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Dinner and a Movie, Courtesy of Your Mobile Phone
By: Randy Haldeman
Two major issues are making marketers' knees knock today: One, their budgets are under pressure, and two, the dollars they are spending on advertising aren't as effective as they need to be. This is especially true for marketers in the restaurant space. In this softening economy, a dollar spent needs to earn several dollars in return—but it isn't.
In any economic downturn, most restaurant chains cut marketing spending first to save money, focusing instead on ingredients and labor. This has the unintended consequence of dimming the lights on the "Welcome" sign just when hungry customers are looking for a good place to eat. This jeopardizes sales and gives competitors an opportunity to win over new clientele.
Online advertising was supposed to be the solution. Targeting was touted as a way to reach the right people at the right time on the right sites, but it hasn't lived up to its promise. The problem is that no matter how "targeted" a site is, it doesn't mean that the person sitting at her computer surfing Web sites has the INTENT to go out that evening for some entertainment and dining.
That all changes with mobile advertising, where the cell phone marries voice and visual technologies in a unique, compelling way to deliver super-targeted and timely messages.
Consider that there are 255 million mobile phones in the United States, and, in a recent survey, about 58 million people said they recalled a mobile advertisement. Half of mobile data subscribers who saw an ad responded to it by sending a text message, clicking on it or calling a specific number. If you connect those dots, it's not hard to see why research firm eMarketer forecasts mobile-messaging advertising revenues will be $1.5 billion this year, up 82 percent from last year, and reach $11 billion in just three more years. It works.
With mobile advertising, you're getting messages on the most personal of devices—one which most people say they won't leave the house without. Generic ads will not fly for mobile users, but consider an environment in which marketing messages are intimately tied to a user's intent and, in most cases, location.
Imagine a call scenario in which a user seeks a movie show time (demonstrating immediate intent) and gets delivered a short ad from a nearby restaurant. Surveys show that 50 percent of all moviegoers state that they also visit a dining establishment when going out to a theater. Now combine that intent with other incentives to entice the caller, such as offering a free dessert with a promotion only good for that day. The user agrees, and a coupon is the caller as a text message to show to the food-server at the restaurant. Unlike other forms of advertising such as TV, radio, newspaper or even online, this type of advertising achieves all four golden attributes that a marketer pines for: geo-targeting,...
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Innovation distinguishes between a leader and a follower.
- Steve Jobs
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Advertisement
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View updated pricing and information each week on the website for the following food-commodity markets:
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Beef, Veal & Lamb |
View Detail |
The October 1st US cattle on feed inventory was 5% less than a year ago. September cattle placements into feedlots were 5.4% lower than the prior year. The November 1st near slaughter ready cattle supply is estimated to be notably smaller than 2007. Limited cattle supplies should cause beef output to trend below year ago levels this fall. Beef buyers continue to limit purchases for immediate needs due to economy triggered beef demand concerns. Most of the beef markets are tracking downward. Prices per pound FOB from USDA.
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Dairy |
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September US milk output was estimated by the USDA to be 1.7% more than last year due to a 1.1% larger milk cow herd and a .6% increase in milk per cow yields. The September milk cow herd was 15,000 head less than July and marked the first consecutive 2 month decline in 2 years. Additional milk cow herd reductions may be pending which eventually should be bullish for the dairy markets. The CME cheese markets are weakening. The butter market remains fairly firm. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The 6 week moving average for broiler egg sets is now 6.9% less than the prior year; however the decline in egg sets has been tempered some in the last 2 weeks. For the most part, chicken output is currently trending below 2007 levels and additional production decreases may be impending. The chicken wing markets are reacting upward. Models suggest the cut wing market should rise about $.20 during the next 10 weeks. The chicken breast markets could settle fairly soon. Retail chicken prices rose for the eighth consecutive month in September setting a new record. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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September US Gulf of Mexico shrimp landings were 49% less than a year ago. 2008 through September US Gulf shrimp landings were 28% lower than the 5 year average. Inflated fuel costs have slowed US shrimp fishing throughout this year, but the recent decline in fuel prices could bring a boost to US shrimp fishing in 2009. The shrimp markets remain steady to weak. The whole salmon market is tracking downward. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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Pork production last week declined .8% and was .3% less than 2007. Pork output should build in the coming weeks which could add modest downward pressure on several of the pork markets. The value of the US dollar continues to appreciate sharply which will likely contribute to a slowdown in US pork exports. Curtailed pork exports could be bullish for the belly market in 2009 as bellies are not typically a heavily exported item. Prices per pound FOB from USDA.
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Produce |
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The chief lettuce harvest district in California has begun to transition south to the Huron area. Due in part to water restrictions, lettuce acreage in Huron is estimated to be down substantially this year. This factor and slow growth due to recent cool weather could cause fairly inflated lettuce prices to persist during the next few weeks. The tomato markets are beginning to firm. The tomato harvests are also beginning to shift south in both the east and the west. Additional modest tomato market increases may be impending. The avocado market is trending downward. Prices shipping point unless noted (terminal) FOB from USDA
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Oil and Grains |
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A rapidly appreciating US dollar and falling crude oil prices have influenced the grain markets lower in recent weeks. Erratic grain prices should persist this fall. Prices per pound (oils) or bushel (grains) FOB from USDA.
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Canned and Frozen Food |
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Tomato Products, Canned - The US tomato for canning harvest has basically ended with overall production estimated at 12.3 million tons, 2% less than the prior year. The canned tomato markets are firm due to raw product cost increases. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - The canned vegetable markets remain firm with fairly adequate supplies. Steady to modestly higher canned vegetable prices are anticipated to endure during the next several months. Prices FOB per case from Supply and Market Report.
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Here's something that has helped us
Community member Tom102389 writes...
This won't save anyone who's in deep but every little thing you do helps. This was my wife's idea. I'm sure something like this has been done before but I will say it was original to her.
Every month we mail out to the local schools certificates called "Sister Sarah's Super Star Award". Every teacher in grade k thru 12 gets one to hand out. One per month per class. The award has that diploma/award look to it. It entitles the student to a free meal at our restaurant...
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Profit Share Agreements
Community member Eats by the sea writes...
I am trying to devise a profit share system for the chef of my restaurant. Has anyone done this? Looking for some advice. Thanks so much. ...
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In these economic times....
Community member svenswife writes...
I have read in several places including this forum that during these times..we should be getting back to basics. Basics include routines...great customer service...watching your daily expenses etc. I will be the first to admit that I was not trained in foodservice when I came into this business. I would be very interested in hearing from this group of professionals....if you had to pick 3 things to focus on for the next 3 months...what would they be? ...
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I have Dwarf Siblings & Monster Parents
Grown in hot regions all over the world, I am the most popular of all tropical fruits. Carib Indians hung me either whole or a crown of my leaves above the entrance to their huts as a sign of welcome and a promise of food and drink. I am native to the lowlands of Brazil, and spread throughout the world easily propagated by cuttings. I have dwarf siblings whose core is completely edible and I have monster parents who weigh over eleven pounds each. If you want me to be sweet, you better pick me ripe because I have no reserve of starch to convert to sugar. I can be used fresh, sautéed, broiled, grilled, frozen, chunked, rung, or juiced. I am famous as a cake but you would have to stand on your head to see me. I have also been used as a sore throat remedy and a meat tenderizer.
What am I?
The Food Quiz has is brought to you by Culinary Specialty Produce, a specialty produce broker that scours the world for the very best in specialty produce. Contact them at 908-789-4700 or by sending an email to info@culinaryproduce.com.
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