The Melting Pot recently launched a new "Down to Fondue" Happy Hour initiative to draw in
more traffic and reinvigorate the brand's bar program.
Leaders from Melting Pot, Shuckin’ Shack, Wings and Rings, and more
weigh in on how they’re responding to inflation with innovative strategies
and value-driven experiences to ensure they stay top of mind for diners.
Restaurants are proving that necessity truly is the mother of invention (a saying
commonly attributed to ancient Greek philosopher Plato) as they’re forced to adapt
their game plans to survive in the face of continuing economic challenges and
inflation. More than ever, consumers are making their dollars count and are
consistently seeking more out of their dining experiences, notes Jonathan
Weathington, CEO of Shuckin’ Shack, which has nearly 20 locations scattered
throughout the country. “I don’t believe this is a change in behavior—this is why
full-service restaurants exist,” he says. “It’s our goal to ‘be on the rotation’ of the
average diner and blow them away with the experience … We’ve got to be seen,
make the conversion, and retain the customer for more than one visit.”
The expectations of significant value and an excellent service experience in
exchange for guests’ hard-earned money are much larger than they used to be,
adds Dan Sweatt, field marketing manager at 56-unit Wings and Rings. “Full-service
restaurants must up their game since every transaction is critical to generating
repeat business.”
Bob Johnston, CEO of Melting Pot, highlights the pressure placed on unit-level
economics across the industry. “We are greatly challenged with rising costs in
virtually every area of our business,” Johnston says. To counterbalance these
pressures, Melting Pot, like many brands, has had to increase prices at its 92
restaurants. However, the brand’s focus remains on delivering the “perfect night
out,” which comes down to the overall experience.
Despite the price hikes, consumer satisfaction and social reviews indicate that
guests still perceive Melting Pot as delivering value, he notes. “In the past and now,
we continue to thrive in this environment because our guests often choose to
celebrate something in their lives by enjoying a Melting Pot experience,” Johnston
says. “Generally, even in tough times, people do not want to forgo celebrating. This
benefits us more than casual dining or fast food, which cater more to physical
appetites. The Melting Pot is about satisfying an emotional appetite for an
experience involving being around people you care about.”
Melting Pot recently launched a “Down to Fondue” Happy Hour program, which
offers half-price cheese and chocolate fondues, along with drink specials, as a way
to attract cost-conscious diners without compromising on the brand’s iconic
experience. “We believe there’s tremendous potential to grow new and incremental
revenue with the launch of this program and daypart,” Johnston says.
FAt FSC Franchise Company—the franchisor of concepts such as family sports pub
Beef ‘O’ Brady’s and craft beer bar The Brass Tap—inflation has pushed menu prices
up over 25 percent in the last three years, according to CEO Chris Elliott. This has
led to a modest decline in traffic, around 2 percent. The company has reacted by
making changes to enhance the customer experience while also looking into
purchasing strategies, menu adjustments, and labor efficiencies to maintain
margins.
“We have always had takeout, value meals, and happy hour deals as part of our
strategy, but have worked to enhance the experience with AI technology and
dedicated takeout spaces,” Elliot says. “We are leaning harder into value by
expanding daily food specials to include liquor, beer, and wine offerings (in markets
where allowed), offering attractive add-ons and kitchen technology upgrades for
more efficiencies.”
Similarly, Sweatt underscores the importance of providing clear value to customers.
As part of its 40th anniversary celebration, Wings and Rings introduced a
sweepstakes program, offering substantial discounts and prizes to drive traffic for
40 days. The brand’s loyalty program has become a crucial tool for retaining
customers by consistently offering savings and communicating value propositions.
“Utilizing this program to tell our brand story and provide offers that drive traffic is
essential for full-service restaurants, and these programs obviously become
exceptionally more valuable with each additional signup,” Sweatt says. “We’ve seen a
significant rise in our loyalty signup rate year over year, which has allowed us to
educate our diners about LTOs, daily specials, and our weekday lunch specials.”
Following an influx of customers using its app, Wings and Rings has also made
refinements to make the takeout experience as quick and convenient as possible by
adding mobile wallet payments and quick reorder options. “We also make sure to
call out our biggest value options in the app so customers know where they can
save with us. We don’t hide value from our loyalty members—we celebrate it,” he
adds.
Looking Ahead
Despite the ongoing challenges posed by rising costs, the restaurant industry is
demonstrating resilience by leaning into its strengths—offering unique dining
experiences, emphasizing value, and exploring innovative strategies. As consumer
behaviors continue to evolve, restaurants that can adapt to these changes while
maintaining their core values are likely to emerge stronger and more competitive in
the long run.
“We believe in authenticity and serving a product that is excellent,” Weathington
says. “As long as we continue to do that, we’ll not only be fine, but we’ll continue to
grow in both customers and units.”
“I don’t think full-service dining will ever die in this country,” adds Sweatt. “As
customers change their habits on a large scale, the opportunity to secure new
customers and turn them into regulars is there. We need to communicate to diners
that we offer an easy-to-use platform that makes ordering of all kinds easy and that
we offer significant value for our top-of-the-industry food. Many are looking for a
new regular spot as they flee other establishments that aren’t addressing their
concerns. We have to be waiting with open arms.”
