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.
     5
     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.
    12
    13   Q.   The individual restaurants?
    14        A.  Yes.
    15
    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.
    21
    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.
    26
    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.
    30
    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.
    36
    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.
    41
    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?
    45
    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?
    49
    50   MS. STEEL:   Both. 
    51 
    52   MR. JUSTICE BELL:  Are you asking what sort of things are 
    53        involved in promotional activities?
    54
    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