This recent January was not a good one to be in the restaurant business in downtown Hartford. Heavy snow narrowed the city’s byways and made on-street parking all but impossible. Plus, workers fled the city at the first suggestion of snow.
Al Ferranti, managing partner of Agave Grill at 100 Allyn St., turned to Living Social to drive business to his Mexican grill and tequila bar, and was pleased with results. In a 24-hour period, he sold 837 certificates that offered $40 of food and drink for $20.
LivingSocial is an online source for people to find handpicked experiences at a discount. Its customers live in more than 240 markets worldwide. There are more than 24 million subscribers. It operates along the same lines as Groupon, which was featured in this space in October for its success with local retailers.
The LivingSocial partnership, Ferranti said, brought new customers into his restaurant, part of the eight-restaurant Hartford Restaurant Group. And most said they plan to return.
Allison Brady, an account executive with Atomic PR in New York, which represents LivingSocial, said on average people spend $31 more than the value of the voucher when they use a LivingSocial deal at a restaurant. She added, “More than 50 percent of customers who purchase a restaurant deal are new customers, and 90 percent of them report that they plan to return.”
There’s also the added benefit that not all customers who purchase LivingSocial gift certificates redeem then. Brady said the redemption rate ranges anywhere from 80 to 95 percent, with the higher rate going toward things like event tickets.
Ferranti views the approximate $16,000 discount/giveaway as a marketing expense. (Plus, that amount is based on Agave’s retail prices and not net expenses.)
Follow-up surveys from LivingSocial helped him clearly define his customer base. He can now use that data to target future marketing efforts, which include a return to LivingSocial in the near future. Ferranti said he would have no way of knowing how effective a billboard was at drawing customers.
Like Groupon, there is no upfront expense for retailers to participate. The consumers buy the certificates directly from LivingSocial and it turns around and sends a check to the retailer within 30 days, Ferranti said.
Selecting LivingSocial over Groupon came down to the personal touch, Ferranti said. Both are obviously large, international companies but only LivingSocial had a local representative for him to talk to when designing his offer. “I liked not having to deal with a call center in Chicago [where Groupon is based]. I didn’t have a random person on the phone was faceless. That was huge,” Ferranti said.
Play Escape opens
Seems as if parents only want to spend quality time with their children if they can stay connected to the Internet or watching sports while doing so. That’s one of the selling points of The Play Escape that opened in the Glen Lochen Mall in Glastonbury. It replaces a similar establishment that closed its doors last fall.
The Play Escape has an expanded café, with a wide selection of food, hi-def TV, and free WiFi.
Jason Cohen, manager of the new establishment, says The Play Escape is hoping to serve as a secondary office for parents looking to get work done while their kids enjoy themselves under supervision by his staff.
“The new owners, who also operate the Ginza Restaurant Group, have an incredible vision for making The Play Escape the premier recreation destination in the area,” said Cohen, “and I am thrilled to be leading the team of passionate and talented staff that we’ve brought on board to fill the 30 new jobs we’ve created.”
More information is available at their website: www.theplayescape.com, or call them at (860) 430-1810.
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Geissler’s is honored
Geissler’s Supermarkets, based in South Windsor, has been selected as the Family-Owned Business of the Year in Connecticut by the Small Business Administration. It will receive its honors during a statewide awards presentation on May 24 at Amarante’s Sea Cliff in New Haven.
More information about the honor is available at www.sba.gov/ct.
Geissler’s was founded in 1923 as a home-delivery grocer. Run by the Nilsson family, it now has six locations in Connecticut and one in Agawam, Mass.
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Expansion is topic
The International Council of Shopping Centers Connecticut’s Lunch Program will feature a panel discussion led by retailers who are actively expanding in the local region and their expansion plans for 2011. It will be held April 14 at 12:45 p.m. at the Trumbull Marriott, Trumbull.
Among the retailers scheduled to participate are Children’s Place, Chipotle Mexican Grill, European Wax Center and Five Below.
Cost for members is $50, non-members $65. Register and pay online at www.icsc.org.
