Restaurant Trade Area Research

Laws just never seem to vanish and they only add new ones, right? As the power of the government creeps into this industry - http://reason.com/blog/2010/12/10/surprise-temporary-fast-food-b

Meanwhile, as 2011 lurks on the horizon,  Lending for Some Restaurant Operators Still Gridlocked - http://online.wsj.com/article/SB10001424052748703848204575608550062294086.html

With these as the articles opening words - “Financing for restaurant operators still shows signs of gridlock, as large lenders are only lending to franchisees that emerged from the downturn relatively unscathed, leaving the bulk of the operators struggling to access capital to expand, remodel stores or upgrade equipment.

Market Research done with 1,000 adults over 18 by Harris Interactive (internet sample?) conducted for Cintas — showed the top reasons a person would `never eat at a restaurant again’ - here’s the findings:

Source: http://www.restaurantnews.com/top-three-reasons-why-restaurant-customers-dont-return/

In other research findings: 1,300 Restaurant Owners say - Half of Restaurant Owners Proclaim, “Social Will Never Work” -http://technorati.com/business/small-business/article/half-of-restaurant-owners-proclaim-social/#ixzz18NLxwNLT - The study was conducted by MustHaveMenus - a company specializing in Menu Templates. Anyway, here’s the key findings:

• 42% of restaurant owners and managers invest in social media efforts (including blog participation, and managing their Twitter and Facebook accounts.
• 12% of restaurants and caterers hire someone to manage their social media presence.
• 23% of respondents do not believe that they need to use social media as a marketing tool.
• 23% of respondents believe that they don’t have time to devote to social media, along with all their other restaurant management duties

My concern is that like all `offers’ - interest fades as time goes onward and fades quicker the more `restaurant social media’s’ that the customer is signed up to receive.

And, yes - a THIRD research study by Intellaprice - a pricing intelligence firm (now THERE is a niche) - gave the results of a 21 market study of
12,000 beverages and 14,000 food items from casual dining brands - —- And, the results? (Drumroll) According to Intellaprice’s research, lunch entrées are up by $.93, dinner entrées rose by $.72, and kids entrées spiked by $.30.
Drinks also were UP in prices slightly. The article speaks of the loss-leader products hoping to bring in customers who will switch or bring in others who are not ordering the loss leader — more details at http://www.restaurantnews.com/casual-dining-entree-and-drink-prices-up-in-2010/ (no wonder Fast Casual continues to make inroads)

In other news:

An example of the loss leader is what Burger King is now promoting - it’s two for one Chicken Sandwich deal - http://www.restaurantnews.com/burger-king-offers-two-for-one-original-chicken-sandwich-deal/ and in more BK news - BK will be slashing their Miami Corporate staff - http://www.miamiherald.com/2010/12/06/1959749/burger-king-to-cut-261-jobs-in.html

Meanwhile - O’Charley’s Inc. Announces Restaurant Closings - http://www.restaurantnews.com/ocharleys-inc-announces-restaurant-closings/ – 11 stores to be exact and 5 of another brand.

Next up - three stories on Panera Bread - How Panera Bread Kept Rising Through the Recession - http://www.businessweek.com/investor/content/nov2010/pi2010118_183529.htm - and one method was NOT cutting costs. Up next, Panera Bread Introduces MyPanera Loyalty Program - http://www.restaurantnews.com/panera-bread-introduces-mypanera-loyalty-program/ - with some unique twists. And, finally, Panera Opens ANOTHER non-profit place - http://www.restaurantnews.com/panera-bread-foundation-opens-second-panera-cares-community-cafe/ in Michigan.

A&W uses social media for a `contest giveaway’ as a promotion point for introducing a 3 dollar value meal positioning - A&W Restaurants New $3 Big Taste Meals Bring Back Big Taste to Bland Value Menus - http://www.restaurantnews.com/aw-restaurants-new-3-big-taste-meals-bring-back-big-taste-to-bland-value-menus/ - the top prize is a trip worth up to 4K and three other prizes.

Thanks for visiting today - have a look around the sidebar for more.

Sometimes one has to wonder at the length of time it takes some chains to respond to favorites of other chains - especially when in direct competition with - and IMO, that is what the D.T. Double is. That said, better late than never — will BK figure it out next? (Or was that the Big King?) And, that said, I’d love to be eating a Big Boy at Frisch’s - http://www.nrn.com/article/wendys-tests-dt-double-texas-rhode-island - special `sauces’ on Burgers - not new, but quite compelling.

And, Wendy’s is not thru the testing above either - here’s a new Burger too (upscaled) and those can’t miss TV ads for the new Sea Salt Natural Fries -  http://www.slashfood.com/2010/11/10/wendys-new-daves-hot-n-juicy-cheeseburger-and-sea-salt-fri/?icid=main%7Chtmlws-main-w%7Cdl3%7Csec4_lnk2%7C183477

It’s news that is a month old from the elections - San Francisco bans Happy Meals - :Under the ordinance, scheduled to take effect in December 2011, restaurants may include a toy with a meal if the food and drink combined contain fewer than 600 calories, and if less than 35% of the calories come from fat. - http://www.latimes.com/business/la-fi-happy-meals-20101103,0,5438230.story

In Italian Restaurant news - OpenTable Diners Reveal Their Top Fifty Italian Restaurants Across the U.S. - http://www.restaurantnews.com/opentable-diners-reveal-their-top-fifty-italian-restaurants-across-the-us/ and one more OpenTable link - http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/10/02/BU8S1FN0O8.DTL – OpenTable coupons follow Groupon’s lead

Check the sidebar for more to consider.