Foodservice Marketing

Progress progress progress, as reflected in our Q4 2007 Key Performance Indicators. While we’ve added more operators than ever before, it’s also time to increase our engagement and retention efforts. We’ll be supplementing our email communications to operators who haven’t entered a code in 60 days with an additional print campaign to be presented at the April sponsor meeting.

Here’s a preview of our goals for the coming year. As a result of this update some have asked for further clarification of our policy on category exclusivity.

You may recall from prior announcements and Sponsor Meeting discussions of the topic, Foodservice Rewards has not offered category exclusivity to new coalition members for over a year, nor is it available in coalitions launched in new countries, i.e. Australia. Furthermore, numerous categories are now non-exclusive and feature multiple branded sponsors, including Seafood, Soup, Dressings, Poultry, and Beef, to name a few. However, we will continue to exclude your brand’s biggest competitor: Distributor private label.

The purpose of Foodservice Rewards is to establish a sustainable competitive barrier to “price” competition by providing an alternative to discounting. This is a brand equity building aproach – a “gift with purchase,” that reminds operators it is worth paying more for premium brands, especially when they come with rewards and recognition of that customer’s loyalty.

I was recently reminded by Daryl Gormley of Sara Lee that operators have already figured out that everyone’s check averages and customer traffic benefit when multiple operators cluster in one location (even when they are competitors). That’s why you’ll often find a Panera, Starbucks, DQ, Chipotle, Chili’s, Noodles, Breugger’s, Subway, Domino’s and more at the same destination.

Our aim in ending exclusivity as existing contracts expire is to do the same: Cause a rising tide that lifts all boats.