Article

Sonic franchisee's marketing shift doubles sales of LTO burger

Kergan Brothers' Who Dat burger joins its Rajin' Cajun burger as a football season LTO, generating higher ticket and traffic counts.

November 17, 2014 by Alicia Kelso — Editor, QSRWeb.com

Sonic franchise group Kergan Brothers continues to find "enormous" success from its now-signature LTO Rajin' Cajun burger, an offering that first appeared in 2012 and features an edible University of Louisiana-Lafayette logo on the bun. 

The initial launch yielded a 300-to-400-percent increase in sales compared to Sonic's typical LTO promotions. With such a high return, Kergan Brothers extended the line last year to include an additional logo burger -- the Who Dat burger. 

Both become available as soon as football kicks off and remain on the menu throughout the season. Kergan Bros. President Gary Wilkerson said the Rajin' Cajun has taken on a life of its own.

"It's just one of those LTOs people just can't wait for," he said.

The debut season of the Who Dat burger, however, fell flatter than expected. So, the company tweaked a few things, including adding more marketing weight.

"During the initial launch last year it was an average LTO. We're not interested in an average LTO, so we changed the POP materials, which are considerably better and much more attractive," Wilkerson said. "They're also much more explanatory, describing the ingredients and the logo."

The franchisee also went deeper into social media and added a flash line parade in New Orleans to introduce the LTO this year, all with corporate's blessing. The marketing budget was not increased, just reallocated.

These efforts helped double sales of the Who Dat burger from last year.

"The difference is all in the marketing and raising awareness. The theory is if you can see it, chances are good someone's going to buy it," Wilkerson said.

In addition to generating above average sales, the logoed burgers have also led to an increase in traffic and ticket.

"Everyone in our industry is working on growing sales and customer count. When we roll these burgers out, we see an uptick in transactions and ticket average," Kergan said. "When your customer business is up, they're telling you they like what you're doing. And these are premium burgers priced at premium levels so we're able to raise the price a little."

The Rajin' Cajun is $3.79 and the Who Dat sells for $3.99. Both are available as part of a $5.99 combo meal, as well.

Kergan said the company will continue with both offerings during football season and aims to get the Who Dat burger at the same "cult-like following" level as the Rajin' Cajun.

Unlike the initial burger's connection to the University of Louisiana-Lafeyette, the Who Dat burger evokes the signature cadence of the New Orleans Saints, but has no affiliation with the NFL team. Who Dat is a separate trademark from the Saints and Kergan can not mention the team in any advertising.

Still, the saying evokes plenty of meaning to Louisianans.

"Who Dat is a rallying cry for any sports fan in Louisiana," Wilkerson said. "It works to have that crossover from market to market."

Training involved

One of the biggest challenges with this launch was in figuring out how to get the edible logo attached to the bun without complicating operations or compromising speed of service. The company went through several processes and ended up adding the logo using a steamer.

"We don't have microwaves, we have steamers. And they helped us figure out how to apply the logo quickly and it's like the thing is baked in there," Wilkerson said.

That was the biggest operational challenge and the extra step does not slow things down, Wilkerson said.

"We sell so many of these a day that it just becomes standard operating process," he said.

Complicating operations is one risk for any LTO introduction. Wilkerson said Sonic's process, however, is proven.  

"Everyone is doing LTOs in our industry. They're an important way to keep the business fresh," Wilkerson said. "But with LTOs, sometimes you hit it and sometimes you miss it and there are operational challenges and processes. Our plan is effective and it works."

Sonic has a specific training schedule and operational procedures, with materials, videos, a timeline and other support, prepared for a launch. Preparation takes place before advertising so teams are ready operationally before the rush.

"Sonic has dedicated a lot of resources to make sure we're all ready for any launch. The goal is to be ready operationally before advertising begins," Wilkerson said.

Support from corporate

Wilkerson added that corporate's support is a big reason why the platform has been successful. 

"This is a very successful promotion and we sell a lot of hamburgers. But this just doesn't happen on a national scale where a franchise group can develop a recipe, put social media and advertising and operations behind it and get corporate to approve it," Wilkerson said. "It just doesn't happen in our industry. In this case it did and we're proud of it. It's a great reflection on Sonic and a feather in our cap."

Kergan Group is the ninth largest franchising group in the Sonic system. Before the logoed burgers were put to market test, executives had to present an extensive business plan to the parent company, which responded, "I think this has legs to it," Wilkerson said.

He added that the relationship Sonic has with its franchisees is totally different from other brands.

"It's very hands on. They're very interested in your business. The focus for them is to regularly work with franchise groups to be as successful as we can. It's a one on one relationship and it's not just for show. It's every day," he said.

With the logoed burgers, the franchise group is contemplating expanding the line and has tested the offerings in about 10 markets across the country. They didn't sell as well initially, however other Sonic franchisees have reached out for information on how to execute something like this in their market. Wilkerson said there could be other considerations for the edible logo idea as well, such as hot dog buns or as a vehicle to raise money for a nonprofit organization.

"This has a lot of opportunities," he said. 

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