other top Vancouver dining establishments for the best "pancakes” teaming up with local celebrities as our assistant chefs. A celebrity panel of judges rated our creations and popular Global TV Morning News anchor, Lynn Colliar emceed the event. The admission to watch the cook-off was a donation to the Canadian Breast Cancer Foundation.
THE RESULTS ?
Through the combined efforts of our media relations team and the BC Home + Garden Show’s publicists, we received better than ever coverage on TV, radio, print and social media for not only the cook-off before and after the event, but for Shrove Pannekoek Tuesday as well.
Most importantly, we sold almost 35% more Pannekoeken this year compared to 2008 and our funds raised this year were 67% higher than last year. Plus, we fostered even greater relationships with the media and the charity close to our heart benefited more than ever.
JRFM 93.7 RADIO LIVE BROADCAST
While Shrove Pannekoek Tuesday is a system-wide event, we have also worked hard with individual stores to generate unique marketing opportunities at the community level which of course benefits the brand and all stores within the system as well. As an example, one of the local radio stations, JRFM 93.7 promoted the opportunity for the station to broadcast live from popular eateries in BC communities as part of their Hometown Handshake Tour. The De Dutch location pursued the opportunity resulting successfully in the radio station broadcasting live from the restaurant on March 13th between 5am and 9am to welcome all listeners to Cloverdale, BC.
With the support of loyal and long-term suppliers, De Dutch was able to offer free coffee and fresh squeezed orange juice to all customers during the live broadcast and we also offered complementary breakfasts for the first ten customers at 5 am and also at 6 am. Other special efforts included the production of table tents and bill inserts; features in on-line calendar listings, distribution of media releases; and, the distribution of special invitations to join the event to all surrounding businesses and associations.
THE RESULTS ?
The results were phenomenal for the Cloverdale De Dutch with spin off effects for all locations. Not only did the Cloverdale De Dutch experience a daily sales total that was 52% above an average Friday, but they and the entire franchise system received on air mentions regularly for 4 hours on a major Vancouver radio station with prime spending demographics with no advertising cost. Plus, the live broadcast was promoted by the station on-air and on their website prior to March 13th and also following the event with photos and video posted on their website.
And we of course never stop adapting our restaurant business in response to the forecasts by making business modifications that will ensure a solid position and by continuing to develop innovative marketing activities that will ensure a successful battle of any storm.
It is now a long accepted fact that the Canadian economy is in a downturn and recent reports especially for British Columbia have noted that its economy is continuing to slide as evidenced by the growing trade deficit, rising unemployment rates, declining exports and dropping retail sales. A current statement in March by Douglas Porter, deputy chief economist with BMO Capital Markets, predicted that Canada may have a ways to go to weather the turbulence as it is expected to emerge out of the recession in very late 2009 and then slowly recover.
The country’s restaurant sector has braced itself and with the ability to be flexible and adaptive has addressed the tougher economic climate with entrepreneurial and innovative strategies quickly and successfully. In fact, according to a survey conducted by the BC Restaurant and Foodservice Association, BC restaurants experienced year-over-year sales gains every month in 2008 except for January and December. In December however, the decrease in sales can be attributed to the far more than usual snow fall resulting in diners’ hesitancy to venture out. And early indicators this year show positive results as well as January 2009 experienced a 4.2 % increase in restaurant sales compared to sales in January 2008.
It is reported that restaurants are stepping up marketing efforts while keeping an eye on costs. Restaurants are also getting creative with their marketing efforts including for example the implementation of promotions featuring specials such as fixed-priced, full course menus, mid-week discounts and special priced entrée and beverage pairings.
DE DUTCH PANNEKOEK HOUSE FORECASTS
De Dutch Pannekoek House, a restaurant franchise based in British Columbia has weathered the harsh economic climate well so far with same store sales for 2008 reported to have increased 8% over 2007. Same store sales so far this year are also 3% higher than the same period in 2008.
De Dutch Pannekoek House Restaurants, founded in BC in 1975, currently has 19 locations in Calgary, Alberta and BC’s Lower Mainland, Vancouver Island, Fraser Valley, Okanagan, and Cariboo. The restaurant has successfully carved a niche in the competitive food service sector specializing in breakfast, brunch and lunch offering our customers a unique blend of European ethnicity in our menu items. The Pannekoek, a 12" in diameter Dutch-style pancake, is our signature dish and continues to draw loyal customers.
We attribute our success in weathering these challenging times to two key factors: 1) we are accurately and firmly positioned to effectively benefit from emerging restaurant trends and 2) we have quickly implemented innovative marketing activities at both the system and store level.
DE DUTCH PREPARED FOR THE STORM
A survey of almost 1,000 current and potential restaurant customers conducted by De Dutch in the summer of 2008 concluded that De Dutch is well positioned in relation to key emerging restaurant trends thereby ensuring our strength to successfully weather these more challenging times.
1) Breakfast is increasingly recognized as being important to one’s overall health and quality of day. And while current foodservice research indicates that eating breakfast throughout the day has emerged as a trend, our survey results indicate that De Dutch is recognized as THE breakfast place among a percentage of the BC population. The highest percentage of all survey respondents noted that they eat at De Dutch most often when they eat out for breakfast during the week and also on weekends.
2) Customers seek comfort in the current economic climate and especially for breakfast. Our survey results noted that De Dutch is highly recognized as providing filling and comforting food items on the menu and offering a relaxing and comfortable dining experience.
3) It is a current and on-going trend for consumers to rely on their perception of value and not just price when deciding which brands to buy. Our survey reported that De Dutch is highly recognized for serving quality ingredients that taste great but also offer good value for the money.
4) Consumers are increasingly demanding locally grown ingredients and are proud to support local businesses. De Dutch has gained an immensely loyal customer base which recognizes and values the company as founded and based in BC serving quality local products whenever possible.
DE DUTCH BATTLES THE STORM
While De Dutch entered these turbulent times with a solid foundation, we also quickly increased our marketing efforts and more importantly implemented innovative marketing activities that didn’t cost much but delivered top results.
Just two examples of new and creative marketing initiatives this year include the following.
SHROVE PANNEKOEK TUESDAY
"Shrove Pannekoek Tuesday” is our annual charitable event that takes place each Shrove Tuesday or Pancake Tuesday in support of the Canadian Breast Cancer Foundation.
In our planning stages this year for the 12th annual Shrove Pannekoek Tuesday on February 24th, we confirmed that we would contribute $2 from every Pannekoek sold and each location was committed to implementing community-based promotions to generate additional funds, but we knew we needed to get exceptionally creative with the promotion of the event to ensure that we could still raise as many funds as possible in these challenging economic times.
Through brainstorming and extending deep into our network of contacts we partnered with the BC Home + Garden Show and sponsored the "De Dutch Best of Breakfast Celebrity Cook-Off” to launch the show on opening day which was perfectly scheduled one week before our own Shrove Tuesday charitable event.
During the live event at the show which draws 50,000+ attendees throughout the five days, we competed against two other top Vancouver dining establishments for the best "pancakes” teaming up with local celebrities as our assistant chefs. A celebrity panel of judges rated our creations and popular Global TV Morning News anchor, Lynn Colliar emceed the event. The admission to watch the cook-off was a donation to the Canadian Breast Cancer Foundation.
THE RESULTS ?
Through the combined efforts of our media relations team and the BC Home + Garden Show’s publicists, we received better than ever coverage on TV, radio, print and social media for not only the cook-off before and after the event, but for Shrove Pannekoek Tuesday as well.
Most importantly, we sold almost 35% more Pannekoeken this year compared to 2008 and our funds raised this year were 67% higher than last year. Plus, we fostered even greater relationships with the media and the charity close to our heart benefited more than ever.
JRFM 93.7 RADIO LIVE BROADCAST
While Shrove Pannekoek Tuesday is a system-wide event, we have also worked hard with individual stores to generate unique marketing opportunities at the community level which of course benefits the brand and all stores within the system as well. As an example, one of the local radio stations, JRFM 93.7 promoted the opportunity for the station to broadcast live from popular eateries in BC communities as part of their Hometown Handshake Tour. The De Dutch location pursued the opportunity resulting successfully in the radio station broadcasting live from the restaurant on March 13th between 5am and 9am to welcome all listeners to Cloverdale, BC.
With the support of loyal and long-term suppliers, De Dutch was able to offer free coffee and fresh squeezed orange juice to all customers during the live broadcast and we also offered complementary breakfasts for the first ten customers at 5 am and also at 6 am. Other special efforts included the production of table tents and bill inserts; features in on-line calendar listings, distribution of media releases; and, the distribution of special invitations to join the event to all surrounding businesses and associations.
THE RESULTS ?
The results were phenomenal for the Cloverdale De Dutch with spin off effects for all locations. Not only did the Cloverdale De Dutch experience a daily sales total that was 52% above an average Friday, but they and the entire franchise system received on air mentions regularly for 4 hours on a major Vancouver radio station with prime spending demographics with no advertising cost. Plus, the live broadcast was promoted by the station on-air and on their website prior to March 13th and also following the event with photos and video posted on their website.
And we of course never stop adapting our restaurant business in response to the forecasts by making business modifications that will ensure a solid position and by continuing to develop innovative marketing activities that will ensure a successful battle of any storm.