Bozell, Client Could Not Agree On Compensation
LOS ANGELES--The International House of Pancakes launched an agency search for the creative portion of its $30 million-plus account last week after reaching an impasse with its longtime agency, Bozell Worldwide.
The Glendale, Calif.-based restaurant chain and Bozell will officially sever their relationship at the end of the year, agency executives confirmed.
"We mutually agreed to part company because we couldn't arrive at a compatible compensation plan," said Phil Salvati, president of Bozell's Costa Mesa, Calif., office.
True North Media's Los Angeles office will continue to buy media for IHOP's Southwest and Northwest markets, he added. Most of the rest of the client's media buying duties are handled in-house. The client earlier this year considered putting its California and Texas buying duties in review, but decided against it.
Executives at IHOP in Glendale declined to comment.
The restaurant account was the Costa Mesa office's oldest, stemming from its earlier incarnation as Salvati Montgomery Sakoda in 1982. The agency was later acquired by Bozell Worldwide, then became part of the True North acquisition.
Bozell's campaign for the past five years has featured a roving interviewer talking to people about what they eat for breakfast. The tagline: "Anytime's a good time for breakfast at IHOP."
Ad spending for the first six months of this year was about $15 million according to Competitive Media Reporting.
IHOP operates more than 800 family-style restaurants in 36 states, Canada and Japan. Same-store sales were up 1.6 percent in August from the same period last year, according to a company statement.