Spending More on Ads To Overcome a Slump

Spending More on Ads To Overcome a Slump

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Project Infomation

Robin and Chris Sorensen, brothers and former firefighters, opened their first Firehouse Subs restaurant in 1994. They emphasized their firefighter heritage by featuring red furnishings, colorful murals of firefighters in action and sandwiches like the hook-and-ladder sub.
Firehouse Subs is a 16-year-old restaurant chain based in Jacksonville, Fla. It emphasizes a firefighter theme and has more than 390 restaurants that serve specialty submarine sandwiches.
  • Client : Insight Studio
  • Date : 20 Feb, 2018
  • Skills : Project Planning

Challenge & Solution

THE CHALLENGE Facing declining sales throughout its system, the chain sought a new marketing strategy in the depths of the recession. By 2001, the chain had grown to 30 company-owned restaurants in Florida and switched to a franchise model to expand into new markets. By early 2008, the company had expanded to 300 locations in 17 states, mostly in the South and Southeast. But then growth fizzled.
Advertising through chain stores
At first, Mr. Sorensen balked. But when the ad agency laid out data showing that some competing chains were spending more on advertising per store, he began to change his mind.
Alternative subway franchisees
Subway franchisees, for example, pay an 8 percent royalty and a 4.5 percent advertising fee; Quiznos franchisees pay a 7 percent royalty and a 4 percent advertising fee, according to those companies.
Creative campaign and radio ads
Zimmerman developed a creative campaign and radio ads that emphasized the food and the portion sizes, but offered no discounts. The agency used the Sorensen brothers as spokesmen.

Our Process

That March, comparative sales for the entire system declined from the previous March. “In our entire history, we had never had a period like that when our entire system was running negative sales,” said Don Fox, the chief executive. “It was something completely foreign to us.”
01
Improve sales & operations & production planning
02
Determine the right inventory level
03
Optimize the supply chain for perfect order planning
04
Improve sales & operations & production planning

Result Driven

The ad program ran only in markets where all franchisees agreed. Those who did not agree paid the 2 percent fee. With a new marketing war chest, Firehouse Subs and Zimmerman started an $8 million advertising campaign in September 2009. (Credit: nytimes.com)
Reduced lead time by 43%
Decreased variability by 50%
Lowered the risk of back-order by 95%
Increased stock for finished goods by 10%
Includes
  • Intelligent matching of executives to coaches & mentors
  • Priority matching with premium coach access
  • Strategic transformation kickoff with C-suite and organizational alignment
  • Leadership diagnostics and talent gap analysis
  • Dedicated coaching and mentoring journeys (ICF + IMC certified)
  • Unlimited 1:1 coaching and mentoring sessions
  • Quarterly transformation strategy reviews
  • Executive performance dashboards and enterprise insights
  • Customized VOI tracking
  • Dedicated Organization Success Partner
Key Outcomes
  • Enterprise-wide leadership alignment
  • Future-ready executive capability
  • Measurable coaching impact
Includes
  • Team diagnostics and talent gap analysis
  • Customized team and group development plan
  • Team alignment workshops
  • Customized team coaching sessions
  • Customized team mentoring sessions
  • Dedicated coach and mentor support
  • Progress dashboards for HR and L&D
  • Integrated engagement analytics grounded in Value on Engagement (VOE)
Key Outcomes
  • Higher team engagement and cohesion
  • Faster capability growth for mid-level leaders
  • Operational performance uplift
Includes
  • Confidential 1-to-1 coaching and mentoring
  • Emotional grounding and clarity-focused conversations
  • Guided alignment journeys around purpose, values, and balance
  • Ethical boundaries by design, no linkage to performance evaluation
  • Only anonymized engagement insights shared with the organization
  • Customized outcomes measurement and Value on Investment (VOI) tracking
  • Dedicated Organizational Growth Partner
  • Four sessions per month
Key Outcomes
  • Reduced burnout and emotional fatigue
  • Improved engagement and retention
  • Sustainable human performance across the organization