We all know the adage, albeit untrue, that any publicity is good publicity, and there are stories after story of promotions that seem outlandish going awry when the unthinkable happens and someone tries to cash in. Promos built around bad weather predictions, hole in one shots for millions that were unsponsored, mistakes in printed ads, time and again you hear about the attempts at “free” publicity that were anything but free.
Then you have Ruth’s Chris Steakhouse in Ann Arbour, Michigan. The high-end chain figured they had a way to draw up some business, show support for Michigan football and have some fun when they came up with their “Score Big” promo, giving a percentage of the check off for any margin of victory that Jim Harbaugh’s team put up during a game this season. Look back through the recent history of UM football, and maybe you are talking a 20-25 percent off discount for weeknights when business might not be so busy, so what’s the risk? The reward gets you some buzz, some brand loyalty, and probably some casual business that you might not pick up when school is in session.
After UM made it through their non-Big Ten schedule, the chances are that game get closer and the numbers go down, right? Plus winning football makes for happy fans, so the biggest challenge for Ruth’s Chris was probably over, right? Then came Rutgers and at 78-0 win last Saturday. The rainy day for a promo arrived again, right?
Well not really. The restaurant got huge national coverage, great for the local stop and for the chain which does little traditional advertising and all eyes were focused on what could be a heck of a great meal at fast food prices right? The world now knew about the promotion so it was time to pay up, or more exactly, not pay up. While calls for reservations and reaction flooded in, the managers explained the discount was capped at 50 percent, still a huge break, and gladly honored any and all coming in for that price point. While there was a little blowback, a half price high end dinner still has filled the place, and has kept the positive buzz going, even with Coach Harbaugh showing up for a Tuesday dinner (and generating even more buzz by drinking milk with his meat). The promo has been so popular the restaurant has said they would continue to honor their commitment all season, getting even more street cred, good will, and probably ancillary customers as UM continues along on its solid season.
Now a promo like this, with such a high price point, is different than it is for a small chain like a pizza place, which could bankrupt itself by losing all its margin of profit for giving away more than cents on the dollar. It is also only in place for a week, and there is no element like takeout where people can get food going out the door as well. It is a limited seating establishment which is reservation-based, so the amount of people in the door each night is already capped, therefore the perceived loss is probably made up by added volume on distressed nights and by the fact that those coming in with disposable income are probably going to spend more than they would normally to get what they think is better value. That $60 check now goes to $160, so the margin is narrowed on any loss the company would take. Then there is also the fact that probably many people came into the steakhouse for the first time, enjoyed the experience and will probably come back. Building affinity and brand loyalty is not an easy thing, so the spillover effect, albeit unknowing, can also be very helpful in such a hyper competitive space.
Was all of this predictable? No way. Was it damaging to the brand. Not at all. Did it achieve the purpose of buzz, foot traffic and setting an elite brand away from its competitors? For sure.
While there may be a little short term fizzle for Ruth’s Chris, the buzz, the consumer engagement, and the way they pivoted and made a tough situation solid speaks volumes for the company, and shows that sometimes quick thinking can make a negative into a positive that captures both the hype and the business opportunity.
Congrats Ruth’s Chris Ann Arbor for making a potential hard to swallow issue into a well digested promo.
