High-level sources tell me — Austin Karp — that Terry Lefton will be back in the driver’s seat for SBJ Marketing next week. Please set your countdown clocks for his triumphant return.
But for tonight, our team at SBJ Atlas looked at how QSRs are flexing their muscle with sports sponsorships. A number that stood out to me from QSR Magazine data — 13,000. That’s the number of domestic locations for McDonald’s. With two young sons at home, sometimes I feel like I have visited most of those locations.
While McDonald’s maintains around 50 major league domestic sports sponsorships, the U.S. leader among quick service restaurants (QSRs) currently employs a strategy of no league-level deals with U.S.-based properties, notes SBJ Atlas’ Derick Moss. The last big-time league deal for McDonald’s was with the NFL, and that pact ended in 2018.
The numbers for McDonald’s really are staggering. A new report from QSR Magazine this week shows that the Golden Arches pulled in $112 billion in system-wide sales in 2021 — a 21% increase from the previous year and an all-time high for the iconic brand. McDonald’s now has more than 13,000 domestic locations, and 40,000 globally.
Other takeaways from QSR Magazine’s annual ranking of the top QSRs:
- Chick-fil-A continues to surge: With 1,836 free-standing units (those not located in a mall) averaging more than $8 million each in sales, the brand is the fast-growing QSR in the country based on revenue. System-wide sales are up nearly 33% over the past three years. Chick-fil-A has nearly 150 major sponsorships, according to SBJ Atlas, including dozens in the college space and the title sponsorship of the Chick-fil-A Peach Bowl.
- Fourth-ranked Taco Bell is the only QSR with multiple league-level deals (MLB, NBA). Other brands in the QSR 50 with league deals include No. 5 Wendy’s (NCAA), No. 6 Dunkin’ (NHL), No. 8 Subway (NFL), No. 10 Chipotle (NHL), No. 13 Pizza Hut (NCAA), No. 16 Dairy Queen (MLB), No. 19 Little Caesars (NFL) and No. 47 Tim Hortons (NHL).
- Raising Cane’s has been in growth mode the past two years. The brand’s nearly $5 million average unit volume (AUV) is now second only to Chick-fil-A in the chicken category. Its sponsorship portfolio is growing as well, with 82 deals tracked by SBJ Atlas. Most have been in college and minor league markets, but the brand has added major league teams such as the Reds, Spurs, Saints and Blues to its roster as the brand aligns its deals with its franchise map, which is largely based in the South, Southwest and Midwest.
- QSR Magazine also calls out a list of 50 “Contenders”, brands that are on the verge of a market breakthrough. Smoothie King, naming-rights partner for the Pelicans’ arena, tops that list. Other brands with a sports footprint on the verge of a breakthrough include Smashburger, Wetzel’s Pretzel’s, Salsarita’s, Jamba Juice and Great Harvest Break Co.
Check out www.sbjatlas.com for more sponsorship insights and brand sponsor rosters.
Sponsors of NASCAR teams have received increased brand exposure from paint schemes this season, thanks to a change that shifted the positioning of number decals on cars, according to a Nielsen analysis and interviews with industry execs by SBJ’s Adam Stern.
Starting this year, race teams in the premier Cup Series shifted car numbers forward from the center of the door toward the front of it, creating a bigger and more contiguous canvas for sponsor logos, slogans and images of mascots or products.
The change has led to a total increase of 15% in sponsor value this season, according to data that Nielsen provided to teams and shared with SBJ. The research firm said the value is based on television exposure and the cost of traditional TV advertising.
Emily Spiegel, senior VP of MKTG, which works with brands in NASCAR including Toyota, Ally and FedEx, said the move has been positive for sponsors. “Before the number was moved forward, the space available for branding on the back half of the car was small and an awkward size, resulting in branding sometimes getting lost — especially since that area of the car is often shared with associate sponsors,” Spiegel wrote in an email to SBJ. “Now, the primary sponsors and teams that have taken full advantage of the new space have made their sponsor logos much more prominent in a spot on the car that naturally stands out.”
For the first time since its inaugural game in 2010, the Pinstripe Bowl has a new title sponsor in Arkansas-based Bad Boy Mowers, reports SBJ’s David Broughton and Erik Bacharach.
The multiyear deal was announced today in a press conference at Yankee Stadium that featured Pinstripe Bowl Executive Director Mark Holtzman, Bowl Season Executive Director Nick Carparelli and Bad Boy Mowers CEO Peter Ballantyne. Big Ten Senior Dir of Football Operations A.J. Edds also was in attendance.
Legends facilitated the new sponsorship for the Yankees-owned game, which also includes recently installed signage adjacent to each foul pole at Yankee Stadium. New Era previously served as the title sponsor from 2010-21. For Bad Boy Mowers, which is celebrating its 20th anniversary this year, it represents a second dip into bowl game sponsorship. From 2017-19, the company was title sponsor of the ESPN-owned Gasparilla Bowl in St. Petersburg, Fla.
Holtzman said that talks between the Pinstripe Bowl and Bad Boy Mowers began long before UCLA and USC announced plans in June to join the Big Ten in 2024, but “I can tell you that it clearly enhances the value, certainly from a television point of view, because you have two national brands now in the mix (for this game).”
- Sugarlands Distilling, which has deals with the likes of the Red Sox and Saints, doesn’t use an outside agency to negotiate or execute its sports deals, notes SBJ’s David Bourne. When it comes to activation, the feet on the ground belong to Katie Hubert, who joined the moonshine maker in 2020 after stops with the Chargers and Dolphins.
- Cadillac is replacing Mercedes-Benz as the official vehicle of the U.S. Open, which gives the American carmaker net signage on all 17 tournament courts at the Open and makes it the official automobile of the player fleet of vehicles that moves tennis players around New York during the two weeks of play, reports SBJ’s Bret McCormick. Terms weren’t disclosed, but the long-term agreement puts Cadillac in the top tier of U.S. Open sponsors alongside American Express, Emirates, IBM, JPMorgan Chase and Rolex.
- The Galaxy renewed MLS’ longest-running kit sponsorship agreement with L.A.-based nutrition supplements brand Herbalife Nutrition, reports SBJ’s Alex Silverman. A source said the new deal is worth upward of $7 million annually over five years, making it one of the most lucrative jersey deals in MLS.
- Boston-based training apparel maker Nobull has taken sponsorship rights to the NFL talent combine, getting both “official combine training partner” and “official on-field supplier of apparel and headwear” designations for the annual event, reports SBJ’s Ben Fischer.
- Denny’s is digging into gaming and esports, as the restaurant chain will sponsor Texas-based Complexity’s roster of female streamers, notes SBJ’s Hunter Cooke.
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