The work includes a series of promotional tests to identify the most effective offers for the 231-strong Little Chef chain. The first will offer discounted confectionery with a two-for-one meal deal in a selected number of stores. The second series will test the performance of a door drop, display banners and a press ad to evaluate which works most effectively for the brand.
"Under a string of previous owners the Little Chef brand has been allowed to deteriorate and a policy of heavy discounting has become the norm," said Cathy Stevenson, marketing director for The Peoples Restaurant Group.
"As well as improving all aspects of the core restaurant offering we are now developing promotional campaigns that will drive revenue by adding value for customers."
Stewart Hilton, creative director at Blue Chip, added: "This type of investment in testing always pays off and will allow it to maximise its ROI when the final campaign rolls out in spring 2007."
The Little Chef will be looking for partner brands as part of its 2007 marketing programme.