Restaurant And Hospitality News – July 13, 2015
By Christine Kern, contributing writer
In news this week, Subway is dealing with controversy surrounding Jared Fogle; hotels saw a spike in occupancy rates over the 4th of July; Taco Bell has partnered with DoorDash to provide delivery in more than 90 cities; and Domino’s has launched the first pizza tracker app for the Apple Watch.
Subway Deals With Fallout From Spokesperson Controversy
The Nation’s Restaurant News examines how the Subway incident highlights the need for a solid crisis management plan, in the wake of the brand’s separation from long-time spokesman Jared Fogle. Marketing experts are saying that the separation was a positive first step, but that all restaurant brands should have a solid crisis management plan in place before a crisis hits. Fogle’s contract was suspended after his home was raided by state and federal agents in relation to child pornography charges. According to a company statement, “Subway and Jared Fogle have mutually agreed to suspend their relationship due to the current investigation. Jared continues to cooperate with authorities, and he expects no actions to be forthcoming. Both Jared and Subway agree that this was the appropriate action to take.” Experts say that the separation was a wise move, even though Fogle has yet to be charged with any crimes. Jeff Fromm, marketing strategy consultant and president of FutureCast told the NRN that “There’s nothing for Subway to gain and everything to lose.” He also explained that “A crisis for a brand that’s mature is different from a brand that’s not mature. Consumers already know this brand. So Subway should look at the consumer impact on those four things that have real impact:” authenticity, innovation, differentiation, and purpose. “Mature brands have to look through this lens.” But Laurel Kennedy, principal of crisis management firm Blink, assured that using brand ambassadors will not disappear. “Companies use brand ambassadors and employ celebrity spokespeople because they are effective. The fact of the matter is people respond to people. There’s nothing more authentic to a person speaking from the heart.” However, she cautioned, “Companies should make sure they do their due diligence, and they should write strong morals clauses into contracts so they have more latitude if situations like this come up.”
U.S. Hotel Occupancy Rate Saw Spike For the 4th of July
The U.S. hotel industry returned positive results during the week of June 28 through July 4, 2015, according to data from STR, Inc. Hotel News Resource reported that the industry’s occupancy rate rose 3.6 percent to 68.3 percent year over year, with a 6.2 percent increase in the average daily rate for the week, rising to $119.20. Revenue per available room also rose 10.1 percent, ending the week at $81.45. Overall, 15 of the Top 25 Markets posted a double-digit increase in RevPAR. Six markets experienced a double-digit rise in occupancy, led by Philadelphia (+18.5 percent to 72.7 percent) and Phoenix, Arizona (+18.1 percent to 51.2 percent. Currently, Right now 2015 is above 2000 (best year for hotels), and this year will probably be the best year ever for hotels, and the summer season is predicted to be strong with lower gasoline prices, according to the Calculated Risk blog. That means that hotels are on pace to set record occupancy rates this year.
Taco Bell and DoorDash Partner To Offer Delivery In Nearly 100 Cities
Taco Bell and DoorDash have partnered to bring customers #TacoBellDelivery, according to a DoorDash blog post. The new service allows customers to order from more than 200 Taco Bell Restaurants in nearly 100 cities in California and Dallas, Texas by using the DoorDash mobile app and website and have it delivered directly to them. “Taco Bell has always been about value and convenience, and we believe delivery is the next step in catering to today’s on-demand culture that’s driving consumer behavior,” Taco Bell CEO Brian Niccol said in a statement. There is a $3.99 deliver fee, including extra costs for individual items. The move marks the first partnership for Taco Bell with a third-party delivery service, and it also is the first national partnership for DoorDash, which was founded in 2013 and has raised nearly $60 million to date. Taco Bell also launched mobile ordering this past October. “This partnership marks an important milestone for DoorDash,” said Tony Xu, CEO at DoorDash. “As DoorDash looks to double its footprint by the end of the year, today’s announcement shows our continued momentum in building top tier partnerships, expanding nationally, and providing the very best local delivery options to our customers.”.
Domino’s Launches New Apple Watch Pizza Tracker App
Domino’s has launched a new Live Pizza Tracker app for Apple Watch that allows customers to track their pizza order at every stage of the process from placing, making, cooking, and notification that it is complete. The app requires the Domino’s iPhone app on a paired compatible iPhone, and the app is available for download at the Apple iTunes store. Forbes reported that this marks the industry’s first order-tracking app for Apple Watch, continuing Domino’s transformation into a tech-first company. Among its other important tech innovations are the app that works with Ford’s Sync infotainment system; “Dom,” the voice pizza ordering app; and the introduction of emoji-based ordering-by-tweet. “This is part of our whole tech play,” Dennis Maloney, Domino’s chief digital officer, told Forbes. “Apple Watch is a major player in the smart watch space, and notification is one of its most important capabilities. Plus, a lot of Domino’s customers order their pizzas with the iOS” from other Apple devices. “The smart watch category is just getting started,” Maloney explained. “This is us getting ahead of the curve on that. It’s introducing a huge convenience in an important area that is just getting started.”