The secret sauce to incremental sales is… well, actually, sauce. While some operators choose to give their tasty, proprietary sauce away, that’s clearly not a profitable choice. Consider Olive Garden. It recently launched Never-Ending Dipping Sauces (marinara, alfredo and five cheese marinara sauces) to go with its unlimited breadsticks. But that sauce comes with a $3.99 price tag. That choice to charge reflects Olive Garden’s election to make a profit. In the chain’s recent Q4 conference call, CEO Gene Lee explained that while Olive Garden’s same-store sales aren’t as robust of late compared to other casual dining restaurants, its restaurant-level margins are 25.5%, which is stellar. He said, “Isn’t our job to try to drive profitable sales growth? And that’s what we’re focused on.” And so, case in point is the never-ending bread-dipping sauce that is not free.
Perhaps Baskin-Robbins thinks the same way. For a June LTO, it offered Sour Berry Slime, a green sweet-and-sour sauce to combine with any ice cream or shake for 99 cents. Adding to the punch for profit, guests can also elect to buy a bottle of the slime sauce to take home for $6.99.
Apart from Profit
Other operators of late are coming up with interesting sauces for purposes of differentiating, adding bold, economical flavor and offering something guests can’t make at home.
Ubiquitous tacos, chicken sandwiches and burgers must stand out in a flavorful way, which can be accomplished with sauces. Chili’s came up with The Chili’s Chicken Sandwich LTO through June that featured a breaded and fried chicken breast… with a proprietary secret sauce described as “thick, sweet and tangy.” I personally think they could have given it an intriguing name.
For inspiration, Mooyah Burgers, Fries & Shakes is running a summer Campfire Burger, and the thing that makes the definition is hickory smoked campfire sauce. What exactly is campfire sauce? Even without spelling it out, the name draws.
Also, through June, Fuzzy’s Taco Shop offered a Spicy Chimi Fajita Taco that featured three sauces in one taco: garlic sauce, pico de gallo and spicy chimichurri sauce. But back to my original point on profitability. When the sauce is part of the dish/sandwich makeup, it’s hard to imagine the logic of charging extra for it. But what about chicken nuggets? They are a staple on many menus. Now Wendy’s is adding broader appeal to its nuggets by offering a new Ghost Pepper Ranch nugget dipping sauce. No extra charge. But why not try offering a unique super flavorful option for a little upcharge? That is a play from the casual and fine-dining playbook. (Think queso for chips.) Sauce is an underexplored menu ploy for increased margins in a profit-shrinking environment. And kudos to Baskin-Robbins for thinking to offer the LTO sauce for sale in a take-home bottle. It’s time to get creative like that.
Tell me what you think.
Jody
