IHOP’s newest strategy shows a strong commitment to business planning as well as consumer compassion and understanding, demonstrating that a restaurant business can cater to both the customer and the bottom line.
The newest marketing officer, Kieran Donahue, immediately shifted the organization’s strategy after COVID, including an “outrage marketing campaign” that flipped a letter in their logo. This year, implemented what she has called “24 in ’24.” Nation’s Restaurant News (NRN) shares, “one of her initial priorities was to build out a deeper innovation pipeline – specifically, a pantry that is 24 months out by the end of 2024. Having a more robust playbook in place has since allowed the company to pivot much faster.”
Deepening the pipeline essentially created more marketing options, and Donahue explains, that allows them to be nimble and make campaign adjustments based on the needs of the moment. She says, “We can use them when we think it’s the right time. You can’t create any nimbleness if you don’t have something to work with and 24 in ‘24 gives us a ton of options.”
For example, at the start of 2024, rising costs became the greatest challenge in keeping customers in booths at IHOPs across the country. “Sixty-nine percent of our consumers would eat out just about every day if they could afford it,” Donahue says. “That tells us that experiences are still valuable, they just need to be able to afford it.” Utilizing the deep cache of campaign ideas, IHOP adjusted strategy in June of this year to reach families wanting the dining-out experience but too financially pressed to make it happen. “Generally, people have started putting on the brakes because they realized their dollar wasn’t going as far as they wanted it to,” [Donahue says]. “We started to see that maybe we needed to do something different, so we pivoted.” IHOP launched the 2 x 2 x 2 Combo which includes two eggs, two pieces of meat, and two pancakes for $6, which was originally planned for Q1 but included in Q2 based on this consumer data.
IHOP’s audience research goes deeper than general spending data, as well. Focused on Millennial spending, which mostly now includes young families, the marketing pipeline includes new imagery of parents and children enjoying breakfast at the restaurant. “President Jay Johns said a conscious decision was made a year ago to lean into families and breakfast,” NRN reports. Donahue says this “represents ‘relatable moments’ for families, such as celebrating a basketball win or a positive report card. It is meant to complement all the other work that has been done to “meet the moment” – the deeper pantry, the shift to value, the focus on breakfast.”
But other marketing considerations do account for younger generations and those without families, particularly offering breakfast options all day long. “Most of our competitors close at 2 (p.m.) and we’re fine with that. We think there’s a bigger market than that. Younger generations especially don’t have rules – they eat whatever they want, whenever they want,” Johns [says]. “If you want pancakes at 8 p.m., we’re the place for you.”
What IHOP’s latest strategy demonstrates is how beautifully consumer data works into business plans and bottom lines, proving that customer care is the best number one goal of a restaurant business. Richard Weil, principal and owner of National Restaurant notes, “Remember one of the most critical elements of any marketing promotion is to deliver and reinforce the marketing promise that is being offered. This creates positive outcomes.” At National Restaurant Consultants, our consultants are well versed on how to create marketing and promotional programs that will give rise to increased customer traffic and results. Contact one of our consultants to learn more about how our customized programs will meet your specific business needs.