Restaurant Free Standing Insert Pages Increase 9.6% in 2004

Contact Details:
Glenn Mandel
Golin/Harris International
(212) 373-6028
gmandel@golinharris.com

News

May 16, 2005

MINNEAPOLIS, Minn. – In the 2004 Marx FSI Trend Report issued today, the number of Free Standing Insert (FSI) pages issued by chain restaurants increased 9.6% in 2004, bringing usage of the marketing vehicle to a five-year high. Over 8.2 billion restaurant FSI pages were distributed to consumers by nearly 200 national, regional and local chains.

The Marx FSI Trend Report is issued by Marx Promotion Intelligence, a division of TNS Media Intelligence. Marx Promotion Intelligence is considered the industry standard for tracking FSI coupon activity.

"This is the biggest increase in restaurant FSI activity since 2001," said Andy Rumpelt, vice president of Business Development at Marx Promotion Intelligence. "There is continued heated competition for market share among major chains, particularly in the sandwich and coffee categories. They are clearly seeing that by FSIs are an integral, cost effective part of their media plan to alert customers to new menu items, build awareness and drive volume, added Rumpelt.

Delivered through the Sunday newspapers, FSIs reach two-thirds of all American households. All restaurant sectors use FSIs, and the large majority of restaurant FSI promotions contain coupons for discounts on meals, combos or specific menu items. Measured strictly in terms of media placement costs, restaurants spend nearly $50 million in FSI couponing annually.

Restaurant FSI pages saw growth across all sectors and across item classes. Overall restaurant trends by segment:

	The greatest overall FSI page growth in 2004 was in the sandwich segment of Quick-Serve Restaurants – a 129% increase. Growth in this segment was fueled by competition between sandwich giants Quizno’s and Subway.

	Quick-serve Asian and quick-serve Mexican restaurants realized higher page growth than other comparable sectors, showing 14% and 11% growth, respectively.

	Snack and beverage chains saw 31% growth in activity, driven in part by increased FSI couponing activity from chains such as Friendly’s, Dairy Queen and Dunkin’ Donuts.

TOP TEN RESTAURANTS 2004 BY FSI PAGES

RESTAURANT FSI PAGES	2004 RANK	2003 RANK	% CHANGE ('03-'04)
Boston Market	1	11	32%
Chuck E. Cheese's Pizza	12	12	17%
Quizno's	13	131	811%
HoneyBaked Ham Company	14	14	0%
Sweet Tomatoes	15	18	33%
Pizza Hut	16	13	-37%
Olive Garden	17	17	5%
Subway	18	114	51%
Cold Stone Creamery Restaurant	19	159	1733%
Long John Silver's	110	15	-23%

About Marx Promotion Intelligence

Marx Promotion Intelligence is the industry standard for tracking Free Standing Insert (FSI) coupon activity. Marx provides the finest companies in America with web-based strategic insights and tactical tools that are the state of the art. Company website: http://www.tnsmi-marx.com.

About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic advertising and marketing information – across media, brand, industry and market. The company’s tracking technologies collect occurrence and expenditure data on more than 2.1 million brands spanning 20 media. The U.S. headquarters are located in New York City with sales locations in major markets across the country.

For further information, including this and prior press releases, please visit http://www.tns-mi.com.

About TNS
TNS is one of the world's leading providers of market information. The company delivers strategic market measurement, analysis, insight and advice to many of the world's largest organizations and most recognized brands. TNS' research helps its clients better understand the needs and wants of their customers, and its capabilities span market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling. From its global network that spans 70 countries who together conduct research in more than 110 countries, TNS allows for local expertise and knowledge to be combined together with internationally consistent information and analysis.

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