Noodles & Company Integrated Marketing Plan 2016 by Evan Shinn

FUEL TOMORROW TEAM TWO

02 CONTENTS 03 04 18 EXECUTIVE SUMMARY

SITUATION ANALYSIS

5. 6. 8. 10. 11. 12. 14. 15. 17.

SWOT ANALYSIS 36. SWOT In-Depth

Client Analysis Product Analysis Consumer Analysis Industry Analysis Industry Trends Top Competitors Competitive Landscape Media Spend Market Analysis

STRATEGY 39. Plan Overview 40. Plan Tactics

SECONDARY RESEARCH

19. 20. 23. 24. 26.

PRIMARY RESEARCH

Carbohydrates Research

30. 31. 32. 33.

Carbohydrates Whisperer Social Media Analysis Competitorsâ&#x20AC;&#x2122; Social Media

Survey One Survey Two Overall Key Findings Tying It All Together

Social Media User Engagement

46 MEDIA 47. Budget

48 SUCCESS

49. Plan Evaluation

APPENDIX 71. Sources

EXECUTIVE SUMMARY

& Company isn’t just a fast casual restaurant; it’s a brand that strives to Noodles nourish and inspire its members, guests and communities. This fall semester we developed a situation analysis and conducted one-on-one interviews, surveys and focus groups to find out why the brand currently isn’t cutting through to consumers. Based on our research, we were able to validate Noodles’ problem in garnering top-of-mind awareness and loyalty among guests and consumers. We were also able to pinpoint the cause of this problem. Consumers crave pasta; they’re willing to eat it more than once a week. And even though consumers believe noodles is synonymous with carbs, which have a negative connotation, they’re not consciously thinking about them when they’re seeking a dining option, especially if meals are prepared with fresh ingredients. So what’s the problem?

MEET THE TEAM Caroline Connor Max McBride Alexa Moore Evan Shinn

Aside from lagging in social media presence and media spend, Noodles’ guests and target audiences either aren’t aware of the virtues and benefits of the company or don’t understand them. Benefits, such as meal customization, fresh and wholesome ingredients and international cuisine, aren’t cutting through. Virtues, such as Noodles’ mission to nourish and inspire guests, aren’t being communicated effectively either. The collective consensus when consumers are asked about the brand is, “eh.” Not only does our team personally believe this perception of Noodles to be untrue, we’re confident it can be turned around. After developing this research, we created and streamlined a strategy with tactics to redefine a message to consumers about why the brand exists, rather than what it does. Taking the brand’s mission to nourish and inspire guests, we added a word to the mix -- success. Insights suggest that both Noodles’ primary and secondary targets want success because they’re career-oriented. And with already implemented tactics, such as the brand’s plan to engage kids with learning through their meal placemats, the sentiment that Noodles wants its guests to be successful too is very real. We suggest Noodles use the slogan “Fuel Tomorrow” to reposition the brand to communicate a psychological benefit of nourishing and inspiring success. Through a series of tactics, both general and local, outlined under this plans book’s “Strategy” section, we believe Noodles can successfully reach its “regular user” benchmarks, deepen engagement and spread awareness among their targets with our message.

SITUATION ANALYSIS 4

CLIENT ANALYSIS

ounded in 1995, Noodles & Company helped pioneer the restaurant industry’s fast-casual segment that consumers champion and love today. As of Dec. 30, 2014, the company operated 439 U.S. locations and employed more than 9 thousand people. Today, Noodles’ market cap is over $290 million, but before reaching this national success, Noodles was just an idea. (Source: Noodles Annual Report 10-K Form) (Source: Yahoo Finance)

HISTORY

Former Pepsi marketing executive Aaron Kennedy ideated Noodles after eating at Mamie’s Asian Noodle Shop in Greenwich Village, N.Y. (Thorn & Sull). At the time, he felt the number of restaurants that served international noodle dishes was scarce. So in 1994, he and Noodles’ future COO Joe Serafin and head chef Ross Kamens began developing recipes in Kennedy’s mother-in-law’s kitchen (Rogers). After pooling both personal and investment funds from friends and family, Kennedy opened the first Noodles in October 1995 in the Cherry Creek neighborhood of Denver, Colo. (Sharos & LaVeccia). The following March, he and a partner opened the brand’s second location in Madison, Wis. (Oodles). Things were rocky in the beginning. The brand lost $42,000 in the first three months after opening, and the company almost went out of business after a reporter published a nasty review (Graham & Matthews). But that didn’t deter Kennedy, who, in response, started a “Redefine Noodles & Company” campaign to reshape every aspect of his brand’s operation (Matthews & O’Sullivan). The campaign refined Noodles’ menu to offer a more simplified experience for the customer and hired an executive chef to rework it, focusing on quality ingredients and complex sauce recipes. The company also adopted a warmer color scheme and new decor (O’Sullivan & Graham). According to Inc. Magazine, within 60 days of launching his campaign, Noodles’ “food had dramatically improved” (Matthews). Kennedy had successfully turned Noodles around.

GROWTH

By 2000, Noodles’ revenue had grown from $330,000 to $13 million (Brand). Along the way, the company had scored rave reviews as well as restaurant awards (Thorn). Locations had grown to triple digits by 2007, 22 of which were franchises (Rogers). In 2004, Noodles redesigned its restaurants with a floor plan that emphasized an open kitchen, lighter decor colors, new packaging and a better carryout

experience (Lockyer). The company moved its headquarters from Boulder to Broomfield, Colo., two years later, and over the next seven years, locations grew three-fold, reaching 339 locations (Wallace & World News). An investment group led by Catterton Partners acquired a majority interest in Noodles in 2010 (Wallace). In late June 2013, the SEC confirmed the company’s intent for a public offering for $75 million, and a day after, its stock price doubled (Gross & Kamenetz).

TODAY

Since its IPO, Noodles’ stock price has declined 65 percent with sales-per-store remaining flat. The brand rattled investors when it released its second-quarter results for 2015 on Aug. 6, 2015, because quarterly profits were lower than a year ago, and the company’s 16 percent sales growth fell below investor expectations. Although Noodles’ sales growth was positive, all of it came from new restaurants added to the store base rather than increased customer traffic. While new locations are boosting revenues, raising sales at each location is the most important goal of the company today, and with new opportunities, such as catering, children’s meals and a renewed focus on fresh ingredients, Noodles might just be able to do that.

VALUES & MISSION

(Source: Fool)

Aside from offering globally inspired recipes and flavors through high-quality ingredients and customization, Noodles serves to nourish and inspire its team members, guests and communities. The brand aims to nourish guests and their millennial family relationships — both physically and emotionally — and inspire them — along with team members and communities — to leave a lasting impression on the world. (Source: Noodles & Company Client Brief)

PHILANTHROPY

Noodles partners with major non-profit organizations, such as Kids LiveWell, No Kid Hungry and STeAM, which aim to better the lives of children and push innovation. (Source: Noodles & Company Client Brief)

PRODUCT ANALYSIS

eal food. Real cooking. Real flavors. This is Noodles’ menu mantra. Although R the menu is only one element of the Noodles experience, its value helps inform the brand’s mission to give guests the very best.

FOOD & BEVERAGE

Noodles offers a wide range of international and American noodle dishes, as well as soups, salads, sandwiches, desserts, appetizers, breads and occasional limited-time offerings. Most entrées come vegetarian, but can be supplemented with optional protein toppings, such as organic tofu, parmesan-crusted chicken breast, grilled chicken breast, naturally raised pork, marinated steak, sautéed shrimp or oven-roasted meatballs. Noodles champions the ingredients it uses. The brand advertises its use of “real butter,” “real aged” Parmesan cheese and the absence of artificial flavors, colors and preservatives. The pasta the brand serves is grown exclusively by Dakota Growers Pasta company in Carrington, N.D. Noodles has 14 vegetables on its menu that are prepped and chopped fresh everyday. The brand launched a pilot program in Oregon to partner with more local farms to sources fresh ingredients and is currently looking more into how Noodles can roll out this plan. Noodles also champions the cooking methods it uses. The brand’s noodles are sautéed, rather than boiled, to absorb more flavor. Most Noodles locations operate Coca-Cola Freestyle fountains, which are touch screen soda fountains that feature more than 125 different Coca-Cola drink products and custom flavors. Guests can select mixtures of flavors of Coca-Cola products to dispense individually. Noodles also offers beer and wine. The selection and availability varies for each restaurant. General managers choose brands they think Noodles guests will like best. Depending on the city, the brand tries to serve local favorites, such as New Belgium Brewing Company, Boulevard Brewing Company, 312, Big Boss and Deschutes. (Source: Noodles & Company)

CATERING EXPERIENCE

Noodles’ catering options are divided into three categories: Big Groups, Small Groups and A La Carte.

BIG GROUPS This option is advertised as a buffet-style “NoodlesBar,” which offers a complete meal of two entrées, two sides and a dessert for $12 per person, serving group sizes of 20 or more. The guest ordering must inform the nearest Noodles location 24 hours in advance via phone. He or she then must tell the Noodles employee the number of guests and the menu items he or she wishes to order. The guest picks up his or her order on the day of his or her event. Chafing dishes, fuel, plates, utensils, serving ware and napkins are all included. SMALL GROUPS This option is advertised for “Family-Style Feeding,” serving group sizes of 4 20. The user is asked to mix and match a combination of noodle dishes, soups or salads. These choices are individually served in “Family-Style Square Bowls,” which serves 4 - 5 people each. A LA CARTE This option allows users to select add-on, standalone pans of either noodles, pastas or salads that feed up to 10 people each. (Source: Noodles & Company)

ORDER ONLINE

Most Noodles restaurants now offer online ordering. Guests can use this ordering method through either the brand’s website or mobile app. Through these apps, users select the nearest location, save credit card information and favorite orders and pay online for pickup.

DINE-IN GUEST EXPERIENCE

Noodles guests begin their dine-in experience by surveying the walled menu near the entrance of the restaurant before entering the queue. They then make their orders at the register and are later served at the table at which they choose to sit. When ordering, guests choose their meals according to portion size, entrée selection and optional meat. The wait between ordering and being served is approximately five to seven minutes. (Source: Noodles & Company)

CONSUMER ANALYSIS

ccording to the Sterling-Rice Group research we received at our client brief, A Noodles’ current “Bullseye” guest targets are career-minded parents and early adopters. These consumers range in ages from 25 to 44 and are predominantly males who earn an average household income of $102,000. The generation makeup of this target is millennials and young gen-xers, the majority of whom are working professionals with children, eager to climb the career-ladder.

The Noodles client brief gave us a demographic and psychographic look into how career-minded parents make their purchasing and brand decisions. Our goal was to discover what influences the youngest of Noodles’ target, as it will inform our marketing goals in creating a replicable college program. (Source: Noodles Client Brief)

WHO ARE THE CONSUMERS?

These millennials, ages of 18 to 35, are working professionals and/or college students. (Source: Noodles Client Brief)

THEY VALUE FRESH INGREDIENTS

Millennials value transparency of ingredients and open kitchens. Forty-eight percent of Millennial panelists in a Mintel study said they consider freshness of ingredients when deciding on where to dine. They enjoy watching the workers “build” their food and are more likely to dine at a restaurant with an open kitchen that allows them to see the food being prepared for them. It makes them feel connected to the brand. (Source: Mintel — American Lifestyles 2015: The Connected Consumer)

TIME-POOR

The average customer has less time to prepare his or her own food, so he or she prefers a fast-casual restaurant. (Source: Mintel — American Lifestyles 2015: The Connected Consumer)

THEY FEEL GOOD ABOUT THE ECONOMY

Millennials feel good about the economy and are dining out more as a result. According to Mintel, there was a 7 percent increase in millennials who said they would spend more on dining out. (Source: Mintel — American Lifestyles 2015: The Connected Consumer)

TECH-SAVVY

Online options are important to millennial consumers. Thirty-three percent of consumers seek an online opinion before making a decision. They are more likely to use social media and online applications for brand awareness. Social media announcements and promotions strongly resonate with the millennial consumer. (Source: Mintel — American Lifestyles 2015: The Connected Consumer) (Source: Mintel — LSR: Ethnic Concepts)

ADVENTUROUS

Millennials are looking to try something new and exciting when ordering, taking advantage of LTO’s or new menu items. According to Mintel, 76 percent of participants said they are interested in ethnic foods and sauces. However, the majority of those said they would stick to the more common ethnic foods. (Source: Mintel — LSR: Ethnic Concepts)

DINING ALONE

Fast-casual restaurants have seen an increase in the single diner with 30 percent in 1976 and 50 percent in 2013. Seventy-two percent of those single diners say they must feel comfortable when dining alone. (Source: Mintel — American Lifestyles 2015: The Connected Consumer)

THEY CELEBRATE BRAND PURPOSE

Millennials are compassionate toward social issues. This compassion extends to their purchasing and brand preferences. Millennials will seek out and buy from brands that support causes aligned with their values. (Source: AdAge)

CAREER-DRIVEN AND BRAND LOYAL

Millennials are highly educated, career-driven, politically progressive, and despite popular belief, millennials develop strong brand loyalty presented with quality products and actively engaged by brands. (Source: Forbes)

INDUSTRY ANALYSIS

High-quality. Locally sourced. These are just a few trends driving On-demand. remarkable growth for the limited service industry’s fast-casual segment.

WHAT EXACTLY IS ‘FAST CASUAL’?

The essential component to fast casual is its price point, which ranges from $9 to $13. Additionally, these restaurants are defined by from where their sales come, as fast-casual restaurants earn less than 50 percent of their sales from full-service sit-down meals. (Source: The Chipotle Effect)

Other indicators of fast casual: • • • • • • • • • •

Quality of food Better ingredients Wholesome food Perception of freshness First-rate decor Fair pricing Fast service Friendly employees Flexible offerings Full view of how food is prepared (Source: Technomic)

INCREDIBLE GROWTH

The fast-casual market has grown by 500 percent since 1999. Last year, Americans spent $21 billion at fast-casual restaurants, exceeding its market’s fiveyear compound annual growth rate by 11.7 percent. While the rest of the restaurant industry will struggle through 2020 with a predicted growth rate of half a percentage point, fast-casual is forecasted to ride doubledigits. (Source: Eating the Industry’s Lunch)

INDUSTRY TRENDS

THIRD-PARTY DELIVERY PARTNERS

Consumers’ high value on convenience and technology has driven demand for more delivery services, and businesses are reacting. • • •

Postmates Online Delivery: partnered with Chipotle, McDonald’s and Starbucks in 2015. Panera 2.0: currently operates more than 28 delivery hubs. Digital orders now make up more than 20 percent of company sales. UberEats: offers users a choice of select dishes from certain restaurants on a rotating menu for delivery. (Source: Mintel — The Online Food Consumer)

VIRTUAL RESTAURANTS

There’s a new rise in restaurant concepts that provide chef-made meals, which are prepared in centralized kitchens and then delivered to customers via online order. These concepts cater to tech-savvy consumers who want restaurant-quality meals that are also healthy. • • •

Sprig.com: delivers fresh meals using “wholesome ingredients” within 15 minutes. Maple.com: Manhattan-based virtual restaurant with a rotating menu of fresh meals prepared on-site. Meals can only be ordered through app. Munchery.com: prepared and chilled meals created in local kitchens that are slanted toward healthy-minded consumers with “healthy and tempting kids meals.” Meals can be ordered on-demand or scheduled ahead of time.

HEALTHY, KID-FRIENDLY EXPERIENCE

In 2015, the National Restaurant Association listed healthful kids’ meals as the number four trend in all of food service, reporting 50 percent of young families worry about leading a healthy lifestyle. As a result, restaurants are responding by incorporating whole grains, more fruits and vegetables and salad options into new kids menu choices. • • •

Silver Diner: casual dining chain that serves fun, low-calorie and fresh American classic kids meals. Some restaurants have stopped advertising CSDs (Carbonated Soft Drinks) on kids’ menus. Customization makes restaurant experience fun. (Source: Mintel — Families Dining Out)

MEAL PLANNING

Meal-kit delivery services, such as Blue Apron, are offering families “seasonal, balanced, kid-friendly recipes.” Through the plan, families can choose to receive two or four meals per week priced at $8.74 per person, per meal, and shipping is free. (Source: Mintel — Lifestyles of Young Families)

LIFEHACKING

Demand for faster and more efficient restaurant experiences means restaurants are focusing on better efficiencies while customers are in line, as well as packaging and portability. (Source: Mintel — LSR, Sandwiches, Subs and Wrap Concepts)

(Source: Mintel — The Online Foodservice Consumer)

TOP-RANKED RESTAURANT TRENDS

Here are the top 10 food trends in 2015, according to the National Restaurant Association: • • • • • • • • • •

Locally sourced meats and seafood Locally grown produce Environmental sustainability Healthful kids’ meals Natural ingredients/minimally processed foods New cuts of meat Hyper-local sourcing Sustainable seafood Food waste reduction management Farm/estate branded items (Source: Restaurant — What’s Hot 2015)

LOCAVORE

Some fast-casual operators are finding ways to include more locally sourced items in their offerings, because of an increase in consumers’ knowledge of food sourcing and preparation. More than half of consumers indicate they consider freshness of ingredients, and a growing number of consumers expect transparency when dining out. (Source: Mintel — LSR, Sandwiches, Subs and Wrap Concepts)

TOP COMPETITORS lthough Noodles competes against a diverse industry of restaurant concepts, A ranging from fast food to fine dining, according to American research company Hoovers, Noodles’ top competitors are Chipotle, P.F. Chang’s, Panda Express and Panera.

(Source: Hoovers)

CHIPOTLE

Also located in the Denver area, Chipotle is one of Noodles’ top rival fast-casual chains, which helped pioneer the fast-casual dining experience. Chipotle specializes in Mexican cuisine, deriving its name from the smoke-dried jalapeño. The brand is famously known for its freshness of ingredients, advertising “real ingredients just taste better” and its customization. Chipotle takes great pride in advertising its mission statement, which is: “Food with Integrity” is our commitment serving the most delicious ingredients we can find, raised responsibly and prepared using classic cooking techniques.” The brand emphasizes its organic ingredients and freshly raised meat. Like Noodles, it has a catering program and an option to order online. The food is successfully craveable and allows customers to create their own dishes each time. (Source: Chipotle)

PANERA

Panera is a popular fast-casual chain that serves a variety of food. The brand is famous for serving breads, cookies, bagels, salads, soups, sandwiches and much more. The company, founded in 1987, is headquartered in Sunset Hills, MO., and currently operates a total of 1,900 stores throughout the United States and Canada. Panera is also famous for pioneering calorie count transparency for food items and shares more nutritional information on its website as well. In 2016, Panera promises to remove all artificial additives from the food. It offers online ordering as well as catering in certain areas. Panera’s slogan is “food as it should be,” priding itself on “simply: good food.” (Source: Panera)

P.F. CHANG’S

P.F. Chang’s China Bistro is a casual dining restaurant chain that is Asian-themed. It opened in 1993 in Scottsdale, Ariz., by the founders Philip Chiang and Paul Fleming. P.F. Chang’s currently operates 204 restaurants in the United States. On July 2, 2012, Centerbridge Partners purchased P.F. Chang’s, and the company now is not publicly held. P.F. Chang’s has a scratch kitchen and hires chefs instead of kitchen managers to keep their food at a high quality. It also provides frozen meals as well as glutenfree options for its customers. Like Noodles, some of the items on its menu include international cuisine, such as dumplings, spicy chicken, grilled salmon, Mongolian beef and soups, as well as salads and desserts. (Source: P.F. Chang’s)

PANDA EXPRESS

Panda Express is a fast-casual restaurant chain that specializes in American Chinese cuisine. Its restaurants can be found in airports, casinos, military bases, universities, shopping mall food courts and stand-alone restaurants. There are more than 1,500 restaurants in the United States. Panda’s signature dish is Orange Chicken, but offers other dishes, such as Beijing Beef, Black Pepper Chicken, Honey Walnut Shrimp and various appetizers and desserts. The brand’s mission is: “To deliver exceptional Asian dining experiences by building an organization where people are inspired to better their lives.” Panda Express’ values include giving, growth, great operations, respect/win-win and being proactive. (Source: Panda)

COMPETITIVE LANDSCAPE

$5B $4B

2014 ANNUAL SALES Noodles: $403.74MM Chipotle: $4.11B P.F. Chang’s: $1.24B Panera: $2.53B (Source: Hoovers)

$3B $2B $1B $0B

Noodles & Company

Chipotle

P.F. Chang’s

Panera

16.59% 13.27%

2014 NET MARGIN PROFIT

9.95%

Noodles: 1.56% Chipotle: 11.59% P.F. Chang’s: 2.08% Panera: 9.35%

6.64% 3.32% 0%

Noodles & Company

Chipotle

P.F. Chang’s

Panera

(Source: Hoovers)

MEDIA SPEND ANALYSIS 2014 NOODLE’S MEDIA SPEND

Outdoor: $64.5M US Internet-display: $216M Total: $280M

(Source: Hoovers)

2014 CHIPOTLE’S MEDIA SPEND

Magazines: $6.57MM Natl Spot Radio: $2.93MM Outdoor: $6.8MM US Internet - Search: $1.18 Total: $17.7M

(Source: Hoovers)

2014 PANERA’S MEDIA SPEND Cable TV: $36.5MM Outdoor: $10.2MM Network TV: $21.96MM Total: $74.7MM

(Source: Hoovers)

MEDIA SPEND ANALYSIS, CONT.

ith these charts, we are able to compare Noodles ad/sales ratio and media W spend with its top two competitors, Panera and Chipotle. It is easy to see that Noodles does not spend as much on media as Panera and Chipotle. Panera spends the most money out of the three on advertising with $74.7 million for 2014. Chipotle comes in second with $17.7 million, and Noodles spent $280 thousand. The difference between Noodles and its top competitors is that there is a wider range in advertising media. Panera has 15 different categories of advertising while Noodles has four. Each restaurant spends its most advertising dollars in a different area. Panera focuses on cable TV while Chipotle spends most of its dollars on magazines, and Noodles puts its money towards outdoor advertising. It is easy to see that each company is differentiating its media spending to adjust to consumers and the ever-changing media trends.

(Source: Hoovers)

MARKET ANALYSIS

PRIMARY TARGET AUDIENCE: CAREER-MINDED PARENTS Size • 28.2MM • 12 percent of U.S. total Household income • Average $102,088 • 35 percent higher than U.S. average • Target audience has combined $2.9 billion in annual income (Source: Noodles & Company Client Brief)

SECONDARY AUDIENCE: COLLEGE MILLENNIALS Size • 26.1MM • 7 percent of U.S. total Spending for population • Projected average annual spending of $545B • Projected average annual spending of $18.4B on fast food (Source: Entrepreneur)

TOP 10 PRIORITY MEDIA MARKETS

1. Denver 2. Washington, DC 3. Kansas City 4. Milwaukee 5. Madison 6. Colorado Springs 7. Sacramento 8. Salt Lake City 9. Minneapolis-St. Paul 10. Columbus, Ohio

(Source: Noodles Client Brief)

SECONDARY RESEARCH 18

CARBOHYDRATES

arbohydrates are often viewed as a negative supplement added in one’s diet, C but this perception overlooks the fact that everyone actually requires carbs to live a long and healthy life. Carbs are one of the main types of nutrients in one’s diet to provide an important source of energy. The digestive system breaks down the carbohydrates to produce blood sugar, known as glucose. The sugars are used for energy in cells, tissues and organs; it is also stored as extra sugar in the liver and muscles for a later time when needed. There are two types of carbohydrates: one called simple while the other is called complex. Simple carbohydrates are made up of one or two sugar molecules making the foods easy to digest and a quick source of energy. Some examples of simple carbohydrates are brown sugar, honey, fruits, corn syrup, soft drinks and even candy. Complex carbohydrates are often referred to as dietary starch and are made up of three or more sugar molecules like beads on a necklace and branched like a coil. Starch supplies the body with long sustainable energy and is mostly seen in plant foods. They have high contents of fiber, which is found in plant cells, and it does not break down completely in the body, which is essential for regulating the body. Examples of complex carbohydrates are bread, cereal, pasta, rice, green vegetables, oatmeal, beans, lentils and pumpkin. Carbohydrates are a main source of operating the brain. The brain is specifically designed to operate on glucose, the main source of carbohydrates, for 99 percent of one’s waking life. It consumes up to 50 percent of the body’s glucose and is not able to function without it. Hypoglycemia is brain starvation where one has a low blood sugar level and “the brain is literally being starved for fuel, which results in feeling of confusion, lightheadedness and slurred speech.” According to Iowa State University, the recommended daily intake of carbs for the average person is 130 grams while athletes need a minimum of 250 grams per day. A 2-ounce serving of angel hair pasta contains 31 grams of carbs while regular penne contains about 43 grams of carbs per 2-ounce serving. (Source: U.S. National Library of Medicine)

(Source: Nutrition MD) (Source: Utah Education Network) (Source: San Francisco Gate) (Source: MangoMan Nutrition and Fitness) (Source: American Diabetes Association)

CARBOHYDRATES AREN’T EVIL KAYLA ITSINES

Kayla Itsines is an Australian entrepreneur and trainer whose claim to fame was garnered through social media. Her online presence targets mostly millennial women ages 16-40. Itsines’ brand capitalizes on the idea that strong is the new sexy. She sells two workout guides online called the Bikini Body Guide, or BBG 1.0 and 2.0. She also has a “HELP Guide” that outlines what to eat to get toned and lose weight. Itsines often blogs or posts on social media about the importance of carbs in a balanced, healthy diet. In one of her blog posts, she says, “Carbs are key for maximum energy, stamina, concentration, recovery and better fluid balance. They are so important for people who are working out regularly because they are the primary fuel for your body. Your brain is almost entirely fueled by carbohydrates, so it’s pretty important you eat them.” Itsines then goes on to suggest eating pastas among other forms of carbohydrates. (Source: Kayla Itsines — Carbs Are Not Evil)

ITSINES’ SOCIAL MEDIA REACH 256M FOLLOWERS 9.9M TWEETS

4MM FOLLOWERS 2.4M POSTS FOLLOWING 103 3.3MM LIKES UNKNOWN NUMBER OF POSTS

SOCIAL MEDIA ANALYSIS TWITTER

Noodles’ Twitter page interacts with the millennial generation with witty and quick responses to keep the conversation light, yet engaging. The account also uses real-life brand characters to sign tweets and answer questions about specific topics.

a quick response to any dissatisfied customers.

One of Noodles’ latest character was Chef Nick. Consumers could tweet a question or comment with the hashtag #AskChefNick to request a response.

Recently, Noodles introduced the new kid’s meals on its Facebook and many parents have been enthusiastic about this concept, while others wish for more variety in the menu items kids can choose from. The negative comments about failed Birthday Bowls and other problems are visible on the page, but Noodles responds quickly to offer help with the situations.

Noodles’ campaign “Made. Different.” was introduced on Twitter with a video that explained the initiative on the day it launched. The brand then tweeted one reason a day it is made different and continued this for 19 days. These posts included the benefits of Noodles and included pictures of children, families, parents, millennials and “fresh,” “not from a can” ingredients. Noodles also posts contests for free bowls of noodles on all social media platforms. The brand keeps up-to-date with social holidays, utilizing hashtags to represent them. Noodles’ Twitter account offers videos, pictures and gifs to get its message across. Emojis and visual, playful language is often used to appeal to a younger audience.

INSTAGRAM

The majority of Noodles’ Instagram posts are professionally taken and include graphics on the post. Some pictures showcase candid consumers enjoying the brand’s product. Noodles’ Instagram account syncs with the Twitter and Facebook page most of the time, but also includes its own content targeting the Instagram platform. Noodles keeps its page light and witty with the use of humor, hashtags and emojis to target a younger millennial audience, which is the primary age group using Instagram. More posts on this platform include beer or wine to target their audience. Recent posts include the hashtag #MomentsToSavor inviting followers to post moments with their loved ones, including that hashtag for a chance to win a catered Friendsgiving feast.

It should be noted that all social platforms appear to align with each other, as they post the same or nearly the same content at similar times.

25.5M FOLLOWERS 15.1M TWEETS FOLLOWING 1,523 6.1M FOLLOWERS 355 POSTS FOLLOWING 29 691M LIKES UNKNOWN NUMBER OF POSTS 336,609 CHECKED-IN

FACEBOOK

Noodles uses Facebook to promote discounts and coupons. Many of the posts include visual graphics that also appear on Twitter and Instagram. A constant flow of conversation and comments under Noodles’ posts, and Noodles often requires

COMPETITORS’ SOCIAL MEDIA oodles doesn’t have as heavy of a social media presence, compared to its top N four competitors. It appears as though more people are engaging with said competitors on social media platforms than Noodles’. Chipotle nearly triples Noodles in Facebook engagements. Panera’s number of Twitter followers is nearly 16 times higher than Noodles’. And both Panda Express and P.F. Chang’s have significantly higher Instagram and Facebook numbers than Noodles’. Social engagements generate traffic to a brand’s pages and deepen sustainable, meaningful relationships with users. If Noodles’ target audience engages in social media and has a heavy online presence, the brand’s lacking social media presence might be a contributing factor to its drop in top-of-mind awareness among consumers.

3.94M FOLLOWERS 47.1M TWEETS FOLLOWING 12.3M 94.1M FOLLOWERS 352 POSTS FOLLOWING 103 2.8MM LIKES UNKNOWN NUMBER OF POSTS 5.4MM CHECKED-IN

25.5M FOLLOWERS 15.1M TWEETS FOLLOWING 1,523

22.3M FOLLOWERS 6M TWEETS FOLLOWING 1.3M

6.1M FOLLOWERS 355 POSTS FOLLOWING 29

11.7M FOLLOWERS 222 POSTS FOLLOWING 1.3M

691M LIKES UNKNOWN NUMBER OF POSTS 336,609 CHECKED-IN

3.1MM LIKES UNKNOWN NUMBER OF POSTS 0 CHECKED-IN

717M FOLLOWERS 410M TWEETS FOLLOWING 195 295M FOLLOWERS 392 POSTS FOLLOWING 13 2.8MM LIKES UNKNOWN NUMBER OF POSTS 4.8MM CHECKED-IN

79.5M FOLLOWERS 14.6M TWEETS FOLLOWING 9.8M 8.5M FOLLOWERS 85 POSTS FOLLOWING 58 882M LIKES UNKNOWN NUMBER OF POSTS 5.2MM CHECKED-IN

SOCIAL MEDIA USER ENGAGMENT

ere’s a look into how social media users are engaging with Noodles. Our social H media analysis shows that Noodles is being used as a destination spot for carb-loading, workout prep and fitness dieting among a niche segment of the brand’s guests to fuel their lifestyles.

FROM FITNESS TO TOGETHERNESS

PRIMARY RESEARCH 28

PRIMARY RESEARCH

ur secondary research helped figure out what types of primary research we O would need to execute. Starting with in-depth interviews and a focus group, we were able to find insights into the perceptions of Noodles in the mind of the

consumer. We used these insights to help create survey questions for our in-store survey, as well as two online surveys.

IN-DEPTH INTERVIEWS

IN-RESTAURANT SURVEYS Key Findings • • • •

Guests don’t frequent Noodles. Guests come primarily because they crave noodles. Guests come with a set dish in mind. Customization awareness among guests is mixed.

Key Findings • • • • •

On average, interviewees go to Noodles between one and three times a year. Interviewees are more likely to eat noodle-heavy dishes for dinner. Freshness of ingredients is important. Loyalty programs are important to consumers. There is a negative perception about carbohydrates.

FOCUS GROUP Key Findings • • • • • • • •

Consumers have long gaps between visits. Brand is not on the radar when searching for a fast-casual meal. Brand resonates with groups. Noodles mean carbs. Noodles’ value perception is weak. Noodles is a dinner destination. Local is better than fresh. The slogan “MADE. DIFFERENT.” doesn’t resonate.

IN-RESTAURANT SURVEYS Key Findings • • • •

Guests don’t go to Noodles often. Guests come primarily because they crave noodles. Guests come with a set dish in mind. Customization awareness among guests is mixed.

SURVEY ONE

This survey was written to gauge perceptions of the fast-casual dining category, local ingredients and Noodles in general. Most of our questions were based on a 5-rating scale, multiple choice and one open-ended. This survey was distributed to participants online and there were 87 responses.

HOW SATISFIED ARE AFTER LEAVING THE RESTAURANT?

Key Findings • • • • • • • • • •

Respondents’ feelings after eating at Noodles are mixed. Respondents primarily associate noodles with carbs. Respondents are willing to eat noodle-based dishes at least once a week. Respondents’ feelings on trying new ethnic dishes are mixed. Locally sourced ingredients don’t trump calories. Respondents are moderately to very interested in Noodles delivery. Respondents believe Noodles to be slightly to moderately nutritional. Respondents believe Noodles to be slightly to moderately authentic. Noodles is primarily perceived as a dinner destination. Local doesn’t mean loyal.

WHAT WORD DO YOU ASSOCIATE MOST WITH NOODLES?

HOW OFTEN DO YOU EAT NOODLES?

SURVEY TWO

This survey was created to gauge respondents on their goals and importance of nutrition, with a focus on carbohydrates. We used an online platform for this survey and received 45 responses.

HOW LIKELY ARE YOU TO PURCHASE FROM A BRAND THAT IS ACTIVELY HELPING FUEL ITS CUSTOMERS’ FUTURE SUCCESS?

Key Findings • • • • • • • • • • • •

Respondents believe it is very to extremely important to plan for future success. Respondents are very active in working toward their future goals. Respondents believe it is very to extremely important to achieve financial success. Respondents believe what they eat affects their academic and/or work performance. Respondents consider the impact the impact a meal has on how they feel later. Respondents aren’t entirely aware of the role cabs play in their diets. 93 percent of respondents are willing to consider adjusting their carb-intake, should it affect their next-day performance. Grains were selected as requiring the most servings per day. Empty stomachs affect work performance. Nutrition is a very important influencer for a child’s success. Respondents are willing to purchase from a brand that is actively helping fuel their success. Respondents are very likely to participate in a program that rewards them for studying.

DO YOU CONSIDER THE IMPACT A MEAL HAS ON HOW YOU FEEL LATER?

HOW LIKELY ARE YOU TO PARTICIPATE IN A PROGRAM THAT REWARDS YOU FOR STUDYING?

OVERALL KEY FINDINGS

• • • • • • • • • •

Guests don’t frequent Noodles. Guests come primarily because they crave noodles. Brand resonates with groups. Guests associate Noodles with carbs. Noodles’ value perception is weak. Heavy exercisers frequent Noodles to build up on carbs and share their experience on social media. Respondents are very active in working toward their future goals. Respondents believe it is very to extremely important to achieve financial success. Respondents believe what they eat affects their academic and/or work performance. Ninety-three percent of respondents are willing to consider adjusting their carb-intake, should it affect their next-day performance. Local is better than fresh.

TYING IT ALL TOGETHER

ur team took Noodles’ client brief to heart. Although our research methods O led to a number of key findings and opportunities for Noodles to consider, we believe the most compelling component of the brand lies within the mission and values Noodles’ Chief Marketing Officer Mark Mears relayed to us on the day of the client brief. When looking at what Noodles and its targets value, the two overlap. What do career-minded parents and college millennials both have on their minds? Their futures. How does Noodles strive to better its guests lives? By nourishing and inspiring. Moreover, Noodles’ products arguably act as catalysts to success, as we learned carbohydrates supply fuel to your brain and body. Rather than fight against Noodles’ relationship to carbohydrates, we suggest the brand work with it. We believe our campaign remedies Noodles’ current brand weakness by messaging to its targets both a psychological and physical benefit that works beyond just the guests’ craving for noodles. It satisfies consumers’ hunger for nutritional and inner nourishment, correcting any mixed value perceptions audiences might have had before. In his client brief, Mr. Mears talked about the importance of brands communicating why they exist, rather than what they do. In the next section we outline a plan to convey just that.

SWOT 34

SWOT ANALYSIS

ur group identified Noodlesâ&#x20AC;&#x2122; internal strengths and weaknesses, as well as its O external opportunities and threats, based on the brandâ&#x20AC;&#x2122;s situation analysis and our secondary and primary research.

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

1. 2. 3. 4. 5.

1. 2. 3. 4. 5. 6.

Company mission and values Resonance with large groups and families Market International cuisine Noodles

Empowering guests through psychological benefits Changing the conversation on carbohydrates Partnerships Kid-friendly Adopting trends Targeting heavy exercisers

1. 2. 3. 4.

Mixed value perceptions Repeat users Lack of top-of-mind awareness Lack of credit for customization and cooking methodology

Emerging market competition Demand for local Health perceptions Third-party apps

SWOT IN-DEPTH STRENGTHS

COMPANY MISSION AND VALUES We believe Noodles’ mission and values align strongly with its targets’ sentiments and values. Based on our research, consumers are responsive to brands that act as caregivers that inspire them to strive for success.

WEAKNESSES

MIXED VALUE PERCEPTIONS Both our focus group and client brief research suggest users are not sure how Noodles adds value to their lives. When asked about the brand, most consumers respond unsure or unenthusiastically.

RESONANCE WITH LARGE GROUPS AND FAMILIES From our research, it’s clear Noodles is a place for group gatherings. Both our focus group and survey respondents relayed that Noodles’ restaurants are not spaces to dine alone.

REPEAT USERS Lack of regular users is where Noodles’ falls behind most, compared to its top competitors. This issue seems to be the brand’s most immediate priority in its marketing decision-making.

MARKET The fast-casual segment is forecasted to ride a growth rate of double-digit percentage points through 2020.

LACK OF TOP-OF-MIND AWARENESS Many of our focus group participants agree that Noodles isn’t on their dining-out radar.

INTERNATIONAL TASTES & CUISINE Noodles’ target market is looking to try something new and exciting when ordering out. Seventy-five percent of these consumers are interested in ethnic foods and sauces.

LACK OF CREDIT FOR CUSTOMIZATION & COOKING METHODOLOGY Noodles’ isn’t receiving credit for meal customization, fresh ingredients and cooking methodology. Based on our client brief, surveys and focus group, these issues are clear internal problems that the brand should consider refocusing.

NOODLES Our research suggests that when guests are visiting Noodles, it’s specifically because they are craving noodle-based dishes.

OPPORTUNITIES

THREATS

CHANGING THE CONVERSATION Although there’s been push-back against carbs in recent years, our research suggests consumers aren’t confident in their knowledge on them. This lack of knowledge serves as an opportunity for noodles to educate and engage consumers with the benefit that noodles provide into a well-balanced diet.

DEMAND FOR LOCAL Demand for locally-sourced ingredients might be easy for local restaurants, but for corporate-owned restaurant chains, it’s more difficult to incorporate into their supply chains.

EMPOWERING GUESTS Our research suggests that Noodles’ targets would respond positively to a brand that inspires consumers to strive for future success.

PARTNERSHIPS Delivery is becoming a common expectation among consumers, and with the development of technology, more third-party apps, designed for delivery or other concepts, are creating a right to exist in the restaurant industry. Partnering with one of these apps could help boost traffic and loyalty for Noodles. TARGET HEAVY EXERCISERS Our social media analysis shows that Noodles is being used as a destination spot for carb-loading, workout prep and fitness dieting among a niche segment of the brand’s guests. Messaging more to these heavy exercisers about the benefits their peers have found in the product could lead to an increase in restaurant traffic.

EMERGING MARKET COMPETITION As the fast casual segment continues to grow, new competitors, such as Shake Shack and Zoe’s Kitchen, provide different dining options and experiences for consumers.

HEALTH PERCEPTIONS Our primary research suggests consumers don’t perceive Noodles’ dishes as healthy, but our social media analysis suggests that many of the brand’s customer base consciously include Noodles’ products into their diet. THIRD-PARTY APPS New companies that specialize in meal-planning and delivery for time-poor consumers suggest that the immediacy of the fast-casual segment has up-andcoming indirect competition.

STRATEGY 38

PLAN OVERVIEW

OVERARCHING CHALLENGE

oodles’ overarching challenge is streamlining its brand communication to effectively communicate one message. The brand’s guests and target audiences either are not aware of the virtues and benefits of the brand or do not understand them. Benefits, such as meal customization, fresh and wholesome ingredients and international cuisine, are not cutting through. Virtues, such as Noodles’ mission to nourish and inspire guests, are not being communicated effectively either.

PROJECT CHALLENGES, ACCORDING TO CLIENT BRIEF 1. 2. 3. 4. 5.

Create and plan a fully integrated marketing communications plan for 2016 Earn credit for quality ingredients Earn credit for cooking methodology and customization Drive craveability Plan a replicable local restaurant marketing program

OBJECTIVES

General Campaign 1. Reduced lapsed users by 5 percent 2. Increase regular users by 5 percent 3. Build awareness 4. Deepen engagement Knocking non/lapsed users and bumping regular users by 5 percent will drive Noodles’ average visits from 3.3 visits per year to 6; that’s an 86 percent increase from Q1 2015. College Program 1. Build awareness 2. Deepen engagement 3. Drive profitable sales By building awareness and deepening engagement with the college segment of millennials, Noodles can drive profitable sales through trial and frequency, which leads to a new generation of loyal guests.

TARGET AUDIENCES Career-minded Parents • Time-poor • Strive to achieve high social status • Children impact brand decisions • Eat organic College Millennials • Value fresh ingredients • Adventurous • Feel good about the economy • Celebrate brand purpose • Career-driven • Tech-savvy

STRATEGIC MESSAGE Noodles & Company nourishes and inspires success.

CAMPAIGN THEME/SLOGAN “Fuel Tomorrow”

“FUEL TOMORROW SOUNDS LIKE IT HAS MORE ENERGY BEHIND IT AND WILL GET YOU THROUGH TODAY AND ALSO GET YOU TO TOMORROW.” “I LIKE FUEL TOMORROW BECAUSE IT SOUNDS LIKE A HIGH ENERGY PROTEIN FILLED RESTAURANT.” “FUEL TOMORROW SOUNDS LIKE YOU GET A LOT OF FOOD, AND I LIKE EATING.” “I LIKE FUEL TOMORROW BECAUSE I FEEL LIKE IT HAS A HEALTH ASPECT.” “FUEL TOMORROW MAKES ME THINK OF SOMETHING REALLY HEALTHY.”

PLAN TACTICS

SOCIAL MEDIA — #WhatFuelsYou

This social media tactic engages users to participate in a social, viral contest, as it relates to the Fuel Tomorrow campaign. By asking social media users what personally fuels them beyond a healthy diet, Noodles can apply the abstract message of “Fuel Tomorrow” to tell the stories of real people and inspire its guests. Users can participate by posting a video to either Instagram or Twitter, verbally sharing what fuels them to live every day to its fullest and reach their goals. Users must end the video with a shoutout to another user, posing the question, “What fuels you?” and tagging them into the post’s written text. Users who participate will receive an online voucher via direct message for a free bowl at their nearest Noodles location. Users must include the hashtag #WhatFuelsYou in their post and be following Noodles’ Instagram account to qualify.

EVENTS

We suggest that Noodles sponsor events relevant to the target audience’s interests in cities across the United States. These events include • Marathons • Science and technology conferences • Arts Centers We believe these types of events align with the our strategic message and will help position Noodles as a progressive brand in the mind of the consumer. These events correlate with our ads, reinforcing message of nourishing success. When an event happens, store sales can be analyzed to see if the event sponsorship led to an increase in traffic.

PODCAST SPONSORSHIP

We recommend Noodles target podcasts that center around entrepreneurship, health and parenting, as these topics align with Noodles’ 2016 message of nourishing and inspiring success. Family and Parenting • Turning This Car Around: Parenting podcast with a 4.5-star rating from the perspective of three dads • Everyday Einstein: Podcast with a 4-star rating on understanding science in everyday life • Mighty Mommy: Parenting tips with a 4.5-star rating Business • Startup: Beginner’s business podcast with a 5-star rating • The Pitch: Five-star podcast in which founders pitch their startup ideas • Hack the Entrepreneur: Five-start podcast on the path to success in entrepreneurship • Radiate with Betty Liu: Interviews with successful people in business, politics and society Why Podcasts? These shows have dedicated listeners who are usually a captive audience. Most often the hosts of the podcast will start the episode with who the current sponsor is. These shows usually have show notes, where content is added and sponsors can get an extra mention. Placing a unique URL here and/or having a custom code for each episode can help measure response.

VIDEO, SOCIAL & PRINT — “FUEL”

Translating the message of “Fuel Tomorrow” across different mediums, such as print, TV and social, will tie together the cohesive voice we wish to convey for Noodles. We suggest that the brand launch a content series, using said mediums, to highlight on-the-rise individuals who have garnered success in their communities. The theme of the series underscores the source of an individual’s drive and how nutrition plays into it, engaging audiences and consumers to associate Noodles with the relationship between nourishment and success. On the next page, we showcase a few hypothetical stories available to tell through Noodles’ brand and message:

“FUEL CHANGE”

Maggie Doyne is a 28-year-old American philanthropist and advocate for women’s rights in Nepal. She has built an orphanage, women’s center and school in the Kopila Valley of Nepal. Doyne built the Kopila Valley Children’s Home in 2008 and opened its doors to 44 children. As of this year, there are 51 children to whom Doyne is the legal guardian. She takes care of the children with two other Nepali couples. Doyne opened the Kopila Valley Primary School in 2010 and welcomed 220 students. As of this year, there are now 370 students attending the school. In 2013, Doyne opened the Kopila Valley Women’s Center.

“FUEL THE ARTS”

Michael Odom is a 35-year-old American actor, composer, writer, playwright, lyricist and rapper, best known for creating and starring in a acclaimed Broadway musicals. He’s a Tony and Grammy-Award winner for his music and composition. In his most recent play, Michael plays the lead role. He knows that filling up on Noodles & Company is the best way to nourish his mind and kick up his creativity. “I’ll eat the Penne Rosa the night before I perform for a big audience. I can feel my energy levels go up,” Odom said.

â&#x20AC;&#x153;FUEL INNOVATIONâ&#x20AC;? Beth is a 28-year-old innovator and entrepreneur who has kickstarted her own mobile app. Her technology solves a unique problem for millennials and young professionals. Her app will help millions of people in the future. When she feels drained at work, she looks to Noodles to give her that extra boost of energy to power through her late nights.

“FUEL LOCAL”

Fred Meyer is a 45-year-old local farmer in Portland who sources his produce to Noodles & Company. He is a fourth-generation farmer and has owned the farm for over 100 years. Fred says farming is more than a job to him. Every day he wakes up feeling grateful that he gets to farm the food that is provided to thousands of people every day. “It feels good to be able to know that what I do for a living helps feed so many people,” Meyer said.

ENDLESS POSSIBILITIES FOR “FUEL” Fuel • • • • • • •

creativity entrepreneurship community laughter minds hearts the next generation

• • • • • • • •

risk truth candor together fresh social innovation diversity

OUTDOOR MEDIA EXAMPLE This outdoor ad showcases how the “Fuel Tomorrow” mantra can be used to communicate Noodles as a place of nourishment.The ad triggers craveability for on-the-road travelers, drawing traffic to the brand’s nearest locations.

“FUEL [YOUR COLLEGE]” Students will produce their own content for the “Fuel [Your College]”. This will be done by reaching out to the college’s film and media department. A student will be selected to produce the short documentary about someone who is doing something of interest on campus. By utilizing a student crew to make the video, it can increase the buzz around the production among students, and make the story seem more genuine.

PROCESS

1. Find journalism students who would be interested in doing the production for a set price. (might need to add an equipment budget so they can rent gear via borrowlenses.com) 2. Have them find someone on campus who is of interest, and submit a proposal to N&C with info on who they want to target and why 3. The winning proposal receives the equipment budget (or purchased equipment owned by N&C and shipped to them) and produces the video 4. They share on their social channels using #FuelKU 5. Noodle’s social channels re-share

PARTNERSHIPS — POCKET POINTS

We suggest Noodles partners with mobile app Pocket Points to reward student guests with discounts and promos for time spent off their phones. Pocket Points is a mobile app that gives students rewards for not using their phones during class. The idea is that the more time students spend on their studies and less on their phones, the easier it is to achieve academic success; and students should be rewarded for that. Simply open the app on campus, lock your phone and start gaining points for discounts and promos at local businesses. We believe a partnership between Pocket Points aligns with Noodles’ 2016 strategic message of nourishing and inspiring success that could potentially lead to more foot traffic into restaurants.

MEDIA 46

BUDGET

e’ve developed different evaluation methods to measure the success of the W Fuel Tomorrow campaign. We recommend measuring how each tactic leads to an increase in same store sales, social media engagement and restaurant traffic.

We recommend measuring Noodles’ social media by comparing engagements before, during and after the implementation of the brand’s Fuel Tomorrow and #WhatFuelsYou campaigns. We suggest looking at the number of followers, comments and likes to measure their success. We also suggests measuring any increase in foot traffic our traditional tactics bring, specifically same-store sales. Another suggestion is to measure the number of requests for items from the “secret menu” over a six month period. Other evaluation methods include measuring the student traffic in Noodles’ sales, due to the Pocket Points partnership and “Fuel Your Noodle Tuesday’s.” Finding a correlation between increased overall traffic and student consumers, as it relates the brand’s college tactics, is beneficial in solving Noodles’ awareness and craveability problems. This relationship could also drive same store sales.

SUCCESS 48

PLAN EVALUATION

e’ve developed different evaluation methods to measure the success of the W “Fuel Tomorrow” campaign. We recommend measuring how each tactic leads to an increase in same store sales, social media engagement and restaurant traffic.

APPENDIX 50

IN-DEPTH INTERVIEWS TOPICS

PERCEPTIONS OF RESTAURANTS

Do you feel more comfortable about your food when the restaurant has an open kitchen?

Criteria for Choosing a Place to Eat: Perceptions of Restaurants Importance of ingredients Loyalty vs. Convenience Noodles and Company Specific

What aspects of service do you judge a restaurant the most by?

CRITERIA FOR CHOOSING A RESTAURANT How do your decisions for choosing a restaurant change during the week versus the weekend? If so, why?

If a restaurant has alcohol on the menu does that increase the perceived quality?

Does the health factor of the restaurant influence your decision? Are you more likely to pick a place that tastes better or is healthier, and do you believe there is a balance? Is the environment of the restaurant important? What meals of the day would you prefer fast casual over a traditional sit down restaurant? How important are online reviews in your decision making? Are you more likely to choose a locally owned establishment over a chain? Why?

If a friend doesn’t like a restaurant are you more likely to dislike it as well? Does the part of town the restaurant is in affect the judgements you will make about it’s quality?

IMPORTANCE OF INGREDIENTS

Are you more likely to trust a restaurant if they disclose more information about where its ingredients come from? Have you left a restaurant convinced you could make the same dish better at home? Do you have a more positive perception of restaurants that use locally sourced ingredients? If so, do you believe they source them locally because it’s the right thing to do or because it’s just cheaper and easier? If not, would knowing they do sway your decision to eat there? When shopping at the grocery store do you prioritize quality or cost? -Why for cost? -Why for quality? Do you buy organic ingredients? Is it important for international foods to contain ingredients that are authentic to the area the dish is from?

LOYALTY VS. CONVENIENCE

NOODLES & COMPANY SPECIFIC QUESTIONS

For restaurants that you frequent the most is there a reason beyond taste that brings you back each time?

Are you familiar with Noodles and Company?

Are there any restaurants that you go out of your way to get to? If so, what do these restaurants do that makes them worth the extra effort? How often do you go to them? When in a rush do you still factor in health into your decision on where to eat? How long are you willing to wait for a meal to be placed on the table after walking in the door? If a restaurant has an abnormally long ticket time, are you willing to give them another chance in the future? Are loyalty programs useful or do they seem like an inconvenience? Are there any loyalty programs you use on a regular basis?

If yes, how often do you go, if ever? If you donâ&#x20AC;&#x2122;t go, is there a specific reason why? Do you believe that noodles are the only focus of all the dishes offered? Would an increased variety of noodle options such as tortellini or ravioli be an appealing way to add variety to the menu? Do you think noodles are healthy dish? Why or why not? Are noodles more of a dinner dish to you? Do you enjoy the fast casual dining experience they offer? -What do you like about it? What elements of the dining room do you enjoy? Have you ever added a beer or wine to your meal? Would you ever consider it at Noodles? What is your favorite dish they have? Do you feel like Noodles has an awareness issue? If so, do you have any ideas about how they can improve that issue?

FOCUS GROUP QUESTIONS

FOOD

Ice Breaker: If you go to any restaurant right now, what would it be and why?

Think about ethnic food. What is the first thing that comes to mind?

RESTAURANTS Think about the restaurant you frequent the most. What is it? And why is it your go-to? When you think about Noodles & Company, what is the first thing that comes to mind?

Think about noodles. What is the first thing that comes to mind? Are you aware of Noodles & Company’s BUFF bowls? How can they better promote these? What do you think when you hear the term BUFF bowl? What kind of restaurant environments do you prefer?

Think about Chipotle. Why do you think it’s so successful?

How can fast casual restaurants be more efficient?

Think about Panera. Why do you think it’s so successful?

Customization.

Compare these restaurants to Noodles & Company.

Healthy meals delivered to your home. What do you think about this concept? -By the plate?

What does Noodles & Company do better? Think back to the first time you either heard of or visited Noodles & Company. Compare that time to how you perceive the restaurant today.

In general, what do you think about restaurant customer service? -How much is too much?

What is the biggest problem with Noodles & Company?

How is customization of meals important to you and your decision making process?

What is causing the problem?

How does Noodles stand out in your mind when it comes to customization?

On what occasion would you visit a Noodles & Company?

What do you like about the product?

What do you expect from fast casual restaurants? What are your expectations of the restaurant industry?

IN-RESTAURANT SURVEYS What is your name, age and gender? Why did you choose to come to Noodles & Company today? List 3 other restaurants that you would be going to if you were not at Noodles & Company? How often do you come to Noodles & Co? (each month? Year?) Do you know about the catering services that Noodles & Company provides? Also would you consider Noodles & Company catering? Is there any aspect about the restaurant that you would like to change or make different? When choosing a restaurant nutritional value is important to me. What is your favorite attribute of Noodles & Company? Would you be interested in ordering more ethnic food off of the menu? Did you customize your order and if not did you know you could?

SURVEY ONE

SURVEY TWO Table 1 Survey 2 Q1. How important is that you plan for future success today? Answer Options

Not at all important Somewhat important Moderately important Very important Extremely important Rating Average 0

Response Count

4.02

answered question

skipped question

Q2. How actively are you working towards your future goals?

Answer Options

Not at all active

Somewhat active 0

Moderately active 3

Very active 16

Extremely active 18

Rating Average 8

Response Count

3.69

answered question

skipped question

Q3. How important is that you achieve ﬁnancial success? Answer Options

Not at all important Slightly important 0

Moderately important Very important Extremely important Rating Average 2

Response Count

3.98

answered question

skipped question

Q4. How important is it for you to achieve high social status? Answer Options

Not at all important Somewhat important Moderately important Very important Extremely important Rating Average 2

Response Count 3.4

answered question

skipped question

SOURCES

Sharos, David (March 15, 2001). “Eatery Owner Adds Naperville to Plate.” Chicago Tribune. Retrieved June 14, 2013.

Brand, Rachel (October 19, 2001). “Former Wild Oats Exec Joins Noodles & Company.” Rocky Mountain News. pp. 2B.

Thorn, Bret (2005). “Noodles & Company.” Nation’s Restaurant News.

Donald Sull (6 October 2009). The Upside of Turbulence. HarperCollins. p. 57. ISBN 978-0-06-193976-1. Retrieved 13 June 2013. Fast Casual Fuels Technomic Top 500 Growth Once Again,” PR Newswire, April 28, 2015: prnewswire.com/news-releases/fast-casual-fuels-technomic-top-500-growthonce-again-300072821.html Graham, Sandy (September 24, 2000). “Pasta Entrepreneur Uses his Noodle”. Rocky Mountain News. Gross, Daniel (July 2, 2013). “How a Pasta Chain Called Noodles & Co. Punked Wall Street.” Retrieved July 3, 2013. Kamenetz, Anya (July 2, 2013). “The Recipe for Noodles & Company’s Secret Suace?” Fast Company. Retrieved July 3, 2013. LaVecchia, Gina (2000). “Going Bowling.” Restaurant Hospitality. pp. 84, no. 7: 62. Lockyer, Sarah E. 2004. “Carving out a brand-new niche.” Nation’s Restaurant News 38, no. 48: 4. MasterFILE Complete, EBSCOhost (accessed June 14, 2013). Matthews, Carole. “You can’t always go it alone.” Inc. Magazine. RetrievedJune 14, 2013. O’Sullivan, Kate (September 1, 2011). “Using Your Noodle.” Inc. Magazine. Retrieved June 14, 2013. “Oodles of Noodles; Company plans B-N restaurants.” The Pantagraph. March 19, 2005. Rogers, Monica (January 1, 2002). “The zen of noodles: Noodles & Company menu master Ross Kamens never stops exploring new ways to prepare pasta.” Chain Leader.

Wallace, Alicia (December 28, 2010). “Equity firm takes majority stake of Broomfield’s Noodles & Co.” Colorado Daily. Retrieved June 14, 2013. World News Now (Broadcast Television). Chicago, Il: WLS-CHI (ABC). June 12, 2013. AdAge (http://adage.com/article/cmo-strategy/millennials-love-brand/243624/) Carbohydrates https://www.nlm.nih.gov/medlineplus/carbohydrates.html http://www.nutritionmd.org/nutrition_tips/nutrition_tips_understand_foods/carbs_ versus.html http://www.uen.org/Lessonplan/preview?LPid=1264 http://healthyeating.sfgate.com/carbohydrate-value-pasta-vs-wholegrainpasta-2235.html http://www.mangomannutrition.com/carbs-helping-hurting-brain/ http://www.diabetes.org/living-with-diabetes/treatment-and-care/blood-glucosecontrol/hypoglycemia-low-blood.html Eating the Industry’s Lunch (http://nrn.com/sponsored-content/why-fast-casual-eating-industry-s-lunch) Entrepreneur (http://www.entrepreneur.com/article/241182) Fool — Why Noodles & Co’s Stock Plunged 23% in Aug (http://www.fool.com/investing/general/2015/09/09/why-noodles-cos-stockplunged-23-in-august.aspx) Forbes (http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-aboutthe-millennial-consumer/)

Hoovers (http://subscriber.hoovers.com/H/company360/competitorsList.html?companyId=104009000000000)

Restaurant — What’s Hot 2015 (http://www.restaurant.org/Downloads/PDFs/News-Research/WhatsHot2015-Results.pdf)

Hoovers — Competitive Landscape (http://subscriber.hoovers.com.www2.lib.ku.edu/H/company360/competitiveLandscape.html?companyId=104009000000000&competitorId=106335000000000&competitorId=57693000000000&competitorId=13703000000000)

The Chipotle Effect (http://www.washingtonpost.com/news/wonkblog/ wp/2015/02/02/the-chipotle-effect-why-america-is-obsessed-with-fast-casualfood/ (Research firm: Euromonitor))

Kayla Itsines — Carbs Are Not Evil (http://www.kaylaitsines.com/blogs/news/17089743-carbs-are-not-evil) Mintel — American Lifestyles 2015: The Connected Consumer (http://academic.mintel.com/display/735261/?highlight#hit1) Mintel — Families Dining Out (http://academic.mintel.com.www2.lib.ku.edu/display/749187/?highlight#hit1) Mintel — Lifestyles of Young Families (http://academic.mintel.com/display/732762/?highlight#hit1) Mintel — LSR: Ethnic Concepts (http://academic.mintel.com/display/716473/) Mintel — LSR, Sandwiches, Subs and Wrap Concepts (http://academic.mintel.com.www2.lib.ku.edu/display/719623/?highlight) Mintel: The Online Food Consumer (http://academic.mintel.com.www2.lib.ku.edu/display/745725/?highlight#hit1) Noodles Annual Report 10-K (http://investor.noodles.com/secfiling.cfm?filingID=1275158-15-5&CIK=1275158) P.F. Chang’s (https://www.pfchangs.com/info/ourstory#!) Panda Express (http://www.pandarg.com/about-us) Panera (https://www.panerabread.com/en-us/our-beliefs/who-we-are.html)

Yahoo Finance (http://finance.yahoo.com/q?s=NDLS)