IHOP: Hobe is a better strategy than Hope

The internet rolled its collective eyes yesterday at IHOP’s “rebranding” of itself to IHOB. It is unclear if this new name will stick, but I think this stunt has accomplished what it was supposed to.

In today’s world of collecting customer data, developing lookalike audiences, finding your audience in the digital world, and determining the perfect message for the perfect moment for the perfect recipient – this stunt sliced right through the clutter. Yes, it is a stunt, and the jury is still out on how it performed, but it is not without its merits.

Here are my two arguments FOR the IHOB stunt.

Meal Shift

How many chain restaurants do you regularly eat multiple meals at? As in, are there chain restaurants you eat breakfast and lunch, or lunch and dinner at regularly? For me, Chipotle kind of checks this box, but its still more of a lunch place for me. When a brand has been built around a specific meal, as IHOP has, it can be very difficult to convince consumers to visit you at a different time of the day. I’ve been to a Panera for dinner before. It was not a fun meal, but I’ve never waited in a shorter line.

Apparently, IHOP had already been serving burgers. Who knew? Well, now everyone does. Burgers are clearly a lunch or dinnertime meal, so they’ve gone a long way towards convincing customers to consider IHOP as lunch or dinner option.

Buzz

There is no doubt this was a publicity stunt. Will it win awards at Cannes Lions? I honestly have no clue. What I do know is that according to the WSJ, online mentions of IHOP soared to 362,000 from June 3-June 11 compared to 21,000 in that same time period in the month of May. This is all due to the fact that the company has announced to the world that their menu is staying the same! Remember, they have been selling burgers for years. This lift is purely due to its marketing stunt. The goal of a marketing stunt is to generate buzz. Mission accomplished.

Now, take a look at the tweet from ESPN personality Trey Wingo below. He, like many others on Twitter, dove head first into the social media response to the IHOP rebranding. With all the burger chains jumping in on the fun, he has observed that June 11, 2018 was the day of the “burger wars”. In a way, this puts IHOP on equal footing with Wendy’s, Whataburger and others in the battle to serve America its burgers.

The looming question

The big question here is not whether IHOP can become King of the Burgers – it won’t. It is whether this extension of its brand into different mealtimes will damage its breakfast-oriented brand. The bet IHOP is making is that its brand is so strong for breakfast, that they have no reason to worry about losing share of the breakfast category in the QSR industry. Judging by some of the internet’s incredulity that IHOP could change its name to anything other than “pancakes” – it seems like this is a pretty decent gamble.

Even if IHOP is not going toe-to-toe with McDonald’s in burger sales within the next few years, they are likely to see an uptick in lunch and dinnertime traffic. Anyone that starts going to IHOP for lunch/dinner after this stunt is unlikely to think that IHOP has completely abandoned pancakes and stop going there for breakfast. Therefore, any lunch/dinnertime traffic will be incremental and a win for IHOP.

There is a chance that there is no uptick in burger sales or lunch/dinner traffic. While that could fairly be viewed as a failure, there is no putting the genie back in the bottle for the amount of chatter the IHOP brand has generated in the past week. Time will tell what happens with burger sales and its brand.

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