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Colony Pub & Grill

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$\"\"$ FullCircle Rewards Case Study

SUMMARY:

Faced with three years of limited growth and increasing operating expenses, The Colony Pub and Grille restaurant, www.colonypub.com, instituted the FullCircle Rewards program, received 1,500 new customers, and experienced an immediate and consistent sales increase of 40%.

CHALLENGE:

$\"\"$ The Colony Pub and Grille (www.colonypub.com) restaurant, located in a suburban large strip-plaza location one mile from Presque Isle State Park in Erie, PA, was established in the 1930’s and has been owned over the years by 5 local families. Since 1995, the current owner has offered banquets, family casual, American cuisine, steaks and seafood. The décor is rustic natural wood with several fireplaces, where they offer live jazz, a cocktail lounge and banquet rooms with table seating for 275 serviced by 45 employees. Management has always been focused on reducing costs and managing labor.

In the summer of 2006, the owners were at the point of needing to maximize the use of resources and increase sales. Management realized that although business was steady, profits were declining as operating costs were accelerating. They were doing good business but only to the same clientèle, and wanted to look to appeal a wider audience. They wanted to reset perceptions of the benefit and cost offered by their dining experience to a new and wider audience.

SOLUTION:

A lot of money and time were lost, as the owners tried ValPak, a local coupon mailer, billboards, tons of radio and TV, and the local newspaper to drive traffic, but none of the approaches drove new customer traffic to fill their tables. They considered, but rejected, investing in expensive restaurant marketing seminars, because their expertise is in restaurant management, not marketing. They knew the difficulty they would have in implementing the binders of ideas they would bring home,

The owners then were introduced to the FullCircle Rewards program from MutualGravity, Inc., which offered the use of an automated system to effectively drive sales. Management trained and incentivized wait staff to offer its new loyalty program, and FullCircle Rewards took care of everything else.

BENEFITS:

$\"\"$ Return on investment

FullCircle Rewards brought 1,500 new customers to the restaurant.
Over 3,000 existing and new customers have signed up for the loyalty program
Sales have consistently increased 40% since month two of the program.

Benefits for the restaurant

Management now consistently schedule for full staffing seven days a week.
A high percentage of customers have increased dining frequency from monthly or less to weekly or more.
The parking lot is full seven days and nights a week.

Benefits for the wait staff

Wait staff have seen up to a 50% increase in take home revenue.

Benefits for diners

Customers seek out the owners daily to thank them for the promotions.

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