Restaurant Trade Area Research

Here’s a link with a detailed look into the Groupon experience of one restaurant owner - and will provide an outline as to what to avoid if you have not made the one time plunge - http://techcrunch.com/2011/06/09/groupon-single-worst-decision/ – as regulars to this blog know - I have been posting about similar experiences from a consumer viewpoint that also would be equally bad for an individual restaurant - The Groupon `Restaurant’ Experience - Why Pay More? - http://restauranttradearearesearch.com/2011/02/23/the-groupon-restaurant-experience-why-pay-more/ and here - http://restauranttradearearesearch.com/2011/05/31/the-restaurant-value-coupon-dilemma/ . IMO, `Groupon’s’ in a Generic sense - would best be used in EXTREMELY targeted localized areas on the fringe of Trade Areas with lower penetration (almost like how the backs of Kroger receipts in the East Cobb area have been for a decade or more).

Wait, it gets even worse - here’s the same viewpoint with even stronger reasons to resist the Groupon type of experience - Why Daily Deals Are Becoming A Raw Deal - http://techcrunch.com/2011/06/03/why-daily-deals-raw-deal/ – IMO, the best `daily deal’ positioning in the restaurant marketplace is Subway’s 3.99 daily combo which changes everyday.

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In other news, Arby’s to be sold - http://www.restaurantnews.com/wendys-arbys-group-announces-definitive-agreement-to-sell-arbys-to-roark-capital-group/ and Burger King finally announces a new menu focus (think healthier, salads-smoothies) and store interior design of updated colors - http://www.miamiherald.com/2011/05/30/2242557/burger-king-goes-for-new-look.html and Dunkin Donuts has added a somewhat complicated User Rewards program - http://www.restaurantnews.com/dunkin-donuts-launches-new-dd-perks-rewards-program/ – that said, it appears to have big rewards for the heaviest of users (who may be considering the upgrades to coffee and other offerings at other FF restaurant brands).

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In what can only be considered somewhat eye-opening, much like the subject matter - McDonald’s clearly wins in this study of over 15,000 respondents (customers) for loyalty in the important coffee segment of customers - especially for the still growing breakfast daypart. More menu census data extensions - http://www.nacsonline.com/NACS/News/Daily/Pages/ND0418112.aspx and speaking of McDonald’s - check out this fun list floating around of the `secret menus’ you can order from FF restaurants if you know what to ask for - http://www.ranker.com/list/mcdonald_s-secret-menu-items/secret-menu-items - BIG MAC dipping sauce for french fries? Hmmm. The above article also links to the secret menus of other FF restaurants too. Much like this article of the Cult origins of various FF choices - http://www.minyanville.com/special-features/articles/McDonalds-McDonald-brothers-Ray-Kroc-history/11/23/2010/id/31222

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Meanwhile, in modern marketing … Arby’s Flash Mob Descends Upon Times Square - http://www.restaurantnews.com/arbys-flash-mob-descends-upon-times-square/ - with video. Instant karma via marketing? group spoofed Gene Kelly’s dance in Singing in the Rain and helped spread a good mood to passersby.

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More upscaling news at Fast Food brands - Fazoli’s - http://www.kentucky.com/2011/03/12/1667393/in-era-of-failing-restaurant-chains.html - following the lead of Boston Market and others with upscale plateware and lobby services. Nice full article on the turnaround in progress.

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Hardee’s and Carl’s Jr sales, year to year, same store - Hardee’s Up 4.4%, Carl’s Jr Down 4.8%.

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In an excellent marketing move very likely to covert some folks into NEW breakfast users - Subway has made the Bacon, Egg, and Cheese Flatbread - The FOOTLONG 5.00 Sub of the month. One would assume that introducing a new daypart into a long standing competitive marketplace segment, breakfast, as Subway did last year, is a slow go at best. However, this featuring of the breakfast daypart sandwich - ALLDAY- should certainly get lunch and evening trial and therefore potentially stimulate the breakfast daypart. (Hasn’t McDonald’s said in the past that they were going to make their fun menu an allday choice? Burgers before 10:30 and Biscuits in the afternoon?) http://www.subwayfreshbuzz.com/menu/footlong_of_the_month/ GREAT IDEA.

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IS Sbarro going under? - Sbarro Wins Court Approval of $16.5 Million Financing While in Bankruptcy  - http://www.bloomberg.com/news/2011-04-05/sbarro-wins-court-approval-of-16-5-million-financing-while-in-bankruptcy.html - article sites rising cheese costs and slowing consumer sales. Long time brand names going under reflects the real market IMO.

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Carl Jr’s and Hardee’s go ALL IN on Turkey Burgers. - http://www.restaurantnews.com/carls-jr-hardees-first-national-fast-food-chains-offering-charbroiled-turkey-burgers/ - FIVE versions, heath positioning — first to do — great moves. Is TURKEY the next Angus?

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Meanwhile, BK has pulled back on forcing stores to stay open til 2AM - http://www.miamiherald.com/2010/12/15/1973901/burger-king-pulls-back-on-after.html — win for franchisees –  Here’s Saladworks approach to helping new franchisee operators find new site locations - http://www.restaurantnews.com/saladworks-executive-team-searching-for-new-sites/ - excellent reading.  —– My only suggestion would be to have some outside independent person (like myself) who has conducted trade area research at hundreds of FF restaurants - to also provide suggestions, especially if a location of the brand is already in the market and cannibalization is an issue.

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Sometimes it is funny reading employee reactions to various advertising campaigns - like this of an Arby’s employee - http://www.ryanlmueller.com/2011/02/nibble-giggle-repeat.html and here is another opinion - http://makethelogobigger.blogspot.com/2011/03/mcarbys.html

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In more evidence of the `recovery’ being largely spotty, segmented,  and a reflection of `reverse attrition’ from the closing of so many restaurants - Seafood restaurant sales largely in the tank - http://www.orlandosentinel.com/business/os-eating-less-seafood-20110227,0,711787.story and, as I’m sure you are aware - Analysis: U.S. immigration probe fears weigh on Chipotle - http://www.reuters.com/article/2011/03/01/us-usa-immigration-chipotle-idUSTRE72007S20110301

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The last one that needs to be told is you - right? - http://www.nytimes.com/2011/03/04/business/media/04adco.html?_r=1 - from the article: “there tends to be a correlation between gasoline prices and Q.S.R. sales”

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This could be helpful - Five Restaurants That GET Social Media - http://www.huffingtonpost.com/wiley-cerilli/social-media-marketing-5-_b_835294.html#s253220&title=Zengo - (slide presentation)

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Meanwhile …. Restaurant Chains See Growth Despite Economy - http://www.restaurantnews.com/restaurant-chains-see-growth-despite-economy/ - Highlight: Top 500 Chains Up 1.8% in 2010. Huge differences by segments.

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Newsworthy study - Study: Hispanics Reward Kids with  Salty Snacks - http://www.qsrmagazine.com/news/study-hispanics-reward-kids-snacks - and other findings about the fast growing segment.

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Price Marketing, Customer Connection, - Popeye’s `Pay Day’ Deal - ONE DAY Only - Tomorrow - (3-23) - http://www.restaurantnews.com/popeyes-cooks-up-one-day-only-pay-day-deal/ – 8 pieces/4.99

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Nine reactions to the new Arby’s Campaign `Good Mood Food’ - http://pjlehrer.blogspot.com/2011/03/do-you-feel-guilty-when-you-eat-fast.html

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Continuing the theme that fast food is `good’ - such as KFC’s slogan - “That’s So S-O G DoubleO D Gooood” - Arby’s has launched its latest effort with `It’s Good Mood Food’. ——— This positioning statement  brings to life the brand’s positioning – “Exciting tastes you can feel good about … every day.” http://www.restaurantnews.com/arbys-announces-new-its-good-mood-food-marketing-campaign/ - “This campaign is focused on our target audience, Balance Seekers, who want and need to eat fast food because of their busy lifestyles, but do not want to feel guilty about eating it. They’re telling us that Arby’s has something over other fast food restaurants… a balance of higher quality, more wholesome food that they can feel good about eating,” said Steve Davis, chief marketing officer, Arby’s Restaurant Group, Inc. “We like to think that stopping by Arby’s makes their day a little brighter. With this campaign, we’re recommitting our team to inspire good moods each and every day.”

Whereas the rollout was given this treatment at NRN - http://www.nrn.com/article/arby%E2%80%99s-puts-premium-beef-menu - Robert Kraut, Arby’s senior vice president for advertising and marketing communications, said the sandwich was targeting about 35 percent of Arby’s customers — those heavy fast food users “who don’t necessarily feel good about the choices that are available to them” and are looking for something that’s better for them than a hamburger, but not necessarily a light meal.

Here’s a link to a sample commercial - http://www.youtube.com/watch?feature=player_embedded&v=Gzz0wY2Vobk

The Arby’s moves are not limited to a new commercial flight with a new set of words to absorb, as Arby’s has finally moved into THE premium word associated with Beef - Angus - with a Angus Three Cheese & Bacon Sandwich. It may be the first of several Angus choices in the future. Prices are 4.99 for the sandwich. Robert Kraut, Arby’s senior vice president for advertising and marketing communications, said the sandwich was targeting about 35 percent of Arby’s customers — those heavy fast food users “who don’t necessarily feel good about the choices that are available to them”Arby’s is also now offering a 1.99 side salad with two types of lettuce, cheese and tomato that can be substituted for Fries in the combo pricing. And, a premium summer milkshake is ready in the wings. Finally add to that the new `Steakhouse’ onion rings and new bite size breakfast dessert - and lastly new pep rallies and crew trainings designed to make the customer’s day special - and you have nearly a whole new focus and intensity. (Will they be SHOUTING hello and goodbye like at the local Capt. D’s?)

So, what’s my take on it all?

Well, first, it’s important to note that Arby’s HAD to do something new -  as the impact of the `new normal’ was about as steep on the brand as for any of the major FF players. And, in general, Arby’s follows thru with playing catch-up to some of the major trends such as premium Angus offerings, a premium side salad that is substitutible for combos - and something new during breakfast - finally becoming a competitor for all three positionings with other FF brands. Additionally, the more upscale Onion Rings and `unique’ but I’m not sure premium Milkshake offerings are steps in the right direction and competitiveness in terms of Milkshakes. (Who ever thought Milkshakes would be NEW again?)

So, Arby’s has followed thru to continue to enhance the `quality food’ perception advantages it once was semi-privy to in the FF arena; but, had lost it’s advantage of having, due to chains like McDonald’s `upscaling’ of various items; and, similarly priced sandwich chains such as Panera Bread or Atlanta Bread Company upscaling at comparible non-tipping prices.

And, the 4.99 pricing of the Angus sandwich is something that should add to franchisees bottomline - something much needed with the addition of the 1.00 and low priced value choices - pushed hard last year to establish a market presence at the price point against long time players.

I also like the slogan more than some of Arby’s recent offerings such as `I’m Thinking Arby’s’ or `I’d Marry A Goat’ or that 5.01 combo pricing, or Tastes Growing Up.  At least this slogan is talking about the food, a long time Arby’s advantage and attribute needing a revival in the Arby’s customers mind. And, what is NOT to like about trying to drive this whole new positioning from the bottom up with the crew memebers and management. ——————- It’s very like a line being drawn in the sand for a new beginning attitude. (And a good time of year for it coming into spring too.)

BUT, ———- you knew there would be a but - right?

Are heavy FF users really looking for a 4.99 sandwich price point? Searching for new sandwiches for 5.00 in the new normal? (That isn’t a foot long.) And, wouldn’t the marketplace of consumers that isn’t finding at FF restaurants a healthier mix - also, not going to be interested in a Three Cheese Bacon sandwich? (Will this really be pulling the women back to Arby’s from Panera Bread?)

Also, just to be picky, IF someone was in a `good mood’ - they likely wouldn’t be choosing FF - as in the new normal, fast casual seems the more likely target for the consumer. And, IF someone was having a hankering for `mood food’ - ie:comfort food - once again, FF would not be a first choice for the consumer, (think Piccadilly’s, Waffle House,). And, IF they wanted their food to put them in a `good mood’ - again, FF is simply not the first choice (think upscale upscale).

However, the bottom line to all of this is finally a positive for Arby’s, who now is a player for the 1.00 price point, combo subsituting, Angus seeking, Premium sandwich and Milkshake markets, of which it had almost no presence within until recently. Arby’s products have long had a uniqueness to them, and by joining the mainstream of where FF is going, they have helped themselves change accordingly with these new above trending positionings.

Ultimately, however, it will be a process - as Arby’s is playing catch-up largely IMO. And, 5.00 Angus sandwiches simply will not be getting the attention of most women, now a signficant portion of the FF market;  (Menu census research stuff.) nor of those who recently became users because of the 1.00 menu - those who didn’t trade down (Yikes). Because IF one were to judge who might be made most happy by Arby’s new moves - the big eater man who loves his Angus and Premium Onion Rings and Soft Drink - and who spends @ 9.00 in the process - is probably wondering why beer isn’t on the menu.

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The Angus sandwich is reviewed here - http://www.slashfood.com/2011/03/01/arbys-angus-three-cheese-and-bacon-sandwich-reviewed/?icid=main%7Chtmlws-main-w%7Cdl13%7Csec1_lnk3%7C204094 - it got a `B’. (Possible grade inflation based on review IMO.)

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It’s worth thinking back about 2010 — what fast food ads do you remember? (I wrote this in late Jan.)

For me, Pizza came to mind first; from the 10 Dollar  price point positioning of Pizza Hut (which offered value and an immediate clarification on pricing, always a nebulous weak point for the Pizza category) to the Domino’s ads about `sending in a picture of your pizza’ and real pizza in ads from now on with no special effects (a reaching out to be more real to people - in essence just what that Undercover Boss series does).

Yes, that funny ad with those Valley Girl type secretaries eating Hardee’s Fresh Chicken Fingers comes to mind still too; and, Wendy’s Sea Salt Fries, but that was recent. Okay, I still have a memory or two of McDonald’s different `Wraps’ type offerings, Arby’s 1.00 Menu - and Subway now offering Breakfast (all three of which induced not one actionby myself until recently trying Arby’s Buck Items). Nearly all the rest is a wash. Money swept under the bridge of TV Fast Food Advertising.

Zaxby’s is simply that easy to whistle same music theme over and over and the folksy endorsement by small celebrities - IHOP is endlessly pushing slightly expensive breakfasts IMO - all the Casual Restaurants such as Friday’s are endlessly pushing the under 10.00 price point (and ignoring that I will be paying a tip beyond any price point that EXcludes a drink to begin with) (not real) - and, where has the Burger KING went anyway? Price is also what I remember about Capt. D’s ads - and Steak and Shake - while price AND size is what I remember about Taco Bell. (As I go mentally thru my local Woodstock Ga. Fast Food Market.)

My guess is that some marketing departments are patting themselves on the back - they have gotten the point thru to a weary America that `eating out’ can fit into a reduced `frills’ budget diet the new normal has put America onto.

But, PRICE may be less compelling - especially emotionally to a consumer - than the reward of trying a new product offering that sounds especially good; one that you may be excited to tell a friend about. And, less compelling than trying to directly talk to consumers like the Pizza category did in 2010. IMO.

So, what would I do if it were MY ad dollar?

I’d want to stand out.

For example, to `reach the consumer’ would 4 thirty second ads bunched with a block of perhaps 4 minutes of similar ads each time - sound like a way to stand out — OR — WOULD A TWO MINUTE `SHOWCASE’ AD? —————– Heck, even 24 - Five second logos might have more impact than the standard forgettable 30 second ad a week into a new ad flight.

IMO, with `Showcase’ Ads - Brands can address all the marketing categories with 3 or 4 variations (a strategy not often used) - first and foremost, the `frequency-rejecter’ - that is the core population base that is aware of your brand, has used it in the past - but now, it has been so long, as to be a `trier-rejector’ (at least to YOU the owner of the brand) of the brand - having replaced it with other choices.

IMO, many of these people can be lured back - and many fall into the influenced by advertising campaigns motif - that ad agencies have long relied upon for improvement of sales during sales campaigns. IMO, they could be targeted MUCH more via a Showcase ad.

After all, REGULAR users are JUST that - and are UNLIKELY to be significantly changing their Frequency of Usage over any term; other than to bump up the next visit interval by a few days, perhaps. Much more effective ways exist to market to your existing customer base than TV mass advertising.

Of course, the ultimate boom would exist on MAKING A NEW USER ENTIRELY - the total rejecter; never user (for all practical purposes) - certainly a Showcase Ad for these extremely low awareness of what your brand IS market - can become better informed and tempted about what YOU have to offer via your brand.

These LOW-KEY, almost, aw-shucks ads - like an infomercial - are the emotional connection to change behaviour ——— not the mind numbing, what did I just see, 30 second blasts of normalcy.

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See just how different regular fast food users are compared to rejecters at my YouTube channel or by following these links:

Frequent user of Fast Food - http://www.youtube.com/watch?v=zTRO81RR7DA 

Hates Fast Food - http://www.youtube.com/watch?v=x8G9OAFlquI

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

New Chicken Taco at Church’s Chickent - http://www.restaurantnews.com/churchs-chicken-on-the-go-with-the-new-crispy-chicken-taco/ - nice brand extension here for `on-the-go’ targeting too (did I see a burrito now offered at Hardee’s in Woodstock Ga?).

Wingstop Reaches 29 Consecutive Quarters of Positive Comp Store Sales  - http://www.restaurantnews.com/wingstop-reaches-29-consecutive-quarters-of-positive-comp-store-sales/

Will Arby’s and Wendy’s increase prices? - http://www.walletpop.com/blog/2010/10/01/are-wendys-and-arbys-going-to-beef-up-menu-prices/ – kinda a strange article to me as any beef price increases would certainly hit everyone.

Speaking of beef - Regional Chains Feed Hunger For Burgers - http://www.msnbc.msn.com/id/38420989/ns/business-local_business/

From the in-case you missed it file - McDonald’s sss up 4.9% in August - http://www.restaurantnews.com/mcdonalds-posts-strong-global-comparable-sales-august-up-4-9/

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With second quarter sales off 7% - more and more franchisees are not confident with the new emphasis on sandwiches and grilled chicken - one decades long franchisee even said this: “Roger Eaton and his company don’t give a rat’s ass,” - http://www.businessweek.com/magazine/content/10_34/b4192019553596.htm?chan=magazine+channel_news+-+companies+%2B+industries much more detail at the link.

And KFC isn’t the only big name with continued lower secondquarter sales as Arby’s is once again off 7.4% and Wendy’s is off 1.7% http://www.restaurantnews.com/wendys-arbys-group-reports-2nd-quarter-2010-results/ - that said, Wendy’s/Arby’s plans expansion abroad with duel branded stores - http://www.ajc.com/business/wendys-arbys-to-open-588791.html

Meanwhile, while some chains go overseas for expansion - Chick-Fil-A plans to go into urban USA locations - http://www.ajc.com/business/chick-fil-a-plans-589960.html

And, speaking of GOING into new areas - New food-truck trend rolls into Akron - Vehicles promote fresh, unique fare, pose competition to eateries - http://www.ohio.com/news/top_stories/100353574.html making existing restaurants uneasy.

And, speaking of being uneasy in the restaurant business - Restaurants seek recipe for economic sustenance - So, with the fear of the unknown come new marketing strategies, including lots of social media and some creative pricing packages. Restaurants are also learning the value of truly connecting to the community they call home and making sure their new and regular customers are given top-notch food, delivered with a smile. - http://mddailyrecord.com/2010/08/05/restaurants-seek-recipe-for-economic-sustenance/ the bad news, of course, is that the `new normal’ is quickly becoming the new reality.

More down sales from O’Charley’s too - same-store sales at O’Charley’s company-operated restaurants declined by 7.9 percent - http://www.restaurantnews.com/ocharleys-inc-reports-results-for-the-second-quarter-of-2010/

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I live only about 2.5 miles from a Stevi B’s - it’s pretty good pizza - that said, when it opened our family used to use it 3-6 tmes a year - but, it’s been 3-4 years since our last use. That said, free food can indeed bring in the old users (now nonusers) - and, IF they give that pizza to the customers as they leave - they may indeed stimulate some `take out’ business in the future. (Especially if the pizza re-heats well.) http://www.restaurantnewsrelease.com/stevi-bs-pizza-celebrates-second-annual-free-pizza-day-on-august-19/852283/ Free Food - Part of the New Normal.

(Finally) Blimpie Introduces New Lighter Stuff Menu - The Lighter Stuff menu is comprised of six deliciously healthy items, all less than 400 calories and six grams of fat. - with a celebrity endorser and all - http://www.restaurantnews.com/blimpie-introduces-new-lighter-stuff-menu/ - Just how many years ago was Jared?

“It’s Bo Time” - http://www.charlotteobserver.com/2010/07/19/1572009/bojangles-fries-up-new-ad-slogan.html - Will Bojangles new slogan live up to the impressive KFC `So Good’? Are you motivated?

Arby’s goes interactive to introduce a new 1.00 sandwich - New Web App Morphs Your Photo Into “Arby’s Junior” Character - http://www.restaurantnewsrelease.com/become-an-arbys-junior/852235/  will cutesy work? That said, the description of the sandwich sounds like a taste treat for one dollar: the Jr. Deluxe features oven-roasted, thinly sliced roast beef, topped with crisp, fresh lettuce, ripe tomato and mayo on a toasted sesame seed bun. 

And, why not try the new media when - Starbucks Tops 10 Million Facebook Fans - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=132008

America’s number 3 Fast Food Chain changing hands is big news indeed - http://www.businessweek.com/news/2010-06-11/wendy-s-arby-s-investor-peltz-approached-on-takeover-update2-.html.

Taco Bell’s Two Dollar price point promotion is being well received in the new normal - “Taco Bell’s two dollar value meal is potentially game changing,” says Gary Stibel, Founder and CEO…..One dollar meals drastically limit the quantity a restaurant can offer and often leave consumers wanting.  This is strategic to Taco Bell because the bullseye of their target audience is the young male who doesn’t eat restaurant food, he ‘hoovers’ it. ….the original Chief Marketing Officer of Taco Bell, points out that “one of the bases for PepsiCo’s acquisition of Taco Bell was the ability to deliver good tasting, filling foods to young men at prices that were attractive to the guest and profitable to the owner.  It is one of the strengths of Mexican food in a crowded QSR marketplace.” - More here - http://www.restaurantnews.com/the-2-value-meal-could-be-a-game-changer-for-taco-bell/ 

Taco Bell recently used this Fun Idea to promote the 2 dollar price point - Taco Bell Asks Federal Reserve to Circulate More $2 Bills - http://www.restaurantnews.com/taco-bell-asks-federal-reserve-to-circulate-more-2-bills/

In other price point positioning news - Boston Market Debuts New Market Sliders For $2.99 - http://www.restaurantnews.com/boston-market-debuts-new-market-sliders-for-2-99/ - and combos for 4.99 - very aggressive.

And, score another one for McDonald’s - McDonald’s Ads to Showcase Undiscovered Artists and Bands - as this is an incredibly great idea to target the under 25 segment. - McDonald’s Ads to Showcase Undiscovered Artists and Bands - brilliant, again - http://www.restaurantnews.com/mcdonalds-ads-to-showcase-undiscovered-artists-and-bands/

I appreciate your visit today. Have a look around www.restauranttradearearesearch.com .

A very serious article about the sales and marketing concerns with the Arby’s brand - including low brand loyalty even by users; and price-product positionings out of wack. http://www.nydailynews.com/money/2010/05/17/2010-05-17_arbys_performance_amongst_the_worst_in_modern_restaurant_history_analyst.html 

Here’s Burger King’s latest venture into the areas beyond Fast Food - http://www.walletpop.com/blog/2010/04/21/burger-king-testing-brunch-menu-in-select-markets - an area rapidly becoming important in the new normal.

More news - Why Captain D’s Was Thrown Overboard To Save Del Taco - http://blogs.bnet.com/business-news/?p=2077 - the bottom line on this was - healthier food, stronger brand, stronger finances, and fresher marketing - read for the details. (I did some research for one of these brands in the past and one of the brands in the above links.)

Can a two word slogan turn around sales - http://www.slashfood.com/2010/05/25/so-good-is-kfcs-groundbreaking-new-message/ - KFC hopes so. So Good?

In other news - NRA: Menu trends continue to highlight comfort food - http://www.pizzamarketplace.com/article.php?id=18373 - Bread Bowls, Oatmeal, Meatballs - you get the idea. More too.

The smartness of McDonald’s marketing and positionings are amazing - McDonald’s seeks to boost its beverage business - http://www.walletpop.com/blog/2010/05/18/mcdonalds-seeks-to-boost-its-beverage-business/

A great place to start if you are new with this blog is right here - http://restauranttradearearesearch.com/important-posts-in-2008/

Image From - http://fastfood.freedomblogging.com/files/2008/05/tacobell_valuemenu_web.jpg

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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Putting promotion and advertising dollars behind various price points is nothing new in the restaurant category - but - in 2010 - it would seem to be of huge importance based on the current crop of ad positionings positioning prices. For example - check out this list of price points promoted in the past year in the Atlanta ADI at least:

79 cents - Taco Bell (occasionally).

99cents - Wendy’s Value Menu - Capt. D’s sides

1.00 - McDonald’s Dollar Menu; Burger King, Arby’s, Checkers

1.50 (2/3.00) - Checkers, Dairy Queen (occasionally)

1.99 - Snack meals - Mrs. Winners, Church’s, KFC (occasionally), Dunkin Donuts, 

2.00 Denny’s

2.50 Subway Breakfast Combo

Meals For One

2.99 Combo’s - McDonald’s, Wendy’s, Krystal, Boston Market

3.99 Long John Silvers, KFC, (4.00)Firehouse Subs >4Pm (4.00) Steak & Shake, (4.00) Quizno’s, 3.99 Hardee’s, (4.00) Denny’s

5.00 - Subway Footlong, Boston Market 5.oo + sides, (5.01) Arby’s, (4.99) Waffle House, (4.99) CiCi’s Pizza, (5.00) Little Ceasar Pizza, (4.99) Denny’s, 5.00 - Capt. D’s lunch, (4.99) - Zaxby’s,

5.99 Domino’s Pizza, 6.00-Denny’s

8.00 Denny’s

6.99-9.99 - Friday’s, Ruby Tuesday’s, Ryan’s, Golden Corral, (10.00) Pizza Hut, Folks Restaurant, Red Lobster, Olive Garden, Applebees,

And now, with smaller portions becoming more accepted at a reduced price (often with more profit however) - the under 10.00 to eat AT a restaurant perception continues to grow.

Today’s headline is in honor of the entry of Subway into the breakfast daypart nationwide. To me, most likely to be `hurt’ would be the `Morning Bakery’ type places (Atlanta Bread Company, Panera Bread, etc) as they also are `walk-in’ - non biscuit - 7AM opening type of places. Subway’s entry also makes it harder for other FF restaurants that are not heavily in the breakfast daypart to start up - such as Wendy’s, Arby’s, some Chicken chains - even a fast casual like Moe’s.

Some Restaurant Links in the news:

Wendy’s/Arby’s Group, Inc. Q4 2009 Earnings Call Transcript - Interesting - bottom line Arby’s still way off for 2009 compared to 2008 (9%) — much more. http://seekingalpha.com/article/191999-wendys-arbys-group-inc-q4-2009-earnings-call-transcript?page=1

http://www.fastcompany.com/magazine/143/next-tech-happy-hour.html -Social Network Rockets Houlihan Restaurants’ Profits - Interesting read.

Battle For Breakfast Diners Intensifying - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124241 Premium coffee’s - all day breakfasts - coming soon.

Here’s a great example of competition in a down economy - Where a Meal Can Cost a Fortune, 99¢ Pizza Catches On - http://www.nytimes.com/2010/03/16/nyregion/16pizza.html 

Eateries emphasize bar areas, happy hours to lure customers amid recession - http://www.orlandosentinel.com/business/os-alcohol-sales-restaurants-20100313,0,4791182.story

Fish survives fall from sky, lands outside sushi bar - Here’s a fun link for you all - http://weblogs.sun-sentinel.com/news/specials/weirdflorida/blog/2010/04/fish_survives_fall_from_sky_la_1.html

Great news for Five Guys Burgers - http://www.portfolio.com/views/blogs/daily-brief/2010/03/25/five-guys-burgers-and-fries-tops-growth-charts - Fastest growing 2009.

More on my services at www.squidoo.com/tradeareasurveys - thanks for visiting today - please bookmark.

One of the few available ways to increase sales is to increase the size of the eating party - here (perhaps you have seen the ads featuring Bo Bice) Moe’s smartly does just that. Indeed, by targeting a `workday’ Moe’s is even encouraging the development of the `office workers luncheon `date” (no romance required). And, by establishing work pairs eating out together - it will surely `happen’ on non-2-1 days too. Excellent idea.

More links to - including:

Vowel Sounds Influence Consumers’ Price Perceptions - http://www.cnbc.com/id/34919366 

10 Worst Sandwiches in America - http://health.yahoo.com/experts/eatthis/43781/10-worst-sandwiches-in-america/ - A list you don’t want to be on - such as FF chains - Arby’s, Panera, Red Robin, Subway, Blimpie, Quizno’s.

Unemployment Takes a Bite Out of Breakfast - http://www.aolnews.com/money/article/unemployment-takes-a-bite-out-of-breakfast/19367237 - Down 4% — even 8% off breakfast sandwiches at 7-11.

http://www.slashfood.com/2010/02/23/burger-king-unveils-secret-weapon-for-new-steakhouse-xt-burger/ BK goes huge. 7 oz Burger - new broilers.

http://restaurantnews.com/short-orders-news-bites-from-across-the-web-022510/ Just showing off that last weeks post was carried by restaurantnews.com - cool.

Hungry for Returns? Try Wendy’s/Arby’s Group - http://seekingalpha.com/article/185953-hungry-for-returns-try-wendy-s-arby-s-group

Return soon for more.