Senior Circuit
Connecting with older customers is an investment in future growth
By Margaret Sheridan, Senior Editor -- Restaurants & Institutions, 6/1/2004
Everyone has heard about the graying of America. Ruby’s Diner listened.
Ten years ago, the Newport Beach, Calif.-based chain of nostalgia-themed restaurants established the Jitterbug Club, offering a 10% discount on meals for its 30,000 card-carrying members—diners ages 55 and older. That demographic makes up 20% to 25% of Ruby’s customer base, says Lowell Petrie, vice president of marketing, so catering to them is a strategy, not an afterthought.
“Seniors wanted a price break and they got it,’’ he says. The chain’s check average is $9.15.
They’ve earned it. The chain’s surveys find that seniors have the highest frequency rate of any age group, visiting Ruby’s eight times a year.
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To strengthen affinity with the senior demographic—and build traffic on a traditionally slow day—Ruby’s last year ran a promotion that doubled the senior discount to 20% on Mondays. “The goal was to increase Jitterbug Club membership and awareness,’’ Petrie says.
Members are alerted about such benefits via e-mail, a medium that Ruby’s turned to for promotions two years ago. “Over half our seniors have e-mail addresses. Three years ago, hardly any did,’’ he says.
To make it easy for older patrons to read, Ruby’s designed a menu with minimal clutter and higher light/dark color contrast. Type size recently was bumped to 12 point from 10.
Besides good value, the chain appeals to seniors with its smaller portions. Burgers do not come with fries, and sandwiches are à la carte.
Census Revelations
There are 35 million Americans at least 65 years old and another
24 million between 55 and 65, and the number of seniors is dramatically
rising. Today, one in every six Americans (45 million) is 60 or
older, according to the 2000 U.S. Census figures. Over the next
30 years, that number is projected to rise to one in four.
Many restaurants trail behind the examples of hotels, airlines, movie theaters, department stores, and travel and cruise lines that see growth potential among older consumers. Senior communities prove this segment seeks the active lifestyle. Dining is central to social life. Serving this value-conscious customer not only earns a loyal customer but also makes a difference to the bottom line.
Gaining a Foothold
The 600-unit Bob Evans chain is skewed to an older population
with higher income, says Scott Colwell, senior vice president
of marketing. The 15 items on a special senior (55 and older)
menu are from the house menu but served in smaller portions. For
instance, instead of two pieces of chicken with two side dishes,
the senior menu offers one piece, one side and a reduced price.
The Fisherman’s Fried Cod dinner offers a 7-ounce portion
of protein for both menus. The variable is two sides versus one
side. Other items that can be senior-sized include open-face roast
beef sandwich, meatloaf, turkey and dressing and country-fried
steak.
Smaller portions are not limited to seniors. “It’s part of the Bob Evans mindset,” Colwell says of variable portions. “You can get an order of three hotcakes or two, two eggs or one. One out of every 20 customers orders the reduced sizes.
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Creating an all-around family destination is a current marketing thrust at Columbus Ohio-based Bob Evans. Colwell says that its research indicates that playing to kids will help draw more seniors as well since one of three families dines with a grandparent. Some of the company’s recent television advertising shows women in a restaurant during the breakfast daypart talking about their husbands’ upcoming retirement.
At Golden Corral, a 484-unit chain headquartered in Raleigh, N.C., seniors represent a sizeable chunk of business, according to Bob McDevitt, vice president of marketing. The chain offers a basic 10% discount, anytime, any day. “It runs 50 cents to 80 cents per senior.’’
New to the chain is a special menu offered between 2 p.m. and 4 p.m. Meals, including beverage, are priced between $4.99 and $5.99, depending on franchisee and location. “Seniors like to dine early and avoid the rush,’’ McDevitt says.
At International House of Pancakes, defining and implementing a senior policy is up to each franchise owner, according to Patrick Lenow, spokesperson for IHOP Corp., the Glendale, Calif.-based chain of 1,165 units. “The senior category is defined as starting at age 55 or 60. Most restaurants provide incentives that range from reduced portions with lower prices, a designated weekday night with a two-for-one meal deals to a flat rate discount.’’
Senior Gallery
Since Silver Diner opened in 1989, seniors have always been a
special segment for the Rockville, Md.-based chain. Twelve units
in Maryland and Virginia give a 10% discount to diners 55 and
older. In addition, Blue Plate specials, offered between 4 p.m.
and 6 p.m., feature smaller portions and beverage at a fixed price.
About 15% to 20% of customers at its 205-seat Virginia Beach unit
are over 55. The unit also offers a senior VIP frequent-diner
card that entitles seniors to a free meal every sixth visit.
Marketing and personal attention help generate business. General Manager Dyanne Joyner personally visited local senior communities and distributed VIP cards and information on the chain’s Blue Plate specials. That effort earned a 10% increase in new business.
“People love special offers and deals. Servers go out of their way to welcome seniors. And they tip like everyone else, she says.”
Personal attention is key. Joyner and staff take photos of each senior and post them on a bulletin board, the Senior Gallery. Each snapshot has an ID, so servers brush up on who’s who. “We make a big deal of using people’s names. They really like it.’’
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