Urban 515 is locally focused
Urban 515 co-founders Scott Thomas and Kari Lantz have frequented restaurants and social scenes around the globe in the course of their individual pursuits of business and pleasure.
Now the business partners want to promote local commerce by rewarding consumers with upscale experiences at reasonable prices.
The entrepreneurs, who are strong supporters of the “buy local” movement, spent nearly 14 months developing the Urban 515 concept, which is intended to encourage a robust yet sustainable marketplace by combining savings, social networking and superior service.
Thus, the Urban 515 card was born.
“I wanted to have a card that I wouldn’t be ashamed to use,” Thomas said, adding that the sleek, black wallet-sized card gives its bearers deals, such as buy one get one free, buy one get one half off or get 20 percent off, at local businesses.
The card, which Thomas said is intended to remove the stigma that is sometimes associated with using coupons, is like a little black book for dining.
“There’s a certain amount of embarrassment that comes with a big, bulky coupon book,” he said, adding that he would feel a little awkward trying to discreetly present a coupon at a nice restaurant, especially if he was dining with friends.
“We’re trying to focus more on a classy, VIP club member concept,” Thomas said.
Lantz, who is training merchants to roll out the red carpet for cardholders, said those who patronize Urban 515 businesses should come to expect the best.
“We’re just working to enhance the experience,” she said. “We know that’s going to have to be a long-term process. I think they will start to be more and more receptive to some of the ideas we have in terms of those relationships with the card members.”
Another goal is to build customer loyalty by giving savvy consumers an incentive to spend.
“If you had the opportunity to go somewhere upscale that was very nice for the same cost that you could go somewhere that was not as nice, that didn’t have the local tie-ins, we’re hoping that is kind of a no-brainer,” Lantz said.
Though the card is intended to be inconspicuous, Urban 515 is not shy about promoting its clients, the majority of which are locally owned restaurants.
In fact, the company has developed a grassroots marketing campaign that includes a website, a blog, social media applications such as Facebook and Twitter, as well as a number of frequently updated brochures and other printed materials, which are used to spread the word about products, services and special events.
Last month, Thomas and Lantz hired blogger Katie Ketelsen to spearhead Urban 515’s move into social media.
“I’m trying to help celebrate local businesses, not just those that are signed up on the card,” said Ketelsen, a landscape designer who recently resigned her position with TimberPine Nursery in Earlham in order to pursue new opportunities.
Ketelsen, who last week joined Meredith Corp. as a garden editor for www.bhg.com, a Better Homes and Gardens website, has worked for several weeks to expand Urban 515’s network in advance of the start-up company’s official launch on Nov. 11.
She said social media does more than help individuals and businesses share their messages with others. It also allows them to listen.
“I think social media is a great way to get honest feedback,” Ketelsen said, noting that Urban 515 is continually looking for new ways to collaborate with others as it champions the “buy local” mentality.
Mojos on 86th, Dos Rios and Gino’s West Glen are among the Greater Des Moines restaurants that have signed contracts with Urban 515, which recently landed three new merchants: Big City Burgers and Greens, Maddy’s Again Neighborhood Pub & Grill and Valley West Inn.
The card costs $29.99 per year.
“We’ve just made a way to make it match the market right now, the economics of today’s marketplace,” Lantz said. “People want to know that their money is going very far. So when they make a decision, they want to know that they’ve either saved money or they’ve got a tremendous value for the money that they’ve spent.”
Lantz said the most expensive menu item at Mojos, for example, is $29. So, one stop at the Johnston restaurant, which offers Urban 515 members a buy one get one free deal, would nearly pay for the card.
But what is the return on investment for merchants, who pay $149 per month to be part of the Urban 515 program?
“Net revenues from massive volume exceed net revenues that come from a smaller dollar amount per transaction,” Lantz said, noting that customer satisfaction typically leads to customer loyalty.
“We don’t want to offer discounts that break them,” Lantz said of her clients. “We want to find a way to increase revenue volumes, whatever that looks like for them.”
“The benefit for us is just the exposure of it,” said Henry Alliger, Mojos’ operations manager. “It is marketed with a lot of other restaurants that see a little bit more foot traffic then we do.”
Alliger said that last week Urban 515 was busy promoting Mojos’ “All Iowa” dinner, an event that features Iowa producers and their products. Lantz said Urban 515 gave a 30-day trial membership to everyone who attended.
“They’ve been good to work with so far,” he said.
Other Urban 515 merchants include Legend’s American Grill, which operates five restaurants in Greater Des Moines, and Grounds for Celebration, which has three local coffeehouses. Chocolaterie Stam on Ingersoll Avenue and the six nightclubs that make up CABO, or Clive Area Bar Owners, are also on the list.
On Sept. 19, Urban 515 celebrated its soft launch by sponsoring DSM: Sushi Bomb, an exclusive food and networking event that took place at Jasper Winery. Hoshi Sushi Lounge, another Urban 515 client, was one of four local restaurants that served nearly 200 guests during the sold-out affair.
The event was organized by Lessing-Flynn Advertising, an agency that has done some consultation work for Urban 515.
“It all just tied in very nicely,” Lantz said. “We liked the idea.”
Urban 515 has about 30 establishments on its roster, Lantz said, adding that more contracts are pending. The company, which employs nine freelancers, including a designer, a website developer and a sales manager, hopes to sell 20,000 cards in the Des Moines market and expand into other areas.
“We are looking at some car dealerships and banks” that are considering purchasing Urban 515 cards as gifts for their customers, Lantz said. “If we get those, then those numbers could very easily double.”
“Our plans are to franchise the business,” Thomas said, citing Chicago, Kansas City, Omaha and St. Louis as potential markets.
Urban 515, which donates $1 to a local cause for every card that it sells, currently supports Urban Ambassadors, a local nonprofit organization that promotes sustainable living.
“I feel like with our brand – with what we’ve done well and what we’ll always develop on – is to give our members and the consumers a responsibility to appreciate what they are getting, to understand and be educated about what they are getting,” Lantz said.
Ames will likely be the next stop for the Urban 515 brand.
“We definitely have the upscale element, but we are casual, home-grown people,” Lantz said. “I feel like in 90 days, we’ll have a really good feel about what works well.”