Batter, Griddle & Drinkery Situation Analysis Vanessa So Batter, Griddle & Drinkery IMC Campaign Senior Capstone May 14, 2015 Linfield College 1 Batter, Griddle & Drinkery Situation Analysis Situation Analysis Business Description and History Batter, Griddle & Drinkery, located in Portland, Ore., opened to the public on March 1, 2015. It is a breakfast and brunch restaurant, diner, full bar and late-night restaurant. Owner Dan Cogan worked at and managed restaurants during college about 25 years ago. He always knew that he wanted to open his own business someday. Cogan worked in and out of the restaurant business over the next 20 years, but was always thinking of new ideas for restaurants. He designed a “quick serve noodle place” before the Noodle & Co. restaurant chain started and grew. Cogan had been working at Burgerville for a year and a half until he had the opportunity to open his own business with his father’s financial help. After looking at locations during fall 2013, Cogan decided on a building in Beaumont Village—located on NE 44th Street and Fremont—which is Batter’s only location. It seats about 64 people inside, but more tables were added to feature outdoor dining for 12 to 16 more people. The restaurant’s location helped Cogan decide which restaurant idea suited the target audience. Mission According to Portland Monthly’s Kelly Clarke (2014), owner Dan Cogan says the idea for a restaurant featuring hotcakes, waffles and cocktails stemmed from his love of The Original Hotcake House. He regularly visited the House late at night for many years. Cogan noticed that people are more likely to hit the bars first and then grab hotcakes afterward. His restaurant’s mission is to provide an atmosphere and service that would keep customers late into the night. Cogan says that, in addition to becoming a popular dining spot for locals, he also hopes for Batter to be a destination spot for people visiting Portland. In an interview with PourOregon (2015), Cogan said one of the reasons he opened a restaurant with a distinct menu was due to the 2 Batter, Griddle & Drinkery Situation Analysis lack of interesting, fun restaurants. These included restaurants that served pancakes or brunch items on the west side of Portland, meaning west of Sylvan Hill (Pouregon, 2015). One of Cogan’s goals for Batter is to give people a new place to eat breakfast or brunch. He also wants customers to stay or come back to the restaurant for drinks. Cogan understood that “20somethings” from Beaverton or the west side of Portland are more willing to go downtown or further to explore new restaurants (Pouregon, 2015). On the other hand, people who live in Portland are not as willing to venture that far out to dine elsewhere. Cogan’s goal would provide a space that keeps many 20-somethings happy. External environment Batter, Griddle & Drinkery is in the restaurant industry. Among the trends affecting this industry is the rising popularity in breakfast foods as they are considered to be part of the most important meal of the day. In 2014, Food Genius (Abigail Covington, 2014) reported that 49 percent of restaurants nationwide offered breakfast, and there was a 13 percent relative growth in this offering in nine months. According to Conagra Food Service (2015), breakfast is typically the least expensive item on the menu compared to lunch and dinner items. Conagra also said that more people are visiting and purchasing breakfast items at quick-service restaurants for their first meal of the day. These findings are relevant to Batter, Griddle & Drinkery because it can be part of and take advantage of the popularity in breakfast foods. In all, the breakfast restaurant industry is booming: The NPD Group (2015) states that morning meal visits are expected to grow 7 percent over the next nine years, whereas visits to quick-service restaurants are expected to increase by 9 percent. As deemed a late-night pancake house and cocktail bar, Batter is the “perfect common denominator” (Danielle Centoni, 2014) to reach popular target markets, specifically families and 3 Batter, Griddle & Drinkery Situation Analysis young adults in the Beaumont, Grant Park and Hollywood areas of Portland. The newly constructed apartments and condominiums in these areas have created an influx of those families and young adults to restaurants like Batter, Griddle & Drinkery, to satisfy their cravings. Batter sits at the bottom of a new apartment building, which further improves its operating environment for its desired target audience. Fremont Street includes other successful restaurants such as Pip’s Original Doughnuts, Noho’s Hawaiian Café and Acadia New Orleans Bistro. Cogan says that Fremont Street is “a walking neighborhood” with plenty of foot traffic. He also says that it is more of a place for people to stop and see what’s coming, which makes the street a destination spot for visitors. Several economic, social and cultural factors affect Batter, Griddle & Drinkery and the success of the proposed campaign. One of these factors, according to Apartments.com (2015), is in the Beaumont-Wilshire neighborhood that borders Fremont Street. The cost of living in this neighborhood is higher than average compared to other Portland neighborhoods. However, this area is more affordable than the Pearl District or Alberta, which is why many young adults are moving into the newly-constructed apartments and condominiums above Batter. These discrepancies could affect whether the target audience can actually afford to spend their money at Batter. Some college students may not be able to afford eating out in the mornings or to grab drinks at night. Students may be able to once in a while, but they would not be able to visit Batter enough to establish themselves as regular customers. In addition, those who are not in school may have trouble finding employment to consider dining at restaurants like Batter. For example, Sperling’s Best Places (2015) says the unemployment rate is at 6 percent, which is slightly below the United States’s average of 6.30 percent. However, this does not refer to all customers or college students who can dine at Batter. College graduates ages 25 and older typically earn a 4 Batter, Griddle & Drinkery Situation Analysis median of $35,625 (Minnesota Office of Higher Education, 2012). Furthermore, future job growth in Portland is expected to reach 37 percent over the next 10 years (Sperling’s Best Places, 2015). Though Batter’s location is ideal due its higher cost of living, residents in other areas of Portland earn less money to afford houses near Fremont. Portland’s income per capita is about $31,000, with about 18 percent of the population below poverty level, according to Quick Facts (2015). The social and cultural aspects surrounding Fremont Street and Beaumont Village could affect Batter’s success. Not many people, including college students, recognize Fremont Street as a lively and social night scene. Many college students will choose to go either downtown or to other parts of Portland that they are familiar with for nightlife. Batter appears to fit the vibe and culture that is already established in Beaumont Village. Apartment listings describe this area as quaint, older and more conservative, which does not necessarily reflect Fremont Street, as it is also described as family friendly and vibrant (Apartments.com, 2015). The culture that Fremont Street and Beaumont Village have within this neighborhood may disrupt the culture that Batter wants to help create with the influx of young adults in the area. The possible clash of Cogan’s vision and the characteristics of the neighborhood could either help or hurt Batter’s success in the long run. Batter may not be able to reach its desired target audience based on its location and type of environment. However, bringing a different type of culture to the Fremont area would establish diverse audiences, which could benefit the restaurant, or it could disrupt the vibe of the area that already works for the area and neighborhood overall. Business analysis Batter does not see itself competing against other nearby restaurants or businesses. All of these businesses help with the success of Batter. However, there is always competition 5 Batter, Griddle & Drinkery Situation Analysis somewhere. There are plenty of breakfast spots and bars in Portland, some of which are already well-known and popular, that Batter competes with. These include Tasty n Sons, The Country Cat and The Stepping Stone Café. The pubs and restaurants also along Fremont Street are considerable competitors as they could lure customers away from Batter. Not only are these restaurants Batter’s competition, but breakfast and late-night restaurants in the heart of Portland are also stiff competition. A high volume of people are already comfortable in and frequent the area. In addition, these people would most likely bar hop and live closer to restaurants near their homes, so it is more convenient for them to stick with what they know. The Fremont strip is a destination spot in itself and already has established word-ofmouth about the area. In return, this helps his business instead of competing with the nearby businesses that have been around longer. The small-town atmosphere creates more close-knit relationships among individuals who own businesses, those who are looking to own a business and those who are ready to be customers of one. An excellent example is Cogan’s connection with the owner of Pip’s Original Doughnuts, Nate Snell, who helped promote the opening of Batter, Griddle & Drinkery. Pip’s Original Doughnuts, which is only a few blocks down the street from Batter, has a loyal following, with about 16,000 likes on Facebook, a 100 percent score on Urbanspoon and a 4.5 out of 5 star rating on Yelp. The approval of and a free shout-out from Snell not only demonstrates the benefit of networking with the right people, but it also demonstrates the sense of community within the Fremont strip. These owners want to see each other thrive and bring in business, which will only benefit the businesses on the strip as a whole. Cogan says that Batter, Griddle & Drinkery has a unique niche that distinguishes it from its competitors. Nonetheless, the “unique niche” makes Batter stand out among the rest. Not many restaurants in Portland can compare. It is the only restaurant that markets itself as a griddle 6 Batter, Griddle & Drinkery Situation Analysis and drinkery, which is sure to please younger and older customers alike. There are places where individuals can purchase one or the other, but they would have to travel to different locations, which makes it inconvenient. The convenience of both breakfast food items and cocktails adds to one of Batter’s strengths. This combination covers different demographics that Batter could serve several such as children, adults, families and young adults. Batter does not have a simple menu. It is eclectic and diverse, which may intrigue potential customers. Some examples include macaroni and cheese crepes, Asian fried chicken and waffles, and mocha and chocolate pancakes. This menu sets the business apart from other brunch or late-night dining. Not only does the menu play to Batter’s strengths, but it also provides opportunities for the business to build on. Batter can create more publicity for its menu, appeal to diverse crowds and become a popular, must-visit spot because of what it serves. Though the bar appeals to young adults, Batter also caters to families with children. It has a family-friendly drink menu with smoothies, coffee, juice and soda. However, the main attractions are the sweet and savory pancakes, crepes, and waffles. One of Batter’s weaknesses is its current system that is in place to regulate business such as food supply and customer service. Cogan says it needs to improve on its hours of operation and customer service, which has “nothing to do” with the quality and people’s reception of the food. A threat to the business is the lack of available parking spots on Fremont Street. There are no parking garages, and while street parking is free, it is scarce. This could impact business. People may give up looking for a spot and drive elsewhere to satisfy their breakfast and/or cocktail needs. Back in 2012, Northeast Portland residents even complained about the lack of parking, in addition to the other modes of transportation that had been reduced. According to The 7 Batter, Griddle & Drinkery Situation Analysis Oregonian (Larry Bingham, 2012), bus service on Fremont Street was then reduced to every 30 minutes; the bus does not run on weekends and does not connect to downtown Portland. However, the area does have parking in neighborhoods, has available walking space and is bike friendly. Although it is not nearby the restaurant, the Max line is several blocks down the street. In addition, some restaurants on Fremont Street do not stay open as late as Batter. In relation to Batter’s competition, individuals may want to go to a neighborhood with an energetic atmosphere such as downtown if they want to drink and stay out late. The convenience of other bars and clubs nearby also makes those behaviors more appealing and achievable than driving to Fremont Street where not much is going on. These threats can present the business with a lack of recognition and lack of customers who could help establish it as a well-known late-night bar. Although Batter has already received high praise for its breakfast foods on Instagram and Yelp, the business needs to find a good balance of individuals who want to visit for both of its offerings, which would support the overall business. Batter, Griddle & Drinkery has the opportunity to appeal to young adults, primarily older college students and recent graduates, who are still unfamiliar with the business and who would like its environment. Batter can also use its diverse and different menu offerings to attract individuals who are looking for somewhere new or convenient on a night out. The new apartment complex in the area presents an opportunity to reach Batter’s core demographic. This menu could attract and appeal to its target audience. This unusual menu also presents an opportunity for Batter to become more creative in publicizing its business and finding ways to gain customer support and recognition. It could reach out to audiences through the menu’s oddball combinations, which could raise their interests in such foods that were not initially appealing. This opportunity could also appeal to individuals who could try a breakfast or bar spot 8 Batter, Griddle & Drinkery Situation Analysis outside the downtown area. A youthful, fun and lighthearted approach of this new business also presents a good opportunity to attract target audiences and increase awareness. This approach will help establish Batter’s identity among nearby businesses. Target audience The target audience for the campaign will be 21- to 27-year-olds in Beaumont Village and Portland metro area. This group includes college students because Batter appeals to what they may look for in a restaurant, they are relatively new, but also familiar to or interested in the late-night scene and they could create good word-of-mouth. This target audience is open-minded and eager to try new foods and places, enjoys breakfast food and alcoholic drinks, and enjoys the Portland day or late-night scene by trying new, local eateries. The vibe and personality of the owner Dan Cogan could attract the target audience to Batter. In addition, the full bar, desserts and late-night hours of the restaurant would attract this target public. On the other hand, an older age group ranging from 28-year-olds to mid-thirties may be slightly more in tune with the local restaurants and bars in Portland. They are more likely to read Portland Monthly, The Oregonian, or a local culture magazine that could increase their awareness of restaurants and bars. However, a younger age group such as 21- to 27-year-olds may also be more likely to encounter word-of-mouth from other locals, friends and family if they are new to or not familiar with the night scene. Because of this, I will focus my efforts on this age group who might not be as aware of the hidden treasures of Portland but are interested in going to late-night spots—new or old—for drinks and food. 9 Batter, Griddle & Drinkery Situation Analysis References Apartments.com. (2015). Beaumont-Wilshire – Portland, OR. Retrieved from http://www.apartments.com/local/beaumont-wilshire-portland-or/ Bingham, L. (2012, June 6). Northeast Portland residents opposed to new apartments with no parking not alone. The Oregonian. Retrieved from http://www.oregonlive.com/portland/index.ssf/2012/06/northeast_portland_residents_o.ht ml Centoni, D. (2014, Dec. 1). Late night pancake house and cocktail bar coming to NE Portland. PDX Eater. Retrieved from http://pdx.eater.com/2014/12/1/7316367/late-night-pancakehouse-and-cocktail-bar-coming-to-ne-portland Clarke, K. (2014, Dec. 1). All day/late night pancake bar, Batter Griddle & Drinkery, coming to Fremont. Portland Monthly. Retrieved from http://www.portlandmonthlymag.com/eatand-drink/eat-beat/articles/all-day-late-night-pancake-bar-batter-griddle-and-drinkerycoming-to-fremont-november-2014 Cogan, D. (2015). Personal interview. Conagra Food Service. (2015). Culinary trends: Breakfast explosion. Center of Research & Quality Innovation. Retrieved from http://www.conagrafoodservice.com/pdfs/Trend_News_Breakfast.pdf Covington, A. (2014, May 9). Food Genius releases industry report on breakfast trends in the US. Food Genius. Retrieved from http://blog.getfoodgenius.com/food-genius-releasesindustry-report-on-breakfast-trends-in-the-us/ 10 Batter, Griddle & Drinkery Situation Analysis Minnesota Office of Higher Education. (2012). Facts about the income of graduates. Retrieved from http://www.ohe.state.mn.us/dPg.cfm?pageID=948 NPD Group. (2015, March 11). Breakfast restaurant visits grow while lunch and dinner visits decline, reports NPD. Retrieved from https://www.npd.com/wps/portal/npd/us/news/press-releases/breakfast-restaurant-visitsgrow-while-lunch-and-dinner-visits-decline-reports-npd/ Pouregon. (2015, Feb. 17). Batter – Griddle and Drinkery. Retrieved from http://pouregon.com/oregon/batter-griddle-and-drinkery/ QuickFacts. (2015, April 22). State & county QuickFacts: Portland, Oregon. Retrieved from http://quickfacts.census.gov/qfd/states/41/4159000.html Sperling’s Best Places. (2015). Economy in Portland, Ore. Retrieved from http://www.bestplaces.net/economy/city/oregon/portland 11