The Bagel Grows Up
It's one of those quirky cultural dividing lines that separate
yesterday from today. For example, anyone who is in his mid-20s
or younger has no experience of a world without compact discs or
personal computers. Similarly, this same group has no idea that the
bagel wasn't always an All-American bakery treat.
This last becomes noteworthy as Bruegger's, the Vermont-based
company that deserves much of the credit for the introduction of
authentic kettle-boiled bagels beyond New York City, celebrates its
silver anniversary this month. The brainchild of co-founders Nord
Brue and Mike Dressell, Bruegger's was launched in 1983 at a time
when, according to the company, fewer than one-third of Americans
had ever tasted any kind of bagel. Those who had generally encountered
a baked or frozen grocery store product that was essentially a
bland doughnut-shaped bun. Today's Bruegger's boasts 13 straight
quarters of increased sales and is part of the Sun Capital family of
restaurants, but is still not the largest player in the $1.5 billion bagel
restaurant category. Despite that, the 260-unit 21-state enterprise
takes considerable pride in its pioneering role.
Jim Greco, Bruegger's CEO, confirms that the chain's 25th anniversary
is certainly a time to celebrate the bagel. While he believes
Bruegger's also deserves to be acknowledged for additional culinary
contributions he fully respects the importance of the chain's menu
icon. "The bagel is the signature product upon which we really built
our reputation and for which we are best known," he says.
While authentic bagels in tempting flavors topped with exotic cream
cheese are likely to come to mind when contemplating Bruegger's,
Greco points to the chain's larger mission. He explains that the chain
was instrumental in advancing the bagel beyond its role as a breakfast
staple, and that its featuring lunch items really broadened the bagel
concept. With a fair degree of validity, he notes that the chain might
well be considered an early entrant in the fast-casual marketplace.
"Really it was Bruegger's and one or two others who were the
forerunners of the quick-casual concept," Greco says. "The idea of
something between fast food and casual dining, featuring better
ingredients and a better-for-you menu in a nicely designed counterservice
environment didn't exist on a national chain basis when
Bruegger's started out."
Although neither Greco nor newly appointed Vice President
of Marketing Paula Doyle participated in the early days, there is a
solid sense of market positioning that's been built up over the years
upon consumers who are loyal and sophisticated. Greco reports it
is always surprising to enter a new market and discover customers
who have lived somewhere else and have been craving a Bruegger's
store. "It's not quite like any other concept with which I've been
involved," he admits.
While plans call for 290 units to open by year's end, one of the
keys regarding the marketing program is that the chain exists in
only 26 designated marketing areas (dma). Thus, at approximately
10 units per DMA, Bruegger's can make effective use of print, radio,
and direct mail. Also, according to both Greco and Doyle, the chain
is culturally dedicated to hosting and sponsoring a wide array of
community events, especially ones that help build and support local
charitable causes.
Nationally directed promotions and product introductions—ranging
from the red, white, and blue bagels on the 4th of July to a
summertime introduction of iced coffee that involved shipping "a
mountain of snow" to a Tallahassee unit—are judiciously selected
and managed. All in all, though, many of the chain's key promotional
features, such as free Wi-Fi and a hard spec for Fair Trade coffee,
simply reflect an appreciation of the chain's upscale clientele. "We
did a research study this year," Doyle says, "And it's clear that we
need to be in tune with a pretty upscale and sophisticated guest."
And then there's that invaluable loyalty factor. Greco says the
chain's most popular promotion offer is the "bottomless mug club."
Customers pre-pay between $99 and $119 for all the coffee, tea,
and/or soft drinks that can be consumed in a year. "It's a great way
to embrace the loyalists," Greco says.
Those loyalists, and even Bruegger's more casual customers,
should hardly be surprised to discover that the chain's 25th anniversary
celebration will be an homage to the boiled then baked specialty
item that got it here. Joining the chain's traditional bagel assortment,
and such specialty items as the Softwich (a softer square-shaped
bagel) and the Pretzel Bagel ("looks like a bagel and tastes like a
pretzel") will be some promotions like $4.99 for a dozen bagels.
Also on tap is a new 25th anniversary logo and lots of free cake and
balloons on the February 1 anniversary date.
"We're burning a lot of brain cells to determine what is needed
and to keep it going," Greco says. "That means constant effort to
keep things fresh in terms of message and product and day-to-day
execution in the bakeries."
Steve Weiss, a CIA graduate and veteran foodservice editor, is director of trends research with Near Bridge Consulting. Weiss can be reached at steve@qsrmagazine.com.
