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Wingstop’s streak of same-store sales declines continued into the third quarter, with the chain posting a 5.4% drop.
The brand’s sales struggle came despite marketing strategy shifts, new technology deployments and an increased emphasis on operational consistency.
“While we’re beginning to see positive signals from the changes we’ve made, the improvement in sales performance is taking longer than we initially anticipated, as the macro trends we are seeing among customers have intensified over the last few months,” Wingstop CEO Michael Skipworth said Wednesday during an earnings call.
Skipworth said during previous earnings calls that the chain’s core guest is under significant economic pressure, causing Wingstop’s troubles to be more acute than that of competitors.
To help draw guests back into its restaurants, the chain is focusing on its value messaging and emphasizing group occasions. It is also using artificial intelligence and other tools to send consumers personalized offers and menu suggestions based on guest preferences.
Remaking its marketing message
The chain developed a new marketing strategy to help regain relevance and expand brand awareness.
“Our marketing wasn’t consistently connecting our differentiated food, flavor, and value into a compelling reason to choose Wingstop, particularly around occasions where we have the greatest opportunity to win,” Skipworth said.
Fixing this has meant sharpening its marketing message to drive higher consideration of the brand; as well as using its Club Winstop loyalty program and personalization to deepen guest engagement and increase frequency, Skipworth said.
The chain began rolling out the first changes to its marketing platform in the second week of September, coinciding with the kickoff of the regular NFL season.
The marketing strategy includes front-loading video investments to secure premium placements for its 30-second spots. Wingstop will also use 15-second spots to increase its reach and frequency, alongside its always-on social media strategy which keeps the brand “top of mind.”
“We are concentrating investments around high-relevance occasions, pairing it with creative that more clearly communicates Wingstop quality, bold flavor, and compelling value, and sustained engagement through paid and own channels between those moments,” Skipworth said. “We are leaning into our brand strength, bone-in wing flavor and quality, while ensuring we are clearly communicating value.”
