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McAlister's Deli Recaps Sweet Tea Promotion

As part of its "Leave Sweet Tea to the Pros" promotion, restaurant chain McAlister's Deli held a Free Tea Day, serving over 150,000 32 oz. glasses of tea to new, lapsed and loyal customers.

-- Chain Leader, 11/16/2009 9:45:00 AM

PRESS RELEASE: RIDGELAND, Miss.--(BUSINESS WIRE)--This summer, as part of its "Leave Sweet Tea to the Pros" promotion, McAlister's Deli held a Free Tea Day on July 23rd, serving over 150,000 32 oz. glasses of tea to new, lapsed and loyal customers. Over 85 percent of the customers that attended "Free Tea Day" also made a purchase, which led to an outstanding 15 percent year-over-year comparable sales increase.

The objective of the successful "Free Tea Day" event was to share McAlister's signature item to the public and engage first-time and lapsed users. The company also wanted to reward its incredibly loyal customer base. (The average McAlister's customer visits 3+ times a month.) The fast-casual restaurant chain continually updates its menu offering and wanted to offer current non-users a reason to reacquaint themselves with McAlister's Deli.

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This was an unexpected venture for the established chain as the franchise system is not accustomed to discounting - much less giving away its most iconic menu item. However, the promotion was intended to remind customers why sweet tea should, in fact, be left to the "Sweet Tea Pros" at McAlister's Deli.

"We know we have the best tea in all of our markets...our guests are constantly telling us how much they crave our tea - in fact, they beg our managers for our 'secret' ingredient," laughs Annica Kreider, VP of Marketing. (In fact, the stories are so rich and customers so loyal, that it spurred the idea of selling "Tea Freak" t-shirts to support McAlister's philanthropic effort "Share Our Strength," an organization dedicated to ending childhood hunger. More information can be found about the organization at www.strength.org.)

The Ramey Agency, also based in Jackson, Miss., was engaged to assist with promoting the Free Tea Day event. Ramey, known for its relationships with premium and luxury brands, such as Viking Range, recommended a viral strategy based on the interactivity, authenticity and lower financial investment associated with social marketing. Two viral campaigns with corresponding websites were developed - the first campaign being a six-installment series that lead up to Free Tea Day; and a second, four-video series that promoted the virtues of McAlister's Deli Sweet Tea.

"It was a great partnership with McAlister's - we had a very clear understanding of what McAlister's wanted to accomplish, and we were confident that our approach would achieve the buzz needed to generate the necessary traffic to the store units," says Jack Garner, president of Ramey.

"Free Tea Day" was supported by the viral campaign, Facebook banner and limited broadcast advertising in select markets, as well as four-wall marketing materials. Overall, 95% of McAlister's guests on the day of the event said the experience was "excellent." And exit interviews gleaned the fact that 6% of those who came on "Free Tea Day" were first-time users - and, of that group, 65% were aware of the promotion.

Phil Friedman, president and chief executive officer of McAlister's Corp. stated, "If we thought for a minute that we could not deliver the dining experiences our guests have come to expect, we would not have attempted this. We at McAlister's, as well as many of our peers, have learned 'free' can backfire. We were very deliberate in our marketing strategy and our operational readiness. I am incredibly proud of our system and am looking forward to further engaging guests with our Famous Sweet Tea."

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