ATLANTA -- Banners, billboards, blinking signs and waiters at casual-dining restaurants are spreading the word: Takeout is in.
This segment, which includes such chains as Chili's, TGI Friday's and Bennigan's that have built their business on eat-in dining, has seen sales fall over the last year, and that's what's spurring the takeout focus, industry experts told SN.
"Chili's To Go" billboards have sprung up in a number of areas, and in Kennesaw, Ga., right on restaurant row, a huge, colorful banner, draped across the front of a Chili's, delivers the to-go message. Meanwhile, waiters and waitresses at TGI Friday's and Bennigan's have begun reminding customers that they can stop by any evening and pick up dinner to take home. Outback Steakhouse launched a campaign more than a year ago to remind customers they can call in takeout orders. Ruby Tuesday, making its entire dine-in menu available for takeout, has launched curbside delivery at a number of its locations.
Beefing up the carryout business works to get current customers back more often, said Peter Keiser, senior marketing director, at Bob Evans Restaurants, a Columbus, Ohio-based, casual-dining chain.
"For us, it's been an opportunity to grow incremental sales. There's no cannibalization taking place. Carryout supports people when they're looking for an alternative to cooking, but want to eat at home," Keiser said.
He explained his company has found its most effective marketing of carryout takes place within its own four walls. Through merchandising and signage, and most recently via check holders, the company builds awareness that its 100-plus menu items all are available for carryout.
"What we're doing is capitalizing on our existing customer base, strengthening our relationship by providing another opportunity for them to become loyal Bob Evans customers. I'd advise anyone going into the carryout business to focus on their current customer base."
Bob Evans has pioneered efforts among casual-dining restaurants to market carryout. After some testing, the company began introducing customers to its Carry Home Kitchen in 1999 and has seen double-digit growth of carryout each year. With the rollout completed last year, all 523 units now have a Carry Home Kitchen, with separate register system, dedicated parking, and in some cases, special entrances. The idea is to make it easy and convenient for customers to order any of its huge variety of items to take home.
Indeed, the high-variety menu that's the hallmark of the casual-dining segment is also its ace-in-the-hole when it comes to cultivating takeout business, industry observers told SN. "Just in the past three months I've seen restaurants like Appleby's and Friday's here emphasizing that their takeout menu is not limited, and their variety is excellent. People will think of them instead of pizza or the local Chinese takeout. Supermarkets are missing an opportunity by not calling attention to their [hot] takeout items. Just a banner on the outside of the building or in the window would help," said consultant Stephan Kouzomis, president, The Meal Market Solutions Group, a division of Entrepreneurial Consulting, Louisville, Ky.
Recognizing that variety is the key to getting customers to the hot case more than once a week, D&W Food Centers, Grand Rapids, Mich., has just added ribs to its hot, ready-to-go selection and will add more items, officials said.
"We identified a gap, an opportunity for incremental sales. In fact, one of our objectives is to give customers a maximum number of reasons to visit our locations," said Tom DeVries, D&W's director of deli-bakery-food services.
"I think it's important to offer variety, a controlled variety, to make us a valid place to visit more than once a week. As an industry, we limit ourselves as to the number of transactions we can expect from our customer base. Frankly, how many times can you eat chicken? Nationwide, walk into most supermarkets, and your two options [for hot, take-home food] are rotisserie chicken and fried chicken."
D&W has had a successful chilled foods business for some time, but this is its first strong push to increase visits to its hot food, self-service case.
"When people talk about the percentage of the consumer's food dollar that food service is getting, they're not talking about chilled. The focus is on hot, simple, immediate and convenient, and we want more of that business. Those national, restaurant chains just see there's a tendency these days to want to eat at home, and they're trying to develop an awareness that the things already on their menu can be purchased to take home," DeVries said.
Since D&W added ribs -- slabs and half slabs -- slow-cooked in-store in a locally revered, branded barbecue sauce, total sales from the hot food, self-service case have risen 15% to 20%. Besides the newly added ribs, D&W's hot menu includes herb-crusted pork loin and rotisserie turkey breast, as well as rotisserie and fried chicken.
One industry consultant said he wondered why more supermarkets don't market what they've already got in the way of meal items.
"Some supermarkets have very good food, definitely restaurant-quality, but they don't market it at all. Look, I'm a food service guy, but I can tell you the best sub sandwich I've ever had was at Publix," said Ira Blumenthal, president, Co-Opportunities, Atlanta, referring to the Lakeland, Fla.-based independent retailer.
"I've had sandwiches all around the world, and I think the Publix organization has the best sub there is," he added.
"Plus, buying it at Publix is convenient because I can get a sub, and also buy Jello or a six-pack of Coke at the same time," he said. "With a little marketing, their sub business could explode."
