The whole concept was startling at first - but now - is beginning to rub off on the community. Great PR, cool business plan - find out details about how it is going at the link - http://www.stltoday.com/business/article_f77cccaf-f498-5bb7-9b72-eb641095a175.html - The only part of this story that I would’ve like to know more about was - did ANY of the truly down and out make it a regular thing to work to get the free meal coupon.
Meanwhile, Restaurants cook up marketing to counter downturn - http://www.ajc.com/business/restaurants-cook-up-marketing-691103.html - marketing like flipping a coin to see if you pay for a meal - free margaritas, etc. Link has lots of good data related to the national and Atlanta markets.
Meanwhile, in new products - the above delicious looking offering comes from Hardee’s - reinforcing their breakfast daypart and snack/dessert positioning upscaling (Milkshakes) too - http://www.restaurantnews.com/hardees-introduces-new-caramel-crumb-biscuit/ one for 99 cents and 2 for 1.69 (prices can vary)
Just a few posts ago - I suggested that as a result of the new normal for the restaurant segment of American Business - that perhaps we could look for some restaurant chain which currently has tipping as part of the experience to drop it altogether or modify it significantly. http://restauranttradearearesearch.com/2010/09/13/could-new-business-model-for-casual-restaurants-be-no-tipping/ Wondering out-loud if the rise of the fast casual segment (Panera Bread and many other variations) has to do somewhat with the perceived savings involved with tips; especially with party sizes such as families.
A way, seemingly, of giving the family a cooked to order experience usually in what can be described as a busy but fun atmosphere; while still having the image not being fast food to boot. Simply, a less expensive, substitute, for the old `casual’ restaurant experience. A trade down with benefits - both in being `better’ than fast food (heat lamps, uncertainty) and less costly than smiling for a wait person.
Also, one has to wonder if the new normals overall effect of bringing the range of travel somewhat towards home if not at home for vacations - the so-called Staycation - might allow for the consumer to justify at least a level of maintenance to the previous level of restaurant usage (after having adjusted somewhat downward in frequency). The adjustments of the middle class to the economic outlooks around them.
Which further begs the question? Can a no-tipping option at the causal restaurants really be off the table? Is a new business model really that hard to envision? Would business BOOM? (To whoever did it first?)
Woodstock, Ga. has a Firehouse Subs and I’ve used it numerous times. This link explores the outcome of re-instating advertising and its very strong effect on store sales - also includes the tidbit that having a sign waver in front of the store can increase sales 10-15% by capturing the late decider as they drive into the area - http://boss.blogs.nytimes.com/2010/09/29/case-study-follow-up-what-firehouse-subs-learned/ - more details too.
Looking for revenue anywhere they can get it in this new normal - politicians in Omaha put a 2.5% tax on restaurant diners - forcing them to drive to other communities to avoid the tax. http://www.ketv.com/r/25247993/detail.html
Those who charge 7,000 or more a month to credit cards and who meet a specified income level - increase quick service usage by 24% - three times the rate of other demographics. From the link:
“Subconsciously, I think I’m saving money by spending less on food, but my spending somewhere else must be going up, because the amount on my credit card is not going down,” Gutsell said to the WSJ, as he ate an Extra Value Meal at a McDonald’s. - http://eatdrinkandbe.org/article/index.fast-food-rich-people-015
