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Social Climbers: How Franchises Are Using Social Networking

Franchises are embracing the possibilities of social media platforms like Facebook to extend their brands.

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This story appears in the January 2011 issue of Entrepreneur. Subscribe »

Whoever said there's no such thing as a free lunch obviously never visited the Facebook page of Einstein Bros. Bagels. Last year, Einstein Bros. launched its Bagel Bonanza promotion, giving away a bagel and cream cheese to anyone willing to sign up as the franchise's fan on Facebook. At the time, Einstein Bros. had only 4,700 fans across the social network, but when the digital coupon campaign wrapped up a week later, that number had skyrocketed to more than 300,000.

Einstein Bros. revived Bagel Bonanza during the spring, and it continues rewarding its online followers with discounts, menu previews and nutritional information. By the end of October, it had more than 600,000 Facebook fans.

"Social media is a place where consumers want to be," says James O'Reilly, chief concept officer for Einstein Noah Restaurant Group, the Lakewood, Colo.-based parent company and franchisor. "We're not a national advertiser, so we decided to make social media a pillar of our marketing efforts. It's a whole new channel for businesses to engage their customers in a two-way dialogue."

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