Applebee’s has developed a steady line of great deals to keep consumers’ attention even as they limit their spending. These deals include boneless chicken wings for 50 cents, half-price late-night entrees and now 50-cent mozzarella sticks.
The casual dining chain announced today that the mozzarella sticks promotion (for 50 cents each) is available to dine-in and takeout customers through July 28. Online orders are available in increments of four sticks, with a maximum basket of 10 orders or 40 sticks. The sticks are served with marinara sauce.
“We believe if we pull the right levers, we can work our way through what is currently a very challenging environment for our guests,” CMO Joel Yashinsky said in a recent interview. “So you’ll continue to see a message around value because given what our guests are dealing with right now, we want to keep traffic coming into our restaurants.”
Yashinsky emphasized that Applebee’s will complement its low-cost offering with innovations, such as the new hand-breaded chicken sandwiches.
“The value muscles are working a little harder this year because of the current situation, and the innovation muscles are giving people the opportunity to improve or try something new, and we’re excited to drive that forward,” Yashinsky said. “The strategy is to be flexible and focus a little more on value now.”
While the parent company Dine Brands’ Q1 earnings call in MayCEO John Peyton said consumers are becoming more price-conscious, as evidenced by their response to limited-time special offers.
“Guests are turning to cheaper items, which is another indication that they are watching their wallets,” he said.
At Applebee’s, 28 percent of orders were tied to a limited-time promotion, up from 19 percent in the previous quarter. Dine Brands executives said they were encouraged by the company’s value-based strategy to ease customer pressure because the promotions have generated lucrative traffic. Most customers who buy chicken wings or mozzarella sticks for 50 cents tend to order other items. For example, 93 percent of Applebee’s Dollarita orders have another menu item attached.
“It starts as a promotion designed to drive traffic, and then the marketing team layers the selections and sells other items that increase profitability,” President Tony Moralejo said in a recent interview. “Then we present to the franchisees how we protect their margins.”
Contact Alicia Kelso at (email protected)
