Distribution and Pricing

Distribution

Since TGI Friday’s operates as a franchise, this allows the company to have restaurants worldwide and not have to directly manage all of them. This allows for selective distribution globally and within the United States. According to the Friday’s website, the total number of Friday’s brands (which include T.G.I. Friday's, Friday's Front Row Sports Grill and Friday's American Bar) found all over the world is 923 restaurants. 609 of those restaurants are found in 47 of the 50 states of America, while 314 of the restaurants can be found in 62 countries including China, the United Kingdom, Canada, India, Mexico, Turkey, Denmark, France, and Japan to name a few. However TGI Friday’s cannot be considered intensively disturbed as a TGI Friday’s restaurant is now found in all major cities in the United States and is not found in every country in the world.

Carlson Restaurants Worldwide Inc., TGI Friday’s’ parent company, only owns and operates 307 of its TGI Friday’s restaurants and the rest are franchised or joint ventures. In this regard some TGI Friday’s restaurants can be considered intermediaries. Within the restaurants themselves however, TGI Friday’s practices direct distribution. As Friday’s is part of the service industry, the product which includes but is not limited to, the actual food, the drinks at the bar and the atmosphere, is delivered to the customer on site. Even though the customer can ask for take home containers, they must first go to the restaurant itself. One may wonder if a restaurant can ever practice indirect distribution. The answer is in the eye of the beholder because some restaurants do offer home delivery but it is usually restaurant employees who make the delivers, not a third part intermediary.

Also some restaurants do sell their products in grocery stores, which can be considered indirect distribution. In this case the intermediaries are the manufactures of the food itself and the packaging, wholesalers or retailers and the grocery stores themselves. According to the Friday’s website, many favorites Friday’s appetizers, such as spinach and artichoke dip, loaded potatoes skins, and various kinds of mozzarella sticks can be found in local grocery stores. A Friday’s fan can also buy Friday’s inspired snack foods, drink mixes, Friday’s ready made drinks, and mixers. The Friday’s website does not list the grocery store chains that carry the products so I am unable to determine if the retail product line of Friday’s is intensively or selectively distributed. In 1999, the Inventure Group Inc. (also known as Poore Brothers) acquired the plant at which Friday’s snack foods were processed and became the manufacturer and distributor of TGI Friday’s snack foods. I am not sure if Inventure Group Inc. works with Carlson Restaurants Worldwide Inc. However, Friday’s snacks are purchased online through great goodies and gifts.

The on site, in restaurant distribution of Friday’s food and drinks works really well for Friday’s because it allows the company more control over the quality of the food. The consumer can also provide immediate feedback to the chef and make specific requests in order to make the dining experience even more personalized. Since the customer has to go to the restaurant itself, the customer is more likely to spend more time and money than if they only had the option to buy the product from a grocery store shelf. In regards to restaurants Friday’s has all over the world, distribution can be increased by franchising in all 50 states and in more countries around the world. Carlson Restaurants Worldwide Inc. (CRW) can also increase the number of Friday’s restaurants in the 47 states to more intensively distribute the product. CRW can also more intensively distribute the retail products by selling the products in more grocery store chains.

Pricing

The pricing for food offered at Friday’s changes quiet often as Friday’s strives to be a low-cost high quality dining experience. Over the years and during different seasons, Friday’s runs various pricing promotions. The strategies used can be loosely compared to prince penetration practices. Quiet often the prices of entrées, appetizers and deserts are lowered based on season and various social events. Between March 2, 2009 and April 8, 2009, Friday’s ran a ‘Top 10 for $9.99’ promotion in which Friday’s top 10 entrees were offered fro $9.99 each. This strategy is aimed at getting more customers to come to the restaurants more often.

The ‘Give Me More Stripes’ customer appreciation program allows avid Friday’s diners to sign up for free membership (must be 21 or older to sign up) in order to earn rewards points and receive free coupons through the year. Many of the coupons are for discounted appetizers and entrees and occasionally, for free food. ‘Give me more stripes’ can be considered to be a part of penetration pricing as it increases customer involvement with the brand by lowering prices for select diners. Currently for ‘Give me more Stripes’ members, Friday’s is running a ‘Penny Apps’ promotion during which diners can purchase their favorites appetizers for one penny with the purchase of a beverage at the bar and $1 entrees with the purchase of another entrée (one Penny App and one $1 Entrée per diner per visit). With ‘Give me more Stripes’ diners get $8 back for every $100 they spend.

Price penetration via discounted entrees and appetizers as well as ‘Give me more Stripes’ is working really well for Friday’s. The lowered prices attract more customers and more frequent visits as well as increase brand awareness. The ‘Give me more Stripes’ program makes customers feel more involved with the brand and the gift certificate rewards ($8 for every $100 spent) guarantees more customer visits. In order to increase the success of the ‘Give me more Stripes’ program Friday’s should lower the age requirement to 18 as the purchase of alcoholic beverages does not count towards the $100 spent total and the gift certificates can not be used for alcoholic beverages either.

The pricing for the retail products found in grocery stores is not discussed on the Friday’s website. Also the prices may vary by store at which the products are sold.

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The Mental Image ((Friday’s’ Positioning))

Even though T.G.I. Friday’s is a casual dining restaurant, the experience and product it offers is anything but casual. Every good businessman and marketer knows that to make a product successful excellent product positioning is crucial. A product’s position is the mental image the product holds in the minds and hearts of its consumers compared to its competitors. Since there are many casual dining establishments like Perkins, Applebee’s, Ruby Tuesday and Denny’s to name a few, what makes Friday’s special? What makes Friday’s a better deal than all of its competitors? Is it the amazing food ,the décor or the cheap price or is it the fact that your dollar goes further at Friday’s? Or is it the new Ultimate Recipe Showdown Menu?

Actually, it’s a little bit of everything. Friday’s is the innovator of casual dining. How do they keep up with that image? By revamping classics! If you love mac and cheese, why not try a new appetizer, ‘fried Mac and Cheese’, or how about the ‘potato skinny dippers’, potatoes that are ‘naked’ and ready for dipping in a yummy cheese sauce! Friday’s has also implemented recipes inspired by cooks on ‘Ultimate Recipe Showdown!’ on the Food network. The newest editions include the Ultimate Burger, inspired by the winning burger recipe and sweet spiced cupcakes inspired by the winning ‘baby cakes’ cupcakes made with baby food.

Friday’s is also unique in the way it runs its commercials. When the new appetizers, potato skinny dippers, green bean fries, and fried mac and cheese were introduced, commercials featured consumers who were appalled and shocked by the dishes. The commercial then said: They’re not ready, are you? It was almost like a dare to its customers, a dare to go and try the new appetizers.

A while back Friday’s also ran a commercial in which its décor was changed. Perhaps this was to shake the image that Friday’s only offered subdued lighting and (some may say stuffy) Tiffany lamp décor.

Friday’s has been able to ride the recent economic slump with relative ease because in 2007 it introduced ‘The Right Portion, the Right Price’ menu. Now customers can get a smaller portion of their favorite entrée for a cheaper price. This enables customers to eat out and still have something left in their pockets in such uncertain economic times.
Ahh…Eve more change are in the air!

Once again Friday’s is leading with way in great customer service. With the introduction of ‘Give me More Stripes’ rewards card customers can turn the dollars they spend Friday’s into points. With every 100 points, they get an $8 certificate. Members also get a free dessert on signing up, upgrades on beverages and complimentary welcome tastings. There is one catch however you have to be at least 21 to sign up. If you’re 21 or older, go for it! Get yourself some stripes!

Core Competency

The four P’s of marketing are: Price, Product, Promotion and Placement (Distribution)

The price at Friday’s are great, back in New York City you can find a Friday’s pretty much everywhere and the promotion of it all, BRIGHT red and white stripes! Who can miss that? But what is Friday’s core competency?

Product.

The food aside, Friday’s also offers an interesting atmosphere. While it isn’t high end fancy dining, it is a little fancier than oh say the burger joint down the street. Tiffany lamps, subdued lighting, and F shaped handles. Friday’s is a great place to sit down and get away from the hustle and bustle of everyday life.

Now for the food, Friday’s offers many, many types of dishes. From Friday’s serves appetizers, entrees from the Jack Daniel’s Grill, seafood and many types of pastas to satisfy any taste palette. For the health conscious Friday’s offers salads like the Chicken Tostada Salad, the Cobb salad and soups! Friday’s also offers low carb low calorie options. How about the Brownie Obsession or the Chocolate Peanut Butter Pie?

Everyone has room for dessert and Friday’s has A LOT to choose from.
Don’t forget the beverages! Friday’s offers wines, beers and other non-alcoholic drinks like smoothies slushies.

With the addition of Ultimate Recipe Showdown (hosted by Guy Fieri) recipies, Friday’s keeps adding to its menu!

Missions and Visions

Since this blog is for a business class, let’s start at the top. Well, at the bottom, let’s look at Friday’s foundation as a company and understand what they stand for. Here’s the mission statement right from the Friday’s website:

Vision: To be the most respected restaurant company on the planet.

Mission: Category leadership by building the best relationships in the business.

This missions statement is short, sweet and to the point. Words like “most respected’ and ‘best relationships’ show that Friday’s intent is not to just succeed as a restaurant but to also be a leader in the business world as a company. While the mission statement does not make reference to customers, it does address the aspect and necessity of fostering strong relationships, and these relationships can exist with customers, employees, share holders, and other companies involved with Friday’s.

Hi!

Hi! This is for my marketing class. The company I will be following is T.G.I. Friday's.