PappasRestaurants opened its first restaurant in 1976. The Family owned operationgoes back much further though. In 1897, H.D.
Pappas moved to America, from thehomeland of Greece, to pursue his dream as an American restaurateur owning arestaurant group spanning throughout Arkansas, Tennessee, and Texas. His sonsPete and Jim followed similar American dreams but veered away from theirfather’s restaurant ambitions to open a refrigeration company. Fast forward to76′ where Jim’s sons Chris and Harris took after grandpa and opened what weknow today as Pappas restaurants. (https://pappasitos.com/our-story/)Pappas has now over ninety-six locations and is still growing.Mission StatementThecompanies mission statement is broken into four parts:Our Goal- To be a superior restaurant companythrough constant innovation, attention to detail and a focus on quality in allwe do. Our Guests- We are dedicated to greeting each person whowalks through our doors with warmth and friendliness.
We create an outstandingdining experience through identifying and fulfilling Guest expectations. Our Team- We believe that the greatest strength ofPappas restaurants lies within our people. We are committed to providing anexciting environment that recognizes initiative and performance. We offeropportunities for growth and challenge individuals to achieve their best.
Our Communities- We build relationships through participationand service and work together to help meet the needs of the community.(http://www.pappas.
com/about/us/)Standards of ExcellenceSuperiorProduct Quality, Superior Service, Constant InnovationInterview SummaryThegeneral manager of the Pappasito’s Cantina Arlington is Jackson Garrison.General manager is the highest title available in restaurant followed bykitchen manager, floor manager, then training staff, and finally entry levelpositions. What Jackson and I discussed that made Pappas extremely successfulwas the word of mouth.
Not only can they keep customers in the doors but bringsthem back with friends, family, and colleagues repeatedly. Consistency andpride definitely were the main reasons concluded in interview as to why Jacksonaccredited success to his restaurant. Without a means of advertising Jacksonwas optimistic business would not let up. He hinted that the company might belooking into a marketing contract with the National Football team that plays inArlington but could not disclose too much information. The restaurant has onepromotion weekly which is half price fajitas, Wednesdays after 5 P.M. Thecompany also works with charities like Boys and Girls Club of America, M.
D.Anderson, Red Cross to promote dessert sales during various points of the year.The concept specifically celebrates Cinco de Mayo, Hatch Chili festival, andwill run gift card promotions twice a year. An email club provides fee appetizerupon sign-up and desserts for anniversaries or birthdays.
The club will send outemails with menu changes and also various promotions, like discounts off of twoentrees. There is no current marketing outside of the doors of the restaurant,no billboards, posters, fliers, television or radio advertisements. The companyhas plenty of accolades by various magazines and newspapers (found atpappas.com) but no paid advertisements. Jackson believes most marketing withinthe company comes from research and development for fish market and drinks. Thecompany has its own printing department so menus and in store materials areinexpensive.EnvironmentalAnalysisEconomic Environment and TrendsMoreconsumers in general are eating out. 72 percent of Americans are eating out at quickservice restaurants for lunch, at least once a week in a 2016 study done byStatista.
(https://www.statista.com/topics/1957/eating-out-behavior-in-the-us/)Political/Business Issues and TrendsSustainabilityhas become extremely important. More and more consumers want to know that thebusiness and products used have more meaning than what they get directly.Consumers want to know that they are making a difference tomorrow.
The NationalRestaurant Association has a whole guideline for conserving outlined on theirwebsite under the “Impact Industry” tab. (http://www.restaurant.org/Industry-Impact/Conservation)Social/Cultural Issues and TrendsMorerestaurants are diversifying in culinary options.
Pappasito’s being a tex-mexrestaurant may limit the influx of customer based on the specific food type.This is true for many restaurants but must be observed closely to not shut outpotential of the risk-taking consumer. Demographic Issues and TrendsArlington,in 2015, was listed by a GOBankingRates study (provided by Dallas Morning News,https://www.dallasnews.com/business/money/2015/03/01/arlington-is-one-of-10-most-affordable-cities),to be one of the country’s top 10 most affordable places to live.
This couldsuggest that the practicality of Arlington’s living makes restaurants morelikely to have customers in their doors. Because of the want or desire to livein Arlington because of its affordability could suggest that maybe people areless apt to spend money at a restaurant and save it for housing and groceries.The crowd drawn to Arlington for entertainment are sports fans and might be ofa higher income allowing more money to be recycled into Arlington’s businessesand restaurants.Technological Issues and TrendsCybersecurityseems to be the talk, more so every day. The industry as a whole is not seeing hugedata hacking, however with internet security needing to be at an all-time high,companies are taking no risks at losing customers over poor security. Companiesare using more technology every day, like pay-at-the-table technology, so it isimportant that companies stay ahead of the hackers every day. (http://www.restaurant.
org/News-Research/News/Dont-get-caught-in-a-breach-Prepare-for-cybersecu)SWOTAnalysisInternal – StrengthsPappasito’sis a well-known name and customers naturally flock to the Pappas brand. Thecompany’s customer relationship management is very well executed so thecustomer value matches satisfaction (chapter 1 ppt, slide 20). The restaurantin Arlington ranked number 7 amongst 684 Arlington restaurants according totrip advisor (https://www.tripadvisor.com/Restaurant_Review-g30183-d465096-Reviews-Pappasito_s_Cantina_Rstrnts-Arlington_Texas.html). Pappasito’s consistently performs to a levelthat is review worthy via consumers. Guest relations would prove to be of theup most importance.
Freshness is a constant attention for this company andworks directly with University of Houston students to innovate how Pappascreates a freshness standard (http://www.pappas.com/about/news-and-events/?m=11=2017=229).Internal – WeaknessesAninternal weakness may stem from the fact that the restaurant has no technologyfor consumers to indulge in experience. Pappas has a high number of familiesthat visit the restaurant and have children that would enjoy stimulation.Limited variety would also be a weakness of this restaurant.
Only the peoplethat want tex-mex are apt to visit this restaurant.External – OpportunitiesThemain source of opportunity for this restaurant is that they are not doing anyadvertising amongst the community. This is especially true when the DallasCowboys and Texas Rangers play within a two-mile radius of the restaurant. Themarketing could be done simply by print and the company doesn’t even have touse new technology to develop.
Pappas Restaurants owns a property right next tothe Pappadeaux seafood kitchen in Arlington, there is a good chance that anemerging concept could lower the need for customers to go to another restaurantand the overflow remains under the same belt.External – ThreatsTheimmediate threats to business in terms of marketing would be all of the otheroptions available as potential customers drive to Pappasito’s. As mentionedbefore, there could be a lost market because the restaurant is not locatedwithin closer proximity to the stadium, in the Entertainment District ofArlington.
Success and Failure (per O’Donnell’srequest)Pappasito’sis successful at creating a restaurant worth revisiting. Current marketing likehalf priced fajitas creates a under selling for the product. Customers come infor the great deal, are wooed by the fantastic service and great food, thenhopefully they will want to comeback with guests to dine another night of theweek. Captivating an audience in this way can be excellent and also hurtful.
Those same guests could come back next week only for the half-priced promotionwith a bus load of people, spend less money to feed more, and only visit inthis manner. The long line of people creates longer waits, less turnover ontables, and makes the deal undesirable for the idea that they might wait up toan hour and a half for a product they might be able to get at Chili’s down thestreet.CompetitiveAnalysisPrimary Competitors – Their Strengths andWeaknessesPappadeauxSeafood kitchen, Boomerjack’s, Buffalo Wild Wings, Chili’s, TGI Friday’s, andmany other restaurants are primary competitor’s due to proximity to not onlythe stadiums and might draw attention of the consumer, but because they are alsocheaper. For that reason, another Pappas name, like Pappadaux, closer to thestadium would maybe be the stiffest competition in the area. It is a sisterrestaurant that charges at the same price point, serves the same quality, andis located just a little closer to the center of the Entertainment District ofArlington. However, Torchy’s Tacos opened up in a similar proximity. Therestaurant is much quicker serve and the price is cheaper as well.
The marketat Torchy’s is tacos and they do not offer a full menu of tex-mex items. Secondary Competitors – Their Strengthsand WeaknessesPlaceslike Chuy’s serves a very similar tasting product with sub-par levels ofquality and is also much further away from the stadiums. Same goes for otherTex-Mex restaurants like Fuzzy’s. Fortunately, most of the other restaurantslisted above do not offer any locations close enough to Pappasito’s to make animpact on the Tex-Mex market.CustomerAnalysisCustomer DemographicsPappasito’scustomer would consist of young families with younger children and adultsranging 30-60.
The average price per person average was about $25 according toMr. Garrison. Meaning that after approximately twenty percent tip for a familyof 4 the tab runs at about $120. When compared to a restaurant with a $15 perperson average, we are dealing with a $48 difference meaning customers aremiddle-higher income. Customer Psychographics/LifestyleprofilesThepsychographic amongst those in the Arlington area varies from sports fans,concert goers, and event driven people.
Consumers are willing to spend moneyfor experience as that is usually what brings people to the area for games,concerts, and events. Family consumers are drawn to the idea of not having towait and knowing the dining experience is as easy as possible, this makes therestaurant thrive on family based sales.Customer Buying/Loyalty Profile andpatternsManypeople are perceived as regulars, or a frequent consumer to the market. Thecustomers might have season tickets to events or live down the road but manycustomers are loyal to the brand and visit weekly.
Buying decisions inArlington seem to be heavily weighted on the fact that there are two majorsporting venues within throwing distance of the city. Consumers of eventstickets are more likely to spend money on an experience like dining. That canalso mean that a lot of people are likely to tailgate the game and avoidrestaurants at all costs. If you can create a consistent business model that isalso positive, the people will continue to visit because they don’t have toworry about any malfunctions in the dining experience. Because Pappas strives forthis as a company they are able to draw loyalty from other locations as well. Theemail club Pappas uses allows for consumers to engage in free appetizers onsign up, desserts for anniversary and birthdays, and discounts on mealsthroughout the year.Customer Perceptions of the restaurantCustomersperceive that the product will be consistent every single time. They know thebusiness of the restaurant can be high but wait time and food cooking time arealways executed well.
Customers know what level of attentiveness is adequatefor Pappas standards in their restaurants, these customers are bias to thatquality and often compare each location as separate entities but gather thesame result.Perceptions – Relative to competitorsThegeneral consensus would be a concern for price associated with the food. Pappasis well aware that the price is higher than competitors and they can justify bysuperior quality compared to the others in the market. What makes it difficultis when that standard isn’t met or attained. This creates a need for servicerecovery, Pappasito’s either does a great job at not allowing these points or agood job making sure every issue they are made aware of, remain resolved.Positioningof the RestaurantTargeted Image and Customer PerceivedImageThetarget image is to be the best every time. It is stated right in the standardsof excellence that Pappas wants to perform at the highest standard available tothem.
If you provide the best fajitas at an expected value with excellentservice of course consumers will be back next week rather than making the decisionto try a different restaurant.Perceptual Map and discussion of MapLet’sput the restaurant on a map measuring expensiveness (right bound) versusaffordability (left bound) for the horizontal axis and quality of food servedon the vertical axis. High quality will be upward and low quality will bedownward. Pappasito’s would land almost exactly in the center of the upper right-handquadrant. The restaurant would be considered a Cadillac amongst Kia and Porsche.Perceptual maps can put into perspective a lot of different elements. By basingthe restaurant on this map, it allows an easy representative of maybe whyfamily consumptions for celebrations or get together would be higher hear opposedto a lower price point and quality food like Taco Bell.
Assessmentof the 4Ps and 4CsProductPappasito’sdelivers a variety of tex-mex options to customers. The restaurant does notoffer any other option for food, the company does have different conceptsthough. For this reason, Pappasito’s has little product diversification outsideof the traditional tex-mex options to choose from. The restaurant does do avery great job at being the best for the market and defiantly serves the mostreputable culinary option in the area for tex-mex.PricesPappasito’sis expensive.
Appitizers can range up to $24.95, single entrees for $38.95, whichmeans that the restaurant must remain at a high standard to ensure the guestsare willing to compensate the company for the product and service provided (https://files.pappasitos.com/images/dyn/menus/menu_186.pdf).Promotion – Traditional andDigital/Online/Social MediaPromotionis a huge area of opportunity for this company.
Pappas could utilizeattractions to the city to lure guests into their doors. The Rangers, Cowboy’s,and many other events flood the area multiple times a week sometimes, thismight be an avenue to look into for an investing standpoint. Money put in herewould spread like wildfire if the company maintained the level of detail thatloyal customers already expect. Now the second piece the communication, portionof the promotion needs to be shared with customers. Place/Distribution/LocationThisrestaurant is in a great location for a few reasons. First, it is close to thestadium. Not exactly walking distance but not more than five minutes by car.That makes the distance ideal for those that also are not attending the eventsbecause the lot does not get used for un authorized event parking and also avoidingtraffic on the roads directly connected to the stadium from the highway.
The buildingitself turnover just about 500 heads on a busy hour, this makes it ideal forlarge crowds that are in and out. The convenience for guests is perfect amountof near the events for those wanting a quick bite before attending, but justfar enough it won’t leave them wanting to avoid visiting when an event is intown, Current alignment of 4Ps/4Cs withcurrent targeted positioningThecurrent alignment works. The company has a product that consumers want, theprice associated and be justified as a cost assuming the quality is met onehundred percent of the time.
The promotion has enough word of mouthcommunication to work, and finally, the place is convenient and consumers arewilling to come to the restaurant.ProposedMarketing PlanObjectives/Budget/Timeline for your planTheobjective of my marketing plan is to gain more draw from buyers in the eventcenters in Arlington. The idea is that by purchasing advertising locationeither AT Stadium or the new Rangers stadium that will be opening up thenPappasito’s will see an influx of customers coming to visit after events.
This willalso allow to get the consumer more exposed to the company, resulting in futurevisits to all of the company’s locations. It would be ideal that a smallone-off restaurant front could open but unlikely due to the contract deals theevent centers have. Product PlanTheproduct is the concept as a whole. To make the concept more well known in theeyes of the consumer it is going to take strategy.
For starters, what locationsof signage is available to the restaurant for display purposes. A message willbe prompted that will encourage people at the game to sign up for a free appetizerand the customer will then navigate to an email club sign-up page. Print ads atthe stadium will have QR codes that will allow for ease of access to the clubsign up. This promotion is not only going to get customers to come to visitonce, they will continue to receive offers and promotions to keep them comingback once we have captivated them on an initial visit.Pricing PlanPricingwill be relative to contract basis. UNT just signed a two-year deal with the Cowboy’spromotional team that will give them coverage in both AT&T Stadium and TheFrisco STAR.
That contract set UNT back $1.725 million (https://www.lewisvilletexan.com/news/featured/unt-dallas-cowboys-contract-releases/).For 2 years, the deal with the cowboys calculates for about 30 regular seasongames costing $57,500 per game. UNT would make its money back if one student wereto enroll every regular season game their advertisements were shown.
Theaverage Cowboy’s regular season game hosts approximately 92,539 people. That isthe most amongst all National Football League Teams (https://www.statista.
com/statistics/283897/national-football-league-teams-ranked-by-average-attendance-2013/).I would tend to say that out of those 92,539 people every week, someone is boundto enroll at UNT or even consider doing so. That number would changedrastically if the contract included a spot in the stadium that national televisioncaught a glimpse of (i.e. field goals, sidelines, equipment). As stated by JohnClaiborn Osborn, in a University of Texas master thesis, entitled Benefits of Advertising and Marketing DuringTelevised Sporting Events, “When companies with billion-dollar advertisingbudgets are investing 25 percent of that into advertising during sportingevents the companies are counting on seeing some return on this large amount ofcapital invested.” (https://repositories.lib.
utexas.edu/bitstream/handle/2152/22390/OSBORN-MASTERSREPORT-2013.pdf?sequence=1=y)If one Pappas location averages $100,000 per week and Pappas invested $1Million, it would take the two Arlington locations less than 2 months to payoff the promotion. As a company, Pappas consists of ninety-six locations, itwould take less time than 2 months to pay the debt. According to businessinsider, whom rated Pappasito’s as the twelfth “Best Chain Restaurants in America2017” claimed the sales of Pappasito’s as a concept, specifically at $160million.
(http://www.businessinsider.com/best-chain-restaurants-in-america-2017-2017-8/#12-pappasitos-cantina-9)the company should have no problem justifying this payment.Anotherpositive to this marketing promotion is that the company already has an emailclub in place. Utilizing the free appetizer as a means for promotion is alreadyan accumulated cost the company expects to pay. Fora family of 4 to come in, after signing up for a queso at a Cowboys game, theythen average twenty-five dollars in spending each this is only a ten percentloss in sales. Meaning for that ten dollars the return on investment is ninety,not considering the cost of the marketing at the stadium.
As for the family,they just received a ten percent discount on their meal.Promotional Plan – Traditional andDigital/Online/Social MediaReturnon investment is the idea behind this marketing plan. By using stadiums andevents down the road from the company more people will start to venture in tothe Pappas Restaurants name.
this will allow time to capture the market, payoff the debt then proceed in growth. UNT does not offer any incentives withthis advertisement. It is simply brand awareness. When one associates with theCowboy’s the feeling is that the university is top of the line and somethingthat represents them personally.
Using the email club will create an initialvisit, customers will be wowed by all of the attributes that makes Pappas Restaurantsso successful, then the next emails will encourage return visits. In store, allof the managers will learn about the email promotion happening during theseason, and they will be instructed to key they appetizer under Cowboys promokey on point of sale systems. This can then keep track of effectiveness.Place/Distribution/Location PlanLocationwill be AT&T stadium and the main sources of revenue will be the locations immediatelyin the Arlington area. Distribution would be to all that enter the doors of thestadium and encourages repeat visitors.
Not only are the locations still closeto the stadium, if they are returning to their homes in the Dallas metroplex,they can visit a number of other locations as well from a returning gueststandpoint because of the email club. Assessment of success – Financial andTimeline BenchmarksSuccess can be monitored weekly inheadcounts after game and throughout the week, by accounting for how many timesa person used a coupon received by email in POS system, and by game day businesslevel observations. It will be important to track the return on investment forthese checks as well. The sales reports for the football season should increaseas well as monitor the whole year headcount trends. A small increase mightsuggest not much impact, but large increases can mean that the marketing ploy worked.If successful in this market would encourage the company to invest in itslargest market, Houston. The Pappas family could employ the same strategies inthe city to which it is based.ConclusionSummaryPappas has many tools available toaccredit for current successes.
To grow as a company and expand the name I believethat the company should try captivating a market within its own backyard,AT&T stadium. This creates a fun, energetic, young crowd that would keepthe Pappas name viable amongst a new generation. Pappas already has a greatbusiness model for family dining and growing fans. Reflections& AnalysisBy using existing systems and alreadybeing a well-known brand the company will have much success with theimplementation of the new marketing run. Pappasito’s has a current marketingmix that is conservative and works to a degree. This new implementation will expandmarket without setting the company back very far.
The growth should heavilyoutweigh the cost due to the fact that the stadium sees so many fans in a givenregular season game.