Latest / Choppin’ It Up by Bloomberg Intelligence / Bikky’s Kapur on Saturation of Third-Party Ads

Transcript

Bikky’s Kapur on Saturation of Third-Party Ads · Choppin’ It Up by Bloomberg Intelligence

0:11
Speaker 1: Welcome to Chopping It Up.
0:13
Speaker 2: I'm your host, Mike Hanlon, the senior restaurant and food
0:15
Speaker 2: service analyst at Bloomberg Intelligence. Our research and that of
0:20
Speaker 2: bi's five hundred analysts around the globe can be found
0:22
Speaker 2: exclusively on the Bloomberg terminal. If you enjoy the pod,
0:26
Speaker 2: do me a big favor and give us a five
0:28
Speaker 2: star review on Apple or Spotify.
0:30
Speaker 1: It'll help us in the algorithm.
0:33
Speaker 2: Today we're joined by Abanov Kapor, founder at Biki. Bickie
0:37
Speaker 2: helps restaurant chains use data to increase customer frequency and
0:40
Speaker 2: reduce chern.
0:41
Speaker 1: Welcome to the pod.
0:43
Speaker 3: Abanov, Thanks Mike, like I said, like I was saying
0:45
Speaker 3: in the print. First time caller, long time listener, So
0:48
Speaker 3: thank you for having me.
0:49
Speaker 2: Yeah, man, I appreciate your support. Yeah, I'm glad you
0:54
Speaker 2: like it. What inspires you to create Biki?
0:57
Speaker 3: Yeah, happy to so. Vicky is a customer data platform
1:01
Speaker 3: for restaurants. You know, like many entrepreneurs, it started from
1:04
Speaker 3: a very personal problem and very personal passion, not too
1:07
Speaker 3: disimilar for you. My I don't have a formal restaurant background.
1:11
Speaker 4: My training was in Wall Street investment banking.
1:14
Speaker 3: For a while equity research worked at the FBI sa
1:17
Speaker 3: ter in the financial crisis. That was my first That
1:19
Speaker 3: was my first job out of college. But my mother
1:22
Speaker 3: in law was a restaurant operator here in New York City.
1:24
Speaker 3: She created one of the first fine dining Indian restaurants
1:28
Speaker 3: to star New York Times raided ran it for twenty years.
1:31
Speaker 3: And you know, being a good son in law and
1:34
Speaker 3: having an office around the corner from her restaurant, I
1:35
Speaker 3: would go in and get free lunch every now and then.
1:37
Speaker 3: And I walked in one day. I'll never forget it.
1:40
Speaker 3: She's she's looking at a Grove Lub delivery tablet. Now
1:42
Speaker 3: these don't really exist anymore, but you know, gen Z
1:46
Speaker 3: has no idea what is delivery tablet is, but for
1:49
Speaker 3: us older heads, we certainly know. And she was looking
1:51
Speaker 3: at a Grabo delivery tablet and she had a pen
1:53
Speaker 3: in one hand notebook in the other.
1:55
Speaker 4: I was like, what are you doing. She's like, oh,
1:57
Speaker 4: I recognize.
1:57
Speaker 3: This person's name on the tablet, so they're obviously a
1:59
Speaker 3: loyal gut some writing down their phone number. And I
2:01
Speaker 3: was like why, and she's like, I just want to
2:03
Speaker 3: call them and see if they had a good experience.
2:05
Speaker 3: I was like, that's baller, Like, I've never received a
2:08
Speaker 3: phone call after a delivery order before, so that first
2:11
Speaker 3: off blew me away.
2:12
Speaker 4: Two days later, r at our house.
2:14
Speaker 3: And she's like, help me with something on my computer
2:16
Speaker 3: and she flips around her laptop.
2:17
Speaker 4: I was like, what are you trying to do?
2:19
Speaker 3: And she's like, well, all these people made a reservation
2:21
Speaker 3: on open table this week. I just want to email
2:22
Speaker 3: them and see if they had a good experience. And
2:25
Speaker 3: I think those two moments back to back are where
2:28
Speaker 3: it all sort of triggered this obsession where it's like, literally,
2:31
Speaker 3: the restaurant business is probably more so than any business
2:35
Speaker 3: needs to be customer centric, guest centric, just truly understanding
2:39
Speaker 3: who their customers are, what drives their behavior, what makes
2:41
Speaker 3: them come more often, less often, et cetera. And you know,
2:44
Speaker 3: it didn't matter if I was speaking to a single
2:47
Speaker 3: unit operator like my mother in law, or you know,
2:49
Speaker 3: brands with thousands, you know, with thousands of units, they
2:52
Speaker 3: would all say, look, we have all this data in
2:53
Speaker 3: all these places, and we don't really know anything about
2:56
Speaker 3: the person behind the transaction. And so that you know,
2:59
Speaker 3: has really driven us since day one, is just aggregating
3:03
Speaker 3: all that data, building profiles on the guests, and then
3:06
Speaker 3: giving operators the ability to understand when they pull a
3:09
Speaker 3: lever to grow the business on the marketing side, on
3:11
Speaker 3: the menu side, on the op side, right, Like my
3:13
Speaker 3: mother in law would do Restaurant Week and she would
3:15
Speaker 3: always say, look, I'm doing this prefix menu, but I
3:18
Speaker 3: have no idea if I'm getting a new guest on
3:21
Speaker 3: that prefix menu, or if I'm taking a loyal guest
3:23
Speaker 3: and just pulling their visit forward. And if I am
3:25
Speaker 3: pulling their visit forward, am I getting that incremental visit
3:28
Speaker 3: when they normally would have come anyway? And you look
3:31
Speaker 3: at this sort of value conscious environment where people are
3:33
Speaker 3: doing loyalty promotions, people are trying to be segmented marketing
3:36
Speaker 3: people are doing ltos, they're doing value bundles, They're pulling
3:39
Speaker 3: all these levers to fight for traffic and attention and share.
3:44
Speaker 3: And I guarantee you the vast majority of brands that
3:46
Speaker 3: are executing these initiatives, the only real metric they're looking
3:49
Speaker 3: at is p mix or top line sales, And if
3:52
Speaker 3: sales is going up or if it's four percent of mix,
3:55
Speaker 3: they're like, hey, I guess it's working. But what's missing
3:58
Speaker 3: is really the input of those metrics, the real insight
4:02
Speaker 3: into traffic, frequency, retention, lifetime value, the things that ultimately
4:06
Speaker 3: drive percentage of mister percent or total sales in the
4:09
Speaker 3: first place. So it's been a fun journey. You know,
4:12
Speaker 3: we work with brands like Daves Hot, Chicken, Longtown, Silvers, Bojangles,
4:15
Speaker 3: Like I think we are the largest and fastest growing
4:17
Speaker 3: company exclusively focused on you know, CDP for restaurants and continuing,
4:23
Speaker 3: you know, to see great momentum as as brands increasingly
4:26
Speaker 3: think about adopting data driven decision making and thinking very cool.
4:31
Speaker 2: You're used to working on the pressure first gig out
4:33
Speaker 2: of school fd I see during the GFC, man, that's wild.
4:38
Speaker 3: I mean one of the yeah, one of the like,
4:40
Speaker 3: one of the tasks was one of the projects was
4:44
Speaker 3: helping my mentor at the time build the model to
4:47
Speaker 3: project to project the number of bank failures and the
4:50
Speaker 3: drain on the deposit Insurance Fund to figure out what
4:54
Speaker 3: the special assessment tax should be, that one time tax
4:57
Speaker 3: that the FDIC implemented to basically replenished the deposit insurance
5:01
Speaker 3: fund ahead of failures. And like, you know, I was
5:04
Speaker 3: fresh out of college and I was just like I'm
5:07
Speaker 3: grow lucky to find a job first and foremost in
5:09
Speaker 3: two thousand and eight, you know, I think Indiemac failed.
5:12
Speaker 3: Like July, it was like right before I started, and
5:16
Speaker 3: so just fortune to find a job and then fortunate
5:18
Speaker 3: to find something that was relatively close to the nerve
5:21
Speaker 3: center of everything that was happening. So there was definitely
5:25
Speaker 3: a little bit of pressure.
5:25
Speaker 4: I was junior.
5:26
Speaker 3: I would say the people above me probably a lot
5:28
Speaker 3: more pressure than I did.
5:30
Speaker 4: But I was happy to be a log for the ride.
5:33
Speaker 1: Very cool. And your mother in law, what was the
5:36
Speaker 1: name of a restaurant.
5:37
Speaker 3: Yeah, it was called Umma on fifty first between second
5:41
Speaker 3: and third close for a second Avenue. And you know,
5:43
Speaker 3: I take a lot of inspiration from how she was.
5:45
Speaker 3: And she came to this country when she was like
5:47
Speaker 3: nineteen years old, didn't know the language, didn't know the culture,
5:50
Speaker 3: recently married, and her and my father in law were
5:53
Speaker 3: just they just started businesses together. They had gas stations,
5:56
Speaker 3: they did import export, and I was thinking about this,
5:59
Speaker 3: I'm thirty nine now.
6:00
Speaker 4: My wife and I were talking this.
6:01
Speaker 3: They started the restaurant when they turned forty, and so
6:04
Speaker 3: they just went into like they saw a need. I
6:06
Speaker 3: think Doubbla with Union Square. Hostiality was maybe the only
6:09
Speaker 3: other truly upscale, white tablecloth Indian restaurant at the time,
6:13
Speaker 3: and so they saw a need and like we want
6:15
Speaker 3: to be one of the first, we want to be
6:16
Speaker 3: the best. And with no previous restaurant background, they they
6:20
Speaker 3: just created this.
6:21
Speaker 4: You know, she still gets text from people.
6:23
Speaker 3: You know, they closed the restaurant a few years ago,
6:25
Speaker 3: she still gets text from people. It's like, I wish
6:28
Speaker 3: I'm always still open. I need a place like in
6:31
Speaker 3: midtown eies Ron the upperside just bring my family on
6:33
Speaker 3: a Sunday night and like have a relaxed a relaxed
6:36
Speaker 3: environment and a relax meal.
6:38
Speaker 4: And you know, it's amazing, Like this industry is so.
6:41
Speaker 3: Unique in that way where you can go years without
6:45
Speaker 3: having been to a restaurant and you can still be like, man,
6:48
Speaker 3: I wish I could go back there, or man, I
6:50
Speaker 3: still remember when I used to go there.
6:51
Speaker 4: It's so it's so unique and so rare.
6:54
Speaker 3: And I think one of the things that again like
6:56
Speaker 3: sparks my passion for like why why can't they have
6:59
Speaker 3: the same tools, Why can't they have the same level
7:01
Speaker 3: of data access insight technology to grow their business the
7:05
Speaker 3: way every world class business operates. And so that's again
7:08
Speaker 3: very much or to our mission, Epicky.
7:11
Speaker 1: I love that. What makes Bicky different from other data
7:15
Speaker 1: platforms out there?
7:17
Speaker 3: Yeah, I mean historically, you know, like the way we
7:19
Speaker 3: think about it is, restaurants have never really had true
7:25
Speaker 3: customer level insight when it comes to data. You know,
7:28
Speaker 3: they've had if you zoom out like the two sort
7:31
Speaker 3: of imperfect like of course necessary but imperfect approaches to
7:34
Speaker 3: solving what we do has either been the loyalty program,
7:37
Speaker 3: which for most brands is only ten to twenty percent
7:40
Speaker 3: of the customer base or sales, and sales is a
7:43
Speaker 3: very noisy, output driven metric, right like launching a menu
7:46
Speaker 3: item and saying it's four percent of sales. It doesn't
7:49
Speaker 3: tell you if you're bringing a new guests, if those
7:51
Speaker 3: guests are coming back, if they're coming back more frequently
7:53
Speaker 3: than a new guest to order a core menu item,
7:56
Speaker 3: if it's changing the frequency of your existing guess, if
7:58
Speaker 3: it's cannibalizing something else on the then you like, there
8:01
Speaker 3: are so many sub questions that are just not answered
8:04
Speaker 3: not able to be answered by top line sales data
8:07
Speaker 3: on the loyalty program it's only against small sample size,
8:11
Speaker 3: and it's great first party data, but the behavior of
8:14
Speaker 3: those guests isn't actually biased, right. They're either going to
8:17
Speaker 3: be your most frequent guests or on the other end
8:20
Speaker 3: of the extreme, they're going to be your most discount
8:22
Speaker 3: oriented guests. And so you're also not going to get
8:25
Speaker 3: you're not going to get great insight into you know,
8:27
Speaker 3: when you when you run some of these initiatives, what's
8:30
Speaker 3: actually moving the needle because you're just looking at.
8:32
Speaker 4: A small bias sample of data.
8:34
Speaker 3: And so I think what makes us different is we
8:36
Speaker 3: have integrations out of the box with all the major
8:39
Speaker 3: point of sale as well as payment providers, as well
8:43
Speaker 3: as online ordering, as well as loyalty as well as
8:46
Speaker 3: a few other channels, and so we can bring all
8:48
Speaker 3: of the digital and non digital guest data together and
8:51
Speaker 3: then really help brands understand instead of the twenty percent
8:55
Speaker 3: of guests in their loyalty program, up to ninety percent
8:57
Speaker 3: of their guests, and when you are making this decisions
9:00
Speaker 3: about your business with up to ninety percent visibility on
9:04
Speaker 3: how your decisions impact their behavior, it just changes how
9:07
Speaker 3: you operate the business full stop. So I would say
9:10
Speaker 3: the breath and the death like being restaurants specific because
9:14
Speaker 3: there's so many nuances, there's so many edge cases consumer
9:17
Speaker 3: you know, this consumer behavior it can be so noisy,
9:19
Speaker 3: you know, and so like just having focus on this
9:22
Speaker 3: problem exclusively is as I think made our data model better,
9:25
Speaker 3: has made our analytics easier to understand and more intuitive.
9:28
Speaker 3: We have a perspective when you make a decision. We
9:31
Speaker 3: give operators our perspective on how they should be analyzing
9:34
Speaker 3: the success of these initiatives. So I think all of
9:37
Speaker 3: those things kind of are underpin our secret Sauce as
9:40
Speaker 3: a data platform specifically for restaurants.
9:43
Speaker 2: Yeah, to your point, it's so important to figure out
9:46
Speaker 2: what that eighty percent of your customer base that's not
9:49
Speaker 2: in the loyalty program we're doing because the people in
9:51
Speaker 2: the loyalty program act very differently than everybody else.
9:54
Speaker 4: Yeah, I will give you another again.
9:57
Speaker 3: We have like four hundred million customer profiles in our system,
10:00
Speaker 3: and something that we seen at a high love. We
10:02
Speaker 3: did this study a couple of years ago and I
10:04
Speaker 3: think it's I think it's held up since then. Eighty
10:06
Speaker 3: percent of guests typically don't come back after the first visit, right,
10:10
Speaker 3: and so like, yes, and so like eight out of
10:12
Speaker 3: ten guests. And if I think about myself as a consumer,
10:14
Speaker 3: that makes sense, right. I have four or five items,
10:17
Speaker 3: four or five brands in my rotation. Sometimes I will
10:20
Speaker 3: go outside that rotation and try something new, and it
10:24
Speaker 3: might not even be a bad experience. But if it
10:26
Speaker 3: doesn't blow me away from a value standpoint, from a
10:29
Speaker 3: taste standpoint, from an experience standpoint, from a convenience standpoint,
10:33
Speaker 3: if it doesn't blow me away, it's really hard to
10:35
Speaker 3: replace what's currently in my rotation. Yeah, and so you know,
10:38
Speaker 3: and so again, like if eighty percent of guests don't
10:40
Speaker 3: come back, it goes to the three key metrics that
10:43
Speaker 3: we talk to operators about is how many new guests
10:45
Speaker 3: are you getting per stored per week?
10:47
Speaker 4: Number one?
10:48
Speaker 3: Number two, how quickly are you getting them to a
10:50
Speaker 3: second visit? And number three, when they when they are
10:54
Speaker 3: on a regular cadence they come daily, weekly, multi quarterly,
10:57
Speaker 3: are you making sure that you are keeping as any
11:00
Speaker 3: of them as possible? We call this late late guests?
11:02
Speaker 3: Are you constantly recovering late guests? There's just a naturally
11:05
Speaker 3: high degree of churn just given the industry, because there's
11:07
Speaker 3: a lot of choice out there, and again there's a
11:09
Speaker 3: lot of price sensitivity in this environment, and so it's
11:12
Speaker 3: just getting new guests, getting it to come back for
11:14
Speaker 3: a second visit faster because the probability that they keep
11:17
Speaker 3: coming back after that goes up dramatically, and then reducing
11:20
Speaker 3: the amount of later urn guests that you have.
11:22
Speaker 4: Those are the three most influenceable parts of the fund.
11:25
Speaker 4: Very cool.
11:26
Speaker 2: So in my world, you know, the world of publicly
11:28
Speaker 2: traded restaurants, the chains that are outperforming on sales and
11:32
Speaker 2: traffic are doing it in a variety of ways this year,
11:35
Speaker 2: but we are seeing certain themes pop up over time.
11:40
Speaker 2: What keeps cropping up in your data?
11:42
Speaker 3: Yeah, I think the one thing that's interesting this I
11:45
Speaker 3: did this analysis earlier in the year when I was
11:49
Speaker 3: looking at brands and how they are our clients and
11:51
Speaker 3: how they're performing relative to some industry benchmarks. And the
11:55
Speaker 3: things I found were brands that were very very value
12:00
Speaker 3: you conscious, like before, like they are not they don't
12:02
Speaker 3: need to necessarily discount because they're already value oriented, are
12:07
Speaker 3: doing well right now. Number two, brands that are super
12:10
Speaker 3: indulgent are doing well right now. And so like you know,
12:13
Speaker 3: because people, if people want to spend on restaurants. They
12:17
Speaker 3: will go with something that they know taste good, is affordable,
12:21
Speaker 3: but sometimes they want to they want to splurge, they
12:23
Speaker 3: want to treat, and this is this is this doesn't
12:25
Speaker 3: necessarily mean dessert. Like this could be you know, a
12:29
Speaker 3: hot chicken concept that feels indulgent, that feels experiential, but
12:34
Speaker 3: it's still a fast casual brand as an example, and
12:37
Speaker 3: has a naturally higher average check. They may have a
12:39
Speaker 3: twenty eight dollars average check instead of a traditional you know,
12:43
Speaker 3: QSR which is fifteen bucks or lower. And so like,
12:46
Speaker 3: those are the things that that we've seen do well.
12:49
Speaker 3: I will say, like when it comes to a consistent
12:51
Speaker 3: theme that we see brands that work with bicky, A
12:55
Speaker 3: consistent theme that in way in terms of how they're
12:57
Speaker 3: using the data to improve through to improve traffic is
13:01
Speaker 3: menu optimization. I think a lot of the brands that
13:04
Speaker 3: are doing well today have tighter menus. They're just easier
13:08
Speaker 3: to execute. And then from a consumer's perception standpoint, they
13:12
Speaker 3: know who they are, they stick to what they are,
13:14
Speaker 3: and in the mind of the consumer, they're like, if
13:16
Speaker 3: I want X, I'm going to go to that brand,
13:19
Speaker 3: right because I know that that's what that brand stands for.
13:22
Speaker 3: And so we're seeing a lot of people start to
13:24
Speaker 3: rationalize their menus and cut and basically just shrink the
13:27
Speaker 3: number of items to try and one more clearly differentiate
13:31
Speaker 3: who they are in the marketplace. And then two, I
13:33
Speaker 3: think easy operational burden on frontline teams and their franchisees.
13:38
Speaker 3: So I'd say those are like a few of the
13:39
Speaker 3: emerging trends that we've been seeing.
13:42
Speaker 2: Yeah, operations has been huge, and with the large national chains,
13:47
Speaker 2: you know, nailing those operations, you know, because people are
13:50
Speaker 2: more discerning with their dollars and if they have a
13:52
Speaker 2: bad experience, they're not likely to come back, and so
13:54
Speaker 2: you really got to got to nail those options. Yeah,
13:57
Speaker 2: and it's interesting, indulgent and value. That's you know, during
14:00
Speaker 2: that you mentioned the GFC. During the GFC, that's the
14:03
Speaker 2: similar themes we saw.
14:05
Speaker 3: Yeah, But I think, look, I think if you look
14:07
Speaker 3: at this is this is.
14:10
Speaker 4: A hypothesis I've had for a while.
14:11
Speaker 3: I don't I haven't like revisited it, and I don't
14:14
Speaker 3: necessarily know how it's playing out, but it's something that
14:16
Speaker 3: feels true, which is, you know, if you look at
14:18
Speaker 3: the history of retail, people either went experiential or they
14:22
Speaker 3: went convenience, and like like they anchored on one of
14:26
Speaker 3: those two axes, and the middle your traditional department stores,
14:30
Speaker 3: pretty much everything in the mall except the Apple store
14:32
Speaker 3: just got hollowed out and did not exist. And it
14:35
Speaker 3: feels like as the restaurant business goes increasingly digital and
14:40
Speaker 3: this consumer choice increases and competition increases and cost pressures increase,
14:45
Speaker 3: it feels like the restaurant business is going in that
14:47
Speaker 3: same direction. It's either going very experiential and indulgent or
14:53
Speaker 3: it's going super super convenience oriented. The thing that breaks
14:56
Speaker 3: that a little bit is third party delivery, honestly, because
15:00
Speaker 3: those I feel that that is a consumer that is
15:02
Speaker 3: just not cost sensitive at all and can basically they
15:06
Speaker 3: have enough discretionary income to kind of gravitate between those
15:10
Speaker 3: two axes.
15:10
Speaker 4: Whenever they want, how are they want or.
15:13
Speaker 3: Get the indulgent thing in a convenient way, which again
15:15
Speaker 3: like breaks that a little bit, which you know, food
15:20
Speaker 3: is just a naturally different use case than traditional e
15:21
Speaker 3: commerce or retail. But that's the way it has felt
15:24
Speaker 3: for a while where it's like if you're in the
15:26
Speaker 3: middle and you don't know who you stand for, and
15:28
Speaker 3: you try to be all things to all people, you're
15:30
Speaker 3: starting to get hollowed out, especially as the environment gets tougher.
15:36
Speaker 3: And I think that again, like that ties into a
15:37
Speaker 3: very like practical tactic of hey, maybe we need to
15:40
Speaker 3: rationalize the menu because our messaging on literally our product,
15:46
Speaker 3: our most valuable thing that we serve our guests, is
15:48
Speaker 3: a little muddled here, you know. And so I think
15:50
Speaker 3: that's the It's interesting how people start to use the
15:52
Speaker 3: data again to before it was pmix and now it's
15:55
Speaker 3: just like, Okay, what what does this do from a
15:57
Speaker 3: retention standpoint?
15:58
Speaker 4: What does this do from a traffic standpoint? And so
16:00
Speaker 4: we're happy to play a part and helping them make
16:02
Speaker 4: some of those decisions.
16:04
Speaker 1: Yeah, and I would agree with that hypothesis.
16:06
Speaker 2: I mean it really sure seems that change that are
16:10
Speaker 2: focusing on one of those seemed to be outperforming. But yeah,
16:13
Speaker 2: maybe we'll get together and dig up some data see
16:16
Speaker 2: what's going on.
16:16
Speaker 3: Yeah, we gotta do some site visits together. I think
16:19
Speaker 3: that's the thing that sounds fantastic. I'm down you're in Jersey.
16:23
Speaker 3: There's some good cut salad house. One of our partners
16:25
Speaker 3: in Jersey I'll go to a salad house.
16:27
Speaker 1: With you and I have to check that out. Yeah yeah,
16:31
Speaker 1: all right, cool. Why have so many loyalty programs failed? Man?
16:35
Speaker 1: And who's doing it? Right? Yeah?
16:37
Speaker 3: I think it's it's tough the loyalty program, the loyalty
16:46
Speaker 3: program ecosystem, Like you had this sort of post pandemic,
16:51
Speaker 3: You had this wave of adoption, right because by necessity,
16:53
Speaker 3: it was like, I'm never going to see these guests
16:56
Speaker 3: because literally, especially in major cities, like people are working
16:59
Speaker 3: from home home, and so I need to build a
17:02
Speaker 3: digital ecosystem to attract them.
17:04
Speaker 4: You know.
17:05
Speaker 3: In terms of why, I felt there's a lot of
17:06
Speaker 3: different layers. So that one is third party delivery had
17:10
Speaker 3: already invested hundreds of millions of dollars in building their
17:13
Speaker 3: own digital ecosystems for years prior to restaurants. Decidedly, we're like,
17:19
Speaker 3: we're going all in and we need and we need
17:21
Speaker 3: our own loads from our loan and our own digital ecosystem.
17:25
Speaker 3: I think from there, if you just look at like
17:27
Speaker 3: maturity curve from e commerce standpoint, restaurants are just now
17:31
Speaker 3: starting to hire for a role like the chief digital officer,
17:35
Speaker 3: which is someone who is exclusively focused on digital channels,
17:38
Speaker 3: whereas again previously, like to a certain extent.
17:40
Speaker 4: They were just playing.
17:42
Speaker 3: There were three years behind the game. Yep, you know
17:44
Speaker 3: when it came to actually building a digital ecosystem and
17:48
Speaker 3: beyond that, you're not thinking when you're three years behind,
17:52
Speaker 3: you are not thinking about You're just thinking about how
17:54
Speaker 3: do I go from zero to one?
17:56
Speaker 4: You are not thinking about how.
17:58
Speaker 3: Do I make this experience as frictionless as possible, how
18:02
Speaker 3: do I help someone go from search to click to
18:06
Speaker 3: food to purchase to food in my hands as quickly
18:09
Speaker 3: as possible versus like the third parties again for years
18:13
Speaker 3: have been thinking about that and spending time on that
18:14
Speaker 3: and spending money on that, And so I think that's
18:17
Speaker 3: number one.
18:17
Speaker 4: I think number two.
18:18
Speaker 3: Also, there are a lot of brands just don't have
18:21
Speaker 3: differentiation from a loyalty standard, Like it's very hard to
18:25
Speaker 3: get on someone's home screen on their phone, Like I
18:27
Speaker 3: don't think like you know, I download apps all the time,
18:32
Speaker 3: but nothing really things make it to the back panels
18:36
Speaker 3: of my phone.
18:37
Speaker 4: You have to swipe, slide side flighted flights. It's very
18:39
Speaker 4: ready to get on that front screen.
18:40
Speaker 3: And if you are not on that front screen, you're
18:43
Speaker 3: not consistently top of mind, and so I think that's
18:46
Speaker 3: that's another thing.
18:46
Speaker 4: It's just like it's hard to break through that noise.
18:49
Speaker 3: The third thing I will say also is a lot
18:52
Speaker 3: of brands didn't necessarily invest in differentiation of their loyalty program.
18:56
Speaker 3: Like what we tell folks back in twenty nineteen or
18:59
Speaker 3: twenty twenty is like you got to either be more
19:01
Speaker 3: competitive unpriced, more competitive on menu offerings, like literally the
19:06
Speaker 3: menu items that you offer on first party are exclusive
19:09
Speaker 3: to first party and can't be on third party, or
19:12
Speaker 3: the loyalty program incentive structure needs to be so strong
19:17
Speaker 3: that it is a viable hook for a consumer to say,
19:23
Speaker 3: if I want Jersey, I'm just throwing this out there,
19:25
Speaker 3: if I want Jersey Mikes, I'm gonna go to the
19:27
Speaker 3: Jersey Mikes at because I need my short points because
19:29
Speaker 3: I can do things. And to your question about who's
19:32
Speaker 3: doing well, because I can do things like earn rewards faster,
19:35
Speaker 3: So in terms of who's doing it well, I think
19:37
Speaker 3: Dominoes was one of the first to do this where
19:40
Speaker 3: they just lowered the threshold for redeeming things and so
19:43
Speaker 3: they basically shorten the feedback loop, like if I got
19:46
Speaker 3: to spend ninety nine dollars to get nine bucks, I
19:50
Speaker 3: need to be ordering Dominoes four times a month to
19:53
Speaker 3: get one reward a month.
19:55
Speaker 4: And I don't know about you, but like as I like,
19:58
Speaker 4: I'm a New Yorker. I have my on Dono's pizza.
20:00
Speaker 3: But i still eat Domino's pizza because it's the cheapest
20:03
Speaker 3: way to feed a family in this environment.
20:05
Speaker 4: But I'm not ordering it four times a month. And
20:08
Speaker 4: so something that they did.
20:09
Speaker 3: Very strategically a year ago was they just lowered the
20:11
Speaker 3: threshold to redeem them to redeem an incremental reward, and
20:16
Speaker 3: that drives a flywheel. Again going back to what I
20:18
Speaker 3: said earlier, which is how do you shorten the time
20:21
Speaker 3: between visits? And if you use your awards program as
20:24
Speaker 3: an incentive to shorten the time between visits because you
20:27
Speaker 3: are getting something free faster on that next trip, that
20:31
Speaker 3: is some That is a strategy that we are seeing
20:33
Speaker 3: work really well. Another thing is the marketplace of rewards concept,
20:36
Speaker 3: which instead of you defining you hit this tier and
20:41
Speaker 3: you get X, it's you hit this tier and you
20:43
Speaker 3: can choose from these three or four things, and so
20:45
Speaker 3: you're giving the consumer a little bit, a little bit
20:48
Speaker 3: of choice, and it could be a food item, it
20:49
Speaker 3: could be a piece of swag. And again, so you're
20:51
Speaker 3: redeeming more, you're offering more options to the guests unredeemables,
20:55
Speaker 3: and you're letting it happen faster. And I think those
20:58
Speaker 3: are the things that are really out from a loyalty
21:01
Speaker 3: program standpoint, that are working and you know, like it's
21:04
Speaker 3: paying off. Like I look at our data, we see this.
21:06
Speaker 3: We have like a little chat GPT style tool called
21:09
Speaker 3: data as System where it's just chatcheept on your bikie data.
21:12
Speaker 3: One of the more common questions that we get is
21:14
Speaker 3: what is the frequency of my loyalty guests versus my
21:17
Speaker 3: non loyalty guests, And anecdotally, just looking through some of
21:20
Speaker 3: those questions, typically what we see is it's six to
21:23
Speaker 3: eight ats higher, meaning like a loyalty program guest will
21:26
Speaker 3: come six to eight times more often than a non
21:29
Speaker 3: loyalty guest. So the value is certainly there, the ROI
21:31
Speaker 3: is certainly there. It's just making it just having a
21:35
Speaker 3: good enough incentive to get somebody into the ecosystem in
21:37
Speaker 3: the first place, and then structuring the rewards and redeemables
21:42
Speaker 3: in a way where you are repeatedly incentivizing getting that
21:45
Speaker 3: dopamine hit of incentivizing them to keep coming back more quickly.
21:50
Speaker 4: Yeah.
21:50
Speaker 2: And it's interesting you said, you know, giving people the
21:52
Speaker 2: rewards they want, because on a recent episode, one of
21:56
Speaker 2: the guests was talking about giving people discounts that they
21:59
Speaker 2: actually want.
22:00
Speaker 4: Yeah, yeah, I was talking.
22:02
Speaker 3: I literally have a conversation this morning with h They're
22:05
Speaker 3: one of the first concepts that I've heard of this,
22:06
Speaker 3: But I was talking to a publicly traded brand their
22:09
Speaker 3: CTO this morning and he was like, look, when you
22:11
Speaker 3: when you come to the Kiosk and you type in
22:13
Speaker 3: your phone number, We've engineered it in a way where
22:15
Speaker 3: you're the rewards that are when you enter your phone number,
22:19
Speaker 3: the rewards that show up in the in the experience
22:21
Speaker 3: are tailored to you. They are your personalize like and
22:25
Speaker 3: they are the furthest and now they it's it's recently launched,
22:29
Speaker 3: so it'll be interesting to see how how it evolves.
22:31
Speaker 3: But that is the furthest end of the spectrum that
22:34
Speaker 3: I've seen in personalization, and it feels like, obviously like
22:38
Speaker 3: a worthwhile investment because to your point, making it personalized,
22:42
Speaker 3: leveraging data to speak on a as close to a
22:46
Speaker 3: one to one basis with that guest that you've seen.
22:48
Speaker 3: And this ties into, you know, the CMO servery that
22:50
Speaker 3: we did recently. Like that level of personalization is what
22:53
Speaker 3: every brand is looking for. The rob is you need
22:56
Speaker 3: a tech team to implement it and get to that point,
22:59
Speaker 3: which most still it has but just fascinating. I think
23:03
Speaker 3: could position them as one of the leaders and offers
23:06
Speaker 3: and loyalty to come.
23:06
Speaker 1: So, yeah, that's very cool. And let's switch gears.
23:10
Speaker 2: Let's talk about your recent survey of fifty chief marketing officers.
23:16
Speaker 1: What are their views about consumer spending next year.
23:19
Speaker 4: Yeah, I think it's gonna get worse before it gets better.
23:22
Speaker 3: Like the thing that and this is even the survey,
23:26
Speaker 3: you know, I think this was the only I believe
23:29
Speaker 3: this was the only response on the survey where the
23:31
Speaker 3: majority of people all voted on the same thing. And
23:34
Speaker 3: that was the thing keeping them up at night. Is
23:38
Speaker 3: further softness in consumer spending. I can tell you I've
23:41
Speaker 3: been at a lot of industry trade shows over the
23:43
Speaker 3: last you know, four weeks. I've been to like four
23:47
Speaker 3: or five in the last four weeks, and that's all
23:50
Speaker 3: everybody talks about. On the conference floor, which is we're
23:54
Speaker 3: really worried about the consumer environment. It looks like there's
23:56
Speaker 3: cracks starting to appear in the macro environment. We are
24:00
Speaker 3: gearing up to grapple with that. You know, when we
24:03
Speaker 3: do our budgeting, we're thinking about how do we optimize
24:05
Speaker 3: or spend, how do we do more with less? You know,
24:08
Speaker 3: the best way we summarize it when we talk to
24:10
Speaker 3: folks is flat is the new.
24:11
Speaker 4: Up in this environment. Right Like, if you are flat
24:14
Speaker 4: right now, you are killing it.
24:17
Speaker 3: And flat from a from a you know, that could
24:20
Speaker 3: be some folks that's flat on traffic, some folks that's
24:23
Speaker 3: minus two percent on traffic plus two percent on price.
24:25
Speaker 4: But flat seems to be the new up.
24:27
Speaker 3: And I think this is something that we started hearing
24:30
Speaker 3: at the start of last year.
24:32
Speaker 4: And you know, so we're we're two years in to this,
24:37
Speaker 4: you know, worries around the macro environment.
24:40
Speaker 3: But I can tell you that where eighteen months ago
24:44
Speaker 3: it was probably the most forward thinking operators who are
24:46
Speaker 3: talking to me talking to me about this, now I
24:48
Speaker 3: can tell you it's much more pervasive and widespread where
24:51
Speaker 3: people feel like the next six months in particular is
24:54
Speaker 3: going to be tougher from a macro and consumer standpoint
24:56
Speaker 3: than it has been in the past.
24:59
Speaker 2: I find that interesting because we you know, in the
25:01
Speaker 2: first quarter, we're lapping you know, two years of week
25:06
Speaker 2: first quarters, so you know, and then you know there's
25:12
Speaker 2: going to be some some help from the big beautiful bill,
25:16
Speaker 2: I think when it comes to tax time.
25:19
Speaker 4: So yeah, yeah, that's interesting.
25:22
Speaker 2: Yeah yeah, So from and then you know, I look
25:24
Speaker 2: at the economic data from from where I look, I'm
25:27
Speaker 2: I'm probably thinking it gets better before it gets worse.
25:30
Speaker 2: I think we might be interested in the clear for
25:33
Speaker 2: the next three quarters, but the second half I think
25:36
Speaker 2: of next year. I mean, it's so hard right now
25:39
Speaker 2: to predict this industry. It's been the most volatile year
25:43
Speaker 2: in restaurants and restaurants stocks that I've seen, with all
25:46
Speaker 2: the ups and downs.
25:47
Speaker 3: But but even Dominoes is saying, like you know, we
25:49
Speaker 3: were talking about Domino's earlier. I think, you know, I
25:51
Speaker 3: think they were saying that two four is off to
25:53
Speaker 3: a softer start than they expected. Right, you can correct
25:56
Speaker 3: me if I might be misquoting that, but I know
25:58
Speaker 3: that was like what drove some of theirselves off. And
26:01
Speaker 3: you know, I look at McDonald's and it's like they're
26:02
Speaker 3: discounting core menu items now, which is like a position
26:07
Speaker 3: I don't I haven't been in this industry long enough,
26:09
Speaker 3: but I don't know when the last time they were
26:11
Speaker 3: doing that. And then on the flip side, like you
26:13
Speaker 3: go to you look at someone like Taco Bell, which
26:15
Speaker 3: is doing well and because it appeals to all occasions,
26:19
Speaker 3: right like if you want if if you want a
26:22
Speaker 3: bean burrito on your own or something from the value menu,
26:24
Speaker 3: you can do that. If you want to feed the family,
26:27
Speaker 3: you can do the deluxe craving socks. But you can
26:28
Speaker 3: like trade up and down the menu and basically hit
26:32
Speaker 3: every consumer use case in a reasonably affordable way, and
26:35
Speaker 3: that drives the value perception. And so it's super It's
26:39
Speaker 3: to your point like it's hard to predict. It just
26:41
Speaker 3: feels like there's going to be the halves are going
26:44
Speaker 3: to get better and the have nots. There're gonna be
26:46
Speaker 3: a lot more of the have nots than there.
26:48
Speaker 2: That's what will continue to see that that gap continues
26:51
Speaker 2: to wide in between the winners and users.
26:53
Speaker 1: Man.
26:53
Speaker 2: But yeah, I'm you know, usually we do a year
26:55
Speaker 2: ahead out look, I don't know if I can predict
26:57
Speaker 2: all of next year, I may only go as far
26:59
Speaker 2: as the first first half.
27:00
Speaker 1: Man, It's it's the wild West out there right now.
27:02
Speaker 2: Yeah, especially with the stocks are even crazier than the stocks.
27:07
Speaker 4: Yeah.
27:08
Speaker 3: Yeah, I'm hoping your optimism peaks through, so I won't
27:12
Speaker 3: take your pessimistic pessimism on the back half.
27:14
Speaker 4: I'm rude for your optimism on the front half.
27:16
Speaker 1: Yeah, for sure.
27:17
Speaker 2: Man, Hey, listen, if you know me long enough, you
27:19
Speaker 2: know I'm not afraid to be bearish too.
27:22
Speaker 4: Yeah, yeah, that's for sure.
27:25
Speaker 2: All right, So consumer spending, they're afraid of weakness. Where
27:33
Speaker 2: are they finding success right now?
27:36
Speaker 4: Yeah? I think it's funny.
27:37
Speaker 3: There's this, uh, there's this two sides of the same coin,
27:40
Speaker 3: the yin and yang. But the highest roy initiative uh
27:44
Speaker 3: in this year, at least for them, has.
27:46
Speaker 4: Been loyalty promotions.
27:49
Speaker 3: Actually, loyalty promotions have been the highest roy lever for
27:53
Speaker 3: brands to pull on. You know, we're seeing, we're seeing,
27:57
Speaker 3: just anecdotally, we're seeing some brands who are doing things
28:00
Speaker 3: like giving up giving a free burger before your first
28:03
Speaker 3: loyalty visit. But then, you know, franchises might complain about
28:07
Speaker 3: discounting or might complain about like these are deal seekers,
28:10
Speaker 3: but when they look at the data, they find that
28:12
Speaker 3: it's activated. It's getting trial right, it's getting new guests
28:15
Speaker 3: into the loyalty program and the retention rate is acceptable enough,
28:20
Speaker 3: and then it drives enough repeat visits through the loyalty
28:22
Speaker 3: program where the lifetime value again is you know, five
28:27
Speaker 3: to eight x higher over the long term lifetime value
28:30
Speaker 3: of that guess. So it's like giving up if like
28:32
Speaker 3: I'll give away a ten dollars burger if I'm going
28:35
Speaker 3: to make one hundred and fifty bucks over the lifetime
28:37
Speaker 3: of the guest long term.
28:38
Speaker 4: And so we're seeing brands start to i think.
28:40
Speaker 3: Strategically leverage promotions through their loyalty program to drive ro y.
28:45
Speaker 3: It's not blanket discounts. And I think this is the
28:47
Speaker 3: other nuance. It's not blanket discounts. It is being data driven.
28:50
Speaker 3: It is being smart.
28:51
Speaker 4: About measuring which offers are driving incrementality. That's really working.
28:56
Speaker 3: The number two place where they're finding where they're seeing
28:59
Speaker 3: our local store marks, which I think is a little
29:02
Speaker 3: you know, has been historically overlooked in sort of this
29:05
Speaker 3: data or the digitization of the restaurant business. It's so
29:08
Speaker 3: funny It's like the two things that are getting ROI
29:11
Speaker 3: are first party one to one offers and local and
29:16
Speaker 3: location based messaging and local store marketing. It's like it's
29:19
Speaker 3: still a it's still a human to human.
29:20
Speaker 4: And a local business.
29:22
Speaker 3: The thing that people are worried about with the growth
29:25
Speaker 3: in loyalty offers is the slippery slope to becoming a
29:27
Speaker 3: discount brand. Like that's the thing that they are especially again,
29:31
Speaker 3: like you tie in the consumer worry, It's hey, this
29:33
Speaker 3: is working.
29:33
Speaker 4: It's driving ROI.
29:35
Speaker 3: First party digital is actually growing faster than third party
29:39
Speaker 3: this year for the first time, which is which I
29:41
Speaker 3: think was surprising for me. And so it's clearly working
29:45
Speaker 3: that flywheel is working of incentive first party transaction, targeted offers,
29:51
Speaker 3: targeted messaging, driving more first party transactions.
29:55
Speaker 4: But people are worried, like, am I just pulling the
29:57
Speaker 4: discount lever a little bit too much?
30:00
Speaker 3: But discount rates are not I think how to whack
30:02
Speaker 3: historically with where people want to be right now, So
30:04
Speaker 3: overall folks are fine, it's more just keeping an eye
30:06
Speaker 3: on it. I think the thing that surprised me the
30:09
Speaker 3: most from the survey tying into ROI is people feel
30:13
Speaker 3: like third party ads in particular, are hitting a saturation point.
30:17
Speaker 3: You know, we've heard, you know, the third parties have
30:20
Speaker 3: been pushing ads increasingly because look, it's like it's a
30:24
Speaker 3: zero marginal call. Like it's pure margin for them, you
30:26
Speaker 3: know what I mean, if you run it, if someone's
30:27
Speaker 3: running an AD on third party platform, why and take
30:31
Speaker 3: why not take the economics of the delivery business model,
30:34
Speaker 3: which have been historically tough, and layer on something that
30:37
Speaker 3: is pure margin on top of it, plus your commission rate.
30:41
Speaker 3: I mean, that just might make the entire model possible.
30:43
Speaker 3: So the third party have been very incentivized in getting
30:48
Speaker 3: brands to run third party ads, and I think a
30:50
Speaker 3: lot of folks have done that over the last eighteen months.
30:52
Speaker 3: You know, I think DoorDash DoorDash ads is already north
30:55
Speaker 3: of a billion dollar run rate, billion dollar wherever you
30:59
Speaker 3: run rate. But I think folks are like now every
31:02
Speaker 3: now the only way I can get a third party
31:04
Speaker 3: transaction is if I offer a discount. And so again,
31:07
Speaker 3: playing into that fear of the channel becoming increasingly promotional.
31:11
Speaker 3: It's hard to stand out even when you're offering ads
31:14
Speaker 3: because everybody is offering ads, and so folks are one
31:18
Speaker 3: investing less. I think forty five percent of the cmos
31:21
Speaker 3: we surveyed are investing less than third party ads next year,
31:24
Speaker 3: and two it ranks below some of the other.
31:26
Speaker 4: Options I mentioned in terms of ROI.
31:28
Speaker 3: So we're starting to see what feels like saturation and
31:32
Speaker 3: some pullback in performance marketing on that channel specifically interesting.
31:37
Speaker 2: So in terms of overall marketing spending, you know, for
31:40
Speaker 2: our chains it's it's increased material and materially over the
31:44
Speaker 2: last couple of years. What does the survey suggest about
31:48
Speaker 2: twenty twenty six?
31:49
Speaker 3: Flat is the new up? Like even even marketing budgets
31:53
Speaker 3: are flat. I think this is the hard thing that
31:55
Speaker 3: this is the hardest thing for me to grapple with
31:57
Speaker 3: in the survey.
31:58
Speaker 4: You know, we were with a brand and.
32:00
Speaker 3: Last week and they basically said, look, when we buy software,
32:05
Speaker 3: especially the stuff that you guys do, it comes out
32:08
Speaker 3: of the marketing fund. I used to be able to
32:10
Speaker 3: rely on sales going up three to five percent each
32:14
Speaker 3: year and funding any new tech initiatives out of that
32:17
Speaker 3: incremental three to five percent. But if my sales are flat,
32:21
Speaker 3: my marketing fund, my AD fund, my marketing dollars are flat.
32:24
Speaker 4: So if I'm going to buy your thing.
32:25
Speaker 3: I got to make tough calls on cutting other things
32:28
Speaker 3: in order to fund your tool. And so most most
32:32
Speaker 3: operators expect their marketing budgets to be flat next year.
32:35
Speaker 3: Circling back to this is the hardest thing that you know,
32:37
Speaker 3: I felt like I had to grapple with was they say,
32:40
Speaker 3: you can't cut your way to growth, and so, like
32:42
Speaker 3: I jokingly said to somebody on my team, like, can
32:45
Speaker 3: you neutral your way to growth? Like I don't know,
32:47
Speaker 3: Like you're asking people to unlock. You're asking people in
32:51
Speaker 3: an increasingly tougher environment to basically maintain their level of growth.
32:57
Speaker 3: We know the other variables are changing. We know people
32:59
Speaker 3: feel like consumer spending is going to get tougher, We
33:02
Speaker 3: know that the marketplace is going to get noisier and
33:04
Speaker 3: more competitive. And yet you know, we're asking restaurant marketers
33:09
Speaker 3: to maintain flat to slightly down on traffic with the
33:14
Speaker 3: same exact budget when everything else is getting harder. And
33:19
Speaker 3: it's like it was hard for me to square those
33:21
Speaker 3: two things. Like that doesn't feel like a recipe for
33:23
Speaker 3: success for next year for those brands. But you know,
33:28
Speaker 3: if sales are flat and you got marketing fund to work,
33:31
Speaker 3: with you know, it follows that your budgets are going
33:34
Speaker 3: to be flat as well.
33:35
Speaker 2: Yeah, well, you know, you know, to your point, we've
33:37
Speaker 2: seen casual dining chains who cut back all of their
33:41
Speaker 2: marketing and the pandemic and really kept it very very
33:44
Speaker 2: low in there. You know, first couple of years post
33:46
Speaker 2: pandemic really turned on the marketing. You know, in the
33:50
Speaker 2: last twelve months, you know, you think, yeah, Brinker Chili's
33:53
Speaker 2: at Brinker. Yeah, you think about Darden and Red Lobster, right,
33:58
Speaker 2: I'm sorry the copster no longer Red Lobster Olive Garden,
34:03
Speaker 2: and they've done really, really well. So to your point, marketing,
34:08
Speaker 2: you know, those dollars are working for a lot of
34:10
Speaker 2: change working.
34:11
Speaker 4: You just got to know what's incremental.
34:13
Speaker 3: And I think you know to to that point too,
34:15
Speaker 3: from a full service like, something else happened right where
34:19
Speaker 3: it's like consumers were like, oh, maybe I should be
34:22
Speaker 3: going out to eat, right, Like, I think that's the
34:24
Speaker 3: thing too. It's like they cut back and it certainly
34:27
Speaker 3: hurt them on the compside, but a moment in time
34:30
Speaker 3: happened where people didn't want to just spend thirty bucks
34:33
Speaker 3: on the couch anymore. They wanted to go sit down
34:35
Speaker 3: and have a drink, spend thirty bucks with a group
34:37
Speaker 3: of friends, and so they time that they tie. They
34:40
Speaker 3: strategically timed it very well, I would say, And that's
34:44
Speaker 3: I think that's part of the reason. There are a
34:45
Speaker 3: lot of things that that Chilis in particular has done
34:47
Speaker 3: that have helped drive their growth.
34:48
Speaker 4: But I feel like that's part of the reason. Also
34:50
Speaker 4: is just they threaten the needle, like just right.
34:53
Speaker 2: Yeah, all right, So what we're winning cmos do next
34:56
Speaker 2: year to outperform.
34:58
Speaker 3: This is I mean, uh, the biggest the biggest answer
35:02
Speaker 3: and the biggest takeaway was personalization, segmentation using data. You know,
35:06
Speaker 3: I know I'm great my own homework a little bit
35:08
Speaker 3: when I when I say that, but I think it's true.
35:11
Speaker 3: You know, like when I when we think about personalization,
35:16
Speaker 3: I think one of the things I've learned from the
35:18
Speaker 3: operators that we work with is personalization doesn't just mean
35:22
Speaker 3: right message, right person, right off, or right time. It
35:25
Speaker 3: means things like we are going to launch ltos that
35:30
Speaker 3: we know historically have done a great job at bringing
35:33
Speaker 3: in new guests. One brand we worked with is like
35:36
Speaker 3: we launched Pastrami last year. We saw a huge spike
35:39
Speaker 3: in sales. You know what, like we are going to
35:42
Speaker 3: launch Pastrami again this year because it had a lot
35:44
Speaker 3: of new guests, and we're going to retarget those people
35:46
Speaker 3: watered Pastrami last year and haven't been back to the
35:48
Speaker 3: brand since and say Pastrami's back. And that one campaign
35:52
Speaker 3: which they ran increased the ROI on their SMS messaging
35:56
Speaker 3: by seven x like literally, and this is like not
35:59
Speaker 3: it's not a lot of like you know, fine cuts
36:03
Speaker 3: getting down to one to one messaging and so literally
36:05
Speaker 3: who ordered this item at this time last year? Have
36:07
Speaker 3: they been back since?
36:09
Speaker 4: Let's hit them with messaging saying it's back.
36:11
Speaker 3: And so personalization is goes into the menu, right, like
36:14
Speaker 3: are we literally building the menu items that map to
36:18
Speaker 3: the parts of the funnel where we want to grow,
36:20
Speaker 3: whether it's bringing that laps guest, bringing a new guests
36:22
Speaker 3: of course is segmentation and targeting through the loyalty program.
36:26
Speaker 3: It's also like figuring out what offers actually drive a
36:31
Speaker 3: new guest acquisition and incrementality. And so I think like
36:34
Speaker 3: the big theme that we saw of what people will
36:37
Speaker 3: do is and this is this goes outside of Vicky
36:40
Speaker 3: is just get better at using data, get better at
36:42
Speaker 3: understanding that their guests are, get better understanding what they
36:45
Speaker 3: care about, and then get better at leveraging that data
36:48
Speaker 3: to do things like drive greater efficiency and spend an
36:51
Speaker 3: ROI and of course the ultimate growth traffic.
36:54
Speaker 2: All right, good stuff, man, I think that's the perfect
36:57
Speaker 2: spot to wrap it up.
36:58
Speaker 1: You're great man, thanks for doing this.
37:00
Speaker 3: I appreciate it. I appreciate you having me and always
37:02
Speaker 3: a big fan. So it's an r B here and
37:05
Speaker 3: thanks so much for having me.
37:06
Speaker 1: Very cool.
37:07
Speaker 2: I want to thank the audience for tuning in. Check
37:09
Speaker 2: out biki dot com to find out more about what
37:12
Speaker 2: Abanov and this team are up to. If you liked
37:14
Speaker 2: our discussion, please share with your friends and colleague. Check
37:17
Speaker 2: back soon for another interview on Chopping it Up.