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Restaurant Marketing Case Study: Salerno’s Pizza

Since 1966, Salerno’s Restaurant prides itself on quality Italian dishes made with the freshest ingredients. For over 50+ years, our customers enjoy the dining experience in our family-operated restaurants and never go home hungry.

Salerno’s Pizza operates multiple locations in the Chicagoland area, at Bolingbrook, Chicago, Oak Park and Lyons.

CHALLENGES:

Here were the top 3 challenges identified by management:

• The business was not effective online. It was not digitally engaging and attracting online customers in spite of it’s established brand reputation.
• The existing Salerno’s website and online ordering were not working. They were not driving online sales.
• Too much commissions were paid out to Grubhub (over 25%) and other 3rd party ordering.

MARKETING PROJECT:

A digital transformation project was kicked off in March 2016. The goal of the project was to drive online sales and growth through digital engagement.

Click to watch video

RESTAURANT MARKETING CASE STUDY

The Digital Restaurant team provided  strategy, web design, and marketing  services. 

The Digital Restaurant team performed a detailed SWOT analysis to understand strengths, identify any weakness and uncover any threats and opportunities for the restaurant locations. The team then developed a plan to implement the “growth marketing program”.

GROWTH MARKETING PROGRAM  – is our 5-step process, a proven success formula for independent and small-chain restaurants to grow sales. The program has a clear strategy yet agile in implementing new marketing tactics to achieve the desired results.

Web Design:

A restaurant website re-design project was launched. The goal of the web design was to provide an  easy user experience for customers  looking to order online.

A metric was established by asking the simple question “Would the customer prefer to order pizza on a busy night by calling the phone or order online on the computer, tablet or mobile phone ?”

We would measure success from actual feedback received from customers.

Within 4 weeks, a new website was launched and a new online ordering system set up with  complete POS integration  at all Salerno’s locations. This ensured a smooth operational flow of online orders directly to the kitchen.

Next, the website was SEO optimized and local presence established on various local directories to  drive online traffic  to the business.

A custom Salerno’s mobile app was designed and launched with  integrated mobile ordering, rewards  program and social integration . An innovative mobile approach ( Progressive Web Apps ) was implemented to eliminate the barrier of customer mobile app adoption.

With a solid digital foundation in place, the next step was to develop a  52-marketing calendar  to launch campaigns to effectively engage and drive customers to the business.

Multi-channel  nurturing and conversion campaigns  were launched over email, social, website, and advertising. Customized offers and promotions were created for each location depending on business needs.

The next marketing strategy was to  reduce 3rd party ordering  channels (GrubHub, Eat24, MyPizza.com, Beyond Menu, Doordash, Slice, etc) and redirect customers to Salerno’s own website and mobile app for online ordering.

This was done by first making it easy to order directly from Salerno’s website and mobile and providing coupon incentives to order directly. This helped realize savings by eliminating the 10-25% commissions paid to 3rd party online ordering companies, in addition to building the brand and customer loyalty to the business.

The results can be seen from Google search results below. The restaurant website is the top of search results and all 3rd party ordering links have been eliminated, thus preventing the leak of traffic and revenues.

Growing the customer email database organically was a strategy decision made early to be able to cost-effectively re-market in future. As a result of integrating multiple email acquisition channels, the  email list has grown over 5 times  in 3 months compared to the last 2 years prior to March 2016.

Social media pages for all Salerno’s locations were optimized and aligned to the branding strategy. Per the integrated marketing calendar engagement campaigns, we launched through the social, email and website channels.

Benefits Realized:

Here are the results within the first 90 days of the initiative:

– Reduced phone orders during busy times (Fridays & Saturdays) as more customers are ordering online. Ordering online is easier, faster and accurate compared to phone ordering, in addition to no wait times.

– A significant increase in online sales at each of the locations.

– Fewer customer order errors when ordering online compared to phone orders.

– Reduced customer complaints due to reduced order errors and streamlined order taking and order fulfilment.

– Rapid customer email list growth. 100% organic, no need to buy lists.

– Increase in social media engagement.

– Reduction in online order commissions from 3rd party online ordering.

– Real-time customer feedback has helped improve operational efficiency.

– Active reputation management is done now by responding to immediate customer feedback vs responding to negative yelp reviews.

With a combination of digital strategy + web design + marketing, Salerno’s is positioned to continue on a growth trajectory with its marketing function supporting the business growth plans. The Digital Restaurant team continues to be the marketing partner in Salerno’s success.

Watch video  to learn about the results achieved as shared by Emilio Morrone, Marketing Director for Salerno’s Pizza.

Next Steps:

• Subscribe for our newsletter to stay updated on the latest restaurant marketing trends and tips.
• Schedule a free 30-minute consultation with one of our marketing experts to develop a customized marketing strategy for your restaurant.

Don’t let your competitors claim a bigger slice of the market. Take action today and watch your restaurant’s success soar!

2 responses to “Restaurant Marketing Case Study: Salerno’s Pizza”

Success when marketing your restaurant rarely happens immediately. Effective restaurant marketing should be created on a foundation of fact and knowledge about the market, the competitors, customer base, Internal Customers that will impact your business.

Agree. Good points.

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Restaurants

From my early days as Marketing Manager at Darden Restaurants to EVP Marketing at Sandella’s and now CEO of an advertising agency with a focus on restaurant brands, one of the biggest challenges many brands continue to face is the intense competition for guests. But marketing alone isn’t enough to succeed. When restaurants invest in great food, service, atmosphere, and operations, and then add a layer of innovative marketing - that’s when the real magic happens.” - Carolyn Walker, CEO / MANAGING PARTNER

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Aaron Allen » Insights » 5 Case Studies to Help You Grow in the Restaurant Industry

5 Case Studies to Help You Grow in the Restaurant Industry

With over 2,000 engagements across 100+ countries, Aaron Allen & Associates has helped some of the world’s most recognized restaurant chains, investors, suppliers, and tech companies achieve remarkable growth. We’re sharing five restaurant case studies that showcase how we’ve driven enterprise value and transformed challenges into opportunities.

These examples offer insights into how strategic actions can lead to significant, measurable results….

Our client list, as may be expected, includes many esteemed brands throughout the world. Moreover, our experience means that we have a deep knowledge of the players, market dynamics, trends, and both the micro and macro factors shaping the industry around the globe.  We are restricted by confidentiality agreements and the boundaries of our own ethical sensibilities from disclosing our clients past and present, and therefore do not provide full client lists out of an abundance of caution for discretion.  Below is a brief sampling of some of the initiatives and results we have helped our clients implement and achieve.

Restaurant Case Study #1: Casual Dining Chain Leveraging the Menu as a Catalyst for a Turnaround

Focused on reinvigorating a  casual dining  national brand through  strategic marketing , operational improvements, and executive leadership guidance during critical transition periods.

BACKGROUND AND CHALLENGE

COMPANY STATS:

• Enterprise Value: ~$2b
• Sales: >$1b
• # Units: 100-150 range

Problems identified by AA&A:

• Slow service speeds and long customer wait times
• Highest volume profit centers bleeding the most traffic
• Understaffed in peak periods
• High employee turnover
• Inefficient equipment plans and layouts
• Menu misaligned

ACTION AND APPROACH

Granted special access to extensive data, AA&A utilized advanced data science techniques to identify and address operational bottlenecks and market opportunities.

• Process flows
• Menu ideation
• Signature items
• Capacity assessment
• Productivity benchmarking
• Guest experience assessment
• Price and performance correlation
• Menu merchandizing recommendations

RESULTS AND IMPACT

• Recommendations for  changes in kitchen equipment  leading to faster service and improving returned guests statistics
• Recommendations on ”can’t do at home” items, extensions on customization ability, signature items
• A streamlined menu helped improve margins, with Adjusted EBITDA going from 23% pre-engagement to over 27%

Take Action Today

Restaurant case study #2: multi-brand portfolio strategic mid- and long-term business plan advisory .

The client was a multi-brand, multi-product platform in  Latin America .

COMPANY STATS

• The group had 10-15 brands in LATAM and was backed by one of the most important family offices in the region
• Annual revenue in the $40m-$50m range, ~10% EBITDA

Scope of work:

• 5-year plans and priorities
• Roadmap and critical path
• Budget and CAPEX parameters
• Shared services and infrastructure
• Broad-brush organizational design
• Post-pandemic growth milestones
• Identifying target growth markets
• Brand strengths  and opportunities
• Franchising vs. corporate expansion
• Business model recommendations
• Timelines for expansion

Some of the strategic advice given by AA&A that the company followed:

• M&A: Divest — AA&A recommended divesting brands to focus on the high achievers. The company exited one of the brands identified as a low-margin brand
• 5-year plans are starting to be applied, with remodels happening selectively as well as SG&A, food cost, and labor cost optimization
• Labor cost optimization opportunity in one of the countries
• Opportunity to Optimize corporate SG&A with the divestiture of low-performing brand and units

Restaurant Case Study #3: Commercial Due Diligence and Investment Thesis Validation for Foodservice Tech Company

We supported a middle-market investment group in North America with more than $200m in assets under management investing across more than 20 industries. The company was doing  diligence  for an investment in a restaurant technology company in the U.S.

TARGET COMPANY STATS

• Leading company in its category (top two by sales)
• Had raised a cumulative of close to $100m in funding at the time of the project

Support with custom research to evaluate the market, positioning, and risk of a target company in the foodservice technology space. Insights into the foodservice industry landscape included:

• State of the Industry
• Total Addressable Market
• Competitive Landscape (past, present and future)
• Timelines for Growth, Partnerships
• Consumer Decision Process, Penetration and Retention
• Adoption Rates
• Risk and Relevance for the Technology
• Disruption and Mitigation Strategies
• Forward-Looking Support with Investment Thesis

ADVISE AND IMPACT

• The diligence work from AA&A advised in favor of the investment, with a few yellow flags for competitive threats
• Three years later, the target company had its IPO and raised more than $100m in cash, giving an opportunity to exit the investment and make a return in a short time

Start a Transformation

Restaurant case study #4: qsr operations audit and sales turnaround for  multi-brand f&b group.

Illustrated comprehensive value creation through operational and financial analysis, leading to an IPO and substantial revenue growth. The focus was to streamline operations, ignite growth, and pave the way for a substantial IPO.

• ~20 brands across 15-25 countries and 2,000+ outlets
• Large operator in Food Away From Home and QSR across MENA
• Master franchisee and proprietary brands
• On-site field work, visiting every major market for each brand (1k+ photo observations)
• P&L gap analysis
• Systems gap analysis, accuracy, SOPs assessment
• Location performance cross-section assessment
• Labor analysis
• Purchasing analysis, supplier analysis
• Menu analysis, comps
• Tech stack gap analysis
• Employee survey, morale assessment

This project demonstrates AA&A’s capability to facilitate large-scale strategic overhauls and highlights our expertise in steering companies towards successful public offerings

• Sales Turnaround : Strategic initiatives, particularly in technology and operational efficiencies, led to a +12% boost in same-store sales for the leading brand
• Investment into New Categories : strategic advice to acquire brand rights for high-growth-forecast categories led to the expansion in coffee
• Service Standards : suggestions to improve service, speed, order accuracy, and cleanliness led the company to obtain accolades from the franchisor and improvements in operations compliance scores of 60%
• Productivity improvements : the year after the engagement employee productivity increased by close to 10%

Restaurant Case Study #5: Comprehensive Understanding of the Foodservice Equipment Landscape

An Original Equipment Manufacturer (“OEM”) had questions relative to commercial foodservice equipment purchases, technology/innovation, and restaurant decision-making. The company was looking to get a  comprehensive understanding  of the foodservice equipment (FSE) landscape to decide whether or not to get into the foodservice space at scale.

• $20-$30 billion range in annual revenue
• More than $1 billion adjusted free-cash-flow
• 60k-80k employees range

Insights into the foodservice industry landscape, including:

• Competitive landscape
• Deep dives into competitors’ product portfolio
• Equipment acquisition cycles for restaurant chains
• Restaurant chain typical equipment allocations
• Equipment efficiencies in labor, maintenance, food cost, etc.
• Complexity and variations by type of restaurant segment
• Cost of switching/stickiness
• Restaurant decision-making process (mind of the buyer)
• Decision-making for franchisors vs. franchisees
• Operating model OEM-dealer/distributor

Drawing on our firm’s industry experience, expertise, network, know-how, and know-who, we applied a holistic approach and combined anecdotal, qualitative, and quantitative insights to provide answers and tools:

• Audited the competitive landscape and areas of opportunity
• Surfaced white space and identified gaps existing in the offerings of domestic commercial foodservice equipment providers
• Introduced opportunities for disruption via innovation related to labor automation and alternative formats
• Recommended a dual focus on North America as the biggest segment but also a different market as the fastest-growing
• Inorganic approach to fast growth

About Aaron Allen & Associates

Aaron Allen & Associates  is a global restaurant consultancy specializing in brand strategy, turnarounds, and value enhancement. We have worked with a wide range of clients including multibillion-dollar chains, hotels, manufacturers, associations and prestigious private equity firms.

We help clients imagine, articulate, and realize a compelling vision of the future, align and cascade resources, and engage and enroll shareholders and stakeholders alike to develop multi-year roadmaps that bridge the gap between current-state conditions and future-state ambitions. Learn More.

Global Restaurant Industry Experts

We are focused exclusively on the global foodservice and hospitality industry. You can think of us as a research company, think tank, innovation lab, management consultancy, or strategy firm. Our clients count on us to deliver on our promises of meaningful value, actionable insights, and tangible results. 

Founded and led by third-generation restaurateur, Aaron Allen, our team is comprised of experts with backgrounds in operations, marketing, finance, and business functions essential in a multi-unit operating environment.

How We Help

We bring practical, relevant experience ranging from the dish room to the boardroom and apply a holistic, integrated approach to strategic issues related to growth and expansion, performance optimization, and enterprise value enhancement.

Who We Serve

Working primarily with multi-brand, multinational organizations, our firm has helped clients on 6 continents, in 100 countries, collectively posting more than $200b in revenue, across 2,000+ engagements. 

We help executive teams bridge the gap between what’s happening inside and outside the business so they can find, size, and seize the greatest opportunities for their organizations.

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McDonald’s Marketing Mix (4P) Analysis

McDonald’s marketing mix (4Ps) involves approaches that meet business objectives in different markets around the world. The marketing mix defines the strategies and tactics that the fast-food restaurant company uses to reach target customers, in terms of products, place, promotion, and price (the 4P). In this business analysis case, McDonald’s has corporate standards that its marketing mix applies globally. For example, the company’s standards for productivity are implemented in the management of each company-owned and franchised location. McDonald’s also applies some variations in its marketing mix to suit the conditions of local or regional markets. For instance, the food-service company’s promotion strategies and tactics focus on online media in some countries, while television advertising is prioritized in other markets. The specifics of the 4P variables define the strategies and tactics that McDonald’s uses in executing its marketing plan and achieving related marketing strategy goals to grow the multinational restaurant chain business.

McDonald’s effectiveness in implementing its marketing mix contributes to the leading performance of its brand and business in the international fast-food restaurant industry. The company’s strategic management considers how its 4Ps relate to the marketing strategies of competitors, like Burger King , Wendy’s , Dunkin’, and Subway, as well as other food-service firms that compete with McCafé, such as Starbucks Coffee Company . McDonald’s marketing mix facilitates effective reach to target customers around the world. This condition supports the company’s global industry position, as well as the strength of its brand, despite the strong force of competitive rivalry shown in the Five Forces analysis of McDonald’s Corporation .

McDonald’s Products

As a food-service business, McDonald’s has a product mix composed mainly of food and beverage products. This element of the marketing mix covers the organizational outputs (goods and services) that the company provides to its target markets. McDonald’s product mix has the following main product lines:

• Hamburgers and sandwiches
• Chicken and fish
• Snacks and sides
• Desserts and shakes
• Breakfast/All-day breakfast

Among the 4Ps, products are a fundamental determinant of McDonald’s brand and corporate image. The company is primarily known for its burgers and fries. However, the business gradually expands its product mix. At present, customers can purchase other products, like chicken and fish, desserts, and breakfast meals. McDonald’s generic competitive strategy and intensive growth strategies influence the product lines included in this element of the marketing mix. In diversifying its product lines, the fast-food chain satisfies market demand and improves its revenues. In terms of risk, a more diverse product mix reduces the company’s dependence on just one or a few food-service market segments. This element of McDonald’s marketing mix indicates that the firm innovates new products to attract more customers and improve its business stability.

Place/Distribution in McDonald’s Marketing Mix

This element of the marketing mix enumerates the venues or locations where products are offered and where customers can access them. In McDonald’s marketing strategy, restaurants are the most prominent places where the company’s products are distributed. However, the fast-food company’s distribution strategy utilizes various places as part of this 4P variable. The main places or channels through which McDonald’s distributes its products are as follows:

• Restaurants
• McDonald’s websites and mobile apps
• Postmates website and app, and others

McDonald’s restaurants are where the company generates most of its sales revenues. Some of these restaurants also manage kiosks to sell a limited selection of products, such as sundae and other desserts. Some kiosks are temporary, as in the case of kiosks used in professional sports competitions and other seasonal events. This element of McDonald’s marketing mix also involves the company’s mobile apps. These virtual places are where customers can access information about the company’s food products and buy these products. For example, the company’s mobile apps for iOS and Android let customers claim special deals, find restaurant locations, place orders, and pay for such orders involving participating McDonald’s restaurants. Furthermore, customers can place their orders through the Postmates website and mobile app. This element of the marketing mix supports strategic goals based on McDonald’s mission statement and vision statement , especially in serving more customers around the world.

McDonald’s Promotion

This element of the marketing mix defines the tactics that the food-service business uses to communicate with customers. Among the 4Ps, this variable focuses on marketing communications with target customers. For example, the company’s marketing strategy provides new information to persuade consumers to purchase its new food products. McDonald’s uses the following tactics in its promotional mix, arranged according to significance in the business:

• Advertising (most significant)
• Sales promotions
• Public relations
• Direct marketing

Advertisements are the most notable promotion tactics in McDonald’s marketing strategy. The corporation uses TV, radio, print media, and online media for its advertisements. On the other hand, sales promotions are used to draw more customers to the company’s restaurants. For example, McDonald’s offers discount coupons, freebies, and special deals and offers for certain products and product bundles, as a way of attracting more consumers. In addition, the company’s marketing mix involves public relations to promote the fast-food business to the target market through goodwill and brand strengthening. For instance, the Ronald McDonald House Charities and the McDonald’s Global Best of Green environmental program support communities while boosting the value of the corporate brand. Occasionally, the company’s promotional mix uses direct marketing, such as for corporate clientele, local governments, or community events and parties. In this element of its marketing mix, McDonald’s Corporation emphasizes advertising as its main approach to promoting its products. The brand and other business competitive advantages specified in the SWOT analysis of McDonald’s contribute to the effectiveness of promotional activities in this marketing mix element.

Price in McDonald’s 4Ps

This element of the marketing mix specifies the price points and price ranges of the company’s food and beverage products. The aim is to use prices to maximize profit margins and sales volume. In its 4P, McDonald’s uses a combination of the following pricing strategies:

• Bundle pricing strategy
• Psychological pricing strategy

In the bundle pricing strategy, McDonald’s offers meal sets and other product bundles for prices that are discounted, compared to purchasing each item separately. For example, customers can purchase a Happy Meal to optimize cost and product value. On the other hand, in psychological pricing, the company uses prices that appear more affordable, such as $__.99 for a meal instead of rounding it off to the nearest dollar. This pricing strategy encourages consumers to purchase the company’s food products based on perceived affordability. Thus, this element of McDonald’s marketing mix highlights the importance of bundle pricing and psychological pricing to encourage customers to buy more products. The cost objectives, requirements, and limits in McDonald’s operations management account for the price points in this marketing mix.

• Eze, F. J., Inyang, I. B., & James, E. E. (2024). Standardization versus adaptation of marketing mix in international markets: A systematic literature review. World Journal of Advanced Research and Reviews, 22 (2), 1192-1212.
• McDonald’s Corporation – Exclusive Deals .
• McDonald’s Corporation – Form 10-K .
• McDonald’s Corporation – Full Food Menu .
• McDonald’s Corporation – Mobile Ordering .
• U.S. Department of Agriculture – Economic Research Service – Food Service Industry Market Segments .
• Wang, X. S., Bendle, N., & Pan, Y. (2024). Beyond text: Marketing strategy in a world turned upside down. Journal of the Academy of Marketing Science , 1-16.
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• This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
• Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

Case Studies

Restaurant Marketing Case Study: Building a Strong Local Presence

May 9, 2023

The restaurant industry is a crowded space, where carving out a distinctive niche often determines survival and success. Amidst the plethora of dining options, a restaurant’s local presence becomes the linchpin of its visibility and brand recognition.

In an era where the majority of customers search for dining options online, visibility on search engines and a recognizable brand identity are crucial aspects of a restaurant’s marketing strategy.

Increased visibility on search engines, achieved through local SEO and targeted search ads, is fundamental to attracting potential customers.

When a restaurant tops the local search results, it’s the first option customers see — and often the one they choose. In an industry where decisions are often made quickly and based on convenience, this visibility can be the difference between thriving and merely surviving.

Brand recognition, on the other hand, is about creating a distinctive and memorable identity that resonates with the local community. This can be achieved through consistent messaging, a strong online presence and engaging with customers through social media channels.

When a restaurant becomes a familiar name, it earns a place in customers’ minds as a reliable and preferable choice.

The pressing need for a strong local presence isn’t just theoretical — it’s a reality that restaurants face every day. Keep reading to learn how one restaurant got it right with the help of the dedicated marketing team at Marketing 360® .

Local restaurant drives brand recognition and visibility with local marketing

One local seafood restaurant learned just how powerful a strong local presence can be for their overall marketing performance.

Over the past 60 days, they’ve seen tens of thousands of impressions, thousands of clicks and dozens of conversions.

Compared to the previous 60-day period, they saw a 57% increase in impressions, an 18% increase in clicks and a 185% increase in conversions, as well as a 200% increase in website visits.

How did they do it?

Their journey toward a strong local presence started on their website, where they optimized their content for relevant keywords and included easy-to-find contact information, helping them rank higher in organic searches.

They complemented their SEO strategy with search advertising on Google, helping to ensure top-of-the-page visibility in relevant search results.

They also built a strong local presence by actively managing and optimizing their Google Business Profile and other local listings.

Furthermore, they got lots of five-star reviews and built a strong reputation, helping them increase their visibility in local searches and build trust with potential customers.

Finally, they increased brand awareness in their community with social media management. To maximize their efforts, they made it a point to choose the most popular platforms with their customer base — TikTok, Facebook and Instagram.

By posting on a regular basis and using the right hashtags, they were able to get in front of a wider audience, build a recognizable brand and grow their local presence.

A strong local presence, underpinned by heightened search visibility and brand recognition, is paramount for restaurants striving to stand out in a saturated market. The strategic implementation of local SEO, targeted search ads and effective social media management can create a powerful local footprint. These efforts not only increase a restaurant’s visibility but also foster a memorable brand, helping it become a top-of-mind choice for potential customers.

Build, manage and grow your small business with Marketing 360®

Marketing 360® is a singular platform  that offers everything you need to  build a modern, professional website ,  launch ads on popular channels ,  manage all of your contacts, projects and deals ,  schedule out social media posts ,  monitor your SEO performance  and so much more, plus  the marketing team you need to grow your business .

See our plans and pricing.

Account C1705 Screenshots taken on 5/9/23

*Results are based on past client performance. Individual account performance may vary. Results are not guaranteed.

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