CASE STUDY: SCHLOTZSKY'S PDF Free Download
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CASE STUDY:
SCHLOTZSKY’S
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In 2013, Schlotzsky’s acknowledged that while it currently has a solid
guest base of Baby Boomers and Gen Xers, its future growth hinged
on cultivating younger Millennials. Seeking to engage those guests
and encourage them to return more frequently, Schlotzsky’s sought to
increase its relevancy by meetingthem where they are: on their mobile
devices.
The company began searching for a mobile guest engagement
solution that was ecient, effective and could bridge technological
challenges within the chain, such as multiple POS systems in use at its
restaurants. Convinced the solution must use social media channels
such as Facebook, Twitter, and Instagram to reach younger guests,
Schlotzsky’s sought a program that also worked seamlessly witheach
of those channels. That solution also had to be simple enough to
implement at each restaurantlocation and easy to use for corporate
and franchise operators.
“We want to reach Millennials,” said Schlotzsky’s President Kelly
Roddy. “They are more tech savvy, more social, more culinary aware
than ever before. We want to communicate with them in the way they
want to communicate: through their mobile device. We want to grow
and retain that audience and serve them the way they want to be
served.”
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KEY CHALLENGES
ABOUT
SCHLOTZSKY’S
Schlotzsky’s is a 350-unit fast-casual bakery-
café based in Austin, Texas, serving healthful
sandwiches, wraps, pizzas, atbreads, salads and
soups. The 43-year-old brand has restaurants in 36
states and three foreign countries. One of sixbrands
owned by FOCUS Brands, Inc., including Auntie
Anne’s, Carvel, Cinnabon, McAlister’s Deli, and Moe’s
Southwest Grill.
WHY SCHLOTZSKY’S
CHOSE PUNCHH
In 2014, Schlotzsky’s discovered Punchh, a brand-centric mobile
CRM suite for brick-and-mortar businesses. Punchh proposed that
its POS-, website- and smartphone-integrated mobile app would
enableSchlotzsky’s to:
• Engage guests on their mobile devices
• Deploy a comprehensive suite of capabilities that increase
guestloyalty, drive them to write reviews, take surveys, refer friends
and respond to special-event campaigns
• Integrate all restaurants’ POS systems with social networks and
third-party technologies
• Get 360-degreeguest analytics and segmentation including
demographics, frequency, average spend, orders (SKU-level),
reviews and referrals (CRM)
• Target customers using customized 1-1 campaigns and offers
• Increase same-store sales and protability
“From creation to implementation, the mobile app took just ve months,” said Mark Mears, chief marketing
ocer at Schlotzsky’s.“Even more remarkable was how quickly we were able to deploy the solution to all
350 stores using only a very small IT team.”
Launched in June, the videos informed
audiences on YouTube, Facebook and
Twitter how they could help ‘save the
world’ from falling sandwiches when
they downloaded the app. Doing
so “took a sandwich out of the sky,”
helped save the planet and earned
them a free Schlotzsky’s sandwich
with the purchase of a drink and a
side.
LAUNCHING THE
PROGRAM
To encourage its guests to download
the app, Schlotzsky’s rolled out an
online marketing campaign in June
dubbed, “The Sandwiches Have Landed.”
The campaign created buzz about its
Lotz4Me Guest Rewards program. The
campaign featured a series of videos
about the adventures of a pair of unlikely
heroes determined to save the world from
the invasion of one million sandwiches
headed toward Earth.
EARN, ACCESS AND
REDEEM REWARDS
By downloading the app, guests were
entered into the chain’s digitalguest
rewards program where they could earn,
access and redeem rewards, get exclusive
insider news and special offers, and provide
immediate guest feedback and surveys.
The June launch of the
Lotz4Me mobile apphas yielded
overwhelmingly positive
results. The rst day saw 11,000
downloads, and three-and-a-
half weeks later, downloads hit
60,000. As of the early fall, the
app has been downloaded more
than 127,000 times.
Quickly, the app rose to the No. 4
spot within the restaurant apps
category on the Apple Store site.
That ascension saw it beat out
downloads of apps for far larger
chains in the period, brands
such as Papa John’s Pizza,
Panera Bread Co. and Chipotle
Mexican Grill.Another notable
result was the increased word
of mouth that Schlotzsky’s has
generated since the launch:
9.8K+guestreviews and 8K+
referrals.
“Our early results are truly
promising – The Lotz4Me app
has transformed how we engage
with our guests. Lotz4Me
members spend ~19 percent
more on average compared
to non-loyalty guests and are
repeating at ~58%,” Mears said.
“In the rst few months alone,
our guests referred over 8,000
of their friends which resulted
in $260K in new spend.”
By engaging guests in a far more
personalized manner via the
Punchh app, the Schlotzsky’s
guest experience has become
more customized, valuable
and user-friendly. By effectively
gathering guest preference data
through the loyalty program,
Schlotzsky’s operators can
send out highly targeted
campaigns that literally reward
those guests for each visit.
STRONG RESULTS
“To stay ahead of our competitors,
we will keep innovating our mobile
engagement using the Lotz4Me
app,” said Mears. “We have just
addedsweepstakes andgaming
features, and will be adding rewards
for catering guests. When we make
it fun for our guests to be involved
with the brand, they’ll connect with
us easily and willingly. And when
they do that, they’ll also visit more
frequently, spend more per visit and
become advocates on our behalf via
their social networks.”
Key Stats:
Time Period: 4 Months
PUNCHH
530 Lakeside Dr, Ste 240,
Sunnyvale, CA 94085
408-940-1342
mobile@punchh.com
Get your own branded
mobile app. Get in touch.
WWW.PUNCHH.COM
