Restaurant Trade Area Research

Recently, I conducted the MarketView in an eastern seaboard market at all the units of a particular ADI and all owned by one owner. The MarketView is my name for a type of research design that digs into the fundamentals of any market. All kinds of interesting and useful information comes from doing real marketing research at your stores.

An example of this is shown below:

Store One                                                 Store Two

820,000               2006 Sales                             790,000

13%        Uses This FF Brand Most               24%

20%       Uses This FF At Least 1 Week       42%

161K       Annual Sales To 1+ Week User    331K

20K        Total Repeat Customer Base*        13K    *customer base formula

Smart marketing can address each of these stores specific marketing needs. Only by having real customer based information allows for smart spending of those precious marketing dollars. Make sure to visit my Squidoo page that explains more about the MarketView at www.squidoo.com/tradeareasurveys.

Today’s Restaurant Links

`Former Bojangles Exec’s Now Qdoba Men’

http://www.chainleader.com/article/CA6607112.html?industryid=47555

`Fast Food Shops To Be Banned Near Schools In UK’

http://www.dailymail.co.uk/news/article-1079655/Fast-food-shops-banned-near-schools.html 

`IS Fast Food Poised For A Fast Fall?’

http://www.forbes.com/markets/2008/10/22/mcdonalds-earnings-closer-markets-equity-cx_mp_1022markets44.html

Thanks for stopping by today — much more is below too. Bookmark this site and return for more updates. If you have some comments we’d love to hear them. 

Hello, thanks for visiting my blog about restaurant research - something I’ve done for over 30 years. As you might know, I’ve been trying to bring to you a blend of posts - some with insights about marketing research and others just commentary on the whole subject of restaurants.

The data of this website also indicates that on posting days — we are getting 100’s of visitors who sometimes hit and read as many as 8 links each (but, generally it’s 2-5 links each). I say that so that you know that if you just continue to `read down’ the page that you will probably find lots of interest to a restaurant owner or manager like yourself. (Corporate folks are allowed to read too. Lol)

Today, I’ve decided to continue last weeks look at particular fast food (FF) commercials (last weeks post was Arby’s `Marry A Goat’ ad) - this week I’m posting on one of my personal alltime favorites - The Burger `King’ — if you’d like to know more about his history - use this link - http://en.wikipedia.org/wiki/The_Burger_King .

As you know, I panned Arby’s `Marry The Goat’ ad as `too edgy’ in my last posting (that said, it does get across the main selling idea of a combo at 5.00) and just too creepy. No, for creepy, - at an appropriate level - The Burger `King’ is the epitome. It is also great that `King’ is only used sparingly and with many different commercial versions on-going.

My favorite King commercial is, as I posted recently, - the `reverse bandit’ King who ends up getting SMASHED by a car. Totally smashed in a manner that a human would never survive - only the King - with the unchanging face.

Two different chains - two different takes on saving money - with two different takes on Creepiness. I can’t wait for Halloween.

Restaurant Links For Today

`Bud For A Burger’ - Pot Not Currency At McDonalds

http://www.cbs12.com/news/pannullo_4710070___article.html/pay_marijuana.html Figured we’d start with the humor — yep, someone tried to buy food with marijuana. Humorous 20 second read.

`Economy Weakens Restaurant Stocks’

http://latimesblogs.latimes.com/money_co/2008/10/worries-about-c.html Cheesecake Factory singled out.

`Casual Dining Chains - Seek Compelling Attributes For Sales’

http://www.walletpop.com/article/_a/bbdp/casual-dining-chains-hunger-for-change/210940?icid=200100397×1211186403x1200670159  This is a LONG in-depth article about the many ways that the casual dining chains (Ruby Tuesday’s, Friday’s - etc) are trying to re-tool their approach to the American consumer.

`The Delivery Debate’ - Should FF Consider?

http://www.qsrmagazine.com/articles/features/120/delivery_debate-1.phtml A well balanced read about the whole subject - pro, con, and other viewpoints. A good read for sure. Brand extensions are important.

`Krystal’s Drive IN Concept’

http://www.franchising.com/pressreleases/9135/ Here’s an example of a brand extension.

`New Zaxby’s’

http://www.murfreesboropost.com/news.php?viewStory=13214 Make sure any locations you open get coverage of this level. Great example of PR. (From a bit back.)

`New Opinion On Food Labeling’

http://voices.washingtonpost.com/checkup/2008/10/restaurant_food_labels_revisit.html This is a quick read about someone who changes their mind about FF chains printing calorie counts and such — interesting read.

Ok, that’s it for today, please bookmark us and comeback next week — also, please keep reading down the page. How about a comment?

While I’m not sure of how many markets have the new Arby’s ad - sometimes attention grabbing `humorous’ ads might not be worth it. If you haven’t seen the new ad - two workers out in a field are hungry for lunch; one guy laments he has only 5 bucks; the other says we can go to Arby’s for any of their toasted subs, curly fries, and a drink for 5 bucks (hope the guy has some pocket change for the tax); and his friend, not believing the deal says if that is so `I’ll marry a goat’.

Flash forward to the `friend’ now dressed in a tux sitting next to a goat in full bride headset — while his friend sitting across from him, while gawking at the goat, whispers from behind his Toasted Sub with a wink to his friend that `She’s HOT’. Leaving the viewer wondering about the newlyweds first evening together as the punchline humor.

Verdict - 4.99 combos on a large sandwich at Arby’s good - usage of marginal humor - not so good. Especially after multiple viewings.

Ok, onwards to today’s links — with MUCH emphasis on Drive-thru’s.

QSR Names FF Restaurant With Best Drive-thru

http://www.marketwatch.com/news/story/qsr-magazine-names-americas-best/story.aspx?guid=%7B2EA0E58A-DFBE-48D6-8AA9-0FA581B99F7C%7D&dist=hppr Chick-fil-A is overall winner - most accurate and clearest speakers. Much more in this excellent 2 minute read.

The END of the Drive-Thru?

http://www.qsrmagazine.com/articles/features/120/emissions-1.phtml  Talk about how idling laws in Canada may become important to even your business.

Amputee On Motorized Scooter Banned From Drive-Thru

http://www.mirror.co.uk/news/top-stories/2008/10/07/mcdonald-s-ban-amputee-on-mobility-scooter-from-drive-thru-115875-20782800  Common sense but a fun article.

Is Drive-Thru Nation in Idle?

http://www.nj.com/independentpress/index.ssf/2008/10/lost_in_suburbia_losing_direct.html The continuing `drive’ against drive-thrus — from bank tellers to libraries and post offices - and of course - restaurants.

The Education of the Fast Food Nation

http://media.www.theorion.com/media/storage/paper889/news/2008/10/08/Opinion/Fast-Food.Nation.Needs.Lesson.In.Healthy.Eating-3475751.shtml

That is it for today — much more below too.

If you are a franchisee in a good financial position right now - it might be the RIGHT time to do trade area research. The reason is that with many FF restaurants closing their doors - more and more good real estate is becoming available. But, before one can buy those available locations for your own brand - one must know your trade areas of your units so that you can estimate the potential `attrition’ or cannibalization to your existing units.

Indeed, many of my clients do exactly that - map EVERY store they have in a market and at the same time `ask’  customers to state what they might have done if a new unit was at such and such intersection. Indeed, it is not unusual to `map’ a market with multiple stores and ask about multiple possible new locations too.

Before you think this is cost prohibitive - last year I mapped 14 units in one market and asked about 11 prospective `new units’ within the same market. As you would expect, some of the `new units’ would impact stores greatly and others hardly at all - based on existing trade areas. AND, all 14 stores information - indeed, the whole project was under 30K. That’s right, 14 stores, under 30,000.00 — and with terms spreading the payment over an entire year.

Make sure to go to www.squidoo.com/tradeareasurveys for more info.

Today’s Restaurant Links

`Arby’s and Wendy’s Merger Completed’

http://www.ajc.com/business/content/business/stories/2008/09/29/arbys_wendys_merger.html

`Diners Turning To Grocers For Fast Food’

http://www.jacksonville.com/tu-online/stories/092908/bus_337663841.shtml

`Organic Restaurant Looks To Expand’

http://www.londontopic.ca/article.php?artid=11024 If you are looking for something with upside potential - this might be it.