Restaurants Develop a Taste for Experiences
By Mark Seavy
When it comes to choosing a restaurant, more consumers are looking beyond the menu and setting their sights on unique experiences.
Experiences come in many forms, including pop-ups, takeovers, and permanent installations. And while this strategy isn’t new—the Benihana chain has spotlighted experience since the 1960s—the frequency with which these experiences are introduced has increased as they become more deeply incorporated into brand expansion.
The Kellogg Co. Cheez-It brand, for example, was featured in a pop-up diner in May when it took over the former Dixon Roadside Diner in Woodstock, NY with offerings including themed milkshakes. Film director and Yellowstone creator Taylor Sheridan’s 101 Studios, which hired licensing veteran Gary Krakower last November, meanwhile, will open a Four Sixes Ranch pop-up in the Tableau restaurant at The Wynn Las Vegas on September 16th featuring branded 6666 28- and 40-ounce steaks. Cloudco Entertainment’s Care Bears Cafe opened as a permanent restaurant in Thailand and experience developer Superfly’s Malibu Barbie Café opened in Houston, TX in August in a reprise of last year’s version at the Mall of America in Bloomington, MN.
“People are being clever in how they go into the marketplace to attract consumers, and the key will be the uniqueness of it,” said George Wade, President of the consulting firm Bay Laurel Advisors. “You are going to see food and beverage opportunities that are available, but I see it as an emerging but not yet massive trend.”
Many restaurant chains are banking on the food-focused experiential trend taking hold, however. CEC Entertainment’s 475-restaurant Chuck E. Cheese chain in the U.S. (it has another 100 franchised locations internationally) has spent $350 million on renovations to owned and operated facilities since emerging from bankruptcy in 2021, a project that will be complete in October.
Among the major changes are the removal of animatronic bands from all but five locations and the installation of trampolines, digital dance floors, large format video walls, and screens throughout the restaurant. Additionally, an adult menu with offerings outside the chain’s hallmark pizza was added in December. CEC also licensed California Dreamin’ Entertainment for a branded area in a new water park that’s under construction at the former Raging Waters Park in Sacramento, CA.
“Experience is becoming such an important part of that landscape and consumers expect it from anything that they do,” said Melissa McLeanas, VP Global Licensing, Media, and Branded Entertainment Development at CEC. “If are going to have a meal, you expect more value for the time that you are spending. Experiences are really something guests are expecting when they go out and have become a more important part of narrative.”
CEC has paired its experiential strategy with an extensive licensing program that includes toys (Funko, Bonkers Toys, Wilder Toys), apparel (Bioworld), collectibles (Just Funky), and pizza and pizza rolls (Flatlander Foods), the latter having launched recently at the Giant grocery chain.
Restaurants’ move toward expanded experiences comes as many also invest in digital technology like mobile kiosks, double drive-thrus, innovative kitchens, and walk-up windows. It’s all part of an effort to satisfy consumers’ appetite for convenience, personalized experiences, and digital ordering, all of which potentially produce larger orders.
“Customers have a preference for innovative experiences,” said Laura Livers, Chief Revenue Officer at research firm Intouch Insight. “As growth in digital channels continues to surge, creating consistency across customer engagement points will be critical for success. The brands that measure, learn, and pivot quickly will come out on top.”