Popeyes trying a new look
By JOE GUY COLLIER
Cox News Service
Thursday, August 28, 2008
ATLANTA — Atlanta-based AFC Enterprises, parent company of Popeyes, is rolling out a new look and adding new menu items in an effort to rejuvenate the chicken chain.
Through the first half of 2008, AFC revenue rose 4 percent to $92.6 million, but net income was flat at $13 million. Domestic same-store sales were down 1.7 percent.
As part of a broader strategic plan, AFC is launching a marketing effort designed to build a "distinctive and relevant brand," stressing the chain's Louisiana heritage. It starts this month with TV advertisements, redesigned logo and value sandwiches.
Look for more changes as the year progresses. In a recent conference call with analysts, the company said it had more products on the way with a focus on value, portable snacks and quick lunches.
AFC stuck by its forecast of a 1 percent to 2 percent decline for domestic same store sales for 2008, but AFC Chief Executive Officer Cheryl Bachelder predicted the changes would start paying off soon.
"As we move into the second half of 2008, our business plan has significant new marketing and menu news, and we expect these initiatives to start gaining traction as we enter the fourth quarter," Bachelder said in the conference call.
AFC said earlier this year it expected to spend $6 million on its strategic plan to strengthen the Popeyes brand and improve operations.
?? New look: Austin, Texas-based Pentagram Design has created a logo intended to provide a contemporary look while harkening back to Popeyes' Louisiana roots. It features the fleur-de-lis symbol and red and orange colors, meant to reflect Popeyes' spicy seasonings.
?? New menu items: Popeyes plans late this month to launch a set of "Big Deals" items priced at $1.49 each: the Loaded Chicken Wrap, a chicken tender and red beans and rice wrapped in a warm cheddar tortilla; the Delta Mini, a chicken tender on a mini-toasted bun with Delta sauce; and Chicken Biscuit, a chicken tender in a buttermilk biscuit. Big Deals is the first of three platforms being rolled out by the company.
?? New ads: Popeyes hired GSD&M Idea City, an Austin advertising firm, to create the campaign. The first ads will start running in late August and feature a fictional chef named "Ed," who sits down with diners and shares insights about their food. Did you know Popeyes' chicken goes through a 12-hour marinating process?
Joe Guy Collier writes for The Atlanta Journal-Constitution.