Red Robin Gourmet Burgers Inc. (RRGB) said that it plans to include television media in support of its spring 2010 limited time offer or LTO promotion beginning in mid-February. The Company plans to expand its television media to advertise its new spring 2010 LTO menu promotion using national cable television, together with local television in select markets. The television media support will run over four of the eight weeks of the product promotion.
The total cost to the Company of the first quarter television advertising campaign is expected to be approximately $6.7 million. Additional marketing support for the spring 2010 LTO will include on-line digital media and in-restaurant promotional materials.
Based on the results of the spring 2010 LTO promotion, television advertising may be used to support the remainder of Red Robin's LTO promotions in 2010, but no decision on subsequent campaigns has been made. The Company and its franchisees will continue to contribute 0.25% of system-wide revenue to support a national digital media campaign in 2010. Decisions to expand the national media fund contribution after the first quarter of 2010 have not been made.
Based on the current development schedule, between 11 and 13 new company-owned Red Robin restaurants are expected to open in 2010. Franchisees are expected to open four to five units in 2010.
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