Drifter's Reccomendation Report Final

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Report on Drifter’s Hamburgers
Submitted to
Management team
Of Drifter’s Hamburgers.
4455 Mark Dabling Blvd,
Colorado Springs, CO
November 23, 2015
By Nathan Houghton and Majed Almohaimeed
Abstract
This recommendation report is completed using APA formatting. The purpose is to identify
the most prominent problems that is holding back Drifter’s from reaching their full
potential. We then provide solutions to remedy those problems. The goal for these
recommendations is ultimately to increase sales for Drifter’s. To accomplish this we will
need to address brand recognition, advertising strategies, hours of operation, and the
physical layout of the location.

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Table of Contents
Abstract ……………………………………………………………………………………………………….. 1
List of Figures ………………………………………………………………………………………………. 3
Executive Summary ……………………………………………………………………………………… 4
Introduction …………………………………………………………………………………………………. 5
Business Profile ……………………………………………………………………………………………. 5
Brand Recognition ……………………………………………………………………………………….. 6
Creating an Identity …………………………………………………………………………… 6
Advertising Strategy …………………………………………………………………………………….. 7
Key Demographics …………………………………………………………………………….. 7
Methods of Advertising ……………………………………………………………………… 7
College Discount ……………………………………………………………………… 7
Loyalty Rewards Card ……………………………………………………………… 8
Flyer Distribution ……………………………………………………………………. 8-9
Hours of Operation ………………………………………………………………………………………. 9
Proposed Renovations …………………………………………………………………………………. 10
Neon Sign …………………………………………………………………………………………… 10
Drive Thru …………………………………………………………………………………………. 11
Summary of Recommendations …………………………………………………………………… 11-12
Conclusion …………………………………………………………………………………………………... 12
References …………………………………………………………………………………………………… 13
Appendix I..………………………………………………………………………………………………….. 14-15
Appendix II ………………………………………………………………………………………………….. 16

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List of Figures
Figure 1 …………………………………………………………………………………………………….. 9
Figure 2 …………………………………………………………………………………………………….. 9
Figure 3 …………………………………………………………………………………………………….. 10
Figure 4 …………………………………………………………………………………………………….. 11
Figure 5 …………………………………………………………………………………………………….. 16

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Executive Summary
Brand Recognition: In order to create an identity to increase brand recognition and brand
loyalty is to create a powerful mission statement and be consistent with that statement in
all of your marketing. What Drifter’s has that is unique to its competitors besides from
being convenient is that everything that goes into your product is more healthy and natural
such as no GMO in your buns or no added hormones in your patties. We propose make this
more central to your marketing campaign.
Advertising Strategy: A key demographic to consider is the age group 18-25. A mile from
the Mark Dabling location is UCCS a college with more than 10,000 students.
Understanding the needs and routines of this demographic is critical to developing an
advertising strategy that caters to their needs. In order to incentivize students to have
breakfast or lunch at Drifter’s instead of all the alternatives we recommend a promotional
discount of 10% to all UCCS students. This is already common among your competition in
the area. College students on campus can spread a message faster than any television ad or
radio spot. Supplementing the student discount with a loyalty card where after so many
purchases you reward that customer with a free meal. This can go a long ways with a
college student doing all they can to eat on a budget.
Hours of Operation: Below is a proposed change in your hours of operation.
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
6:30-9:00 6:30-9:00 6:30-9:00 6:30-9:00 6:30-
12:00
6:30-
12:00
7:00-7:00
Figure 1 (Proposed Hours of Operation)
With the extended hours over the course of a year, your final gross sales attributes to an
additional $62,000.
Proposed Renovations: The Drifter’s sign is very insignificant amongst all that surrounds
that very busy street. The sign also just barely overhangs a large tree, making it even more
difficult to pick out as a customer drives by. Below is an estimate of a neon street sign
excluding the construction.
Dimensions Cost of Sign Cost of Outdoor
Material
Total
24” (h) by 31” (w) $360 $250 $610
Figure 2(Estimate on Neon Sign)
The average time to build a neon sign is 7-10 days. In the QSR industry a key to increasing
gross sales is ensuring there is no unnecessary delay in the drive thru. People choose the drive
thru option for the expedited service and convenience. With the current layout of the drive thru it
removes the convenience factor. We have a proposed layout reference figure 5 in appendix II for
visual illustration.

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Introduction
Thank you for your time and consideration. We believe Drifter’s Hamburgers is one of the
best QSR (Quick Service Restaurants) in Colorado Springs. The brand is unique and the
quality of the food is superior to all of your competitors in the area. There is still much
room for innovation and expanding the brand’s reach while increasing sales in the process.
This proposal is best suited to increase sales and brand recognition by reorganizing and
renovating the Mark Dabling Drifter’s location.
The QSR Industry is highly saturated and competitive. It is very difficult for a small
business to break out in such an environment where you have to compete against the likes
of an international powerhouse like McDonalds and a regional chain like Smash Burger. I
believe Drifter’s has the potential to break out and compete against these chains. Drifter’s
has an excellent product and an excellent location but brand recognition and marketing is
not being utilized to allow Drifter’s to reach its full potential.
A few problem areas we have identified:
 Brand recognition
 Methods of advertising
 Hours of operation
 Layout of the location
Business Profile
Drifter’s first opened in 2008 with its first location in Colorado Springs off of Mark Dabling.
Drifter’s is now a full-fledged franchise with multiple locations in Colorado Springs and
now expanding into the Midwest.
Drifter’s has a real opportunity to significantly increase its sales and join the likes of Smash
Burger as a regional QSR powerhouse. Based on the data from Reference USA; Drifter’s
annual sales is roughly $296,000. Minus the estimated expenses around $200,000 that
locations net income is around $96,000. Addressing the problem areas identified will
increase net sales and ultimately increase net profit.

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Brand Recognition
Building a brand requires a lot of marketing and advertising which usually equates to
spending a lot of money. Based on data from Young (2014) “In a typical year, the top 18
QSR brands produce and place more than 300 thirty second advertisements on national
television.” Now I understand that Drifter’s is not yet a national chain so the need to place
advertisements on national television is not yet there. This just shows how important
marketing and advertisements is for the development of the brand.
Creating an Identity:
In order to create an identity to increase brand recognition and brand loyalty is to create a
powerful mission statement and be consistent with that statement in all of your marketing.
Currently your mission statement off of your website is “Rescuing the reputation of the fast
food hamburger”. This is not a very powerful or identifiable mission statement. We propose
you add to that statement, such as on how you are “Rescuing the reputation of the fast food
hamburger”.
What Drifter’s has that is unique to its competitors besides from being convenient is that
everything that goes into your product is healthy and natural such as no GMO in your buns
or no added hormones in your patties. We propose make this more central to your
marketing campaign. According to Young (2014) “Unfocused advertising actually could
hurt sales” such as “advertising with the primary messaging intent of the categorical
attribute of convenience which so often has negative connotations of poor quality and poor
nutrition throughout the competitive set.” Driving by a Drifter’s there is no real identifiable
features for an individual to pick out and say this is what Drifter’s is all about. Is it a classic
hamburger chain? Or is it a unique healthier alternative with the priority on natural and
quality ingredients rather than cheap processed ingredients with the priority on
convenience.
The fast food industry is changing towards healthier options. One example is through
McDonalds ensuring nutrition facts are visible on its products and marketing more of their
salads and natural chicken options. Noticed by Young (2014) “Subway’s marketing strategy
is quite different: It’s messaging is focused on health…positioning its brand against the fast
food industry which is perceived as unhealthy.” The California surfer theme paired with the
healthier alternative option to McDonalds should be a powerful marketing strategy.

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Advertising Strategy
Based on the data from Reference USA, Drifter’s does not invest heavily into advertising.
With the cost of traditional advertising being very expensive, it’s understandable why more
funds are not being allocated for advertising and marketing. Advertising on a budget is
feasible and effective. One of the most powerful and frugal methods of advertising from
Kennedy (2014) “direct response”. A method of advertising through sales. Before following
through on your marketing and advertising strategy, you must identify your key
demographics.
Key Demographics:
Age Group: 18-25
College: UCCS, UC, and PPCC
A key demographic to consider is the age group 18-25. A mile from the Mark Dabling
location is UCCS a college with more than 10,000 students. According to Mizrahi (2014)
“Product, Price, Place, and Promotion are variables known as the marketing mix or the 4P’s
of marketing. They are the variables that marketing managers can control in order to best
satisfy customers in the target market.” Understanding the needs and routines of this
demographic is critical to developing an advertising strategy that caters to their needs. A
college student or the age group of 18-25 is always looking for a place to eat. Generally they
are on a budget and in a hurry. Other QSR competitors cater to these demographics with
dollar menu options and fast and efficient drive thru. This demographic is also very
concerned and conscientious of their health and physique, which encourages them to also
seek healthy alternatives. This is where Drifter’s has the opportunity to set itself apart from
the competition and live up to its mission statement.
Methods of Advertising:
We have identified the budget constraints and there for the need to advertise on a budget.
As mentioned before one of the most powerful and frugal methods of advertising from
Kennedy (2014) “direct response”. A method of advertising through sales. Below will be a
few recommendations on how to use this approach of advertising.
College Discount:
Just a few blocks from the Mark Dabling location is the University Village where there are
tons of food options including Smash Burger. In order to incentivize students to have
breakfast or lunch at Drifter’s instead of all the alternatives we recommend a promotional
discount of 10% to all UCCS students. This is already common among your competition in
the area.

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Loyalty Rewards Card:
College students on campus can spread a message faster than any television ad or radio
spot. Supplementing the student discount with a loyalty card where after so many
purchases your reward that customer with a free meal can go a long ways with a college
student doing all they can to eat on a budget. According to Investor’s Business (2015) “A
satisfied customer is one of the most effective marketing and advertising tools a small
business can ever have.”
This goes a long way in creating brand loyalty by showing you are catering to your
demographics and rewarding repeated business. A loyalty card is also a very inexpensive
way to accomplish some advertising.
There are two routes you can go with a loyalty reward card; either a punch card or an
electronic rewards card that is specific to that individual customer.
A few benefits with the punch card is that is very inexpensive with minimal time to create.
You need a design and a specific punch that is unique to avoid fraud. A very real downside
is the potential of fraud or collusion with employees and customers. There are a few safe
guards you could put into place to prevent this.
1. Ensure the punch being used is unique and not easily obtained elsewhere.
2. Assign this responsibility to specific employees such as shift managers. This will
reduce the number of individuals who can commit fraud.
3. Ensure the punch is signed over to the next shift manager throughout the day.
4. After closing have the punch put into a secure location, such as a locked cabinet.
Make sure the person responsible of this task logs this action with date, time, and
signature.
With the electronic rewards card you eliminate a lot of the opportunity for collusion and
fraud. The rewards card is created with a specific customer and unique identifier, such as a
number. The downside is this requires more investment in money and time. We see a lot of
businesses start with a punch card and when the environment is right and the extra funds
are there, they then move to the electronic rewards card. One example would be Which
Wich at University Village, they are currently moving from the punch card to the electronic
version.
With our advertising strategy being based on a limited budget and with minimal marketing
and advertising funds we recommend starting with the punch card. The electronic rewards
card is something to keep in mind in the future.
Flyer Distribution:
Another inexpensive method of advertising is creating and distributing flyers. You can
create a flyer for about five cents a copy at office max. The key to creating an effective flyer

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is to have a specific message with a goal in mind. We recommend using this as an
opportunity to get your mission statement out there in the community. On the flyer use the
space to promote your college discount and loyalty punch card.
Here are a few locations that you should consider distributing these flyers to.
 The Lodges
 UCCS
 Sunset Creek
These locations are all within one mile of the Mark Dabling Drifter’s. These locations should
be targeted because they attract your key demographic of 18-25 and college students.
The only way to get access to these locations is to have someone that goes to school at
UCCS and lives at either The Lodges or Sunset Creek. If you have an employee that fits that
role than assign him or her with the task of distributing the flyer. To go along with posting
the flyers compliment those with a handful of loyalty punch cards which will help
distribute the loyalty punch cards into the community.
Hours of Operation
The most cost effective way to increase sales and improve profitability is to address the
days and hours you are open for business. Below is your current hours of operation.
6:30-9:00 6:30-9:00 6:30-9:00 6:30-9:00 6:30-9:00 6:30-9:00 Closed
Figure 3 (Hours of Operation)
Currently this location is open for 87 hours a week. If you take your gross sales and divide
it by the number of hours this location is open, you average $67 an hour. With that statistic
in your mind, lets transition to our proposed hours of operation below.
6:30-9:00 6:30-9:00 6:30-9:00 6:30-9:00 6:30-
12:00
6:30-
12:00
7:00-7:00
Figure 4 (Proposed Hours of Operation)
With this change in hours of operation this will extend your hours from 87 to 105 hours a
week. This is an increase of 18 hours a week. Now if you take the average sales an hour $67
multiply that by the extended hours over the course of a year, your final gross sales
attributes to an additional $62,000. Being safe and assuming that your expenses are going
to be 50% of that gross revenue, you still net an additional $31,000.

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Proposed Renovations
The Mark Dabling location is in prime real estate right next to I-25 and one of the busiest
streets, Garden of the Gods. Because this is such a good location there is plenty of
competition, such as McDonalds and Taco Bell. In order to compete with these power
houses we need to make your location as accessible and inviting as possible. Two physical
renovations to that location we have identified.
Neon Sign:
One of the first steps to attracting a potential customer is to have a large, presentable, and
highly visible business street sign. The Drifter’s sign is very insignificant amongst all that
surrounds that very busy street. The sign also just barely overhangs a large tree, making it
even more difficult to pick out as a customer drives by. Drifter’s does not stand out from the
crowd due to its small street sign compared to its competitors. According to Mizrahi (2014) “The
amount invested into a quality business sign cannot be overstated. Half of all customers who
come into any business do so because of the sign that is displayed out front. It doesn’t
necessarily have to be a branded sign that accomplishes this either – some businesses display
menus, while others display special sales on specific products. Consider the other side of the
equation in that 35% of people wouldn’t even know your business was at its location unless you
have a sign displayed and you can begin to see the importance of having a quality business sign.”
The sign is not a neon sign which greatly reduces its visibility at night. As Colorado approaches
winter the sunset is going down earlier every day closer to 5 p.m. which is prime time for QSR’s
to generate revenue. This is why it is essential to have a neon street sign to attract street traffic
which increases traffic through the store which increases sales and in the process increases brand
recognition.
We used an online business to obtain an estimate Outdoor Neon Signs (2013). Below is a figure
on an estimate.
Dimensions Cost of Sign Cost of Outdoor
Material
Total
24” (h) by 31” (w) $360 $250 $610
Figure 5(Neon Sign Estimate)
These estimates do not include the cost of construction or permits required for construction. The
time associated with building a custom sign is 7-10 days and does not include shipping.

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Drive Thru:
In the QSR industry a key to increasing gross sales is ensuring there is no unnecessary delay in
the drive thru. People choose the drive thru option for the expedited service and convenience.
When either one of these are affected it reduces the desire for a person to choose this option,
ultimately be the deciding factor to take their business elsewhere.
With the current layout of the drive thru it removes the convenience factor. Based on personal
experience and asking people within your key demographic what they think of the Drifter’s drive
thru, a large majority say they are frustrated and confused by its layout. We have a proposed
layout reference figure 5 in appendix II for visual illustration.
Summary of Recommendations
We addressed the problem areas we have identified and provided recommendations. Our
strategy to improve Drifter’s bottom line can be seen in the figure below.
Figure 6 (Increasing Sales)
We addressed the importance on creating an identifiable brand by having a focused
advertising strategy and a powerful mission statement to back it. We identified a target
market with a key demographic of the age group 18-25 and UCCS students.
Due to the lack of funds for conventional advertising we recommended alternative
advertising strategies, such as promotional discount, loyalty rewards card, and distributing
flyers in specific locations.
Recommendations
for Increasing Sales at
Drifter’s
Developing an
Identifablebrand
Using alternative and
affordableadvertising
strategies
Focusing on
renovations and
hours of operation

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After reviewing your current hours of operation we concluded that including Sunday as a
work day and increasing your hours of operation by 18 hours a week, you can increase
gross sales by $62,000.
Lastly we recommended investing in physical renovations to the location, such as putting
up a new neon street sign to attract traffic and potential customers. The drive thru is a
hindrance and does not fill the requirement of fast and convenient and should be re
worked.
Conclusion
We addressed the QSR industry is highly saturated and competitive. In order to compete in
this environment with a restricted budget you need to use creative an alternative methods
for advertising. Creating and developing a brand does not have to involve a lot if
investment in conventional advertising. Targeting your key demographic in an effective
way is an excellent way to gain brand recognition and increase sales. Adjusting something
as simple as hours of operation over an entire year can drastically increase gross revenue.
Making investments into the physical renovations of your location can improve visibility,
brand recognition, and make the location more accessible and convenient for potential
customers.
We know these tangible recommendations if implemented fully will increase sales and
ultimately make your business more profitable. Thank you again for your consideration.

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References
Young, C., & Page, A. (2014). A Model for Predicting Advertising Quality As a Key to Driving
Sales Growth. Journal Of Advertising Research, 54(4), 393-397. doi:10.2501/1AR-54-
4-393-397
Investor's Business, D. (2015, September 16). Restaurant Brands'. Investors Business Daily.
p. A02.
Olge, M. (2014). Sell local, think global (p. 256)
Dan s, K. (2014). No Bs guide to brand building by direct resource (p. 280).
Outdoor Neon Signs | Outdoor LED Signs. (2013). Retrieved November 22, 2015, from
http://www.neonsignworld.com/outdoor_neon_signs.htm

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Appendix I
Nathan Houghton
Experience
Navy Reserve 04/2014-Present
Radar/Camera Operator: Instructor designated manages and evaluate peers and students.
Bartending Academy 05/2014-06/2014
Certified Bartender: 40 plus hours of hand on experience inside a bar atmosphere passing a written and on the job
exam.
Navy Active 04/2008-04/2014
Radar/Camera Operator: Instructor designated manages and evaluate peers and students.
Education
UCCS 05/2015-Present
Business Major specializing in Accounting.
PPCC 05/2014-05/2015
One full year at PPCC to fulfill general credits.
Skills
Adaptability/Flexibility: Ability to perform in high pace environment even when something unexpected arises.
Responsible/Disciplined: 6 years in the Navy I learned to follow directions properly and to take criticism in a
positive manner.
Leadership/Mentor: Instructor designated requiring ability to communicate, manage, and evaluate peers and
students in a professional manner.

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Appendix I
Majed Almohaimeed
6343E Girard PLC. Denver, CO 80222
E-mail: Majedmohaimeed@hotmail.com
(720)-394-9553
Qualifications:
 Excellent communication skills
 Customer Service Oriented
 Eager to work hard and to learn
 Fluent in Arabic and English
 Computer Literate (Microsoft Office, Excel, Power Point and Internet
experience)
Job Experience:
2/2009 – 7/2009 STC (Saudi Telephone Company), Saudi Arabia
 Secretary
o Organized all files
o Prepare everything for all meetings
o Reply to e-mails
6/2012 – 6/2012 Sodexo, Denver CO
 Restaurant
o Waiter
o Worked the register.
o Worked on developing the restaurant.
o Cleaned and organized the restaurant.
Education
 Diploma from Kingdom Private college, Saudi Arabia 2010/2012
 My freshmen year was at Prince Sultan University.
 Current junior year at University of Colorado at Colorado Springs.

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Appendix II
Below is a proposed renovation for the drive thru of the Drifter’s Mark Dabling location.
Garden of the Gods
MarkDabling
Drifters
Parking
Drive Thru Entrance
Use the Mark Dablinglocationasbothan entrance and
exit.Insteadof havingthe drive thruexithave togoin
a circle or through yourneighborsbusinessparkinglot,
remove the parkingandditchto allow traffictoexiton
Gardenof the Gods.
Figure 7 (Proposed Layout)

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