CFA - Losing Money or Gaining Customers?

Chick-fil-A is giving away free spicy chicken sandwiches. The sandwiches aren't on the menu yet, but CFA is taking reservations.

Don't they know that will increase their food costs? They'll lose tons. TONS I say!

On its face, this seems like a contradiction to the NRN article of NPD's study on what's next, No More Free Lunches.

But a closer look shows that CFA is simply falling back on the tried and true tactic of product roll out: if the product is good, put it into people's mouths. Taking a reservation is a great addition to their arsenal. Now they can follow up.

But as Bonnie Riggs, NPD’s restaurant analyst, notes: “You want to get them into your restaurant and hopefully you can up-sell,” Riggs said. “But you have to have something to generate buzz to get them into you restaurants first.”

This isn't new for CFA. Their free food promotion to those wearing their favorite school's gear to kick off the college football season last year, or mailing out thousands of freebies to drive trial of milkshakes, both come to mind.

The trick is what they do with the customers after they've tried the product. That's the part most restauranteurs don't get about these kinds of specials.

Which is good for CFA and others who know what they're doing.