Article

'Black Friday' a boon to restaurants, too

Mall-based restaurants can see a significant spike in sales around the holiday season, bolstered by high traffic volumes and consumers' desire for indulgence.

December 2, 2014 by Brenda Rick Smith — Editor, Networld Media Group

Much has been said about the impact of the holiday shopping season on retailers – it's called "Black Friday" because it's the start of the short season that puts many retailers "in the black" for the entire year – but what about restaurants?

While there's slightly more hustle and bustle for many restaurants, it is brands that have a presence inside a mall that see the biggest holiday bump, said Adam Werner, managing director of management consultant firm AlixPartners.

"Restaurants that are mall based, or folks that are actually in mall food courts, the game is completely different. Their sales are very much linked to the holiday season," said Werner. "Their sales are very similar to how you would think about a specialty retailer, by and large drawing a huge chunk of their overall income just in that space."

That's certainly the case for mall stalwart Cinnabon. Roughly half the brand's US locations are in malls, with other locations are scattered across high traffic locations like airports and entertainment venues, according to Kristen Hartman, vice president of marketing for Cinnabon.

The season is the biggest time of the year for the brand, accounting for 50-percent more sales than the average day during the year. Traffic begins picking up steam around Thanksgiving, and builds all the way through the first half of January, said Hartman.

During peak days like Black Friday and the day before Christmas, some Cinnabon locations will do three or four times more business than they would on an average day.

Sister brand Auntie Anne's sees a similar bump during the holidays, according to Hartman, but other members of the Focus Brands family, like Moe's Southwest Grill and Schlotzsky's, don't see a quite the same uptick. Like Cinnabon, Auntie Anne's also has a strong mall presence.

Indulgence

While higher levels of traffic certainly give mall locations a boost, a desire to indulge in a special treat may also be a driver. 

"One of the things that we say is that for consumers with Cinnabon there's a special sense of belonging and special memories, and so during the holidays that's when people really want to connect with those emotions and those very special memories," said Hartman. "We have people that will visit us only during that holiday timeframe. They may not visit the rest of the year, but during the holidays they are always going to make their annual stop at Cinnabon."

By redefining coffee as an indulgence, Starbucks has positioned itself well as both a guilty pleasure and a gifting option during the holidays, said Werner.

Roughly one in eight Americans received a Starbucks gift card last holiday season, a total of $1.4 billion in value. This season, Starbucks is raising the stakes even further with its Starbucks for Life promotion. Customers who use gift or loyalty cards or their My Starbucks Rewards account to pay for purchases during the holiday season will be eligible to win food and beverage prizes, and 13 card holders in North American will win "Starbucks for Life," a free drink or food item every day for 30 years.

Outreach opportunity

At least one brand is using its holiday mall presence to build awareness beyond the holidays.

Braddah's Island Style, a Las Vegas-based 3-unit burrito, bowl and taco chain, has opened a retail kiosk in the Galleria at Sunset, an upscale mall in Henderson, Nevada.

The kiosk, located in the food court, doesn't offer Braddah's burritos and bowls, but instead sells Braddah's retail products: sauces, candy bark and gift cards. 

"It's a great medium to reach people," said Rae Lapporte, director of Marketing. 

The chain currently has three stores open in each of the other "corners" of the Las Vegas area, and is eyeing Henderson for its next location, said Lapporte. Late last summer, Galleria leaders approached Braddah's with the idea of opening the food court kiosk. Braddah's jumped on the idea as another channel for its existing retail line, and as a way to lay groundwork for entry into the Henderson area market. 

Braddah's has been pleased with the retail kiosk's performance so far this holiday season, Lapporte said, and will assess in January whether or not to keep it open beyond the holidays.

Looking ahead

Other opportunities restaurants can maximize during the holidays, according to Werner:

• Catering. It's the time of year when office parties, family get-togethers occasions ramp up, and restaurants can position themselves to take advantage of those opportunities.
• Meals out.Now might be the time to offer specials to folks looking to dine out during the holiday season.
• Local marketing.Customers in food courts often make decisions based on how short the line is for a particular restaurant. Look for ways to differentiate and attract customers in the food court context.

Edited image via Alpha on Flickr under Creative Commons license.

About Brenda Rick Smith

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Brenda has more than 20 years of experience as a marketing and public relations professional. She invested most of her career telling the story of entrepreneurial non-profit organizations, particularly through social media.

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