The NASCAR sponsorship experience for Cook Out Inc. has been so nice in recent years the Thomasville restaurant chain decided to do it twice.
Heading into year 4 of an extended multi-year title sponsor of the iconic Southern 500 in Darlington, S.C., Cook Out acquired in July the naming rights for the July 30 race at Richmond Raceway.
Cook Out became — at least for 2023 — the only corporate sponsor of two NASCAR Cup races.
Cook Out executives could not be reached for comment on the NASCAR sponsorship. They typically prefer to avoid media interviews and let its menu of burgers, barbecue and chicken trays, and milkshakes speak to consumers.
In the Darlington news release, Cook Out chief executive Jeremy Reaves said “the sport of NASCAR and Cook Out have a shared history in the Carolinas."
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In the Richmond Raceway news release, Reaves said the restaurant chain is "thrilled to expand our presence in NASCAR with the Cook Out 400."
“We’ve had the privilege of partnering with NASCAR for several years, and we’re looking forward to expanding that partnership into Richmond."
Todd McFall, a sports economist at Wake Forest University, said title sponsorships for NASCAR Cup races of the size of Darlington and Richmond tend to cost between $1.5 million and $2 million each.
"Cook Out's geographic marketing area overlays nicely with NASCAR's highly developed fan base here in the Southeast, suggesting a NASCAR sponsorship is a uniquely appropriate opportunity for the brand," said Roger Beahm, marketing professor at Wake Forest University.
"Given NASCAR has a national footprint, Cook Out is essentially building awareness which can serve it well as it continues to expand geographically beyond its current 10-state marketing area in the future."
The Cook Out Southern 500 — held on its traditional Labor Day weekend slot of Sept. 3 — serves as the first race of the 2023 NASCAR Cup playoffs.
Both speedways touted Cook Out as "one of the fastest growing family owned restaurant chains in the nation" with 323 locations — and counting — across 10 states: Alabama, Georgia, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia.
Lori Collier Waran, president of Richmond Raceway, said the track recognizes Cook Out's appeal with consumers and the crossover with NASCAR fans.
“Nothing encapsulates summer fun quite like Cook Out,” Waran said.
“For over 32 years, Cook Out has been synonymous with serving quality food across the South, and we’re excited to bring them on for our summer NASCAR weekend.”
Cook Out's reach into NASCAR also includes the Youth Series.
Cook Out's title rights to the Southern 500 — which it extended in March 2022 — was a natural for Darlington track officials given the race had been sponsored by Bojangles from 2015 to 2019.
The Darlington Cook Out sponsorship also involves at-track signage, point-of-sale, in-market promotions, consumer sweepstakes and integrated digital campaigns.
“Cook Out is a brand that matches the fierce competition of the NASCAR playoffs at the track Too Tough To Tame, so we are proud to welcome (them) with a multi-year partnership for the Cook Out Southern 500,” Darlington president Kerry Tharp said.
Branding out
Tharp pointed to a primary Cook Out motivation for sponsoring the NASCAR Cup races.
“As Cook Out continues to expand across the East Coast, we look forward to continuing our partnership at The Lady in Black to support their growth," Tharp said.
John Sweeney, director of the sports-communication program at UNC Chapel Hill, said sponsorships "is one of the financial anchors of modern sports."
Cook Out's NASCAR race title sponsorships goes a step beyond legacy BB&T Corp.'s investment in the sport.
BB&T's presence primarily involved the top sponsorship on car run by Richard Childress Racing — mostly by Clint Bowyer — during races in the bank's territory. It held a smaller sponsorship role in the other races.
"The title sponsorship of a regular tour event can certainly be the source of important income," Sweeney said.
Cook Out's NASCAR sponsorships "should be seen as a move made by a company that wants to expand its brand beyond the Carolinas and the Southeast," McFall said.
"It enables the Cook Out brand to be on display at somewhat high-profile events with a loyal fan base around the country."
McFall said Cook Out could be following the pathway of Shake Shack and Five Guys in expanding beyond their core markets into a potential national presence.
"Cook Out likely views those companies' successes as a path forward for it," McFall said.
"One could argue easily that the sponsorship will grease the skids of expansion into new territories like Texas or the Midwest.
"Additionally, thousands of people travel to the Carolinas every year, so finding ways to make more familiar the Cook Out name to visitors can only help restaurants located in the traditional Cook Out strongholds."
Food and NASCAR
According to SponsorUnited.com, quick-service restaurant (QSR) chains are significantly reliant on sports sponsorships.
As of October, McDonald's is the overwhelming leaders in what SponsorUnited.com calls total deals — sponsorship and Media — at 925.
Wendy’s is next at 553, followed Sonic at 210, Burger King at 170 and Whataburger at 145
"QSR Burger brands favor Instagram and TikTok for their social sponsorships," SponsorUnited.com.
"A whopping 86% of the 14 million followers engaged by the category’s sponsored posts span the two channels: more than 8.5 million with Instagram and more than 5 million with TikTok.
Rolling Stone reported in a June 2023 article that "66% of 'forever' fans take action after seeing a brand’s sponsorship."
"People are emotionally tied to their favorite sports teams and personalities in a way unseen in most industries.
"Good advertisements tap into emotion, which can be a decisive factor in consumer-buying habits. The impact is amplified when a highly charged sports event is combined with a well-timed sponsorship."
The Rolling Stone article recommended some "best first steps to take in planning a sports-minded campaign" that include "nail down your target markets and designated market areas; alter your messaging for a sports audience; and plan for scale."
In fleshing out plan for scale, the magazine said that "while local campaigns feel inherently small, there’s power in taking a local approach nationally."
"Select five major designated market areas where you are trying to grow, and suddenly you’re activating what feels like a national ad campaign in front of sports’ most passionate and loyal eyes."
Top of mind
Consumer brands, such as Cook Out, "are looking to get into and stay in the 'consideration set' — those that consumers think about when they are ready to buy," Beahm said.
"This is essential in a highly competitive category like fast food, where the time between thinking and doing can be just a matter of a few minutes.
"A sponsorship like this one helps the brand further increase its top-of-mind awareness, especially when media attention around an event like this heightens the brand's visibility."
Beahm said Cook Out could benefit from a "halo effect, where the positive image of the event spills over to the sponsoring brand itself."
""From race-themed signage at restaurants to special apparel for employees, NASCAR sponsorships have benefits that extend well beyond race week and beyond the local markets where the events themselves occur."
"Certainly the media efficiency of reaching one's target audience through the sponsorship weighs into the consideration, i.e., how does the cost-per-thousand audience reach compare to other spending options."
"The fact that Cook Out is continuing to expand its tie-in with NASCAR would suggest it's seeing benefits that extend well beyond race weekends and even well beyond its current marketing area."