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Red Robin Drops TV Ads, Embraces E-Media

Red Robin Gourmet Burgers has decided that television advertising is so last year. It’s also so expensive, and ineffective to boot.  As a result, the chain is cutting marketing spending this year and shelving the “Department of Deliciousness” TV spots it aired last year. That includes the spot that used the tired “Which one ate the spicy food? Why it’s the person with smoke coming out his ears!” joke (see the video below, and then see Taco Bell’s spot for Volcano Tacos).  

In 2008, the 423-restaurant chain spent 3.8% of sales on advertising and marketing. This year, that will be cut back to 2.5%. “Given the current economy and questionable effectiveness of television advertising in this environment…we decided to focus 2009 budgets on more focused traffic- and retention-driving initiatives,” the company explains in recent SEC filings.

Last year’s TV spots promoted the specialty burgers that the company says accounted for 56% of its total food sales last year (which were $854.7 million by its 294 company-owned restaurants). Burgers still will get attention, but watch for online promotions such as its “Red Robin e-Club” on its Web site, more direct-mail (likely spotlighting new burgers and the chain’s signature “bottomless steak fries” offer) and local-area marketing. The company also says it will seek to make more friends with a new guest-retention program.

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