The BAM Winter Blues Solution

May 2015

Meet and Eat

“Work Is Theater & Every Business a Stage”

The Experience Economy by:B. Joseph Pine II and James H. Gilmore

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Who We Are At BAM we believe that changing behavior is the first step, but creating experiences is what we’re here to do, and is our end goal.

We start by asking key questions that make a remarkable difference in understanding behavior, and building experiences.

So, what experience do you want to create?

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Core CompetenciesWhat: We create Experiences

Why: To breathe LIFE back into our businesses and audiences

How: Applying Direct Marketing foundations across integrative platforms to build results driven, memorable campaigns

Strategy Creative

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Social Experiential

Technology

Your Needs, Our Promise•Create and execute a plan to increase sales

•Grow your current membership base of 200,000

•Provide a positive ROI on dining expenditure

•Share testing results and insights to grow response rates, sales, and increase ROI for future programs

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Business ChallengeIncrease sales by 25% for January through March.

Last year Meet and Eat served 162,000 covers during this period.

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Meet and Eat needs a program that will generate 40,500 additional covers during this period

THE LANDSCAPE

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S.W.O.T.Strengths• Veritable Reputation• Excellent restaurant variety and cuisine• Great Price value• Accessible loyalty database• Scale- Wide footprint with 50 locations across Chicago

Weaknesses• Lack of marketing awareness as a parent company • Economy- Upscale dining in a downturn economy• Perceived inaccessibility• Weak online and social media presence

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S.W.O.T.Opportunities• Leverage loyalty program • Leverage technology, mobile and social use• Leverage customer experience

Threats• Competition- other Chicago-based restaurant groups and

upscale dining restaurants• Increasing food costs• Seasonality- Winter weather • Parking/Traffic concerns- inaccessibility

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Key Insight

“We see a 40% drop off in customer traffic on days when it snows more than 5 inches and when the temperature drops

below 25 degrees” – John Warner, CFO at Meet an Eat

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Winter Is The Enemy!Solution: To drive more customers into the Meet and Eat Restaurant Group’s restaurants during the long, cold, winter months!

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Reframe the Dining Experience

From a Hassle To An Experience

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WHO DO WE WANT TO REACH?

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Millennials

Me, Me, Me Generation 14

MillennialsWho are they?They are young, ambitious, trendsetters and being a “Foodie” among this group has never been cooler.

•Age: 18-34•Numbering roughly 77 million, millennials make up about one-fourth of the US population (Nielson).•Millennials in the US wield about $1.3 trillion in annual buying power (BCG).•1/3 hold a college degree•Spent an average of $2,639 a year on their burgers, pizza, coffee and more in 2013 (Food Institute)•43% of every dollar that millennials spend on food is spent outside their home•49% of millennials eat out once a week•View dining out as a social experience and often patronizes in groups.

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MillennialsHow do they communicate?Digitally savvy, social, mobile beings

 

• More than 85% of millennials in the US own smartphones (Nielsen).• 95% of millennials in the US, friends are the most credible source of product information• 87% use Facebook, with 53% on Instagram, 37% on Twitter and 34% on Pinterest

(Pew Research Center)• Five out of six millennials in the US connect with companies on social media

networks (SDL).• 64% like a company or brand on Facebook to score a coupon or

discount (University of Massachusetts Dartmouth)• 56% of millennials in the US would share their location with companies to receive

coupons or deals for nearby businesses

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Captivate the Millennial Foodie

 

Social Online Social Offline

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Prosperous Empty Nesters

Boomerang Generation18

Prosperous Empty NesterWho are they? Wealthy older couples with low to no presence of children, embarking on a new life stage

•Age: 55+•.53% annual population growth•Savings average is 11% above national average•Net worth is 10% above national average•Highly educated professionals & executives with a median household income of approximately $100,000•Prefer upscale shopping and dining with brand prestige, service & comfort •Travel extensively and join civic and charitable organizations

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Prosperous Empty NesterHow do they communicate?Embrace traditional media, but are increasingly growing comfortable with technology

•Direct Mail coupons•Shopping Catalogs•90% have a Facebook account and consider themselves "texters“•65% use their smartphone to search for product information and nearly two-thirds make purchases via a tablet.•80% of Empty-Nesters more likely to purchase a product that receives a high star rating in a review•45% more likely to purchase a product if a blogger they follow makes a recommendation

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CORE OFFERS

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Awaken the Greatness Campaign

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“I didn’t know Shell’s and Hot Sticks were owned by the same family, we love those restaurants!  Do they have any more?” - Roger Parker,

Naperville

• 50% of the customers we surveyed didn’t know that the restaurant they loved was part of a larger family, and were often frequenting two of the restaurants but not more than three.

• It’s the perfect time to let Chicagoans know that their favorite restaurant is owned by a delicious family of restaurants, and that just like their family - the members

have a lot to offer!

Meet and Eat announces the cure for the weekly wintertime blues.

Dine 4 Times, the 5th is on the House!Meet and Eat around Chicago! Eat at 4 of our locally owned Chicago restaurants during the week, and the 5th meal is on the house!We’ll track your meals through our membership rewards program and comp you on your 5th meal with 25% of the dollars you’ve spent with us during the Meat and Eat Around Chicago event.

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Target Audience:This is our core offer targeted to frequent millennial and empty nester diners who visit at least once a month. Incent them to dine at least once more, or better twice more during the three month period.

Marketing Channels:• Direct Mail Coupons• Email

Dine 4 Times, the 5th is on the House! Creative Concept

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Dine Twice and the Third Time Enjoy 50% OffFrom now until April 3, dine at any 2 of our 50 local Chicago restaurants during the week and receive the 3rd meal of equal dollar value at 50% off.

We’ll track your meals through our membership rewards program and comp you on your 3rd meal at 25% of the dollars you’ve spent with us during the Meat and Eat Around Chicago event.Marketing Channels:

•Direct Mail Coupons•Email

Campaign Goals

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•Currently your best 20,000 customers visit once a month. Our plan encourages them to visit one or two more times each month this winter to generate 8,000 Incremental covers.

•Your next best 70,000 customers visit once every three months. Our plan encourages them to visit one more time this winter, to generate 20,000 incremental covers.

•Total incremental visits from your core member customers this winter should be 28,000.

•We are reaching out with 4,800,000 impressions to mostly non-member customers in an effort to acquire new members and drive 15,000 more covers. This winter we will place over 15,000,000 impressions in

Metro Chicago to generate over 40,500 covers. The overall response rate goal is 0.27%

TEST OPPORTUNITIES

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Save and Savor Lunch SpecialFrom now until April 3, enjoy 15% off weekday lunch at a Meet & Eat Restaurant

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Target AudienceMillennials

• Between the gym, work, commute and social engagements, packing a lunch is a second thought.

• They will benefit from the extra savings and choose our restaurants as their lunch spot of choice!

Empty Nester• With extra time to spare, empty nesters often plan daily, or weekly lunches with

their friends or partners, with this additional offer Meet & Eat restaurants are an even more appealing choice for those empty nesters who lunch!

Marketing Channels:• Dynamic Mobile• Email

Save and Savor 15% Lunch SpecialHow it works:

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A dynamic mobile offer that appears in app and on the browser when the consumer is within 1 mile of a Meet and Eat restaurant from 10:30 a.m. to 2:00 p.m.

15% Off Lunch! CLICK!

Shared Mail Distribution • Ideal for Empty Nesters• Less than 6 cents a home• Neighborhood targeted• Perfect for an additional impression to current customers and acquiring new customers

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ATZ Name Household Cumulative Coverage Coverage PZM - % of PZM - % ofCount Household Frequency Delivery HHs Urban HHs New

Count Achievers Empty Nests60005C1 ARLINGTON HEIGHTS, IL 2,477 2,477 Weekly N 0 24.960007D1 ELK GROVE VILLAGE, IL 4,335 6,812 Weekly N 0 9.460173B1 SCHAUMBURG, IL 2,521 9,333 Weekly N 0 060007C1 ELK GROVE VILLAGE, IL 4,023 13,356 Weekly N 0 060173C1 SCHAUMBURG, IL 2,642 15,998 Weekly N 0 0

Leave Your Keys At HomeOffer: Designed for our Urban Millennials and Empty Nesters to eat well and ride for free. Find out which Meet and Eat restaurants will be covering your Uber ride so you can fully enjoy your dining experience during the cold winter months!

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&

In partnership with Uber, Meet & Eat restaurants will co-brand and promote Uber services as well.

Leave Your Keys At Home

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Provide an effortless, enjoyable evening of dining, where service starts the moment you step out your door!

Why it works:

•As a leader in the service industry, Meet & East is especially positioned to elevate the customer dining journey and experience.•Uber is already a popular car service, easily accessible via app on our consumers mobile devices.•Our restaurants can be easily highlighted on the Uber app map platform.•Driving and parking in Chicago is an urban living hassle, and winter makes it a real-life nightmare!•Uber service to our restaurants eliminates driving in the snow, parking, valet costs and higher taxi costs.

Leave Your Keys At Home

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Enter Code

Download Uber App

Locate a Meet & Eat

RestaurantRequest

Uber

Ride and Dine!

How it works:

Bring Your Appetite, and Invite Your Friends!

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Offer Benefits and Opportunities

• Receive a $10 credit for your next Uber ride• Share your code so your friends can also Uber and dine! • Every friend that uses your code to dine at a Meet and Eat restaurant, you get a

free ride ( valid for rides under 10 dollars).• The average Uber ride ranges from $8-$16, the price offer benefits consumers and

provides potential profits for Uber. • Encourage customers to share experience across Instagram and Twitter using

#leaveyourkeysathome, with #meetandeat, to monitor social footprint• A customized landing page will showcase offer information and lead to the Meet

and Eat Restaurant site.• Include real time image library gathered from Instagram• Include testimonials gathered from across Twitter audience

Leave Your Keys At Home Creative

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FINANCIAL PLAN

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Channel Distribution and Response Matrix

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Offer Audience Primary Channel Primary

Impressions

Final Response

Rate Secondary Channel Secondary

Impressions

Final Response

Rate Tertiary Channel

Tertiary Impressions

Final Response

Rate Dine 4 Get 1 Free Urban Success Millennial Database Direct Mail 30,000 Database Email 150,000 Display 2,500,000 Dine 4 Get 1 Free Empty Nesters with Bucks Database Direct Mail 30,000 Database Email 150,000 Display 2,500,000 Dine Twice Get 1 at 50% Urban Success Millennial Database Email 80,000 Acquisition Shared Mail 225,000 Acquisition Mobile1,666,667 Dine Twice Get 1 at 50% Empty Nesters with Bucks Database Direct Mail 30,000 Acquisition Shared Mail 225,000 Display 2,500,000 Test offer: Savor and Save 15% Urban Success Millennial Acquisition Mobile (lunch) 1,666,666 Acquisition Email 400,000 Test Offer: Uber Free Ride Urban Success Millennial Acquisition Email 100,000 Acquisition Shared Mail 50,000 Display 2,500,000

1,936,666 1,200,000 11,666,667

ImpressionsDatabase Direct Mail 90,000 Database Email 380,000 Acquisition Email 500,000 Acquisition Mobile (lunch) 3,333,333 Acquisition Shared Mail 500,000 Display 10,000,000

14,803,333

Social Media Impressions are not included for simplification

Channel vehicles are aligned with audiences and offers that are appropriate. For instance acquisition shared mail is only used with our Dine Twice offer as this offer is easier to redeem

for all households.

This report will be used to summarize our response rate by offer, audience, channel, and ultimately current and new members. We will use these results to continually improve ROI

on future campaigns.

Continually Test and Improve Response

Media Costs

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Unit Cost Total Cost Unit Cost Total CostStrategy, Creative & Production Labor 5,000$

Strategy, Creative & Production Labor 5,000$

Mailing Quantity - 500,000 Mailing Quantity - 90,000Turnkey Cost 0.055$ 27,500$ Printing Cost $0.30 27,000$

Premium Sheet Format List Cost -$ 2 Page 10" X 11" Data Processing $0.01 900$

Postage Cost $0.22 19,800$ Lettershop $0.01 900$

Production OOP Costs $0.055 27,500$ Production OOP Costs $0.54 48,600$ Total Cost 32,500$ Total Cost 53,600$

Unit Cost Total Cost Unit Cost Total CostStrategy, Creative & Production Labor 5,000$

Strategy, Creative & Production Labor 5,000$

Email Quantity - 500,000 Mailing Quantity - 380,000List Cost $0.013 6,500$ List Cost -$

Data Processing/Suppression 500$ Data Processing $0.01 3,800$ Cost per email blast (3) $500.000 1,500$ Cost per email blast $0.05 19,000$

Production OOP Costs 8,500$ Production OOP Costs $0.06 $22,800.00Total Cost 13,000$ Total Cost $27,800.00

Direct Mail Acquisition (Shared Mail) Direct Mail for Members (w/ company owned list)

Acquisition Email (w/ 3rd Party List Rental) Email for Members

Media Costs

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Unit Cost Total CostStrategy, Creative & Production Labor 5,000$

Impressions - 3,333,333Cost Per Thousand $4.750 15,833$

Production OOP Costs $4.750 15,833$ Total Cost 20,833$

Acquisition Mobile Banners (Dynamic)

Unit Cost Total CostStrategy, Creative & Production Labor 5,000$

Impressions 10,000,000Cost Per Thousand $4.750 47,500

Production OOP Costs $4.750 47,500$ Total Cost 12,667$

Unit Cost Total CostStrategy, Creative & Production Labor 15,000$

Hosting 5,000.00$ Programming Code 15,000.00$

Production OOP Costs 20,000$ Total Cost 35,000$

Unit Cost Total CostStrategy, Creative & Production Labor 15,000$

Impressions 500,000 Analytics Software 15,000.00$

Production OOP Costs 30,000$ Total Cost 30,000$

Social

Website

Online Advertising

Budget

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Jan Feb March Total Impressions Estimated

Response Rate

Additional Covers (2 Diners)

Cost Per Response

New Customer Covers 5,000 6,000 8,000 19,000 Existing Customer Covers (Incremental) 6,000 7,000 9,000 22,000 Total Monthly Covers 11,000 13,000 17,000 41,000 Gross Revenue 847,000.00$ 1,001,000.00$ 1,309,000.00$ 3,157,000.00$ Net Revenue/Gross Profit 423,500.00$ 500,500.00$ 654,500.00$ 1,578,500.00$

Direct Mail (Labor & OOP) 17,866.67$ 17,866.67$ 17,866.67$ 53,600.00$ 90,000 15.00% 13,500 3.97$ Email (Labor & OOP) 9,266.67$ 9,266.67$ 9,266.67$ 27,800.00$ 380,000 2.00% 7,600 3.66$ Social Media (Labor & OOP) 5,000.00$ 5,000.00$ 5,000.00$ 15,000.00$ 500,000 0.50% 2,500 6.00$ Display (Labor & OOP) 4,222.22$ 4,222.22$ 4,222.22$ 12,666.67$ 10,000,000 0.02% 2,000 6.33$ Website (Labor & OOP) 35,000.00$ 35,000.00$

10,970,000 25,600 Shared Mail (Labor & OOP) 10,833.33$ 10,833.33$ 10,833.33$ 32,500.00$ 500,000 1.40% 7,000 4.64$ Email (Labor & OOP) 4,333.33$ 4,333.33$ 4,333.33$ 13,000.00$ 500,000 0.50% 2,500 5.20$ Mobile Dynamic Banners (Labor & OOP) 6,944.44$ 6,944.44$ 6,944.44$ 20,833.33$ 3,333,333 0.10% 3,333 6.25$ Social Media (Labor & OOP) 5,000.00$ 5,000.00$ 5,000.00$ 15,000.00$ 500,000 0.50% 2,500 6.00$ Other -$ -$ -$ -$ 4,833,333 15,333 Other -$ -$ -$ -$

Non Uber Offer Redemptions (OOP) 37,475.00$ 37,475.00$ 37,475.00$ 112,425.00$ Uber Ride Costs (OOP) 4,000.00$ 4,000.00$ 4,000.00$ 12,000.00$

Total Impressions Incremental Covers 349,825.00$ 15,803,333 40,933

Cost Expected Revenue Profit ROI Using $77 for on deal cover revenue as people spend 10% more on deal Return on Investment: 349,825.00$ 3,151,866.64$ 1,534,999.99$ 4.39

All response figures will vary. Response rates are estimated to develop a cost, offer, and media campaign that should deliver our goal of a 25% increase in sales or 40,500 covers.

Cost Model for Acquisition

Redemption Cost

Revenue Model

Cost Model for Member/ Frequency

Our Promise:

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• Establish a greater long term sales growth by increasing awareness of Meet and Eat’s wonderful family of Chicago Restaurants

• Increase customer membership program• Substantially increase sales during the cold winter months• Share the insights on response and media channels ROI to continually improve

performance.

Thank You!