Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Gallo – C.L. King & Associates, Inc.
Michael Gallo – C.L. King & Associates, Inc.
I just wanted to understand a little bit better what you’re seeing more recently as you have the combination of the rollout of the new value priced products as well as the shift to national cable. Is that lessening the traffic declines? It sounds like ticket’s come down a little bit with that. I mean, a little more color on what kind of impact you’re seeing from some of those initiatives. Thank you.
Cheryl Bachelder
Yes, Mike, as I said there was one of the platforms launched in this quarter. We subsequently launched two more of the platforms. The initial learning is that the new products are driving great lunch and snack day-part traffic. They’re well priced for the time. They’re helping us keep our guest traffic in restaurants and yes we are seeing trend improvement in traffic.
That has been offset by weakness in the dinner day-part which in fact is weak in the entire QSR industry, where customers are cutting back on dinner occasion, feeding the kids at home and not spending the money on the family box meals that remain an important part of our menu [bet]. So while we are pleased with the value offerings impact on our traffic, we also believe we have to continue to offer strong value offerings at dinner as well to balance that.
Michael Gallo – C.L. King & Associates, Inc.
How many [plates] of national are you going to have in the fourth quarter?
Cheryl Bachelder
I believe it will be one national and one local.
Michael Gallo – C.L. King & Associates, Inc.
And then as you look to 2009 it sounds like you’re shifting the focus more to national from local. Is that a fair statement or is it still kind of under review?
Cheryl Bachelder
We have a commitment with our franchisees to launch these new products with national cable and the impact is very bold for our system, 50% of our market has not had local television are receiving national advertising for the first time. So there is a lot of excitement in our system about national cable. We’re delivering two-and-a-half times the media impact that a local market can deliver through local television so I expect it to be a go-forward part of our strategy.
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