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Home My WebLink About16 - Restaurant Week Status ReportCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 March 23. 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Leigh M. De Santis, Economic Development Administrator 949 - 644 -3207, Idesantis @newportbeachca.gov SUBJECT: Restaurant Week Status Report and Request for Change of Date for Next Restaurant Week RECOMMENDATION: 1. Receive and file the presentation /report by the Newport Beach Restaurant Association (NBRA) Business Improvement District on the success of the 4th Annual Restaurant Week in January 2010. 2. Approve the NBRA BID request that the $50,000 approved by the City Council in June 2009 for a Restaurant Week in October 2010 be redirected to support a 5th Annual Restaurant Week in January 2011. 3. Direct staff to distribute an RFP for the January 2011 Restaurant Week. DISCUSSION: The executive board and marketing consultant to the NBRA BID will make a presentation to the City Council on the media campaign, sponsorship efforts, and outcomes of the 4th Annual Restaurant Week held in January 2010. Some highlights of the program are listed below. ➢ Close to 70 restaurants participated in Restaurant Week ➢ In response to a survey by the NBRA, participating restaurant owners stated that their establishments received a substantial sales boost during the Restaurant Week increases in business ranged from of 25% -100 %, with some reporting that the January 2010 Restaurant Week was their strongest campaign ever. ➢ A combined (both October 2009 & January 2010) total of over $45,000 of cash sponsorships and restaurant "buy in" revenue was generated through Restaurant Restaurant Week Report March 23, 2010 Page 2 Week to help market the campaign specifically and promote Newport Beach as a dining destination. (Up 66% from FY 2008 - 2009). ➢ Over $350,000 of specific media, marketing and in -kind sponsorships were secured, based on fair market value, with invaluable publicity generated in and out of market as well. The executive board would then like to discuss with the City Council their evaluation of their experiment of holding two Restaurant Weeks in one year. ➢ From a participation standpoint, the annual January 2010 campaign results were approximately 55% stronger than the October 2009 campaign results. ➢ The participating restaurants felt October was too close to January, and twice in such a short time span wasn't working for them. The outcome of this evaluation was a decision by the full board to seek City Council approval to redirect the previously approved funding for October 2010 to January 2011. Redirection of that funding would mean that the NBRA BID would not be seeking new Restaurant Week funds in the FY 2010 -2011 budget. If the redirection of funding is approved, staff should be directed to circulate an RFP for organization, operation, marketing and media campaign services for January 2011. The lead time for organizing a Restaurant Week is approximately 8 months. Therefore, staff intends to bring the professional services agreement to the City Council not later than June 22, 2010. Funding Availability: In June 2009, the City Council approved funding in the amount of $50,000 for a Restaurant Week in October 2010. Those funds are being held for that purpose and could be redirected to support a Restaurant Week in January 2011. Prepared by: Submitted by: k. A�k) Leigh M. De Santis, Sharon Z. Wood, Economic Development Administrator Assistant City M ager Ll L - 0 C= r i 1 o� jr!.11�1�,rJ ` . � :t� L��t It . • Oft uampaj . gn, Specif ics • Inspired by New York's popular Restaurant Week • Three - course, prix -fixe gourmet meals at a 25 -60% discount • Debuted in 2007. In its first edition, the campaign surpassed all expectations JANUARY-- — O TO E • In the four short years since its inception, the progra1:m has continued to grow & established itself as one of the most successful restaurant weeks in the United States. • Generates tremendous exposure backed by sponsors, media partners & the community with strong public relations, marketing and promotional success. #A Citywide Culinary Celebration+ ORT 16 Resleonts k6epaih g ENJOY EXCEPTIONAL DISHES PREPARED BY THE HOTTEST NEWPORT BEACH CHEFSI Prix -Fuse Gourmet Menus Campaign Objectives • Produce two citywide culinary promotions that stakeholders and community will benefit from • Result driven strategic marketing and public relations campaign • Brand Newport Beach Dining & Generate Tangible Revenue Provide New Benefit • Develop Media, Corporate Hospitality & Community Partnerships • Leverage NBRA BID Mission i 2009 -20]0 Restaurant Week Dates NEW FOR FALL 2009 - • Friday, October 161h- Thursday, October 22nd, 2009 • Lunch or Dinner S 10, S20, S30 or S40 2010 WINTER RESTAURANT WEEK - • Friday, January 22nd - Thursday, January 28th, 2010 • Lunch S 15 or $20 Dinner S25 or S35 ooros�R 16-2292009 �tUUR � N ANNUAL JANUARY 22 - 2s, 2010 0 J j Campaign Specifics Restaurant "Buy In" S250 or 5300 per campaign Restaurant Week launch & media events New Dining Rewards Card bounce back promotion Generate participation & leverage marketing campaigns 10 YW i _ % .10 too, Iffift . - : •--T a .... -> �: �� • • w•�•n• wow rw • w. a ►Aw+�urA rw wa•r•u wr• �� ,. -e.,. R 20% OFF,iit, i}RLL16A1110 A& ; / M Marketing & Publicity Phan Overview • Media in -kind sponsorships drive success of campaign • Over 5350,000 of specific media, and marketing in -kind sponsorships were secured, based on fair market value * Up 40% from 2008 -2009 • Leveraged strategic long term media sponsors & mutually beneficial hospitality industry partnerships • Invaluable publicity generated both in and out of market Marketing & Publicity Plan Overview • Identity Package & Creative Development • 300,000 Promotional Brochure Inserts • 50,000 Promotional Cards • Mail Campaign & Certified & Western Brochure • Dining Rewards Cards *20,000 Distributed • Citywide Signage: Posters, Banners & Flags On -Site Promotion Point -of -sale materials distributed to all restaurants including: Posters, Check Stuffers, Table Tents, Bottle Hangers, Buttons & Campaign Artwork Media Advertising *Partial List Only Expanded Southern California Advertising Campaign Print & Online * All Industry Publications & Monthly Consumer Periodicals * Los Angeles Times Los Angeles Times Magazine * OC Register Los Angeles Times Community Newspapers * Laguna Beach Independent 4116 COAST om OM OINE W68398 I - r w�rww: NEWPONTSEACNOINING.COM *Combined Media Value in Los Angeles /Orange Counties: S350,000 Public Relations Campaign Pre & post -event publicity campaigns • Media & VII' events generated regional print, electronic and broadcast media attention for Newport Beach • Interview opportunity with restaurants, chefs & sponsors • Radio & cable broadcast packages a *Partial List Only 92.7 Jill FM Radio Promotion 77 100 Ra0o Interviews KABC Talk Radio Chef TaIk • ICCBS Z &,;KCAL 9 TV News Segment ;. - •. I<NBC 4 TV News Segment <OCE _ TV News Segment Real Orange" • I<DOC TV News Segment : 1;.. • COX &TIME WARNER CABLE TV PSA'S • NB TV. News — PSA's Media Coverage= Print *Partial List Only • 944 Magazine • Avenues Magazine • Balboa Beacon° • Coast Magazine • Daily Pilot° • DiningOut Magazine - Cover Story • LA Times - Orange County • Live OC Magazine • Newport Beach Magazine • OC Metro, OC Family, & Metro Menus `} • OC Weekly • Orange Coast Magazine • Orange County Register • Riviera Magazine • Sunset Magazine • Where Magazine Web Site: N ewp ortBeachDin ling Com • Upwards of 750 unique visitors per day during RW • Social Media Marketing • Link Alliances Drive Online Dining Reservations Electronic Media & Social Networking Partnerships • Strategic Cross Promotion 6 Contests ��_ I y :Off jo *Partial List Only 927JiLLFM.com 944.com • 'Americanexpress.com, • .NewportBeach.com • Anahermoc .or • OCMenus.com • JCity.newport- beach.ca.us • OCMetro.corn • CostlinePilot.corn • OCRegister.com • CoastMagazine.com • OCWeekly.com DailyCandy com OpenTable.com K • DailyPildt:com Ora ngeCoastMagazine.corn h` GreersOC.com • Ora ngeCounty.Cox.Net • -HBindependant,.com • TimeWarnerCable.com LATimes.colm • VisitNewportBeach.com • ModernLuxury com • Yelp.corn *Many participants & partners promote Restaurant Week on their web sites Campaign Results . Conducted restaurant orientations, comprehensive post campaign surveys & post roundtable meetings Establishments reported a substantial sales boost upwards of 25% -100% JANUARY OCTOBER Since 2007, cash sponsorship has grown upwards of 49.5 %. Media f" sponsorship has grown 57% & in- kind sponsorships have grown 80% + ant, Ga October 2009 -,'j ,Ap0roxim 'te 1 12 00 0 patrons participated in the .'.ne_W,.,fall ca'mpa:igq'-._'', Approximate S,29 chock average per person Generated incremental atecl "approximately S3.24M of increme revenue-IfOr restaurants I •532,,480 sales tax revenue •Participation" down 2009 from January generate,cl'back to City F�1, approximately 2010 55% in October y 1' .r n Approximately 2050.0.0 patrons participated in the -. ,,winter campaign-. _)verall diner spend down 13.5% s from January 200 ,-9, Approximate 26 check average, _ per person • Generated approximately S 5.33M of incremental revenue for restaurants S 53,3Q0 sales tax revenue generated back to City Some establishments reported January 2010 was strongest campaign ever ;_ a 'J"Ot I r P^t 'Rost- ran, R 7, i .:_V �� it {� { _ it � �� !�� it � � � {..� �'.i � � ,� � � � �t �r ; -�► _ V. Campaign Results City Council Supplemental Funding Investment S 50k per Restaurant Week campaign • Generated approximately 585,780 of total sales tax revenue back to the City general fund October = S32,480 January= S53,300 • Leveraged approximately $350,000 per campaign in total combined media & publicity value *Additional restaurant industry sales tax revenue information will be available in early June Campaign Results a Despite current economic trends, tangible incremental revenue increase was attained in FY 2009 -2010 by: Producing two campaigns: October & January Extending campaigns to seven days Creating bounce back promotions & leveraging additional marketing programs • Due to budget restraints, market trends and close proximity of dates, the NBRA BID to produce one campaign in FY 2010-2011 *Additional restaurant industry sales tax revenue information will be available in early June 11m Z. CAUFORNIA MARKETING CONCEPTS P-resented By. Peggy Fort Executive Director, Marketing The Newport Beach Restaurant Association BID (� - 44 -: iii.. � �-� c/o CMC Inc. 1550 Bayside Drive, Corona del Mar, CA 92625 Phone: (949) 675 -0501 Fax: (949) 675 -0508 Cell: (949) 422 -4210 NewportBeachDining.com pfort @asl<cmc.com ib & op of� AA 01 x A VA Y 'r A 1 =rs _ ! * A Newport Beach Citywide Culinary Celebration Early Reservations Recommended PRIX =FIXE GOURMET MENUS WNCH $15 OR $2C * DINNER $25 OR $35 ;.led is per person. Taxes, beverages, to go orders and gratuity are not included. 'No passes, tickets or coupons required. Si( I I' :'.gating restaurant. TEXT: T0: Now for exclusive Restaurant Week offers! RPresenteE By: ►IMM you to Our UIIICN! Parinars: flFan4 You Ip our o14:uai Newspapers: #pen� \yam _ I � it \wu �VMA11iNlli iJi Wa Ucl Iivli0l. For a Complete List of Participating Restaurants Visit: iii *e i♦i� ��/ *.0* iSOPAft SAM `04awcom r