Maximum Exposer Of Minimum Prices To Attract Customer Base
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In my last post http://restauranttradearearesearch.com/2010/04/21/price-point-stalking-the-new-normal/ - where I provided a list of price positionings that I’ve seen various restaurant chains promote in the past year in the Atlanta ADI - I made the point (I hope) of `how crowded’ some price points are. (AND PROBABLY HOW HARD IT IS TO STAND OUT AND CLAIM A PRICE POINT).
That said, the chains are doing it for a reason - price talks in this new normal. The minimum price to have the chains `experience’ - whether it’s 79 cents at Taco Bell, a Buck at Arby’s, 1.99 Breakfast combo at Dunkin Donuts, 2.50 Subway breakfast combo, 2.99 Boston Market 4.99 Pickadilly’s (who I forgot to include) …ect. ect. ect. — is gobbling up significant portions of marketing efforts and probably not contributing significantly to the bottom line of operating revenue. It can also make the `regular priced fare’ appear to be much more expensive in a perceptual sense. (Also, unless you are Taco Bell, someone will ALWAYS be cheaper - why pay more?.)
All that said, appealing to multiple price points - including the one that seemingly IS affordable (the minimum prices) - may continue to be important strategic positioning until a real recovery begins - if and when. BUT, now that these minimums are already in place, some shift in ad revenue should happen to emphasize other important restaurant and FF restaurant attributes. (Fun, quickness, food quality, etc.)
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