We often try to learn from our mistakes. Sizzler clear doesn’t.
With $2 million in sales per year, which is under the general eatery average sales of $2.5 million, Sizzler recently came up with a ‘new’ strategy to market its food: going back to its promotional menu of the 1990s. The $7.99 meal apparently doesn’t aim to be a hit for the company, but actually be a trigger for loyal consumers to add more food on the side to the meal. Also, the company hopes to re-attract consumers who haven’t been to the chain for many years.
This strategy is questionable. With casual-dining tradition steadily declining according to Forbes, Sizzler may just need an entirely new marketing strategy after all. Although it is understood that as a fast food restaurant Sizzler has limited options to renovate its franchise, it could might as well take that risk than repeating a marketing strategy it used a decade ago.
Sure, Sizzler may gain back the loyal customers it once had. But what about the new health-aware generation? It is safe to say that by cutting back on re-marketing and investing in improving everything from food on the menu to interior designs of each franchise store, Sizzler may get a better shot at this.
Sources:
http://www.businessweek.com/articles/2013-10-03/sizzler-tries-deep-discount-to-bring-back-the-1990s
Figure:
http://offthestripdining.blogspot.ca/2008/09/95-sizzler00.html