Expect to see a bigger marketing push from fast-casual burger chain Habit Restaurants Inc. (Nasdaq: HABT), as well as a partnership with a new ad agency.
The Irvine-based company said it plans to incrementally increase its marketing spend going forward, with a goal of taking “a more targeted marketing approach,” according to Chief Executive and President Russ Bendel.
“We will keep featuring the high quality of our food and hospitality, as well as promoting different ways our customers can access our brand today,” Bendel said during the company’s latest earnings call.
“As we are defining and implementing our digital first strategy, we are in the process of selecting an agency partner and investing in new marketing talent internally.”
He said Habit relied mainly on radio spots earlier this year, which it supported with digital and social media, as well as direct mail.
One promotion it stopped: Habit decided to ax its free char burger promotion during the past quarter as part of a CharClub email promotion that ran for several years.
Bendel said it came “with a high discount and low average transaction” of about $3.50.
Chief Brand Officer Iwona Alter, who joined the company last year after serving as chief marketing officer at San Diego-based Jack in the Box Inc. (Nasdaq: JACK), added that it’s currently looking to understand the emotional connection its customers have with the brand and exploring how to communicate with them.
The company posted revenue of $108.2 million in the first quarter, beating three analysts’ estimates of $105.9 million. It expects full-year revenue between an estimated $461 million and $465 million.
The chain’s shares have risen about 22% for the year. It’s valued at about $330 million.
Expect to see higher prices locally, about 5%, as the company looks to offset rising wages in the Los Angeles area, company officials said.
