Integrated Marketing Communications in Restaurant Chains:

Identifying the Specifics of the Industry

Thesis

by

Alena Davydova

Submitted in Partial Fulfillment

Of the Requirements for the Degree of

Bachelor of Arts

In

Communication and Mass Media

State University of New York

Empire State College

2016

Reader: Ph.D., PhDr., M.A. Todd Nesbitt

Acknowledgment

I wish to express my sincere thanks to people who were around me not only during the

senior year at the university but also during my whole academic career. I appreciate

support and participation of my parents for their wise counsel, my siblings for their faith

in the elder sister, and my closest friends who shared with me every moment. I am very

happy that these people were always supporting me and helping me to complete this

stage.

I am also grateful to advisor Ph.D., PhDr., M.A. Todd Nesbitt for providing me all the

necessary help with my Senior Thesis Project. Thank you for sharing your expertise,

effective engagement and valuable guidance to me.

Table of Content

I. Introduction ................................................................................................................. 6

II. Integrated Marketing Communications (IMC) and the Service Industry ........... 7

II.I. Identifying IMC ............................................................................................. 7

II. II. The Role of IMC in Building Brands .......................................................... 8

II. III. Components of the IMC ............................................................................. 9

II. IV. IMC in Restaurant Industry ..................................................................... 10

III. Branding and Restaurant Industry Specifics ...................................................... 12

III.I. The Concept of Branding ........................................................................... 12

III. II. Brand Functions ....................................................................................... 15

III. III. Branding in Restaurant Industry ............................................................. 18

IV. Public Relations (PR) and Restaurant Industry Specifics .................................. 21

IV.I. Identifying PR in Restaurant Industry........................................................ 21

IV. II. Creation of the Brand’s Positive Image ................................................... 23

IV. III. Establishing and Maintaining Relationships With Different Publics ..... 26

II. IV. Protection of the Brand: Crisis Communication ...................................... 32

V. Case studies of IMC in Restaurant Chains ........................................................... 36

V.I. McDonald's Corporation ............................................................................. 36

V. II. Starbucks Corporation ............................................................................... 40

VI. Conclusions ............................................................................................................. 44

Works Cited .................................................................................................................. 45

Bibliography .................................................................................................................. 48
Abstract

The paper focuses on Integrated Marketing Communications (IMC) in restaurant

chains. It includes analysis of such topics as, the concept of IMC, its components, and

significance in the restaurant industry, the concept of branding and functions of the

brand, as well as the role of PR and crisis communication in businesses. The specifics

of the restaurant industry are analyzed to assess what traditional practices are applicable

for the field. The paper also explores cases of international restaurant chains and its’

significance related to IMC, branding, Public Relations, and crisis communication. The

study shows that today’s restaurant business is built on meeting customer needs and

wants. McDonald’s Corporation and Starbucks Corporation cases demonstrate that suc-

cess of the company depends on a complex set of factors that requires establishing,

maintaining and evaluation of the IMC strategy and specific rules for an efficiency of

its’ components. It also proves that in order to achieve a continuing success in the mar-

ket, it is necessary to offer some important and interesting topic for consumers to dis-

cuss.
  

I. Introduction

Behind any brand, there is an idea. The brand is a solid, unique and attractive to the

consumer image that can be extended to products, which are available under this brand.

The need to develop the trademark and the formation of the brand is undeniable high.

Almost all of the new items appearing in the B2C and B2B sector claim to be building a

strong brand, if not in the present then in the near future, since in most markets a strong

brand is one of the conditions for a comfortable existence of the company. The brand

helps to individualize the goods in the minds of consumers and creates additional

goodwill not only for itself but also for the company.

Brand Building is a complex task, which includes the development of the trademark, its

start-up, and progress, and the main task of the brand is to choose the most effective

tools for implementing these steps, which traditionally include direct advertising and

promotional activities of the product (combining PR and promotions).

Is it possible to build and maintain relationships, using only standard tools of direct ad-

vertising, without the help of PR? Many of the world’s leading companies already

found a “no” answer to this questions: offering just a quality product is not enough. Of-

fering a product that has a bright, recognizable image and character that arouses some

emotions in consumers is also not enough. Today, in order to achieve long-term success

in the market, it is necessary to offer some significant and interesting topic for consum-

ers to discuss.

Is it possible to build a dialogue only with direct advertising? It is very unlikely. That is

why the territory of the brand building includes PR with its key instruments: relation-

5
  

ships with publics, relationships with media, relationships with governmental and non-

profit organizations, and crisis management. The key difference between these tools and

direct advertising is in their bilateral nature: they imply getting a live response from

consumers and the media expressing their interest.

According to the Tomas Gad (2001) ideas from his work “4-D Branding: Cracking the

Corporate Code of the Network Economy”, “Relationships are the key to commercial

success. Brands are now pinned around a relationship rather than a product” (p.16).

Many well-known companies build their relationships with people and win the loyalty

of consumers with the use of a specific set of PR-tools that will be explored in this

work.

The aim of this paper is to examine approaches to Integrated Marketing Communica-

tions in the restaurant industry, in order to understand what practices are emphasized,

and how the specifics of this industry may or may not be different from other industries

and services.

In order to analyze IMC in the restaurant industry, it is necessary to identify IMC itself,

to specify what is the role of the IMC in building brands – and these are the findings

from the first chapter of this work. The second chapter discovers the concept of brand-

ing and its functions, and the thirst chapter determines the main functions of the public

relations. The last chapter of this paper is looking at the real-life cases of the well-

known companies in the restaurant industry.

6
  

II. Integrated Marketing Communications (IMC) and the Service Industry

The intent of this chapter is to introduce the reader the notion of Integrated Marketing

Communications (IMC) and identify its’ role in the restaurant industry. In order to de-

termine that we look at the IMC definition, five major steps of IMC strategic planning

and its’ components, as well as examine the role of IMC in building brands.

II.I Identifying IMC

The American Association of Advertising Agencies in 1989 defined Integrated Market-

ing Communications (IMC) as “A concept of marketing communications planning that

recognizes the added value of comprehensive plan that evaluates the strategic roles of a

variety of communication disciplines and combines these disciplines to provide clarity,

consistency, and maximum communication impact” (Percy, 2008, p.5). Don Schultz

(1993) offered to look at the IMC as at the “process of developing and implementing

various forms of persuasive communication programs with customers and prospects

over time” (p.17). The way IMC will be considered in this paper is basically as a pro-

cess of organized planning in order to define the most effective strategy and reliable

message for selected target audience (Percy, 2008, p.2). A lot of different components

play a role in the development of the message construction and strategy planning in the

company: advertising department sales promotions, PR department, packaging special-

ists, distribution channels, retailers, franchise organizations, and more. That is why

there has to be a central source that will coordinate all of the participants and make

some decisions, and that is the main function of the IMC. The overall impact of the

campaign is much better with a consistent appearance because the previous managing of

other messages in the campaign assists the managing of each piece of marketing com-

munication (Percy, 2008, p.15).

7
  

According to Percy (2008) there are 5 major steps in the IMC strategic planning: detect-

ing and selecting the proper target audience, understanding how the target audience

makes decisions, determining how the brand will be positioned within its marketing

communication and selecting a support to that position, specifying communication ob-

jectives, indicating appropriate media in order to enhance message delivery and mes-

sage processing (p.26).

IMC improve communication environment of the company and have a positive impact

on the demand for the company’s services. The purpose of the IMC is establishing ef-

fective communication management, which will link together all the efforts of the com-

pany’s departments and external partners and send them to the successful achievement

of corporate goals. A key component of the IMC is that all forms of communication are

designed in accordance with generally accepted objectives. These objectives are based

on the understanding of how the company interacts with the customer and what they

want to receive as a result of this interaction. Let’s take a little closer look at what is the

role of IMC in building brands.

II.II The Role of IMC in building brands

In order to consider what role IMC plays in building brands, it is necessary to under-

stand that communication in the business world is every contact between the company

and the market (Percy, 2008, p.33). That is the reason why IMC so important in build-

ing brands. All of the communication’s aspects, from the business card of the employ-

ees to the company’s billboards, should correspond to the key message and the most

important meaning of the brand. Successful IMC controls this meaning.

8
  

What is also significant in the role of IMC in building brands is that it is responsible for

social differentiation strategy, which is basically different creative tools that help to

maximize brand position on the market within the existing competition (Percy, 2008,

p.34). And at the very end, if the brand has no difference from the other one, where

would it take its customers and how would it generate the profit?

Good implementation of the IMC allows brands to build and maintain beneficial social

relationships between the publics of the company because every company has certain

brand communities, and IMC is a sender of a correct and consistent brand message.

II.III Components of IMC

As it has already mentioned earlier in this paper, marketing communication is every-

thing that in some or another way “talk” to the consumer. And due to the fact that IMC

is in charge of the consent message presence in every fragment of the marketing com-

munication, it is necessary to indicate what are the components of IMC.

There are several possibilities for providing a message to its recipients in an IMC. Two

main traditional components of the IMC are advertising and promotion (Percy, 2008,

p.78). The difference between these two mechanisms is that advertising has to build

brand awareness and brand attitude, and promotion has result in short-term sales or

product usage (Percy, 2008, p.81).

Advertising messages should direct the consumer’s mind to the brand with the help of

expanding brand awareness among the target audience, and by establishing positive atti-

9
  

tude towards the brand. Since it usually requires some certain amount of time, advertis-

ing is considered to be a long-term component of the IMC. And a critical role of adver-

tising in IMC is to position successfully a brand and at the same time distinguish it from

the competition (Percy, 2008, p.82).

Promotional messages are effective if the consumer is looking for the information about

the brand, and they should direct consumers to the actual product purchase or use. They

also are developed with the lapse of time relatively to the target audience’s decision-

making process. The role of the IMC is to make sure that this tool will be an effective

part of the whole communication process (Percy, 2008, p.103).

With digitalization and globalization, new components of the IMC appeared on the

market and advanced relatively fast. Some components of the IMC are new media, non-

traditional media, personal selling and public relations. And this certainly makes IMC

even more important and difficult for the beneficial communication of a brand’s consent

message (Percy, 2008, p.127).

II.IV. IMC in Restaurant Industry

The restaurant industry is one of the most complicated types of service businesses.

Business success, in that case, depends not only on organizational skills of the employ-

ees but also on the ability to create a special atmosphere of the place that will be pleas-

urable for visitors. Therefore, players of the Restaurant industry need some valuable

marketing system, which allows attracting new and keeping existing customers.

10
  

Many people under the “restaurant IMC” understand only advertising of the brand or

one of the other promotional tools. It is a common misunderstanding. Restaurant IMC

involves the answers to a wide range of issues related to the restaurant life and its de-

velopment. Restaurant IMC is a path from the idea to sales and loyalty management. It

is a huge work in which every detail is important because the final result depends on

this complex activities. The key of these details will be discussed below.

There are many restaurant IMC goals and objectives, but a Spanish restaurateur Jose

Luis Riesco (2009) in his book “Restaurant Marketing Strategies” identifies three most

important ones among them: to show clients that the brand cares about them, to show

clients that the brand has a unique selling proposition, and to show clients and there is a

zero risk transaction and that the brand has an offer they cannot refuse.

Brand managers need to plan steps to achieve these goals at the stage of ideas and con-

cept development. And the right amount of attention should be paid to each of these

goals. For example, the owners might tell communication specialists: “Our goal is to

attract new guests, therefore, bring customers to the restaurant.” Of course, it is neces-

sary to attract visitors, but if there is no clear understanding of how to hold them, what

to do if guests come back, how to make them spent in the restaurant more time, how to

make them invite their friends – all of the resources (money, time, energy) that were

spent to attract these guests are spent for nothing. In the following chapters of this work,

we will have a closer look at the concept of branding in the restaurant industry, the con-

cept of public relations in the restaurant industry and refer to examples of successful

IMC campaigns of well-known international brands.

11
  

In this chapter, we looked at the IMC notion, its’ role in building a strong brand, its’

components and necessity in case of the restaurant industry. Following chapters will

present a more detailed description of the IMC mechanisms and their specificity.

III. Branding and Restaurant Industry Specifics

The aim of the section is to analyze the concept of branding, determine brand functions,

and study its’ practical applications a specific industry. By examining brand functions

from different perspectives we discovered the notion of branding in the restaurant busi-

ness, and provided a few real-life examples of the companies from this industry.

III.I. The Concept of Branding

According to American Marketing Association Dictionary, a brand is “a name, term,

design, symbol, or any other feature that identifies one seller's good or service as dis-

tinct from those of other sellers. Potential customers of the company clearly know who

owns a particular product or service if it has its’ logo, name, and other attributes of the

brand. Well-known marketers interpret the word “brand” in their own way; they are all

slightly different in formulation and presentation, but their meaning is the same.

According to Phillip Kotler (2009) “A brand is a product or service whose dimensions

differentiate it in some way from other products or services designed to satisfy the same

need” (p. 241). One of the fathers of advertising, David Ogilvy, defined a brand as “a

complex symbol. It is the intangible sum of a product’s attributes, its name, packaging,

and price, its history, reputation, and the way it’s advertised. A brand is also defined by

consumers’ impressions of the people who use it, as well as their own experience”

(1955). This definition indicates, on the one hand, the fact that the brand is something

12
  

more than a registered trademark and the amount of consumer qualities of the goods, on

the other hand, the definition points to the material side of the brand. Not every product

is brand and not even just a registered trademark can be called brand. Only the most

successful trademarks can be considered brands.

Many directors and creative branding agencies support the main assertion - the brand

lives in customers’ minds. This is not just a logo and a name; it’s a promise not to dis-

appoint expectations of the customers. First of all brand is the experience of the buyer.

It is certain associations that occur to the customer, when he sees the logo, packaging,

name, or hear music from commercials of the brand. The brand is the difference be-

tween an ordinary bottle of lemonade and a bottle of Coca-Cola. At the very beginning

of the Coca-Cola life, owners and marketers of the company realized that in order to get

the whole world drink what the brand offers, they needed to be emotionally and socially

connected with the audience. Therefore, they started to build their brand on the idea of

“quenching thirst and ability to connect people no matter who they are or how they

live” (Kotler & Keller, 2009, p.531). The longer the brand comply what it decided to

position, the longer people will contribute and support the brand. In the company’s an-

nual report, Dough Daft, CEO of the Coca-Cola, says: “People know what to expect

from Coca-Cola Company precisely because we have always lived by our values. When

a consumer enjoy a bottle of Coke, when people invest in us when partners do business

with us, or when we operate in the community, we keep our promise to benefit and re-

fresh them” (2002).

Any brand creates expectations that directly affect the experience of the buying process.

If the same goods are placed under different brand names in a different package, it will

13
  

have a different value for a potential buyer. The more promoted brand is, the higher

value of its products or services and the greater the demand from customers.

Just a good quality of the product is not a big surprise anymore, and it is very difficult

to stand out from the competition. Consumers have become more demanding: they do

not only want to connected and satisfied with the company, they wish to receive emo-

tional benefits such as thrills and pleasant feelings. Now they need companies to listen

to them and to respond (Kotler & Keller, 2012). The ideal result of a good branding is a

trust be-tween customer and the company, which usually leads to the loyalty.

It is not necessary to be a great marketer to understand that branded products cost more

than conventional products. When branded goods are considered, it means that buyers

purchase not only quality products or services but also some expectations and associa-

tions with the brand. Buying a Maserati or Bentley means that the customer buys pres-

tige. Buying perfume famous brands such as Chanel, Givenchy or Dior means that the

customer buy not a simple bottle, but attractiveness and prettiness. According to Kotler

& Keller (2009), a brand is a particular intangible asset that directly affects the value of

the company (p.241). After all, when the company reaches the level of a small competi-

tion (and even ahead of it) it is time to go to the next level, the level of global competi-

tion, and it is impossible to succeed there without a “brand name”.

Very often there is some confusion between the concept of “brand” and “trademark”. In

fact, these two concepts are inseparable. First, there should be some product, and then it

turns into a brand. According to a branding consultant Aneta Bogdan, the trademark is

an exclusive symbol that distinguishes the offer of a specific company from the others’,

14
  

and any company can register it. Simultaneously, brand characterizes all the physical

and emotional associations that are established between a product and its’ consumers

(Bogdan, 2002). Trademark (the product) is at the core of the brand. In other words, in

order to create the brand the company needs some product (if it is valuable and individ-

ual) and in order to prevent thefts and legitimize the rights to it should be legally pro-

tected (registered by law) (Nistorescu, 2013, p.29).

It is evident that one brand might have differential effects on different consumers. This

allows companies to create a hierarchy of images (impressions), the starting point of

which is the complete lack of confidence in the brand, and the upper limit – an excep-

tional devotion.

The negative brand image is one of the worst things that can happen to a brand. That is

what causes consumers only undesirable emotions. One of the reasons for brand image

creation failure is a lack of awareness about the brand. For example, the consumer

knows that there are mail systems like Hotmail and Yahoo; however, this does not mean

that it gives preference to one of them to even trying to use it.

III. II. Functions of the brand

Brands provide consumers with classification, differentiation and identification of

goods and services, which allows simplifying of how consumers solve the problem – for

example what ketchup they should buy. Consumers scan ketchup bottles on the shelf,

and their brain subconsciously translates each brand-signal: the shape of the bottle, la-

bel, name, logo, colors. And as soon as the eye of the consumer finds the right brand, it

puts it in the shopping cart. That is why brand functions are significant.

15
  

Functions of the brand can be divided into two categories: the first one is for consumers

and the second group is for the company itself (Bivainiene, 2011, p.7). This categoriza-

tion means that it is very important for the brand to emphasize the value that it provides

and understand who has advantages from that.

Amber (1997) in his work “Do brands benefit consumers?” suggests that functions of

the brand can be organized by the following efficiency criteria: functional and practical,

economic, and psychological. This aspect is related to the brand as the promise not to

disappoint customer’s expectations (communicative function), as it was discussed pre-

viously in this paper.

Economic efficiency (financial benefit) is the base for any company in the business

world. Technology development in the late XIX century led to the emergence of com-

pletely new products on the economic market. Therefore, producers confronted extraor-

dinary advertising problem: it was necessary to inform people about new products and

convince them to buy them. Around the same time there was a big shift, to the factory

production, characterized by the production of absolutely identical in appearance prod-

ucts. And the main mission was to manufacture goods that would be distinctive from

competitors’ ones. Thus, it became necessary to create a unique image with the help of

the name, logo, price and etc., of a particular production version of the product. Accord-

ing to Klein (2000), “the first task of branding was to bestow proper names on generic

goods such as sugar, flour, soap and cereal, which had previously been scooped out of

barrels by local shopkeepers” (p.28).

16
  

Functional and practical efficiency according to Amber (1997) is not only in the fact

that consumers buy certain brands and become loyal to one or another company. It is

also about exchanging the results of their activities, abilities, and skills with others.

Amber (1997) presents psychological efficiency as a company’s mission - the main idea

of the brand. For example, the mission of the IKEA brand is changing to a better every-

day life of many people by offering a wide range of comfortable and functional home

furnishing products at so low prices that many people would buy them (Kotler & Kel-

ler, 2012, p.179). As we can see, the psychological factor in this case is the desire to

improve the lives of people by offering products at affordable prices. This indicates that

the basis of many brands is good intentions and psychological factors, which are fo-

cused on positive changes in terms of the transformation of modern society. The im-

portance of the Amber’s psychological efficiency idea is strongly supported by Lantieri

and Chiagouris (2009) in their “Brand trust in an age without trust: expert opinions”.

They both agreed in the opinion that in XXI century companies pay more attention to

the psychological efficiency, which obviously develops consumers’ focus.

Classification of the brand functions suggested in the Park et al. (1986) work, focuses

on the level of satisfaction of needs, and defines two alternatives: functional and experi-

ential needs. Functional needs are connected with the basic essentials all of the consum-

er have – food, clothes, etc., and when people need to satisfy these needs quickly brand

is not important, and it becomes connected only with the external visuals such as logo,

package and so on (Bivainiene, 2011, p.7). But in case of the experiential needs the

brand is significant because with buying some product of the company consumers get

some experience. For example some sports brand (e.g., Nike or Adidas), whose ideolo-

17
  

gy is based on the idea sport experience and healthy lifestyles. Therefore, when a con-

sumer buys a pair of Nike sneakers – he thinks that it will help him to get closer to the

healthy and sporty lifestyle, because he will “Just do it”. And in this case we can see

some similarities with the Amber’s proposal of the brand’s psychological efficiency.

Park et al. (1986) in their work discuss an importance of the symbolic concept of the

brand and connect it with the brand functions as well, mentioning the fact that this is a

big differentiation feature from the competition of the company.

The ideas of Park et al. support several other authors (Davis, 2002; Nilson, 2000;

Kuvykaite, 2001). They agree on the fact that another function of the brand is to en-

courage consumers to recognize the origin of goods or services as well as to differenti-

ate one company’s goods or services from another one’s.

It must be noted that brand functions that are discussed in most of the scholarly litera-

ture can be merged because their aims are either connected or similar, but all of them

are still divided into two groups as it was stated at the beginning of this chapter. There-

fore, the following results can be concluded: brand functions for companies focus on the

communication and positioning, as well as on financial benefits and customer loyalty.

Meanwhile brand functions for customers emphasize simplification of the buying deci-

sion, brand communication, personalization, and satisfaction.

III.III. Branding in Restaurant Industry

Branding in Restaurant Industry is about keeping a promise and reflecting that promise

in every communication with the customer. One of the central brand missions in case of

the companies in restaurant industry according to Riesco (2009) is “the rule of sincere

18
  

caring” and constant brand updating (p.13). It is very important for owners of any din-

ing business to keep in mind that people of the XXI century do not visit their place in

order to spend some time in a great ambiance and try some delicious oysters. People go

to any restaurants today in order to get some experience (Riesco, 2009, p.13). They usu-

ally share this experience with the loved ones, or friends, or families, or colleagues, they

might come to the restaurant alone – but other people still would surround them. That is

why eating is “an emotional social event that people normally enjoy surrounded by oth-

er people” (Riesco, 2009, p.13). Returning to the above statement that restaurant brand-

ing is about keeping a promise, it is necessary to say that every restaurant brand should

stay to its’ positioning, and if the company is considered not as the best of the best, but

as the only one who does what it does – that is the winning position of the brand (Res-

taurant Branding: Brand Positioning, 2012, para.2).

What is also interesting in the case of the branding in the restaurant industry is the fact

that words choosing when talking about consumers. “Customer” should be transformed

into a “client”. Riesco (2009) explains this difference by identifying a customer as “a

person who buys goods or services” and a client as “one dependent of the support or

protection of another” (p.14). This is related to the idea what every restaurant, café, or

bistro has customers that come and go, but there are not so many dining places where

people come looking for care and protection. Care in restaurant business means show-

ing guests that their welfare is important to the team (Riesco, 2009, p.15).

Let’s have a look at the real-life example of a well-known company McDonald’s. In

1955 a usual salesman Ray Kroc decided to franchise a burger restaurant from the

McDonald brothers companies, named it, as people know it today and offered fast food

19
  

for a very low price. By the 1970s McDonald’s grew on a domestic and international

level, displaying the importance of service, value, and quality (Kotler & Keller, 2012,

p.271). With the help of advertising campaigns and creative ways to present the compa-

ny in media the restaurant succeeded in bringing families with children in their chain for

simple food and fun experience. At that time, the company created the Ronald McDon-

ald House that was opened in 1974 to provide help to children with leukemia and other

diseases (Kotler & Keller, 2012, p.271). The brand made a great job in showing their

customers that they care not only about them but also about people who actually need

real help. These kinds of PR and other tools that help the company to be transformed

into the brand will be discussed later on in this paper.

Another example of the branding importance in restaurant industry might be an example

of Domino’s pizza case. The company was always known for the delivery speed and at

the same time, they had some negative publicity about the actual taste of the product

they offer (Kotler & Keller, 2012, p.169). With the help of advertising they actually

succeeded and changed the client's perception of the brand: Domino’s employees, chefs

and executes were filmed in the kitchens proclaiming that the pizza is absolutely im-

proved with a new sauces, product combinations, and other benefits (Kotler & Keller,

2012, p.169), so clients would actually see that everybody in the company cares about

them. Would they be able to do that if the company was not a known brand? In restau-

rant industry, the sooner the company touches its’ clients’ soul with all of the brand’s

tools, and show that your brand delivers an incredible experience, recognizes all of the

likes and dislikes they might have, works on the mistakes and cares about all of the spe-

cial moments clients spend in the restaurant – the sooner brand loyalty comes (Riesco,

2009, p.19).

20
  

Throughout the whole book, Riesco (2009) says that the company needs to understand

one important thing – strong brands are never made once and for all, brands exist and

develop all the time, and even well known strong brands were never made outright.

Branding in the restaurant industry is a story that every time can be complemented with

bright, interesting details such as introducing new traditions, adding new and interesting

dishes on the menu, coming up with some loyalty programs, presenting new interesting

advertisements, etc. (Riesco, 2009, p.82).

In the end, a strong brand will lead the owners of the company to the opening of the se-

cond restaurant, and then the third, and then the fourth one. Then perhaps there will be

those who would like to buy a franchise, meaning they come for the purchase of the

brand piece.

IV. Public Relations and Restaurant Industry Specifics

In this chapter, we develop the notion of Public Relations (PR) and distinguish the most

important functions of the PR in the restaurant industry. This section includes basic

components of the PR and considers types of publics any brand can have. It also delves

into the protection of the brand and crisis communication, providing different respond

strategies and key response rules.

IV.I. Identifying PR in Restaurant Industry

People often understand Public Relations (PR) by most visible activities and tactics

such as publicity in the media, press conference of the company with the journalists,

appearance of the company’s representative at some special event, or a good review

21
  

from the customer. The reason for such misunderstanding is not just nature, but also, the

sphere of PR is the predominance of reputation and the shift from product to value fo-

cus (Dalton & Croft, 2003, p.111). PR in the restaurant industry is primarily a creation

of the brand “uniqueness” image and establishing a positive public’s opinion with the

aim to create a good reputation on the market. It is about dialogue maintaining, mutual

understanding, and beneficial cooperation between the organization and the publics

(Wilcox, Ault, Agee & Cameron, 2000, p.3).

According to Wilcox et al. (2000), the PR is understood today as “a communication

function of management through which organizations adapt to, alter, or maintain their

environment for the purpose of achieving organizational goals.”(p.4). PR is more than

just convincing people to learn and recognize something about the brand, PR is about

communication and mutual understanding between the company and its’ publics, as

well as changing attitudes in the process in order to satisfy both sides more. For exam-

ple, McDonald’s company modified their technical structure after listening to their tar-

get audience: they decided to remove its’ first plastic boxes because they were not eco-

friendly (Wilcox et al., 2000, p.4).

PR is a process that requires series of actions that will lead to specific results (Wilcox et

al., 2000, p.7). According to Wilcox et al. (2000), there are four key elements of PR:

research (defining the problem and situation), action (campaign planning), communica-

tion (what exactly will be communicated to the publics) and evaluation (effects of the

PR campaign on the audience) (p.7). All of the PR elements are important and none of

them might be excluded in case of the restaurant industry: restaurant brand should know

what is the situation and why they need any PR help, it also should plan every little step

22
  

of the campaign, it’s necessary to create a reliable and credible message for the brand’s

publics, and, after all, evaluate all of the activities.

According to the Public Relations Society of America (PRSA) Foundation PR compo-

nents include 15 basic components: counseling, research, media relations, publicity,

corporate relations, community relations, public affairs, government affairs, issues

management, financial relations, industry relations, fund-raising, multicultural relations,

special events, and marketing communications (Wilcox et al., 2000, p.9). In this paper

some of these components are interconnected, therefore, they are combined in one

group, and their role in the restaurant industry is discussed.

PR for restaurants is a must thing, because, in order to make the audience burn with a

desire to try specialties of some place, it must first learn about this offer. According to

Riesco (2009), the main goal of PR in the restaurant business is to increase client’s in-

terest in the business, to establish a positive attitude and trust of the client, meaning to

form a positive public opinion towards the brand (p.111).

One of the features of PR tools in restaurant industry relates to the fact that they do not

directly affect the client; they are focused on his unconscious. Riesco (2009) suggests

that the client perceives information unconsciously and reacts on that gradually accord-

ing to the behavioral communication model (p.111). First step of the PR professional is

to create awareness, then the step of latent readiness takes place, and this is the time

when the client is ready to act in one or another way, then there should be some trigger-

ing event that gives people a chance to act the way they planned in the previous step,

and then there is a behavior step when the client reacts (Wilcox et al., 2000, p.166). An-

23
  

other feature of the PR in the case of the restaurant industry is the client’s skeptical per-

spective on traditional marketing and advertising. Therefore, we can pro-pose that res-

taurant brand image that is created with the help of PR tools is more credible, than the

one that is advertised on the main square in the city (Riesco, 2009, p.113). Restaurant

PR is less costly than marketing and advertising, and they allow the company to person-

alize the story (Restaurant public relations, n.d.). By creating a few story angles for dif-

ferent media items, the company increases the number of published stories about the

restaurant, and each of these stories informs the publics about the main benefits of the

brand.

IV.II. Creation of the positive image of the company

As it was already stated above some of the PR components are interconnected that is

why they can be merged in groups. The first group that will be discussed in this paper is

the establishing the positive image of the company as a PR activity. If consumers have a

positive perception of the company – the reputation and trust to the brand increases,

meaning the proportional growth of the brand customers, as well as sales. Therefore,

any work of public relations should begin with the creation of a positive image of the

organization, its monitoring, and development. One of the most important communica-

tion rules says that favorable image of the company is based on a good positioning,

therefore before proceeding to promotions, advertising and PR activities the company

should take care of the positioning (Kotler & Keller, 2009, p.275). According to Kotler

& Keller (2009) every communication strategy is constructed on segmentation, target-

ing, and positioning (p. 275). A brand discovers different needs and wants of different

target groups in the market, and then positions its’ offerings so the target audience dis-

tinguishes its’ characteristic images and offers. During the development of positioning

24
  

strategy, it is extremely important to understand that in consumer minds just a small

amount of spaces is released, which means that a company needs to communicate only

the most important ideas (Kotler & Keller, 2009, p.276).

Positioning formula looks very simple. However, in order to insert the word keys in a

simple sentence that and structures and gathers the concept in a single complex, a big

amount of analytical work needs to be done. Kotler & Keller (2009) determine the fol-

lowing basic components of the good positioning: for whom (target audience), a prod-

uct or a service (competitive advantage criteria), that offers this (the most important

benefit), because of that (specifications of the reason why the company is the best one)

(p.276). Let’s consider all of the mentioned components separately.

Choosing the right target is crucial because not everybody likes the same clothes, choc-

olate, or restaurant. Therefore, it is important for communication professionals to divide

the market into segments while forming the positioning for the brand. The profile of the

target audience can be created based on the demographic, psychographic and behavioral

differences among customers (Kotler & Keller, 2009, p.10).

A competitive advantage criterion defines a set of benefits that company offers to the

consumers that can satisfy their wants and needs (Kotler & Keller, 2009, p.10). Natural

baby porridges, credit cards with some beneficial program, and fresh fish in a sea bistro

– it is all the competitive features that consumers are investing in. McDonald’s and The

Hard Rock Cafe are the places where consumers eat, but they do not have the same

competitive criteria, even in the minds of those who prefer to eat in both of the men-

tioned restaurants.

25
  

The most important benefit and specifications of the reason why the company is the best

one are connected to the points-of-difference (PODs). Kotler & Keller (2009) under-

stand PODs as specific advantages that consumers associate with the brand, evaluate

them in a positive way and believe that they cannot find the same value a competition’s

offers (p.281). Three criteria should be mentioned while determining the main POD’s

for a brand: desirability (customers should personally associate the brand with them-

selves and strongly believe in the reason why the brand the best in what it offers), deliv-

erability (the company should successfully create and maintain the brand association in

the minds of customers), and differentiability (customers should perceive the brand as-

sociation as unique and superior to the relevant competition) (Kotler &Keller, 2009,

p.280).

In general, the process of establishing the optimal positioning of the brand for PR spe-

cialists usually means making tough choices, particularly considering the key benefits,

but at the same time, these right choices help create the favorable image of the brand.

By carrying out its routine business, a brand communicates certain messages to those,

who is involved in some kind of interaction with the brand and who eventually forms a

view about the company. PR needs to manage the behavior of the company in these in-

teractions that will result in a favorable brand image (Chand, n.d., para.13).

IV.III. Establishing and maintaining relationships with different publics

Nowadays companies that are created to achieve specific goals operate in a variety of

interactions and relationships with different public institutions: economic, political, le-

gal, social, etc. Moreover, the company is always involved in the system of varied in-

26
  

fluences, which undoubtedly have an impact on its activities and decisions. Therefore,

the regulation of these complex interactions is one of the most important functions of

the organization, because it determines the success of its activities (Percy, 2008, p.140).

This regulation of relationships with other institutions, groups, and the public is mainly

aimed at achieving mutual trust, suiting all sides. This involves a special planning and

implementation of communication and external information in a flexible interaction and

feedback, which basically means – special PR activities.

Before determining the concept of creation and maintaining relationships with different

publics, it is necessary to define “public” itself. Kotler & Keller (2009) define public as

“any group that has an actual or potential interest in or impact on a company’s ability to

achieve its objectives.” (p.527). The company’s effectiveness and success depend on

many individuals and groups of people, i.e. publics (Chand, n.d., para.8). Chand (n.d.)

states that there are a lot of different groups of people to whom company communi-

cates, and all of them can affect the brand image either in a positive or negative way:

customers, journalists, business analysts, government departments, employees, sales-

people, competitors, etc. Therefore, PR is responsible for all of the brand’s attempts to

foresee, follow, review, influence, and control the communication directly or indirectly

(Chand, n.d., para.16).

Sociologists such as Esman (1972), Evan (1976), and Grunig & Hunt (1984) that stud-

ied different organizational systems developed a concept of linkages – relationships that

exist between a company and its different publics (as cited in Smith, 2002, p.41). Smith

(2002) considers four main categories of publics: customers, producers, limiters, and

enablers (p.42).

27
  

Customers are all of the people who are the brand’s direct or indirect clients. This cate-

gory includes current and potential customers, secondary customers (those who are cus-

tomers of the brand’s customers) and according to Mau & Dennis (1994) it also in-

volves shadow constituencies, people who are not directly linked to the company, but

may impact on the brand’s image in some specific situations (as cited in Smith, 2002,

p.42). The goals of PR communication according to Wilcox et al. (2000) are to “inform,

persuade, motivate, and achieve mutual understanding”. (p.163). Therefore, an effective

communication results depend on understanding of what establishes communication

and how people gather messages, knowledge of how people proceed information and

change their opinions, as well as with what kinds of media PR tools are most beneficial

for a particular message (Wilcox et al., 2002, p.163). PR communication with custom-

ers is an important direction in the activity of the company since good relationships al-

low the brand to sell products and services more effectively.

Producers represent the second category of the publics and include all of the items that

provide any internal or external contribution to the company (Smith, 2002, p.42). Smith

(2002) notes that producers contain of employees, volunteers and unions, as well as of

suppliers and financiers, such as backers and stockholders (p.42). The goal of the com-

munication to producers is a desire to create a common corporate culture, by respond-

ing to concerns, informing and motivating company’s members (Wilcox et al., 2002,

p.9). That helps to create a corporate culture, which is defined as “shared experiences,

stories, beliefs and norms that characterize an organization” (Kotler & Keller, 2009,

p.45). Corporate culture, in turn, represents the values and norms of doing business, as

well as signifies the differences of one company from another.

28
  

Smith (2002) believes that the third and fourth category of publics, enablers and limiters

are also significant for the company. Enablers arrange and regulate the norms and

standards for the companies. The role of enablers can serve opinion leaders that have

some influence over the customers of the company, allies that have specific interest in

cooperation with the company, government institutions, and media, that plays a very

important role in a successful publicity of the company (Smith, 2002, p.42). In order to

have effective communication with enablers, the relationships with these publics should

be developed on a long-term basis. At the same time, it is important during the PR stra-

tegic planning not to forget about limiters, people who in some way would reduce or

decrease the success of the company (Smith, 2002, p.42).

Choosing the target audiences helps to determine the scale of PR-campaign. If the com-

pany does not decide precisely to whom construct a message, it means that the impact

of the PR activities may be equal to zero. The message necessarily requires a receiver

and needs to be built according to its characteristics (Smith, 2002, p.44). In addition, the

range of target audiences certainly precedes communication channels choice, since de-

livering one message might be more effective via different channels. The most essential

part of the effective PR communications is choosing the specific key publics – the peo-

ple that the brand wants to involve in the communication process, and the more exact

the company is in choosing the right key publics, the more effective the communication

will be (Smith, 2002, p.45).

According to Smith (2002), another important detail regarding the choice of the target

audience for PR activities is the fact that publics are not fixed, they are fluid and pro-

gressing (p.54). In 1984 Grunig & Hunt classified four stages of publics development:

29
  

nonpublic (group that does not have any potential interest or connection to the compa-

ny's issue), latent public (group that share some interest with the company, but still does

not have any specific interest in the issue), apathetic public (group that knows the issue,

but simply does not care about it), aware public (group that recognize the issue, share

interest, but does not have enough reasons to act yet), and active public (the group has

all of the necessary information about the issue, supports company’s activities and act in

some way) (as cited in Smith, 2002, p.55).

From the above written, we can conclude that for any company, there are groups of

people that share the same opinions and may directly or indirectly affect brand’s activi-

ties, therefore, companies need to liaise and build positive relationships with these

groups in order to develop a long-term communication programs. Let’s identify influ-

ence and the specifics of one of these groups – enablers, particularly media.

Debates about the relationship between media and PR exist since the establishment of

these two spheres. A lot of different researchers and academics studied how PR profes-

sionals affect media and vice versa. It is a love-hate relationship that is driven by mutual

dependence, lack of trust, and shared power (Kaul, 2013, p.58). According to Kaul

(2013), media specialists have negative opinions about PR credibility and the value PR

brings to society; they also perceive themselves higher in status, while PR professionals

rate themselves equally (p.59). Journalists have some historical framework for treating

PR with antipathy. Delorme and Fedler (2003, p.99) provided six interconnected rea-

sons that contribute to the origins of media vs. PR conflict: publicity seeking, bribery

and exaggeration, the use of tricks to attract attention, free advertising possibilities, poor

working conditions experience, higher salaries (as cited in Kaul, 2013, p.59). But in

30
  

spite of historical and personal animosity factors media needs PR for story leads, some

background information and access to sources for stories and interviews, and PR needs

media to deliver the message about the brand to the larger audience.

Media plays a special role in the Public Relations system. A particular significant factor

in any business, as it has already been discussed previously in this paper, is favorable

public attitudes promotes the brand. Therefore, rates for such services are particularly

high. The media act as intermediaries between the customer on PR services and con-

sumers (Kaul, 2013, p.60). The media is the most important link, which ultimately has

an impact on public opinion. A lot of PR campaigns are focused on media relationship

and the interaction with media representatives because the media can create the biggest

effect by attracting the most attention to the brand (Kaul, 2013, p.60). The media de-

fines the ultimate goal of any PR case – it conquers public opinion, making it an ally of

the company. Kaul (2013) also explains that media relationships are important due to

the importance of the media in today’s society: the media plays the role of the fourth

power, it is powerful, capricious, and has its own opinion on any subject (p.60).

Grabowski (1992, p.37) states that the brand must have a medium through which it will

deliver the message, and it should know how to employ that medium (as cited in Kaul,

2013, p.60). Alliance between a PR-specialist and the media is possible only when cer-

tain rules are observed; they can be gathered in a framework of three factors: media

control, media outreach, and media access (Kaul, 2013, p.74). Firstly, the normal activi-

ty of PR is only possible if there is a free press institute, which exists in the most parts

of the world (Kaul, 2013, p.75). Secondly, media outreach is important due to the fast

developing digital era and market – citizens demand an objective and reliable infor-

31
  

mation from specific sources (Kaul, 2013, p.76). Thirdly, the media access factor means

that there should be some news space, time, and context to rationally present the brand

(Kaul, 2013, p.78). The journalistic community is oriented to meet the information

needs and concerns; therefore, in any case, it is sympathetic to PR-specialists.

Jennifer Baum, a president of the PR firm that specializes on the Hospitality Industry,

states (n.d.) that for a productive dialogue with the media restaurants must learn how to

generate news, not just advertise something (para. 2). It is necessary to take into account

the interests of the press, focusing the PR activity on the fact that the information is ob-

jective, relevant and reliable. The words might be acceptable, but not convincing and if

the restaurant is not newsworthy – no one bothers to pay any attention to that (Baum,

n.d., para.2).

IV.IV. Protection of the Brand: Crisis Communication

Any doctor will agree that the results of the treatment will be better if a patient comes

before the urgent situation reaches him. There is another known medical axiom – if the

patient visits the doctor not only to cure the disease but also to prevent it, it reduces the

probability of sudden illness. Sometimes the most accurate comparisons are the most

hackneyed ones – for example, this case with a parallel between an effective crisis man-

agement and medicine.

Among some managers, there is a perception that the crisis is just the exact difficult sit-

uation when the company is on the verge of collapse. But the experience of different

brands shows that such situations usually are only derivatives of past events or actions

(Wilcox et al., 2002, p.179). A study by the Institute for Crisis Management (Indiana)

32
  

found that only 14 percent of the company’s crises are unpredicted, and the other 86

percent reflects the amount of businesses that were aware of existed problems long be-

fore it was opened to the publics (as cited in Wilcox et al., 2002, p.179). An example of

such situation might be a McDonald’s case. An 81-years-old woman won a multimil-

lion-dollars lawsuit against the brand due to the fact that she experienced third-degree

burns from a McDonald’s coffee cup (Wilcox et al., 2002, p.179). Surely the brand got

negative publicity, but before that loud lawsuit according to Wilcox et al. (2002) they

received more than 700 complaints about coffee burns and spent more than $500 000

settling similar claims (p.179).

So what does the crisis exactly mean? Wilcox et al. (2002) use the Pacific’s Telesis def-

inition of the crisis in communication world: “an extraordinary event or series of events

that adversely affect the integrity of the product, the reputation or financial stability of

the organization; or the health or well-being of employees, the community, or the public

at large.” (p.178). None of the media or other publics, in the case of “extraordinary

event or series of events”, will not miss a chance to “dance on the brand’s bones”, espe-

cially if the company is still alive.

PR-specialists can play an important role in determining the causes of the crisis and, of

course, the successful dealing with the crisis with the help of special crisis communica-

tion tools and tactics. There are a lot of different pieces of advice for the actions during

a crisis, but Wilcox et al. (2002) mention 11 most important ones.

The first rule is to always put the publics first, provide them a permanent flow of infor-

mation, and be accessible to them (Wilcox et al., 2002, p.181). During the development

33
  

of the crisis communication strategy, it is essential to think about all of the publics that

are somehow connected to the company, and consider losses they might have had dur-

ing or after the crisis; communication tools should be chosen only after considering

publics’ damage. The second and third rules according to Wilcox et al. (2002) are legit:

take the responsibility for solving the problem as soon as possible and be honest with

the publics (p.181). The fourth advice seems interesting due to the fact that a lot of

companies use the opposite suggestion. One survey found that almost 2/3 of the publics

takes “no comment” statement from the company as taking the fact that the organization

is guilty of wrongdoing, therefore, Wilcox et al. (2002) suggest never say “no com-

ments” (p.181). The following rules of the crisis communication strategy building are

adequately technical: designate a single spokesperson (because the audience will hear

the same information, presented with the same techniques), set up a central information

center, be familiar with the media needs and deadlines, and monitor media coverage

(Wilcox et al., 2002, p.182).

The same crises do not happen twice, they might be similar in some characteristics, they

might have the same strategies, but they are never identical (Wilcox et al., 2002, p.182).

The crisis may develop completely unpredictable, and the art of PR communicators in

these situations is the ability to act on the time and according to the strategy. According

to W. Timothy Coombs of Illinois State University, company’s response may differ

from defensive to accommodative (as cited in Wilcox et al., 2002, p.182). There are 7

different respond strategies that the brand can choose from: attack the accuser (the one

who states a crisis occurs is threatened, and its logic and facts are criticized), denial (the

company affirms that there is no crisis), excuse (the company reduces its responsibility

for the crisis by saying that it had no control over the actions that caused the crisis), jus-

34
  

tification (the company underestimates the crisis by saying that there is no serious dam-

age), ingratiation (the company takes actions to pacify the publics that was affected),

corrective action (the company takes actions to restore the damage after the crisis and to

avoid the repetition), full apology (the company takes all obligations and asks for for-

giveness) (as cited in Wilcox et al., 2002, p.182). The PR manager makes a decision

about the strategy choice based on the context of the crisis, and the situation itself,

sometimes defensive strategies (denial, attack accuser, or excuse) are better than ac-

commodative ones (corrective actions, a full apology, or ingratiation), and vice versa.

Crises exist in every business and restaurant industry is not an exception. The restaurant

industry is a complicated business that tends to experience different crises: economic,

conceptual, organizational, etc. (Sellnow & Sarabakhsh, 1999, p.53). One of the most

dangerous situations for the restaurant is a reputational crisis, it can cause a big damage

to the brand, and if it happens, it is the responsibility of PR specialists to deal with that

(Restaurant Reputation: How to Ruin It On Yelp, 2012, para.1). Usually, business own-

ers in a restaurant industry should have insurance policies covering every anticipated

disaster from robberies to kitchen fires, and total insurance bills represent a big percent-

age of the annual take expense of the company (Sellnow & Sarabakhsh, 1999, p.55).

But the most important insurance program in every restaurant business can me managed

for free – it is a crisis communication program, which is a center of the company as it

was discussed earlier when a crisis appears.

According to the Center for Disease Control, more than 20,000 people a year got infect-

ed by E.coli (a bacterium that causes food infections and illnesses), nobody is protected

from food reactions or suddenly appeared diseases; there will be always occasional mis-

35
  

takes and misunderstandings in restaurant industry cases (as cited in Sellnow & Sara-

bakhsh, 1999, p.55). And if the brand wants to present their side of the crisis story to

its’ publics, the company should have a crisis communication plan that PR specialists

would implement. Key response rules in case of the restaurant industry still interconnect

with the 11 pieces of advice that were discussed earlier in this paper. According to

Sellnow & Sarabakhsh (1999) the company should have only one spokesperson, re-

sponses highly depend on the time, immediacy, honesty and monitoring are the keys. To

confront a crisis, the company cannot act spontaneously and reflexively. Restaurant

brand needs a smart strategy (either defensive or accommodative) that will link together

all the individual crises of the event. The strategy for communication with the publics is

not chosen arbitrarily but based on the specific business situation and the actual situa-

tion of the company on the market.

This section explained the concept of PR in the restaurant industry, its’ role in the image

creation and crisis communication, and ascertained that the restaurant business operates

under the common business laws, but has its own characteristics because it has to satis-

fy not only physiological, but also social needs of the customers.

V. Case Studies of IMC Communications in Restaurant Chains

In order to determine specifics of the IMC in the restaurant industry, it is necessary to

examine some specific case studies. This chapter demonstrates notions and concepts

presented in the previous sections on the examples of two international brands in the

restaurant industry – McDonald’s and Starbucks Corporations. It analyzes IMC, brand-

ing and brand functions, as well as covers PR and its’ role in crisis situations of these

companies.

36
  

V.I. McDonald’s Corporation

McDonald’s Corporation can be called a phenomenon and legendary company, which is

known to most of the people on our planet. According to McDonald’s Corporation Case

Study (2012), the company has more than 32,000 restaurants in 117 countries (p.2).

This restaurant chain is the idol for a lot of fast food companies, and the brand came to

that success by continuously responding to the market’s needs (Talpau & Boscor, 2011,

p.55). It can be endlessly blamed for poor-quality and harmful food, for uncomfortable

interior and simulated smiles of workers, but the point here is that this is the company

that has an ability to set high goals and without any problems achieve them.

In 1937 two brothers Richard and Maurice McDonald established the first McDonald’s

restaurant in Pasadena, California (Vignali, 2001, p.97). In 1954, a milkshake mixer

salesman predicted benefits in this market and signed a franchise deal with an oppor-

tunity to franchise McDonald’s in the USA, and already in 1967 the company had start-

ed its international story and opened the first fast food restaurant in Canada (Vignali,

2001, p.97). That was the key to international spread and success. The company’s mis-

sion from the very beginning was to make the McDonald’s brand ubiquitous. Their IMC

strategy was built in such way, that the publics would always see the brand presence: on

TV, billboards, radio, flyers, product placements in movies, sponsorship (Olympic

Games, FIFA World Cup, etc.), with the help of ambassadors, by providing CSR pro-

grams, etc. The aim of the company is to be highly visible to the customers’ eye

(McDonald’s Corporation Case Study, 2012, p.12). Using as much IMC tools as possi-

ble, the company was developing a recognizable face for itself that would transform it

from the simple fast food business to an international brand. The corporation called its’

IMC strategy “Think global, act local”. McDonald’s first aim was to create an identical

37
  

set of products, that would taste the same everywhere, but the company realized that an

ability to adapt to an environment and culture guarantees success, therefore the brand

modified the original menu to meet customer needs and wants in different countries

(Vignali, 2001, p.97).

As it has been already discussed earlier in this paper, the main rule in restaurant brand-

ing is “sincere caring”. Does McDonald’s Corporation follow the rule? Vignali (2001)

points out: “the company believes that the best way to stand out from the crowd is to

satisfy all of the customers and employees all the time.” (p.107). Each of the McDon-

ald’s guests has the reason to come to the restaurant: a parent might want to take chil-

dren for a Happy Meal as a reward, a businessman can stop by in order to get a quick

lunch, a teenager can come for a Pound Saver Menu and free Wi-Fi (The Marketing

Process, 2014, p.2). McDonald’s knows the exact target audience and its’ needs, there-

fore, the brand can shape communication strategy to the needs of specific groups. Each

of the McDonald’s employees has the reason to work for that company: a full-time stu-

dent might want to earn some money and look for a part-time or flexible schedule, or a

PR manager of a small restaurant business might want to get experience in an interna-

tional company. McDonald’s brand adapts to each specific situation, therefore, people

want are comfortable working there (Vignali, 2001, p.107). The corporation exists al-

ready for 79 years, and today’s consumers consider McDonald’s as a brand, and associ-

ate it with its’ famous golden arches (logo) and “I’m loving it” phrase (slogan) – that’s

the result of a good branding strategy (The Marketing Process, 2014, p.1).

Another key point in McDonald’s Corporation case is the brand’s PR activities. It is

important to realize the brand is a member of not only a restaurant industry, but also

38
  

specifically a fast food industry, which is a “well-oiled machine” (Dessner, 2013, p.3).

Kitchens in chain restaurants like McDonald’s are more similar to factories than to the

places where the gastronomic magic happens, consumers are aware of the questionable

food preparation, and the brand receives a great deal of criticism related to providing

healthy food (McDonald’s Corporation Case Study, 2012, p.8). Therefore, the following

question is raised: why and how do the publics still contribute to the brand if everybody

knows its weaknesses? That is the art of McDonald’s PR – these specialists make the

company looks good, they maintain and improve public opinion about the brand and

handle crises. PR in the restaurant industry is unique in choosing the content it includes

in the message (Dessner, 2013, p.5).

As an illustration of that point, we can have a look at the McDonald’s reaction to a doc-

umentary movie “Super Size Me”. The movie about the man who ate only food from

McDonald’s restaurant for 30 days and accepted the super size option of the product

every time is was offered, was released in 2004 (McDonald’s Corporation Case Study,

2012, p.8). During these 30 days, the filmmaker (and the main character of the movie)

gained almost 11kg, experienced fat accumulation, mood changes, and sexual dysfunc-

tion. Not surprisingly, public reacted in a negative way, and the brand had to respond.

By saying that the decision had no connection with the movie, the brand stopped offer-

ing the super size option of its’ products and announced the new feature – from 2005

the company would start printing nutritional data (including fat, salt, and calories) on

its’ products’ packaging so the guests could make decision about their meal choice

themselves (McDonald’s Corporation Case Study, 2012, p.8). Spokesperson of the

company provided a few statements to different media, but the meaning of the message

was identical: the company tried to prove that this is not McDonald’s issue, this is the

39
  

issue of personal responsibility, and the movie is just a misrepresentation of reality

(Sheehan, 2006, p.223). Any mistake of the brand can be erased from the consumers’

memory if the right actions are taken. McDonald’s did an excellent job in that: since

2005 the company added a wide range of healthy products in the menu, including salads

and meals with fruits, they also reduced the amount of sugar and sodium in their meals,

and put these brand’s updates all over the media (McDonald’s Corporation Case Study,

2012, p.8). Isn’t it a brilliant move from the company to show that they care about the

consumers’ health and follow the trends of eco-healthy-friendly life?

McDonald’s PR ways of showing social awareness also play an important role in the

whole effectiveness of the IMC. An example of that point is an infographic of the com-

pany that was published on the official website in 2012 and included multiple statistics

with the evidence that 100% of the brand’s coffee in selected areas comes from certified

farms (Dessner, 2013, p.5). Dessner (2013) also reports that the same infographics high-

lighted how the company is concerned about children’s diets, therefore, the Happy Meal

offer fruits instead of french fries (p.5). PR specialists release this kind of information

not to influence consumers directly, but to mention the company’s interests in the quali-

ty of their products and to improve public opinion about the brand in general.

What is interesting in the case of IMC in restaurant chains is the freedom of playing

with messages and turning accusing arguments to the “benefits” of the brand. The pub-

lic knows that McDonald’s is unhealthy, however, it does not know all of the details

and justifies eating fast food dishes by the information the company provided (such as

the evidence about certified coffee, etc.).

40
  

V.II. Starbucks Corporation

A name Starbucks appeared on the global restaurant market in 1971 – it was a small

shop of dark roasted coffee beans that was opened by three friends who were big fans of

good coffee (Lemus, von Feigenblatt, Orta, & Riviero, 2015, 24). According to Lemus

et al. (2015) there were not so many customers, therefore, owners of the shop were hap-

py to spend a lot of time on each of them, talking about coffee, sharing their knowledge

and secrets (24). In 1982, the company hired a new marketing director, Howard Schultz,

who turned the company from a small coffee shop to the global restaurant chain (Sea-

ford, Culp, & Brooks, 2012, p.39). Starbucks Corporation owns more than 19,700 stores

today and has over 160,000 employees worldwide (Haskova, 2015, p.12). The company

has changed everything except the love for coffee and customer-oriented business fo-

cus.

Generally speaking, whether Starbucks serves the best coffee is not important. Back in

the days perhaps it offered delicious coffee but with today’s competition, it is very easy

to find a small and cozy café that will offer much better coffee drinks than in the Star-

bucks chains. Under those circumstances it can be concluded that coffee in Starbucks is

not the main thing. Howard Shultz always stressed that his company is not about filling

stomachs, but about satisfying souls: “We aren’t in the coffee business, serving people,

we are in the people business, serving coffee.” (Talpau & Boscor, 2011, p.53). The

whole IMC strategy of the corporation is based on the idea of Starbucks as “third place”

after home and workplace (Seaford, Culp, & Brooks, 2012, p.43). Chua and Banerjee

(2013) defined three major groundbreaking steps that Starbucks applied over the years:

the company used social media to effectively support the brand, the company under-

stood an importance of the new channel, and the company established successful strate-

41
  

gies to keep consumers’ engagement with the product (as cited in Lemus et al., 2015,

27). Starbucks put the consumer at the center of their activities and all of the brand’s

decisions, actions, and communication moves are focused on the consumer’s needs.

People stop by Starbucks in order to talk, to work or study, or just simply to read a book

because restaurant's environment is created for that kind of interactive experience.

Guests are able to find everything there, from comfortable sofas and books to free Wi-

Fi access and so on.

The first restaurant branding rule “sincere caring” is in the roots of Starbucks Corpora-

tion. The brand’s strategy was different from the one that all traditional restaurants

used: Starbucks tried to build a high-quality atmosphere while its’ competition was fo-

cusing on inexpensive products and speed of the service (Seaford, Culp, & Brooks,

2012, p.43). Customers that come to Starbucks are buying a tangible product (cup of

coffee) and personalized in-store experience (intangible) provided by the trained em-

ployees of the company. Isn’t it wonderful to open the door of the restaurant and see a

smiling barista asking how is everything and what is the guest’s name? As it has been

already stated previously, the brand’s goal was always to serve people, not coffee. The

company makes its’ customers feel like home. Starbucks’ employees are taught to be

nice, they are taught to describe different kinds of coffee if guests do not know some-

thing about it, and they are taught to offer new specialties even if the customer asks for

simple cappuccino (Talpau & Boscor, 2011, p.53). What is also interesting in Starbucks

case is the way the brand created a mutually beneficial relationship between customer

satisfaction and job satisfaction: the company actually proved their employees that

working for Starbucks is equal not only to knowledge expanding but also to brilliant

42
  

quality customer service and company’s success. The rule of “sincere caring” also

works in this example.

With the development of the competition, the corporation met a few issues related to

their main positioning statement and competitive advantage: Starbucks differentiation

factor was great coffee and perfect service, but customers started to switch to McCafe

or Costa Coffee where they got similar services for a lower price (Haskova, 2015, p.18).

The company did not lose courage and with the help of PR, tools proved that it is im-

portant for the brand to know what people think. The company decided to get brand

value back by establishing communities (Haskova, 2015, p.18). In 2013, Starbucks

launched a website www.mystarbucksidea.com, where customers could provide feed-

back about the brand services, suggest their own ideas and not only follow, but also par-

ticipate in the development of the company. Starbucks brand is controlling relationships

with customers in an effective way by forming an interactive environment and support-

ing community’s ideas.

A great example of how the brand can use negative PR to their advantage can be the last

year Starbucks Christmas cups. In late October, Starbucks has introduced new branded

cups designed for the winter season 2015/2016. They were traditionally red, but if in the

past they were always decorated with some Christmas pattern, this time, it was designed

in a minimalist style. Publics perceived winter design decision differently: some people

got it as a normal minimalistic option; others stated that it is an acknowledgment to po-

litical correctness. A representative of the company (vice president of the graphic de-

partment) defended the brand design decision and said that the brand wanted to step in

the holidays mood with a transparent design that welcomes all of the company’s stories

43
  

(Agrawal, 2015, para.4). Internet users started posting pictures and tweets on social me-

dia with a hashtag #MerryChristmasStarbucks, pointing out their assumptions that res-

taurant chain tried to fight with Christmas, by getting rid of the traditional for these hol-

iday elements and the word “Christ” from the cup. Some users took the side of the

company, saying that if a person really needs a Jesus on the coffee cup, then he cannot

be in the heart. Starbucks knew that the red cup campaign would result in so many con-

troversies among the publics, and they also knew that the issue would be like a piece of

cake for the celebrities, who would talk about that and pushed it to the public. Isn’t it

what the PR is about? It would seem that such an unpleasant situation would influence

the financial component of the brand. Nevertheless, this case was not anyhow harmful

to the company because when the brand reaches Starbucks’ success level, the company

cannot be damaged only because of some unsuccessful Christmas coffee cups (whether

these cups were successful or not is still debatable). People who stop by the coffee shop

in order to get some vanilla latte in the morning will not change their minds after some

red cup failure. Equally important is the fact that after these discussions publics are very

excited about what the brand will bring them next year.

According to Dessner (2013), every Starbucks’ press release or conference sends the

brand’s mission statement “To inspire and nurture the human spirit – one person, and

one neighborhood at a time.” (p.8). The success of the company is obliged to an effec-

tive business and IMC model, which accurately takes into account the psychology of

modern public. Starbucks Corporation from the very beginning tried to be more than

just a coffee shop, offering its’ guests a cozy lifestyle.

44
  

VI. Conclusion

From traditional marketing communications, methods of brand promotion switched to

the complex system of Integrated Marketing Communications, consisting of previously

discussed components such as traditional advertising and promotions, as well as new

media. Although tools might have changed with the development of the society, the

main idea of the brand and brand functions are still the same. The company that is con-

sidered as a brand has a saturated history and background that led it to the current mar-

ket position. Furthermore, it did not happen without the help of public relations and cri-

sis communication because all of the businesses make mistakes and face crises situa-

tions. Despite an important role of the PR in the difficult task of branding, it is not the

only tool for handling the restaurant’s future guests. The information flow allows to

build “publicity” and to shape the image of the restaurant, but it must be combined with

other activities.

This paper has analyzed approaches to Integrated Marketing Communications in the

restaurant industry, examined some practices and studied the specifics of the industry

on a few examples. As it has been already noted, today’s restaurant business is built on

meeting customer needs and wants. Studies of the internationally famous restaurant

chains have shown that future restaurateurs when choosing activities should be guided

not only by intuition but also by some rules and logic if they want to be successful. The

restaurant industry is a multifactorial set of components that require a proper setup in

order to work effectively. In order to do this time, energy, proper management and spe-

cialists are needed. Frequently the problem in a business failure is not the increasingly

competitive market, but the wrong establishment of the IMC strategy and properly

composed message of the brand.

45
  

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