Day 042 - 31 Oct 94 - Page 03
1 about round about £35 million; that is the national
2 advertising and promotions. Some of the local restaurants
3 would also spend more money locally, but that we cannot get
4 to centrally.
6 Q. That budget, does that include everything that comes under
7 the heading of -- well, what would it include?
8 A. Broadly, it is all of the advertising that takes place
9 and any of the major expense on promotional activity.
10 Sometimes the restaurants will take, in addition to that,
11 some of the costs of the promotions.
13 Q. The individual restaurants?
14 A. Yes.
16 Q. Do you know what percentage of the local stores' budget
17 goes to promotions and advertising?
18 A. Well, it does vary. It is up to the local restaurant
19 concerned to see how much they need to, but you could work,
20 say, around about one per cent.
22 MR. JUSTICE BELL: Do you mean on local advertising as opposed
23 to contributions to national advertising?
24 A. It is local advertising or marketing; it is generally
25 in the promotional area.
27 Q. But not as happens, or happened, in the States where
28 two per cent went towards national advertising?
29 A. No. That is a separate budget.
31 MS. STEEL: So that the local stores do not contribute to, say,
32 television advertising, or whatever?
33 A. No. They do, but it is a separate budget. That is the
34 five per cent that we talked about before. They contribute
35 five per cent nationally -- say five per cent; it may vary.
37 Q. Five per cent of turnover from each store?
38 A. Yes; and then one per cent, say, as an average
39 locally. But that does not come to us nationally; that is
40 at their discretion.
42 Q. Could you just go into a bit of what is covered by
43 promotional activities?
44 A. On a national level, do you mean?
46 Q. Well, maybe start with national, and then we will do----
47 A. Well, nationally, it would be, could be -- do you want
48 the actual tactic itself or the strategy behind it?
50 MS. STEEL: Both.
52 MR. JUSTICE BELL: Are you asking what sort of things are
53 involved in promotional activities?
55 MS. STEEL: Yes. What sorts of things and why, as well, or what
56 they are aimed at?
57 A. Okay. Well, typically on the "why", it would be to
58 increase the frequency of visits to the restaurants during
59 the period of that promotion. It may, depending on the
60 promotion, it may have other objectives, which may be to