Restaurant Says It Exceeded Estimates at Total Cost of $5 Million
From Advertising Age Online
This article is about Denny's first Super Bowl spot and the successful promotion that resulted. They gave away an estimated 2 million free Grand Slam breakfasts today. The turnout surprised even the company themselves, with each location averaging about 1,000 breakfasts served... all for the small cost of $5 million.
The question that comes to mind when reading this is "was it worth it?" Is it worth such a hefty price to get "bums in seats?" I'll be the first to admit that I'm drawn to the word "free" (as is nearly every other individual in America). Of course a free meal is going to bring in customers. But how are you going to bring them back?
The article stated that Denny's serves approximately 12.5 million Grand Slams each year, making it their most popular item on the menu. If 2 million of that figure were served today, that leaves a little over 10 million for the rest of the year. I know it's nothing more than basic math, but almost 20% of the restaurant's Grand Slam sales for the entire year were met in one day, losing money on each one. That doesn't seem to be leaving Denny's in the most ideal situation.
So how effective really was this 'successful promotion?'
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