Advertising: California Pizza Kitchen Gives the 411 on FSIs

California Pizza Kitchen judiciously uses freestanding inserts (FSIs) to zero in on its best customers: affluent and quality-oriented consumers for whom price has less appeal than new products. We asked Vice President of Marketing Sarah Grover to explain how judicious use of freestanding inserts has stimulated trial of new products and new units.

By David Farkas, Senior Editor -- Chain Leader, 10/1/2006

Comparable-store sales jumped 4.8 percent in 196-unit California Pizza Kitchen’s last quarter (ended July 2), considerably higher than in most publicly traded casual-dining restaurants. Vice President of Marketing Sarah Grover credits the chain’s general managers for the increase. Yet she admits judicious use of freestanding inserts have stimulated trial of new products and new units. We recently asked her to explain the process.

Are FSIs a crucial part of your marketing toolkit?

They’re an important part insofar as they give us a lot of flexibility. We are able to target specific areas. We also have control of a large space. You can reach a large number of people in a cost-efficient way.

How long has CPK used FSIs?

We first used FSIs three or four years ago. Since then, we’ve done anywhere from 30 to 50 [designated market areas] at a time.

What’s your typical reach?

We’ve used FSIs to target anywhere from 50,000 to 250,000 people—or from 80 to 100 CPK locations.

Is there an off-the-shelf message you use?

Nothing is off-the-shelf, but we do communicate who we are, and we use a directional illustration. It’s hard for us to say, “Apply this approach everywhere.” FSIs are not a standard thing we do. They are one part of our marketing strategy.

When was the last time you used an FSI, what for and did you include price?

Our last FSI was in June. And it talked about several new menu items, including pizzas. Price points are not important because our customer is quality oriented and not as price sensitive as you might find in other segments.

What are the drawbacks of using FSIs?

Depending on the day you select, you may be surrounded by other FSIs, and you’ll be in a mix with a lot of different kinds of ads. You want to think about the company you keep.