How Focus Brands Uses Digital Innovation To Create Greater Access

My last few articles have explored how the Covid 19 pandemic affected the restaurant industry in ways beyond the obvious challenges of government-forced shutdowns and labor issues. The digital revolution is one of the positive trends coming from the pandemic (if anyone could use the word positive given the crisis of the last few years). Of course, many restaurant-oriented digital applications have been around for some time. Still, the need to jump on this trend was expedited by the COVID-19 pandemic. To navigate unprecedented mandates and closures, restaurant brands needed new ways to get their products into consumers’ hands. In addition, consumers demanded greater restaurant accessibility and convenience.

More than two years later, digital technologies, including artificial intelligence, personalization, robotics, and machine learning, have forever changed how restaurant brands interact with customers. However, while new digital integrations have helped businesses pivot during challenging times and remain top-of-mind with their target audience, there are many ways for brands to continuously evolve to meet the changing demands of consumers.

One company that’s adjusted well to meet evolving guest expectations is Focus Brands. The Atlanta-based multi-channel foodservice company has leaned on its portfolio of restaurants and specialty brands, as well as its leadership team, to analyze which technologies are here to stay and what investments need to be made to ensure long-term growth and success. Under the leadership of CEO Jim Holthouser, Focus Brands’ investment in digital has helped its brands thrive despite industry challenges. The team’s strategic modifications and digital-forward solutions proved that digital technology could propel your company to new heights.

In 2022, Focus Brands is leaning further into digital and greater consumer access for its seven brands. Below we’ll take a closer look at how Focus Brands and others are innovating to better serve customers and franchisees.

Prioritizing the Customer Experience

Before the pandemic, McAlister’s Deli was primarily dine-in. Luckily, the brand had already started investing in digital technology ahead of the pandemic to help enhance the speed of service. This gave McAlister’s a head start on its brand evolution centered around digital. To meet evolving guest expectations, the brand made improvements to its mobile app and loyalty program and leveraged digital technology to increase the number of service options. For example, in early 2021, McAlister’s introduced tableside ordering, which allows guests to skip the line and order at their table via the mobile app. This technology provided customers with a personalized service experience while limiting person-to-person interaction during socially-distant times. As a result, McAlister’s Deli gained more than one million loyalty program members in 2021 with increased participation rates across the board, regardless of ordering method.

Investing in Digital Guest Engagement

Innovative and recognized restaurant marketing expert Matt Plapp, CEO of America’s Best Restaurants, relays this story after interviewing over 700 restaurant brands and working with restaurateurs across the country. “When the pandemic hit, it was more important than ever for restaurants to get their brand online. They also realized the importance of gaining customer data like emails and cell phone numbers to make that communication easier. Up until March 2020, we focused on helping restaurants use frontend marketing tactics to build huge email and text lists and left using that data up to them. Then, when the pandemic hit, we added customer retention since we knew everyone was short-staffed. This allowed the restaurant owners to run their restaurants and let our team handle weekly email and text campaigns.”

“Making our brand more accessible through digital means has been a huge focus for us, and our guests can engage with our brand in nine different ways. Whether in-person or digitally, we can ensure convenience and easy access, no matter how guests choose to dine”, says Mike Freeman, Chief Brand Officer of McAlister’s Deli. “Even though dine-in business has returned, and we encourage our guests that want to dine at our locations to continue to do so, we know we need to always innovate digitally to meet evolving consumer demands. We’re now on track to become Focus Brands’ first billion-dollar brand. Our digital investments have helped put us on that trajectory.”

Digital Innovation Has Evolved Restaurant Designs and Prototypes

Competitive real estate continues to loom over the restaurant industry, and many fast-casual chains have rolled out prototypes with smaller square footage to promote their off-premise channels. Smaller is better, and many brands have reaped the benefits from the digital side as new compact designs have spotlighted innovations such as upgraded mobile apps, loyalty programs, online ordering, and interactive menu boards. With more than 85 percent of its total business being consumed off-premise, Schlotzsky’s was one of Focus’ restaurant brands that quickly adopted this trend and introduced two new prototypes – Design 1000 and 1800 – in 2021. Schlotzsky’s recently opened its first Design 1000 location in Oklahoma City. As a result, they will have the opportunity to learn and gather critical data on the effectiveness and efficiency of the off-premise prototype. “Schlotzsky’s has been laser-focused on building prototypes that deliver the convenience and ease of use guests expect while also right-sizing the investment for our franchisees without sacrificing the core elements of the brand—and that’s a tall order,” says Shelley Harris, Interim Chief Brand Officer of Schlotzsky’s.

Focus Brands is not the only restaurant franchisor opening smaller restaurants. For example, Oath Pizza, the “better for you” pizza franchise hailing from Nantucket, has been on a steady plan to increase digitization and reduce the footprint of its restaurants. Drew Kellogg, formerly with Chipotle and now Oath Pizza’s CEO, added, “The prioritization of our digital infrastructure has resulted in a state-of-the-art tech stack built to capitalize on revenue opportunities and provide a seamless experience for our customers and teams. This, paired with a small footprint, low labor requirements, and reliable supply chain systems, have quickly made us a leading choice for landlords and franchise owners nationwide.”

Greater Consumer Accessibility

In addition to new prototype designs for its restaurant brands, Focus Brands has been piloting various dual-branded locations to explore specialty concepts from their Specialty Category of brands featuring Auntie Anne’s, Carvel, Cinnabon, and Jamba have the strongest guest appeal and have the potential to drive profitable growth for franchisees. These dual-brand locations feature one or more brands on a single piece of real estate, with an integrated store design. One of the most successful combinations has been Auntie Anne’s and Jamba. Last year, the two brands opened a dual-brand store in Wylie, Texas, which features the first-ever Auntie Anne’s drive-thru.

Recently, as part of the company’s continued investment in bringing brands streetside, Focus Brands announced a new concept to join their portfolio of specialty brands: Cinnabon Swirl Featuring Carvel Soft Serve. In addition, consumer research identified key dual-brand opportunities within the Focus portfolio, one of which brings the best of Cinnabon and Carvel Soft Serve together in a unique concept.

The newest dual-brand combination meets consumer demand for greater brand accessibility by bringing Cinnabon streetside, paired with iconic Carvel soft serve, to create the ultimate treat destination.

Developing dual-brand locations that bring multiple brands into one retail space opens up more real estate options for Focus’ iconic brands. The company places high importance on meeting consumers where they want to be met—which translates to greater convenience and brand accessibility. For its franchisees, the company recognizes how dual-brand concepts create an opportunity to put locations in premium real estate while also having the potential to drive increased revenue. Focus Brands currently has 100+ dual-brand sites open across the country.

A Company Set Up for Growth

Innovation in the digital space has helped consumers engage with restaurant brands in many ways, allowing Focus Brands and others to drive revenue and unit growth. Innovations in real estate, unique dual-brand opportunities, and digital continue to provide the highest quality experience to consumers and franchisees. The restaurant industry continues to evolve and address the guest’s new and different expectations that have become mainstream due to the pandemic. Forward-thinking, and alert brand leaders have responded to the events of the last few years by looking at their businesses in new ways.