Situation Analysis:

Market Description-● Chicago’s restaurant industry is highly-saturated● Online reservations in Chicago are down 2 percent in the second quarter of 2013

(OpenTable)● In 2012, there were over 18,000 restaurants in the Chicago metropolitan area. This

number continues to rise following the recession (SunTimes, NPD Group)● Small, independent restaurants are suffering due to a lock of marketing (NPD Group

Analyst Bonnie Riggs)● 79% of adults said they would like to receive a restaurant gift card or gift certificate on

gift occasions● 32% of adults said they would likely use a mobile or wireless payment option if it was

offered by a fullservice restaurant● 71% of adults said they are more likely to visit a restaurant that offers locally-prduced

food items● 79% of adults said they would consider dining out more often if menu prices were lower

during off-peak times● $2,620 is the average household expenditure for food away from home in 2011● 1.8 Billion dollars in a restaurant-industry sales on a typical day in 2013● 93% of eating-and-drinking place businesses have fewer than 50 employees● In 2012 the mayor introduced a food truck ordinance ● 50+ food trucks now in Chicago - including well known restaurants such as giordanos

Product Analysis-● Stefani’s Group includes 7 restaurants and 2 event spaces (Crystal Gardens and the

LandShark Beer Garden.● Founded in 1980 with the primary focus of family values and authentic Italian cooking.

Since then, they have opened several new restaurants and expanded to offer a more mainstream dining experience

● Their restaurants are placed in high-traffic areas in Chicago (Gold Coast, Navy Pier, North Ave. Beach…)

● The company is also known for giving time and money to charity and founded the Stefani Children’s Foundation.

● Strong Chicago connections that have given them access to space at Navy Pier● Social media presence/influence

○ Facebook: 2,720 likes for Stefani’s Restaurants Each restaurant has an individual Facebook page, too

○ Twitter: (@philstefani) 1,396 followers, 326 following Tavern on Rush also has a Twitter, no other restaurants do...

○ Blog: Phil Stefani’s Signature Restaurants ‘Back of House’ blog○ YouTube: Have a channel, but no videos and no subscribers

● Stefani’s now has 2 primary target consumers: upscale, business customers (Tavern on Rush) and mid-priced dining for tourists (Riva, Castaway)

○ Young Professionals & Upscale business customers: This is the primary target for restaurants such as Tavern on Rush, 437 Rush and Tuscany. They are upscale, contemporary Chicago steakhouses with a polished feel. Consumers continue to come back to Stefani’s restaurants because they are notable and reliable. However, the customers are not familiar with the parent group- Stefani’s.

○ Tourist, recreation customer: The Navy Pier restaurants and event spaces are somewhat removed from the other Stefani restaurants, but attract more of an out-of-town consumer base.

Competitor Analysis-● Other restaurant groups in Chicago:

- Lettuce Entertain You Restaurants: 46 restaurants in Chicago (All cuisines)Antico Posto: Italian DiningAntico Posto is an intimate Italian Cafe and Wine Bar in Oakbrook Center Mall. This small and authentic Italian wine bar is an easily accessible dining experience, with prices only slightly under that of the Stefani restaurants --Entree prices (dinner) range between $15-$25

Frankie’s Scaloppine: Neighborhood Italian dining“Authentic” and fresh Italian food with also specializing in pizza. This restaurant is located in the Shops at 900 North Michigan Ave.This is another Italian branch of the Lettuce Entertain You franchise, which is conveniently located in an upscale shopping district. Like most of Lettuce’s restaurants, Frankie Scaloppine is reasonably priced for the location, and they offer a wide range of basic Italian meals.--Entree prices (dinner) range between $20-$30

Saranello’s: Italian dining by Executive Chef Mychael BonnerSaranello’s offers fresh and handcrafted Italian meals with an upscale and classic indoor dining feel. The restaurant is located at 601 N. Milwaukee Ave, which also offers a premier event location. -- Entree prices (dinner) range between $20-$40

- Gibsons Restaurant Group: 4 restaurants in Chicago (American Bistro & Steakhouses)Gibsons Bar and Steakhouse: Chicago steakhouse that serves an array of upscale clients on 1028 N. Rush StreetGibsons is a direct competitor to Stefani’s, as it is located near two Stefani restaurants (Tavern on Rush and 437 Rush) and is a “go to” venue for many Chicago natives and professionals. Though this is an American Bistro cuisine, Gibsons offers that upscale dining experience that Stefani’s also promotes.

-- Entree prices (dinner) range between $20-$100 (for high grade meat and seafood)

- Boka Restaurant Group: 8 restaurants in Chicago (All cuisines)Balena: Italian cuisine by chef Chris Pandel

Balena is located at 1633 N. Halsted and has been given 4 stars by Time Out Chicago, as well as 3 stars from the Chicago Tribune. The executive chef calls his dishes “honest Italian cooking,” and the somewhat intimate location is high-class, including dramatic and bright architecture. All dishes are based around this “honest” Italian cuisine. -- Entree prices (dinner) ranging from $25-$69

Boka: Contemporary American cuisine in the heart of Lincoln ParkBoka was the first of the BRG restaurants, and has since been extremely popular for many upscale diners. The restaurant includes a large patio, as well as a very inviting indoor experience. Since the restaurant’s opening in 2003, the menu has been called innovative and unpredictable. Boka is a restaurant that native Chicagoans talk about,. It is contemporary, and includes a younger demographic and has a very “hip” presence.

Other competitors: Rosebud on Rush: This Italian restaurant and steakhouse is located near Tavern on Rush, and offers a similar dining experience to that of the Stefani franchise. Rosebud is a prominent restaurant group in the Chicago area, and is consistently booked with reservations. This is a very strong competitor, as it offers a positive dining experience with a similar atmosphere to that of Stefani’s. Rosebud could be considered a “household” name as far as Italian dining near the Magnificent Mile. This is a claim that Stefani’s could not yet make about its many restaurants.

Sapori Trattorria: This Lincoln Park Italian restaurant is fairly small, but it is known for a classic atmosphere with extremely friendly service. The food is perfectly acceptable for this type of Italian dining, and it remains quite popular. The servers are young, and the vibe is quite new and refreshing. The prices are similar to many Stefani’s restaurants, but Sapori Trattoria has very large portions and a much younger presence.

Piccolo Sogno: Mid priced Italian dining in the West Loop area. The prices range from $20- $30. This restaurant was started with two partners, on the same values on Stefani and Uncle Lino. The restaurant is now given very high ratings and positive exposure. The Italian food is considered quite authentic and fresh, and though it is a smaller restaurant, they have won many awards and are admired for their food.

SWOT Analysis

Strength

Authentic Italian FoodLocations around the cityDifferent types of cuisineGives back to the communityGood tourist & business destination

Weakness

Weak MarketingHidden locationsDon’t know their clientele demographicNo knowledge of parent companyStaff not relatable to customer

Opportunities

Social Media MarketingParent Company BrandingJoint ventures with Levy RestaurantsCreate a Universal Gift CertificateCreate a Universal Reward Program

Threat

Prices too highNew Competition: People like trendyEconomy: RecessionsProliferation of Italian SteakhousesFood Critics

Keys- Problems/ Insights-

● Chicago restaurant industry is too highly saturated (Stefani’s needs to be differentiated from competition)

● Outdated website (website and social media outlets needs revamped)● Target market is not specified and not directed towards specific clientele

● Minimal awareness and exposure of the parent Stefani company● Staffing inappropriate to clientele at different locations● Hidden locations

Opportunities-

● Reposition Stefani’s Restaurant Group as Chicago native and market it as such● Re-brand Stefani’s by changing their logo to something that associates them directly

with Chicago to make them stand apart from other Italian cuisine’s and bistro’s● Total revamp of the website to make it more user friendly● Revamp social media and use it to spread awareness of the hidden locations● Re-staff certain locations if necessary to attract it’s target audience● Create an image of Stefani’s as a “must go” place for tourists● Create Universal Reward Program to gain repeat and loyal customers

Assignment 4:

Audienceo Who is the primary audience & why?The primary audience is male and female professionals, ages 24+, who work in the greater Chicago area. We chose this audience because many of Stefani’s restaurants have an upscale and professional atmosphere, which includes mid-priced dining (entrees from $15-$20) and food options for all. Through our market research, we deduced that many of Stefani’s restaurants are visited by young-middle aged professionals who reside in the loop or the Gold Coast area. A particularly popular restaurant for this primary audience is Tavern on Rush, which is located near the Viagra Triangle. This restaurant is classic, while still remaining a “hot spot” in the area.

The above photos show a Stefani’s Signature Restaurant, as well as the primary diners to that restaurant. This group of business individuals is working on a campaign together and needs to have a meeting over dinner. They choose Tavern on Rush because it is close to their office (convenience), can accommodate many

What are they passionate about?This audience wants classic and upscale dining that is not stuffy. The customer needs a fun and exciting element to entertain clients, while still keeping within a professional environment that offers various dining options. The target audience expects exceptional customer service when entertaining clients and having business lunches or corporate dinners. The audience is passionate about fine dining, but also likes to have a “go-to place.” Stefani’s is a strong name within Chicago, and also has deep ties to the city. It is likely that the business community knows the Stefani name, and is possibly aware of the restaurant group’s work in the city. o What should be avoided in talking to the audience?Because the targeted audience is professional, it is unnecessary to talk about a “family atmosphere.” While many restaurants promote the family friendly dining experience, this is not the right direction for the Stefani Restaurants. We do not want to exclude the family customer, but when targeting the business market, this should be avoided. Business officials will want an environment appropriate to hold meetings and business outings.While the Stefani name previously highlighted “Authentic Italian Dining,” that is not as important for this audience. The restaurant does not need to claim that it has authentic Italian, as long as the food is good, the service is professional, and the ties to Chicago are clearly highlighted.

Who is the secondary audience? If there isn’t one, say so Our secondary audience is the tourist community that is visiting Chicago and looking for mid-priced, but fine and fun dining. The restaurant most likely to appeal to this group is Riva, which is located at Navy Pier. Tourists will likely include families, who want a restaurant that is “simply Chicago,” but also offers a variety of food options. They will expect an atmosphere that is nice, but without too much effort or fussiness. Tourists want good food, while still able to fit into their trip budget. Riva at Navy Pier is a perfect restaurant for this secondary audience, as it is located at a famous Chicago landmark. The tourists will appreciate Stefani’s “true Chicago” spirit, and might return to these restaurants on a second trip, as well as recommend the restaurant to friends visiting the area.

Medium● What is the best (primary) medium to reach your audience?

The primary medium that will be used to reach our audience is social media. Currently, Phil Stefani’s Signature Restaurants have a very low social media presence, which is causing them not to properly reach their target audience. Since social media is widely used by both our target audience of business workers, and our secondary audience of tourists, the use of social media can effectively reach the audience and create awareness for the Stefani’s brand. With the use of social media comes the other primary medium we intend to use to reach our audience - word of mouth (WOM). Since we plan on rebranding Stefani’s as “Simply Chicago”, it is necessary to get people talking about the brand and the message spread around the city.

● Explain in detail how you would use that medium.

Currently, Phil Stefani’s Signature Restaurants has a presence on Facebook, Twitter, and a blog (not including the separate presence of each individual restaurants on Yelp!,Twitter and Facebook). However, their presence is very weak and not properly reaching their audience. We would use this medium to liven up Stefani’s, and to create a personality for the brand. Unlike currently, we would make sure to create a dialogue between the company and the audience. This will not only get people engaged with Stefani’s, but will get them talking about the brand with their friends as well - increasing awareness and better reaching our target audience. On top of that, we will use social media to share information and offer discounts/coupons - increasing the chances that the audience who follows Stefani’s on social media will come into one of the restaurants.

● What are the other media channels suitable for your campaign? Why and how are you going to use them?

There are four other media channels that we found suitable for this campaign: outdoor, print/online, events, and a loyalty program.

Outdoor: We will use outdoor advertising to better reach our secondary audience of tourists, and create brand recall among Chicago locals. These outdoor advertisements will be placed at all Divvy Bike stations around the city. When tourists come to Chicago, they are more inclined to use the Divvy Bike service to get around and view the city. By advertising Stefani’s at these stations, this will reiterate in tourists mind that Stefani’s and Chicago go hand-in-hand, making them more inclined to visit the restaurant. Similarly, Chicago locals pass these signs daily - so advertising at these stations will increase awareness and brand recall.

Print/Online: Using print and online advertisements, we can better reach both our primary and secondary audience. We will put advertisements in publications such as the Red Eye (drink/food feature),StyleChicago, and Crain’s Business. By working with these publications, we can better reach the Chicago business native who wants a well-established restaurant to take their clients. However, by focusing on the Red Eye and StyleChicago, we are still reaching the business employees, but the younger demographic. To reach the tourists, we will advertise in airline magazines, such as American Airlines, Southwest, and United. These airlines have a large portion of their flights come to Chicago - allowing us to better reach the tourists and make them know the Stefani brand before stepping foot into the city.

Events: Events will be used to reach both the primary and secondary audience, and to establish Stefanis as ‘Simply Chicago’. There will be a variety of events, including concierge and charity events, as well as co-branding events with Divvy. These events will help Phil Stefani’s Signature Restaurants be rebranding as Chicago’s restaurant.

Loyalty Program: A loyalty program will be established to encourage repeat visits by Chicago natives. In our effort to make Stefani’s the go-to restaurant for business employees, having a loyalty program give added incentive for our audience to dine at a Stefani’s restaurant.

Messages:

Business/local audience: Stefani’s is the Chicago choice for business customers whether it’s for a meeting or a bite to eat after work because of its convenient locations and upscale atmosphere. -- Our tone for the business customers is relaxed and practical. We want Stefani’s restaurants to be an obvious choice for the audience by being upscale and reliable, but not stuffy. Tourist audience: Stefani’s is the Chicago choice to eat out in the city for tourists because of the variety of food options and the fun atmosphere. -- Our tone for the tourist audience is more enthusiastic and fun. We want these consumers to be excited to come to Stefani’s while in Chicago. Key selling point:

Visual/Creative Design:

The Stefani logo with be changed and will highlight Chicago with a sort of abstract skyline of Chicago behind the word Stefani’s. Our new slogan will be implemented into the logo as well, which is “Simply Chicago.” Individual advertisements will each feature a specific restaurant of Stefani’s along with a well known Chicago landmark. For example, for Riva the ferris wheel at Navy pier will be in the ad. Though each advertisement will have the overarching theme of “Chicago ties,” each will have it’s own feel depending on the location and which restaurant it is featuring. This type of campaign will cater to both our primary and secondary target. It will appeal to the local business professionals because each ad will emphasize the upscale nature of Stefani restaurants while highlighting Chicago. Lastly, it will appeal to tourists because tourist are unlikely to know where places are inside the city. Lastly, these ads will appeal to tourists because they are not likely to be all that familiar with the area by just the address, but if they highlight tourists attractions nearby each restaurant Stefani restaurants will stick out in their mind.

Overview: Our plan is to scrap the idea of being Authentic Italian and going for something completely different. Simply Chicago: this will gear the company to market itself around the Chicago Area. Marketing objectives:Create industry nights at the restaurants in the area, Promote the company in blogs of food critics,Increase the volume of consumers in all of the Stefani restaurants

Engage in a relationship with customers so they will return to the restaurants (create a loyalty program)Campaign Stakeholders Phi Stefani Stefani Corporation Employees Restaurant Employees Stefani PR TeamCorporate Sponsorship City of Chicago Employees of Stefani RestaurantsOur research has consisted of looking at other restaurants in the industry. Also, looking at how the spending habits of consumers has changed due to the economy cycles.