IHOP: A Case Study for Business Success

The art of growing a business is an ever-changing one – but the rate of change has increased significantly in recent years. New technological developments and new challenges alike require lightning-fast response and innovation for a business to stay relevant.

It can be difficult to know exactly how to alter your approach to growing your business when attitudes change and marketing techniques fade out of fashion with speed.

In cases such as these, it can be helpful to look at the models of another successful business, to see if any lessons can be learned.

Specifically, it is a case study of a struggling business that has successfully leveraged new techniques and appetites to remain relevant and profitable. One such company is IHOP – and here’s why.

How did IHOP Manage to Become So Succesful?

IHOP has been a huge name in the breakfast dining industry for a while. However, the famous brand has managed to reinvent itself drastically with the aid of some clever marketing tactics.

Therefore, understanding these marketing tactics can actually help you understand the fundamentals of rebranding. Hence, follow along.

Enduring Success and a New Approach

IHOP, or International House of Pancakes, has been a household brand for decades. Originally a Californian breakfast spot with three locations, IHOP eventually went national as a franchise business specializing in breakfast items such as the titular pancake.

Today, there are well over 1600 IHOP restaurants across the country, with even more in Central and South America.

Despite the success of IHOP’s self-created parent company in the early 21st century – bolstered by the cash purchase of Applebee’s – IHOP was a stagnating brand in dire need of a pick-me-up.

To increase interest in the franchise and grow reach, IHOP marketing did the bold and the unthinkable: messed with the name. To announce a new menu including dinner items like burgers, IHOP announced a name change to IHOB or International House of Burgers.

The name change was a form of outrage marketing designed to spur controversy and conversation surrounding an enduring brand – and it worked.

Catering to New Demographics

The IHOP name naturally didn’t last long, but the increase in custom did. IHOP’s next step was to expand its menu yet further but with a focus on accessibility.

With the introduction of their first plant-based vegan breakfast menu item in February, they acknowledge and cater to a relative minority of the consumer population. In so doing, though, they are growing their profile as an earnest franchise.

PanCoins

With a temporary name change that successfully alerted customers to a new menu – and eventual provisions within that menu for a new demographic of consumers – IHOP had one thing left to do: find a way to retain new customers.

A pre-existing loyalty program, “MyHop” allowed customers access to exclusive discounts and coupons, something that today’s digitally switched-on consumers are less enamored with.

Cue the “International Bank of Pancakes”. IHOP leveraged public discourse around digital cryptocurrencies to launch their own currency, the “pancoin”.

PanCoins are their updated loyalty program, providing new benefits to their consumers and, as a result, themselves. PanCoins are earned through spending and can be spent on food items online or via QR code. Loyalty points are nothing new, but PanCoins are generously given and uniquely marketed.

Key Takeaway from IHOP Marketing

IHOP marketing has really made a huge impact on the business landscape. The way the brand reinvented itself is simply remarkable. However, we are not done yet.

In this guide to restaurant branding, we will be looking at some important takeaways from IHOP marketing that every entrepreneur should think of involving in the basics of a restaurant marketing plan.

Hence, follow along to learn things to know if you’re starting a restaurant.

Innovate Your Brand’s Identity

A restaurant is heavily dependent on maintaining an identity. That is the true way to make an impact on the audience. You might be making the fluffiest pancakes.

However, the customer would go to a mediocre pancake joint just because they are better at branding themselves. This is why we should take heed of IHOP marketing and rebrand or innovate a unique identity.

A unique identity can help you attract the audience’s attention. This is what good marketing does: bring back people even if the product is mediocre.

However, this is easier said than done. Hence, we suggest you get help from an experienced branding expert.

Engage Using Story

One of the most useful techniques for captivating people’s attention is brand storytelling. Brand storytelling can help businesses to personify their brands in a way that almost feels human.

Brand storytelling is all about banking on the emotions of the people. Try to find that one point of relatability with your audience. This would enable you to connect on a more fundamental level.

This can greatly help your cause by adding human elements to your business.

Using the Social Media

Social media is one of the most important and useful tools for entrepreneurs. You can really connect with people around the globe from the comfort of your living room.

As a result, using social media effectively can help you understand what your audience wants to see. Consequently, helps you engage audiences with more ease and effortlessly.

Therefore, do not forget to use social media to reach your target audiences. The best way to get noticed is to use the reels or shorts format of social media to create good, low-cost, skits or videos to engage the audience.

Create Experiences, Not Food

The final piece of advice that we have might sound vague. However, you must consider creating experiences and not food. Everyone is selling food. You need to sell your brands.

You cannot be selling pancakes and start a restaurant chain. Therefore, consider selling experience. Something that compels people to come to your eatery every chance they get.

The End

In summation, these are all the important points that you need to remember if you are planning on replicating IHOP marketing.

All in all, you must remember that you need to be very careful when you are planning on starting an eatery business. Since replicating would only take you to a certain level and not beyond it.

Therefore, keep that in mind and keep following us for more.

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