Einstein Brothers Retired As Bagel Chain Turns Gourmet

After nine years in the bagels-and-cream cheese business, Einstein's Bagels' cartoonish mascots are being phased out, as the chain goes gourmet.The bagel-mongering brothers have represented Einstein's Bagels since the company's start in Ogden, Utah. Now part of the Golden, Colo.-based New World Restaurant Group, Einstein's is getting a makeover to an upscale café and sandwich shop. Einstein's 371 locations (in 33 states) are being relaunched as sit-down cafés, serving "real food with real forks on real plates," said Monica Hahn, svp of marketing. Thomas Taber & Drazen in Denver was enlisted in February, following a review, to handle advertising to back the chain's rebranding as a comfortable restaurant where patrons can "sit and do business, relax and eat with friends," said Bryan Thomas, the shop's CEO.Advertising, set to break next month, will attempt to help consumers make the leap to seeing Einstein's as a gourmet café rather than merely a bagel shop. TTD's work will rely on "a brighter, more modern color palette" than previous bagel browns that dominated ads and the company's stores, Thomas said. "It's a virtual office, with high-backed booths, [free] wireless Internet access, magazine racks, things that create the desire to linger a little bit," Thomas said.Spending was not disclosed. Einstein's spent only $150,000 on advertising in 2004, according to Nielsen Monitor-Plus. That was down significantly from 2003's spend of $3 million, when broadcast and print was handled by Denver independent McClain Finlon on a project basis.TTD will test advertising on TV, radio and the Internet, and then expand the messages and media that resonante most strongly, Thomas said.Despite the majority of Einstein's traffic coming between 6 a.m. and 11 a.m., the chain's breakfast bagel sales have been slipping. "It became clear that we really had to understand the Einstein brand, then decide where we wanted to go with it," Hahn said. "Consumers' tastes have evolved, and the aging boomer population is more educated about food. We now consider food as a way to treat ourselves well."According to consumer market research firm NPD Group, fresh bagel sales made up 12.8 percent of breakfast sales in 1998, but were down to 9.3 percent last year. Einstein's sales last year were down 2.3 percent to $348 million, according to the company. By comparison, Panera Bread Co. in St. Louis, which fills the space Einstein's is aiming for, last year reported $479 million in sales, up 35 percent from 2003, according to Hoover's Online. "The challenge for TTD is to make customers understand why we made the change ... and understand what's different," Thomas said. Einstein's has already redone five restaurants in Colorado, and will continue to roll-out its relaunch on a market-by-market basis; a complete changeover is expected by next year. While bagels will still be served, the menu will also include artisanal bread sandwiches, along with low-fat, low-carbohydrate, vegetarian and dessert choices.A new logo and interior design to back the concept was developed by Chute Gerdeman in Columbus, Ohio.

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Einstein Brothers Retired As Bagel Chain Turns Gourmet

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