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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