Article
Promoting from Within with Branded Merchandise
There are more than one million restaurants in the United States, according to the National Restaurant Association, with more opening every day. Operators use a variety of tactics to stand out from the competition, ranging from unique menu offerings, special promotional pricing, exclusive experiences, and more.
But one of the tried-and-true ways to spread the word about your brand is through branded merchandise.
"There were 200 restaurants that opened last year in Nashville," says Tom Morales, founder of Nashville's TomKats Hospitality, which owns Acme Feed & Seed, The Southern Steak & Oyster and Southernaire Market. "We absolutely have an advantage with our retail program, because our product goes home with the customer."
Been There - Ate That - Got the Tee Shirt... As restaurant competition heats up, so does the pressure to stand out from the crowd. Having your own branded merchandise can help, but is your team ready for the challenge?
Morales says that he sees about 25,000 guests per week coming through Acme Feed & Seed and another eight to 10,000 in The Southern, creating a perfect audience for retail. "When they take home one of our sauces and it sits on their table, it reminds them of the hospitality they received in Nashville," says Morales.
Retail is simply part of the marketing strategy, for Morales. "If you're out of sight, you're out of mind," he says. "If you're going to spend 3 percent to 5 percent of your gross sales on marketing and advertising… we consider our retail as part of our marketing budget."
Learning Objectives:
By the time you've finished reading this article, you should be able to:
- List the pros and cons of offering branded merchandise items in your restaurant.
- Explain the differences between starting a branded merchandise program that's small and manageable versus a program that requires a dedicated team to handle it.
- Discuss ways to increase brand exposure and sales of grab-and-go food items.
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