New Media in Food, Beverage & Hospitality Industry
From Baruchnewmedia
Contents |
POS Systems
A POS (point of sale) system is a combination of a computer, cash register, and credit card machine. This technology is used by most bars and restaurants in major cities throughout the United States and worldwide. A POS system should most definitely be considered new media because it is a mash-up of the original cash register with a touch-screen computer that has internet connection. This mechanism allows retailers to operate every facet of their business with a single, integrated point of sale system. Basically, it has helped evolve and progress the cash register to enable smoother, more efficient, and more organized transactions.
Dinerware's systems (http://www.dinerware.com/) is one example of a POS system that is frequently used in restaurants. This POS system can be customized to fit the needs and offerings of each restaurant. An example of the interface for this particular POS system can be seen below:
Promotional Efforts and Increasing Traffic with New Media
YelpAn online community where consumers can write reviews on various local businesses but focuses largely on restaurant and service industry reviews. A great resource for consumers to find unbiased reviews from real people on businesses they are considering visiting or utilizing.
GoMobo GoMobo enables individuals to store their payment information securely so that they may either place orders online or text in their orders to participating restaurants. In addition, it allows individuals to store their favorites / preferences.
Restaurant.com A website that offers consumers printable gift certificates to restaurants at a discount from face value to help restaurants gain exposure. Each restaurant offers a limited amount of certificates each month and there are certain restrictions that may apply. For example, for a $25 certificate, the restriction may that that it is valid only on a purchase of $35 or more. However, when one can get a $25 gift certificate for a restaurant at their regular price of $10 or oftentimes much less due to their coupon codes / sales, it helps create a significant incentive for individuals to try a new restaurant.
Groupon.com This site features a different deal a day for businesses in the food, beverage,and service industries in your area via a gift certificate or card discounted from face value. Typically, they offer their deals via printable certificates that one may print directly from their account at their convenience. They also recently created an iPhone app and utilize social network sites such as Twitter and Facebook to promote their website and deals.
LivingSocial This site operates very similar to Groupon in that it offers a deal a day in your area for businesses in the food, beverage,and service industries in your area. However, what sets it apart is that it relies largely on its iPhone application.
KGB Deals Another deal a day site that offers a gift certificate / card at a discount from face value. However, the way KGB differs is that its deals often require the individual to wait for a physical certificate / card to be mailed rather than being able to print their certificate immediately or shortly after purchase.
Fast Food Goes New Media
CKE Restaurants, Inc. is a corporation in the U.S. which consists of three fast food restaurant chains: Carl's Jr., Hardee's, and Green Burrito.[1] For those who live in New York City may be unfamiliar these names, but there are over 2,000 locations throughout America (including Hawaii and Alaska). This corporation, like all others, must file annual reports to show it's revenue, profits, and other operating and financing activities. SEC filings do not typically include advertisement through blogs, social networking websites, and any other new media.
In 2009, CEO of CKE Restaurants, Inc., Andrew Puzder, added something out of the ordinary to the "Executive Commentary" portion of the corporation's 8-K (specifically regarding Carl's Jr.):
"We just launched a very innovative partnership with YouTube whereby we are utilizing
some of their most popular video stars to produce short videos promoting our burgers. With a
combined following of 3.2 million subscribers, these video bloggers ("vloggers") are
helping us target our customer demographic where they already are. In addition, the media
cost is much lower that with traditional advertising. According to www.mashable.com, the
world's largest blog focused exclusively on Web 2.0 and Social Media news, our sponsored
video content appears to have 'turned out to be a big hit.' In fact, just one of the Carl's
Jr. vloggers created a video that's already received over 2.4 million views across the web.
All of the Carl's Jr. vloggers' videos, combined, have been viewed more than 5.7 million
times." [2]
Apparently YouTube was responsible for the recent profit increases. Perhaps Puzder felt it necessary to mention to dispel any suspicious dealings. After all, this type of advertising is cheaper, so the report must have showed a decrease in expenses and an increase in profit.
Another food corporation, Bob Evans Farms, Inc., is also guilty of mentioning their use of social networking sites (i.e. Facebook and Twitter), a type of new media, in their annual report (2009).
According to these SEC filings, new media has become something worth reporting.
Fast Food Education
There are many tools we can use in new media technology to educate ourselves about healthy food.
WeightWatchers has signed a deal with fast food chain McDonald's to promote a new range of healthy meals.The dieting company have agreed to put their logo on three McDonald's Classics - Chicken McNuggets, the Filet-O-Fish and the Sweet Chilli Seared Chicken wrap.
Is It Ethical?
Major transnational food and softdrink corporations such as McDonald's and Pepsi have been using new media to target children. These corporations set up websites that attract children around the age of four to register and play multiple games in which further exposes these children to more marketing strategies. In return for using the websites, children are given screen savers, avatars, and even coupons. New Media tactics are being used by these companies to promote unhealthy lifestyles when it comes to food choices by targeting a higher susceptible market group of consumers, children. Justin Macmullan, Head of Campaigns at Consumers International, stated that:
In many countries kids already spend more time on the internet than watching TV. That’s why it’s vital we have mandatory regulations that restrict junk food companies from using new media to perform the same old marketing tricks on our children. [3]
New media makes marketing and advertising easy and effective, even in the food industry.
