Modern Pizza Promotions

Pizza Promotions
March 28th, 2016

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www.aaronallen.comCONFIDENTIAL
© 2016 Aaron Allen
INTRODUCTION
A two percent increase in sales for a restaurant is the equivalent of a 10 percent reduction in costs.
It’s a staggering statistic that emphasizes the point that, for foodservice brands looking to boost sales,
nothing beats the perfect promotion.
THE STAKES ARE HIGHER WITH INCREASED COMPETITION
It’s a truth that’s incredibly relevant for the pizza industry. Here in the U.S., the reality of the situation
is that there is now roughly one restaurant for every three people. Pair this with the fact that mega-
chains with mega-marketing budgets to match and the immense power of brand recognition are
quickly and decisively grabbing market share from independents, and you’re left with the reality that
if a brand isn’t distinct, it’s extinct. A well-planned promotion is the perfect way to alert guests to
what separates your brand from the competition.
TWO PERFECT KARATE KICKS IS ALLYOU NEED TO KNOCKOUT THE
COMPETITION
For smaller, independent pizzerias, the good news is that you don’t have to be an expert in every
promotional strategy out there – one or two perfectly executed promotions are more than enough
to grab guests’ attention (and maybe earn some coveted earned media along the way).

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© 2016 Aaron Allen
© 2016, Aaron Allen
WHICH ONE HASTHE HIGHER AUV & GROSS MARGIN?
IMAGE SOURCE: TODAY / Art of Natural Living
Generic pizza boxes, or a custom design steeped in branding?

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© 2016 Aaron Allen
xxx
For the vast majority
of America,there is a
major pizza chain
within a 10-mile radius.
SOURCE: FlowingData

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© 2016 Aaron Allen
Domino’s epic turnaroundcampaign did a whole lot more than generate
1.4 million views onYouTube. It brought the brand back from the brink of
disaster, GROWING SHARE PRICES 3,000% and bringing MARKET
CAPITALIZATION UP FROM $300 MILLION PRE-TURNAROUNDTO
TODAY’S $7.42 BILLION.
AN EPIC TURNAROUND STORY
IMAGE SOURCE: YouTube / Comedy Central

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© 2016 Aaron Allen

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© 2016 Aaron Allen
CROWDSOURCING
Domino’s launched Pizza
Legend, a create-your-own site.
If your new pizza becomes the
most popular,you win your
creation,free, for a year.
By mid-2015, companies built on
crowdsourcing and the
sharing economy represented
$15 BILLION IN FUNDING.
IMAGE SOURCE: Domino’s

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© 2016 Aaron Allen
ENSURING MENU POPULARITY
Through Pizza Mogul, 100,000 NEW PIZZAS HAVE
BEEN CREATED.There are currently 30,000 Pizza
Moguls registered 5,000 fan-made videos on social
media sites promoting Domino’s products for FREE.
IMAGE SOURCE: Domino’s Pizza Mogul

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© 2016 Aaron Allen
HOW IMPORTANT IS PACKAGING FOR PIZZA?
On an average, 3
PEOPLE COME IN
CONTACT with the
typical takeout/delivery
pizza box.
Last year, Domino’s delivered
400 million pizzas, meaning
roughly
1.2 BILLION PEOPLE CAME
IN CONTACTWITHTHEIR
PACKAGING.
IMAGE SOURCE: UnderConsideration

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© 2016 Aaron Allen
Here in the U.S., Domino’s
digital sales account for
50% of all orders. But IN
THE U.K.WHERE 1 IN 8
PEOPLE DOWNLOADED
THE APP, 75% of sales
come via digital channels.
Customers spend 15% to
20% more when they
order online
DOMINO’S APP DRIVES HUGE SALES BOOST
IMAGE SOURCE: Mobile Commerce Daily

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© 2016 Aaron Allen
With the launch of Domino’s
Twitter and emoji order
systems, the brand hopes to
further boost mobile sales.
TWEETTO EAT
Starbucks #tweetacoffee program
generated $180,000 in sales in the first
three months,with 36,000 people
tweeting friends a gift card (32% of
which were used the same-day).
IMAGE SOURCE: The Telegraph

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© 2016 Aaron Allen
Within the first four months of implementing Xbox ordering,
PIZZA HUT’S XBOX LIVE PROGRAM DID MORETHAN
$1 MILLION IN SALES.
PIZZA WHILE PLAYING
IMAGE SOURCE: Digital Trends

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© 2016 Aaron Allen
Following the successful launch of Pizza Hut’s Xbox program,
Domino’s is also launching an Xbox ordering platform. But
they’ve taken convenience engineering one step further.
TO OPENTHE APP, YOU JUST HAVETO SAY
“DOMINO’S,FEED ME.”
“DOMINO’S, FEED ME!”
IMAGE SOURCE: The Motley Fool

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© 2016 Aaron Allen
FOOD DELIVERY ORDERS MADE INTHE U.S.

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© 2016 Aaron Allen
Domino’s new car guarantees the order
will be oven-fresh hot and ready to serve.
THE LATEST IN DELIVERY CARS
IMAGE SOURCE: CBS

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© 2016 Aaron Allen
While a $10,000 drone won’t likely replace your average pizza
delivery person, the 1.7 MILLIONYOUTUBEVIEWS DOMINO’S
EARNEDWITHTHE DOMICOPTER STUNT made this a sound
investment.
THE FUTURE OF DELIVERY?
IMAGE SOURCE: CNN

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© 2016 Aaron Allen
LEARNING FROM UBER
Pizza Hut is set to introduce
a delivery tracking app that
takes a page out of Uber’s
playbook.
With over 8 million users taking 1
million rides every day, UBER IS NOW
VALUED AT $50 BILLION. In San
Francisco (Uber’s home), the company
now sees a market share of 71%.
IMAGE SOURCE: Entrepreneur

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© 2016 Aaron Allen
TAKING IT A STEP FURTHER
Over half of Domino’s national
sales come from digital channels,
making smartwatch ordering the
next logical step for the tech-
savvy food company.
In Q4 2015, more people
bought smartwatches than
traditional Swiss timepieces
– 8.1 million to 7.9 million.
IMAGE SOURCE: YouTube

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© 2016 Aaron Allen
DELIVERY ANYWHERE
While most companies won’t
drop off a delivery without a fixed
address, Domino’s in the
Netherlands is looking to take
over this market.
U.S. State and National
Parks see nearly
1 BILLIONVISITS A
YEAR.IMAGE SOURCE: Jedemi

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© 2016 Aaron Allen
DOMINO’S ALEXA ORDERING
Too much convenience?
Domino’s introduced its Alexa
ordering platform just in time
for the 2016 Super Bowl – a
day the brand hoped to sell 12
million pizzas.
IMAGE SOURCE: Gizmodo / PulseHeadlines

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IMAGE SOURCE: BusinessWire

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© 2016 Aaron Allen
While the typical commercial broadcast during
the Oscars costs $1.8 million,Big Mama’s and
Papa’s pizzeria got $10.8 million worth of free
advertising when Ellen spent three minutes
distributingtheir pizza on liveTV.
THREE MINUTES OF FAME
TANGIBLE BENEFITS
Estimated sales lift is
500% and the brand’s
website received 60,000
views within an hour of
the broadcast
IMAGE SOURCE: Business Insider

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© 2016 Aaron Allen
SIGNATURE SUCCESS
More than 70% OF PEOPLE say they like
their favorite restaurant’s signature menu
items – like Pizza Hut’s Deep Pan pizzas.
IMAGE SOURCE: Pizza Hut

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© 2016 Aaron Allen
Pizza Hut Canada took an unusual approach to promoting its
signature sauces while celebrating 250,000 Facebook views,
creating a musical dipping system that generated nearly 49,000
YouTube views.
SINGING SIGNATURE SAUCES

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© 2016 Aaron Allen
Pizza Hut Australia made the news by adding a new ingredient
to its pizza (and filming the reactions when non-Australians
took a bite of the vegemite).
CONTROVERSIAL INGREDIENTS IMAGE SOURCE: Mirror

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© 2016 Aaron Allen
While here in the U.S. 94% of all pizzerias have a check
average under $10, Domino’s Japan introduced a $66 Kobe
Beef Steak Pizza.
A $66 PIZZA
IMAGE SOURCE: Serious Eats

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© 2016 Aaron Allen
4 of every 10 American families own dogs. And while the
$23 billion dollar U.S. pet food industry pales in comparison
to pizza sales, it does present an interesting product
opportunity.
PIZZA FOR PETS
IMAGE SOURCE: Petfood Industry

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© 2016 Aaron Allen
GAMIFICATION AT ITS FINEST
Hell Pizza in New Zealand turned its boxes into iPhone/iPad
games that connected with the branded app resulting in a
viral sensation that was DOWNLOADED IN EIGHT
COUNTRIES over 30,000 times.
IMAGE SOURCE: BuzzFeed

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© 2016 Aaron Allen
Hell Pizza in New Zealand
also released mini pizza
coffin packaging that helps
guests store the last slice
of pizza.
FUNCTIONAL BRANDING
90% of consumers
REUSE PRODUCT
PACKAGING.
IMAGE SOURCE: Slate

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© 2016 Aaron Allen
Pizza Hut developed a box that also doubles as a movie
projector – kind of like Google Cardboard (a project that
now has over 25 million apps, with users collectively
spending over 350,000 hours watching content onYouTube).
PACKAGING PROJECTIONS
IMAGE SOURCE: Business Insider

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© 2016 Aaron Allen
CaliforniaPizza
Kitchen uses a box
that’s designed to
make reheating
pizza easy.
35% of Americans won’t eat
leftover pizza UNLESS IT’S
BEEN WARMED UP.
VENTILATED PACKAGING
IMAGE SOURCE: Slate

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© 2016 Aaron Allen
Pizza Hut added thermal
indicators to delivery boxes to
ensure all deliveries were served
at the proper temperature.
Consumer interest
INCREASES 30%
when brands show a strong
attention to packaging.
THERMAL INDICATORS
IMAGE SOURCE: Wired

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© 2016 Aaron Allen
66% of consumers say they always look at ingredients
before making a food purchase decision. Actually
seeing the cheese is what makes Screamin’ Sicilian's
packaging so compelling.
SHOW, DON’T TELL IMAGE SOURCE: Pinterest

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© 2016 Aaron Allen
Pizza Hut Canada brought in an
artist to create custom designs
for the inside of its pizza boxes.
They also live-cast the whole
thing onYouTube.
52% of online consumers say
they’d buy from a brand again
if the product is delivered in
PREMIUM PACKAGING.
PERSONALIZED PACKAGING IMAGE SOURCE: YouTube / Adweek

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© 2016 Aaron Allen
Last year, pizza was the most
posted food on Instagram.But
people are also posting pictures
of their favorite packaging.
40% OF CONSUMERS
WILL SHARE PHOTOS OF
STAND-OUT PACKAGING.
#PIZZABOX
IMAGE SOURCE: NeapolitanExpress / Instagram/ Bustle

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© 2016 Aaron Allen
While it’s estimated that mobile-only campaigns generate
a 2-to-1 return, CROSS-DEVICE MARKETING SEES A
22-TO-1 RETURN ON INVESTMENT. Check out Papa
John’s integrated QR code.
MAKE PACKAGING WORK FORYOU
IMAGE SOURCE: Mobile Marketing

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© 2016 Aaron Allen
In an effort to relief the global issue of
world hunger,Pizza Hut created the
"Share a Slice of Hope" movement for
the 2011 World Hunger Relief
Campaign.
DELIVERING A SLICE OF HOPE
Cause sponsorship is
predicted to reach $2
BILLION in 2016, a
projected increase of
3.7% over 2015.
IMAGE SOURCE: Foodbeast

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© 2016 Aaron Allen
Pizzeria Piccola turns over the keys to local
charities twice a month for Society Sundays.
In exchange, 10% of the night’s profits and
100% of the tips go to the participating
organization.
90%
of consumers are
likely to switch to
a cause-related
brand.
DONATINGYOUR KITCHEN
IMAGE SOURCE: Pizza Piccola

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© 2016 Aaron Allen
Pizza & Love in Barcelona is
marketing itself for its
sustainable practices of
sourcing organic ingredients
for all recipes.
42% of North AmericansWOULD
PAY EXTRA for services from
companies committed to positive
social and environmental impact.
SUSTAINABLE SUCCESS
IMAGE SOURCE: Ads of the World

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© 2016 Aaron Allen
Merchandise from Hut Swag, a
Pizza Hut initiative range from $15
to $50.The company promises to
donate 100% of the profits to
World Food Program.
A hefty 84% OF
MILLENNIALS
made a charitable
donation in 2014.
FASHION INSPIRED DONATION
IMAGE SOURCE: Live105

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© 2016 Aaron Allen
BellaVista Pizzeria, California allows
customers who call to be connected
to a student in São Paulo who can
take the order.If they chose the latter,
they're rewarded with discounts.
TEACHWHILE ORDERING
64% of Americans prefer
brands that ACTIVELY
INTEGRATE SOCIAL
IMPACT INITIATIVES into
their business models.

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© 2016 Aaron Allen
INVEST IN LOYALTY
Domino’s
introduced Piece of
the Pie Rewards to
capitalize on repeat
customers.
Up to 15% of a business’s most
loyal customers ACCOUNT FOR
55% TO 70% OF THE
COMPANY’STOTAL SALES.
IMAGE SOURCE: Fast Food Geek

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© 2016 Aaron Allen
Pizza Hut celebrated
Super Bowl’s golden
anniversary by delivering
50 gold-flaked pizzas to
its 50 contest winners.
CONTEST PROMOTIONS
Almost 3 OUT OF 4 PEOPLE are
likely to RECOMMEND A BRAND
THAT OFFERS COMPETITIONS
AND GIVEAWAYS.
IMAGE SOURCE: Consumerist

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© 2016 Aaron Allen
23% of customers want restaurant operators to use
technology to ALLOW CUSTOMERS TO PARTICIPATE
AT EACH STAGE OF THEIR DINING EXPERIENCE.
ENRICHTHE ONLINE EXPERIENCE
IMAGE SOURCE: Twitter

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© 2016 Aaron Allen
The Click’N’Pizza
button brings one-
click ordering to the
table.
14% OF ALL IMPULSE
PURCHASES ARE
FOOD ITEMS.
PIZZA ATTHE PUSH OF A BUTTON IMAGE SOURCE: Time

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© 2016 Aaron Allen
Ordering Papa John’s online for a party?
You and your guests can now split the digital
bill.
SPLITTING ONLINE ORDERS IMAGE SOURCE: Foodbeast

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© 2016 Aaron Allen
SIGNAGE SIGNIFICANCE
Nearly 76% of consumers enter a store they have
never visited before based simply on its signs. About
67% of the consumers purchase a product or service
because a sign catches their eye.
IMAGE SOURCE: Twitter

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© 2016 Aaron Allen
HUMOROUS SIGNAGE
24% OF GUESTS immediately visit a business
because of an outdoor ad message.Take a look
at these catchy pizza signs.
IMAGE SOURCE: TheChive

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© 2016 Aaron Allen
FREE WIFI
61% OF CUSTOMERS ACTIVELY LOOK FOR FREE
WIFI IN RESTAURANTS. 27% say they visit
restaurants offering this convenience more frequently.
IMAGE SOURCE: Flickr / Yelp

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© 2016 Aaron Allen
Yellow Pages in Melbourne,Australia launched a pizza scavenger
hunt campaign where those who found the hidden pizza parlor got
a free pie.THESE “FIND US IFYOU CAN”TACTICS RESULTING
IN 2,000 FACEBOOK FANS AND 1,800TWITTER FOLLOWERS
IN JUSTTWO DAYS.
FREE PIZZA IFYOU CAN FIND IT
IMAGE SOURCE: Favorite Website Awards

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© 2016 Aaron Allen
Pizza Hut is testing out a new way to order, letting guests at
300 locations across the U.K. pick their toppings by looking at
them using eye-tracking software on a tablet.
A NEW WAY TO ORDER
IMAGE SOURCE: Washington Post

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© 2016 Aaron Allen
Taking digital menu boards
one step further,Pizza Hut
tested out interactivedigital
tables that let guests build
their own pizza.
BUILDYOUR PIZZA ONTHETABLE
74% of diners rank the ease of reading a
menu among their top restaurant concerns.
DIGITAL MENU BOARDS GIVE A
3%TO 5% SALES LIFT.
IMAGE SOURCE: FileHippo

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© 2016 Aaron Allen
Galactic Pizza uses simple and
cost effective 3D menus,
effectively extended their
concept to the ordering phase
of the guest cycle.
GAME-CHANGING MENU EXPERIENCE
Redesigning your menu,
can increase business up to
10%.IMAGE SOURCE: Chef Amber Shea / The Adventures of Teresa and Luna

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© 2016 Aaron Allen
Pizza Pilgrims,a NewYork-
based pizza company
posts a lot of endearing
photos of their staff on
Instagram.
HUMANIZINGTHE BRAND
78% of engaged employees
RECOMMEND their
company’s products or
services.
IMAGE SOURCE: Wink Online Marketing

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© 2016 Aaron Allen
As a light-hearted yet cheeky
response to BritishAirway’s look-up
campaign,Domino’s spoofed a
look-down campaign to recognize
its pizza delivery workers.
RECOGNIZINGTHE DELIVERY GUYS
Being a delivery driver
is one of the top 10
most dangerous jobs in
the U.S..
IMAGE SOURCE: The Drum

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© 2016 Aaron Allen
FRIENDLY COMPETITION
Friendly internal
competitions to drive
performance,
productivity and
motivation.
IMAGE SOURCE: NPR
To help emphasize transparency and
encourage its team to achieve the
highest levels of performance,Domino’s
displays key company stats in-stores,
making use of friendly competitions.

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© 2016 Aaron Allen
SOCIAL ASSOCIATE ENGAGEMENT
ONLY 25% OF EMPLOYEES say that they are
actively encouraged to participate in company-
sponsored social media. Domino’s, on the other
hand, regularly features employees on social media.
IMAGE SOURCE: Pinterest

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© 2016 Aaron Allen
ENSURE RESPONSIVENESS
95% of users use their phone to SEARCH FOR
RESTAURANTS. 90% convert within 24 hours, and an
astonishing 60% CONVERT WITHIN ONE HOUR.
IMAGE SOURCE: Union Room

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© 2016 Aaron Allen
VISUALLY DYNAMIC VIDEO BACKGROUNDS
The average user spends 88% MORETIME
ON A WEBSITE WITHVIDEO. Check out
Papa Murphy’s website for an example.
IMAGE SOURCE: Papa Murphy’s

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© 2016 Aaron Allen
EVERYONE LOVES BIRTHDAYS
BIRTHDAY EMAILS
have a 481% HIGHERTRANSACTION PER EMAIL rate and GENERATE
342% MORE REVENUE PER EMAIL than traditional promotional emails
– something Home Run Inn takes advantage of with its birthday
promotions.
IMAGE SOURCE: Home Run Inn

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© 2016 Aaron Allen
Domino’s UK joined Snapchat
this year, launchinga 24-hour
video story to promote the
brand’s latest social media
endeavor.
DOMINO’S UK JOINS SNAPCHAT
Even though Snapchat has 20% of
Facebook’s users, the platform sees 8
BILLION DAILYVIDEOVIEWS –
that’s nearly the same as Facebook.
IMAGE SOURCE: We Are Social Media

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© 2016 Aaron Allen
Aaron Allen & Associates provides strategic marketing, concept development and
executive-level advisory services to leading foodservice and hospitality companies
worldwide. We identify and distill the latest restaurant and hospitality marketing trends. We
prepare tailored presentations for executive management of growth-minded companies,
and then support the development and implementation of innovative restaurant marketing
initiatives within their system.
Collectively our clients post more than $100 billion in global sales and span more than 100
countries across all six inhabited continents. We have worked with a wide range of clients
including high-volume independent operators, multi-billion dollar restaurant chains, hotels,
contract foodservice providers, manufacturers, distributors and trade associations. We have
direct consulting experience in nearly all cuisine types and operating models.
ABOUT AARON ALLEN & associates

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© 2016 Aaron Allen
www.aaronallen.com
United States
390 North Orange Ave
Suite 2300
Orlando, Florida 32801
407-936-1010 (US)
(866) 436-4002 (US fax)
Central Europe
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Október 6. utca 17,
Budapest, Hungary
+36-1-798-3578 (Europe)

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