August 2024 Marketing Update

Summary

Pizza Ranch introduces Wing Night on Thursdays, featuring unlimited boneless and traditional wings with various sauces alongside their buffet favorites. The initiative aims to boost sales and attract a younger demographic. Despite the US restaurant industry's projected slowdown due to economic factors, Pizza Ranch has seen positive growth in their carry-out segment with value deals. The company is also partnering with Midwest Dairy for promotions and updating their app for a seamless online ordering experience. A comprehensive marketing campaign supports the Wing Night launch, including TV, radio, digital, and direct mail advertisements, targeting to enhance customer engagement and drive traffic.

Takeaways

• 🎉 Introduction of Wing Night: Pizza Ranch is launching a new promotion called Wing Night, featuring unlimited wings with a variety of sauces on Thursday nights.
• 📉 Industry Challenge: The US restaurant industry is predicted to slow down in the second half of the year due to factors like inflation and credit card delinquencies, affecting Pizza Ranch's performance.
• 📈 Performance Update: Despite a tough month in July, Pizza Ranch's year-to-date comp transaction counts are outperforming the US restaurant industry and family dining segments.
• 💰 Value Drives Traffic: According to Blackbox Intelligence, value, primarily driven by price, is the biggest driver of traffic to the restaurant industry currently.
• 🍗 Successful Deals: The $20 deal for 8-piece chicken and Ranch potato wedges has been very successful, generating over $1.8 million in revenue from May 1 to July 7.
• 📅 Promotion Extension: The $20 deal and the two large pizzas for $25 offer are approved to run through January 5 of the next year, indicating their effectiveness in driving sales.
• 🥳 Marketing Partnership: Midwest Dairy is partnering with Pizza Ranch, contributing $40,000 towards a promotion that includes local boosted posts and email marketing.
• 👴 Senior Offers: Pizza Ranch is launching a monthly email campaign targeting seniors with specific deals to attract this demographic.
• 🍕 Buffet Value: The company is focusing on adding value to the buffet experience, which makes up 82% of their business, by offering deals and promotions to drive traffic.
• 📈 Positive Response: The introduction of Wing Night in select Pizza Ranch locations has already shown an increase in same-store sales and traffic on Thursday nights.
• 📚 Wing Night Rollout: Detailed guides and resources are provided for the rollout of Wing Night, including order guides, buffet layout ideas, and POS system details.

Q & A

What is the main update discussed in the August 2024 Pizza Ranch video marketing update?

The main update discussed is the launch of Wing Night, a new promotion featuring boneless and traditional wings with a variety of sauces on Thursday nights at Pizza Ranch.

What is the current prediction for the US restaurant industry's performance in the second half of 2024?

Blackbox Intelligence predicts that the US restaurant industry will slow down, with a projection of a decrease in comp traffic by 3.5% to 2.9% and comp sales by 0.8 to 0.2 points for all of 2024.

How did Pizza Ranch perform in July in terms of same store sales?

Pizza Ranch had a tough month in July with same store sales down by 5.7%, which brought the year-to-date performance to -2.4% for the chain.

What has been identified as the biggest driver of traffic to the restaurant industry currently?

Value, particularly price, has been identified as the biggest driver of traffic to the restaurant industry, as per Blackbox Intelligence's data.

What is the performance of the 8-piece chicken and Ranch potato wedges deal in terms of revenue generated?

The deal has generated over $1.8 million in revenue from May 1 to July 7, with an average ticket amount of $50.

What is the status of the $20 deal that includes 8-piece chicken and Ranch potato wedges, and how has it performed?

The $20 deal has been approved by the co-op presidents to run through January 5 of the next year. It has performed positively, with over 1,200 additional eight-piece boxes of chicken sold each week.

How has the carry out segment been performing in terms of year-over-year transaction counts?

The carry out segment has been up in year-over-year transaction counts for 11 of the last 12 weeks, driven by price value deals and discounts.

What is the new feature in the Pizza Ranch app update that enhances the online ordering experience?

The new feature allows for a seamless experience where users can place an online order, use their Ranch rewards, and earn Ranch rewards all within the app without needing to sign in each time.

What is the promotion involving Midwest Dairy and how does it benefit Pizza Ranch locations?

Midwest Dairy has agreed to partner with Pizza Ranch, contributing $40,000 in cash towards a promotion that includes local boosted posts each month for every Pizza Ranch that opts in and participates.

What is the strategy behind extending the $20 deal through January 5 of next year?

The strategy is to continue driving consumer interest and transactions, especially since the value offers have been successful in increasing transaction counts and revenue.

What is the significance of the new wing night promotion for Pizza Ranch?

The new wing night promotion is significant as it aims to appeal to a younger demographic, drive sales and profitability, and build out weekday daily offerings, capitalizing on the popularity of wings as a requested food item by customers.