Restaurant Trade Area Research

21. January 2010

Candle Lit Valentine’s Day Dinner At White Castle

Filed under: innovative idea, sliders, White Castle, Arby's — Rick Phillips @ 16:19

Great thinking outside of the box right here - includes flowers on the table too AND a photographer to remember the event — for only 11.99 - reservations needed. http://news.holidash.com/2010/01/15/candle-lit-valentines-day-dinner-at-white-castle/?icid=main|htmlws-main-w|dl8|link6|http%3A%2F%2Fnews.holidash.com%2F2010%2F01%2F15%2Fcandle-lit-valentines-day-dinner-at-white-castle%2F I can’t see why this same idea couldn’t work for other FF’s.

Fast Food Jobs and What They Pay - http://jobs.aol.com/articles/photos/fast-food-jobs-and-what-they-pay/2475605/?icid=main|htmlws-main-n|dl4|link7|http%3A%2F%2Fjobs.aol.com%2Farticles%2Fphotos%2Ffast-food-jobs-and-what-they-pay%2F2475605%2F And the winner is ……….. Arby’s

And, Arby’s scores again right here - http://www.slashfood.com/2009/11/20/arbys-lures-sports-fans-with-free-food/?icid=main|htmlws-main-n|dl6|link5|http%3A%2F%2Fwww.slashfood.com%2F2009%2F11%2F20%2Farbys-lures-sports-fans-with-free-food%2F

Read more about the services I offer at www.squidoo.com/tradeareasurveys thanks.

28. October 2009

Arby’s Adopts 1.00 Value Menu (In Atlanta At Least)

Nothing like being a bit late to the party - or - making the move while a 5.01 Combo advertising campaign is going onward - but Arby’s has finally moved to match the direct FF competition. Seems the shift away from advertising specific products and tastes continues.

Also seen lately is Capt. D’s once again positioning their food and prices compared to Red Lobster - this time showing a party of two that they could have fed a party of four AND gotten 15.00 back. The tradedown customer is a legit positioning for sure for `dinner’ FF restaurants.

Finally, some other restaurant links:

Hundreds line up to apply for a job at In-N-Out Burger - http://www.ksl.com/?nid=148&sid=8366210

Study: Consumers Prefer E-mail Interaction to Social Media - http://blog.sellsiusrealestate.com/marketing-tips/study-consumers-prefer-e-mail-interaction-to-social-media/2009/10/16/

6. October 2009

My Perception Of The Woodstock Georgia (Fast Food) Restaurant Market

First, let it be said that my usage of nearly ALL of the restaurants has already assumed the `new normal’ of the Great Recession. Regardless of what cheerleading the media may be doing about the economy - most folks are now cautious on discretionary spending - of which, restaurant visits - even to a degree Fast Food restaurant visits - has been impacted. 

 In alphabetical order:

Arby’s - I `responded’ to the ads for the `Roast Burger’ earlier in the year and was not impressed. I refused to respond to the Marry a Goat `humor’  ad campaign and somewhat like the recent 5.01 combo or pricing (the one cent being for Quality).  That said, generally, I perceive that Arby’s as expensive without having coupons from the coupon mail drop a few times a year. Additionally, they  `streamlined’ their `fries’ - dropping my favorite the Homestyle. How can they NOT promote the Jamoca Shake?

Atlanta Bread Company (ABC) - Remodeled nicely. Upgraded to real plates and silverware. Messy to clean up. Can be crowded and slow service. Female favorite. Good soups and combo prices. Mellow atmosphere.

Burger Inn - Local  legend - all fresh cooked. Great breakfast customer base. Friendly people; newspapers available often. Excellent onion rings. Beefy hamburgers. Male favorite.

Burger King - I like the current billboard promotion about the Double Cheeseburger for a buck, real value - but - haven’t gotten it.  I have ordered the Mini burgers more than once however and view that as an excellent addition. Amazingly, the Woodstock BK got rid of Real Sweet Tea years ago (my assumption is that is still the case) and thereby nearly ended my usage — I can’t stand the fake sweet tea out of a machine. Operations should be aware that changing ICONic drinks can have a big effect. — Finally, where is the KING?

Capt. D’s - Perhaps my favorite FF in Woodstock. Quality, Quick, and Quantity with good value pricing. Covers all reasonable price points including lunch specials and on-going `specialities’ that have all prices. Excellent choice of sides. Funny ads earlier in the year comparing to Red Lobster pricing. Friendly greeting and thanking when exiting. Good inside music.

Checkers - Still a viable concept (double drive thru) - chicken wings were a good addition earlier in year - somehow it fits. Catchy phrase “you gotta eat” recognizable for smaller chain levels of advertising. Covers all price points well with a good mix of products. The Woodstock store does Sunday Pricing - good idea - hasn’t ever motivated me for their `down sized’ versions. Could probably `play-up’ the FUN theme a little bit more.

Chick-Fil-A - Woodstock’s Chick-Fil-A is amazingly busy. Overwhelmingly busy whenever they do a promotion like 2-1 for a chicken sandwich or free food giveaway. Excellent quick service regardless of how long the lines are - especially at the drive-thru. (However, I’ve detected a time or two a usage of `workers in India’ taking my orders — I’m not kidding - and, in this time of underemployment in America - that is NOT right to save a few cents that way.) Real Milk Shakes were genius. Consistent quality. Friendly employees. Clean. ————— All that said, the Woodstock inside service in the sit-down area can be horrid and when is Chick-Fil-A gonna get some normal fries? Also, one takes a chance when getting the baked potato.

Dairy Queen -  The standard in Ice Cream desserts from the drive-thru. Haven’t used but really like the new pricing structure in ads 2/3 3/4 4/5.00 - interesting approach. Unfortunately, for me, the food hasn’t broke thru.

Dunkin Donuts - Right on the Strip - I’ve never used location. Certainly they can advertise donuts and donut prices more.  (IF I knew a quick Donut sweet was 99 cents for example - it would come to mind for `dessert’ or breakfast purchase more often. Never seen a place less concerned with establishing a price point understanding. Just how much does a dozen donuts cost?)

Firehouse Subs - Expensive but Excellent. Can be slow. Friendly employees. TV’s to watch. Good real sweet tea. Small, can be crowded.

Five Guys Hamburgers - Tangential to Woodstock in Sandy Plains area — good operation - waiting for a Woodstock Location (several good places available perhaps too).

IHOP - Expensive, right? What specials?

KFC - Closed but not forgotten. Also was one, like BK, to drop sweet tea for a time.

Krystal’s - Krystal `fix’ a must a few times a year. (Canton Road.) Ad’s featuring Crispy Onions on burger looks very compelling. Wi-Fi add - good idea.

McDonald’s - Woodstocks unit re-designs and updates the interiour often - which is nice. Clean. Service can range from excellent to very poor (weekends). Can often find an AJC or USA today in newspaper bin. Separate kids area - thumbs up. Fries can vary in quality. Best FF fish sandwich.

New China Buffet - Lunch value leader. Good quality food. Friendly employees. Priced by the pound to go. Widest variety of food.

O’Charlies - Stopped going shortly after changed menu restricting Prime Rib to Sundays only.

Panda Express - Have never used. Pass by back of lot 3 times a week on way to Walmart.

Po Folks - AKA Folks —> Expesive for what you get.

Ruby Tuesday’s — How could they get rid of German Potato Salad? (pet peeve). Good miniburgers and platter pricing. Easy to split orders. Great salad bar still.

Sonic - I really like their ad’s inside the car with the main guy and his friend and the main guy and his wife. Classic. Best onion rings in Woodstock at FF. To me, tasteless burgers. Fun to use. Daypart pricing on drinks in the afternoon. Fun music playing.

Steak And Shake -  Best Milkshake in Woodstock. Can be very expensive without coupons and very reasonable with coupons. Great variety of sides. Great music inside.

Subway - Good with pricing with coupons. Good quality. Can be SLOW service. GOOD real sweet tea. Fresh. Daily specials a good way to address pricing. Excellent variety of sandwiches.

Taco Bell - Good cheap price positioning. Good Chalupa’s. Good real sweet tea. Good service speed. Good quality overall.

Wendy’s - Huge variety in quality - excellent one time - poorish the next. What the heck happened to the fries - almost tasteless compared to yesteryear. I’m told good salads. Expensiveish compared to McD’s. Baked potato good price/quality.

Thanks for reading - feel free to comment.

Here’s some links also:

KFC Closes Its Doors to Fight Hunger - http://www.slashfood.com/2009/09/30/kfc-closes-its-doors-to-fight-hunger/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.slashfood.com%2F2009%2F09%2F30%2Fkfc-closes-its-doors-to-fight-hunger%2F Community involvemet matters - look at the results of the survey on this page too.

A Real Whopper? NASCAR’s Stewart to take live polygraph test in ad  - http://www.walletpop.com/blog/2009/09/30/a-real-whopper-nascars-stewart-to-take-live-polygraph-test-in//?icid=main|htmlws-main|dl1|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F09%2F30%2Fa-real-whopper-nascars-stewart-to-take-live-polygraph-test-in%2F%2F BK, attention grabber again.

Eat, drink, and spend money: Restaurants ply diners with cheap booze - http://www.dailyfinance.com/2009/09/29/eat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b/#continued?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.dailyfinance.com%2F2009%2F09%2F29%2Feat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b%2F%23continued

26. August 2009

Zipcode Marketing Your Real Customer Base - Part 2

When you use the MarketView design - part of the findings via our customer base formula - tells the owner, literally, an estimate on `how many’ customers do I have at this unit. Then, when that is combined with the knowledge of what percentage of transactions are with customers in the top two zipcodes for a store — the operator ends up knowing the number of customers that live in a certain zipcode(s).

In the same market I spoke of yesterday - one store had over 11,000 customers who lived in the top two zipcodes to that store; whereas, other stores had less than 5,000 customers in the top two zipcodes. So, once again, in this time of limited marketing dollars - targeting the most customers is good business and smart money.

More restaurant links for you:

http://www.nrn.com/breakingNews.aspx?id=370226 Carl’s Jr. and Hardee’s sales slip in June, July.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ak1s1RK9PVp4 Wendy’s and Arby’s sales off too. This link also talks about how restaurant visits overall were down for the first time since 1981 (shows how my post about spring research `expecting an increase’ was dead on http://restauranttradearearesearch.com/2009/04/19/does-new-restaurant-research-point-to-real-surge-in-confidence-and-more-restaurant-spending-or-not/)

http://www.qsrweb.com/article.php?id=15504&na=1&s=2 Taco Bell about to add breakfast.

http://www.couponcravings.com/2009/08/wednesday-free-fruittea-with-sandwich.html Arby’s `free sandwich’ with drink purchase today.

http://www.bloggingstocks.com/2009/07/06/new-mcdonalds-to-include-recharging-stations-for-electric-cars/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.bloggingstocks.com%2F2009%2F07%2F06%2Fnew-mcdonalds-to-include-recharging-stations-for-electric-cars%2F Yep, McDonald’s to offer re-charging for electric cars at some new units.

25. July 2009

Top Of Mind Awareness For Fast Food Brands - Atlanta, Georgia - July 4th, 2009

Filed under: top of mind awareness, Arby's, Subway, Chick-Fil-A — Rick Phillips @ 08:23

This is a copy and paste from my blog at http://streetlevelviews.blogspot.com — Check it out.

Wednesday, July 22, 2009

Restaurant Top Of Mind Fast Food Awareness - Atlanta July 4th, 2009

Hello, and welcome back to Street Level Views. As you may be aware, on July 4th I spoke with a number of random people in Piedmont Park in Atlanta. Each of them were asked to name restaurants off the top of their heads and ultimately were also asked to name Fast Food Brands in a top of mind fashion. And, the seven folks in the demonstration taping were a mix of races, ages, and represented both sexes about equally.

Which makes the results even more interesting as they were anything but random. Indeed, 4 of 7 respondents named Chick-fil-A FIRST when mentioning Fast Food brands - with 5 out of seven naming them unaidedly. The other FIRST mentions were Moe’s, Subway and Burger King.

Only four FF restaurants had more than one mention unaidedly McDonald’s (3), Wendy’s (2), Subway (2), and Burger King (2). Other FF brands mentioned unaidedly included 5 Guys Burgers, Taco Bell, Jayson’s Deli, Moe’s, Quizno’s, Checkers, KFC, and Publix Subs.

Commenting on the top of mind mentions —— It is striking that Chick-fil-A `won’ in such a hands down manner (even with such a small sampling). Even more striking is the best `top of mind stories’ told by the respondents involved Chick-fil-A too. One story was told by a under 35 year old woman of she and her friends talking about how they would love to be on the `ad account’ - and - another woman, the heaviest fast food user of the seven - went into GREAT lengths to `show what she appreciates’ about Chick-fil-A. Obviously, the cows, humor and service seem to set Chick-fil-A apart from the everyday FF crowd.

The question is - will that awareness hold up in the first (beta) sample to be gathered citywide over the next month or so - bookmark and return for more information.

And, see the sample interview here http://streetlevelviews.blogspot.com/2009/07/street-level-views-about-restaurants.html and links to the other six interviews on YouTube.

14. July 2009

Restaurant Video Research - Street Level Views 7/4/09

Filed under: Arby's, Subway, Chick-Fil-A, Quantitative Research, Qualitative Research — Rick Phillips @ 09:26

Here’s some recent on the street interviewing I did about restaurants:

http://www.youtube.com/watch?v=EtVziTDuZOY

http://www.youtube.com/watch?v=Bj8ZsJ5JeAg

http://www.youtube.com/watch?v=-v9QqZ9QeCc

http://www.youtube.com/watch?v=zTRO81RR7DA

http://www.youtube.com/watch?v=GJlZ-cOFbqg

Find out more here - http://streetlevelviews.blogspot.com

The above research `featured’ Arby’s, Chick-fil-A and Subway.

4. June 2009

New Price For Customers - Free Food (Part Two)

The new price of `free’ continues within the fast food category - this week - I’m aware of a dayparted Sonic free Root Beer Float and a free donut at Dunkin Donuts (with purchase) and I’m pretty sure I saw a coupon for an Arby’s `weekparted’ free Kids meal (on weekends with purchase). To be honest, I think there was at least one more.

Well, at least the new FREE involves some targeting. Targeting families to get into a weekend Arby’s visit - good idea. Targeting the sweet tooth by Sonic in the evening (this promo was after 8PM) - creating that `float, at night, in the summer idea - and also making this FREE promotion FREE - good idea. Dunkin Donuts getting some free trial by coffee users - good idea.

Also newsworthy on the `re-pricing’ of fast food restaurant visits is McDonald’s (at least locally) going 1.00 for all sizes of any soft drink (a la carte) (until Sept.30th) - NOT just the sweet tea. Smart - something I suggested all chains should consider in prior posts about how to deal with the `new’ normal in restaurant usage.

And, that new normal continues to make it a rough go as these links indicate:

Fast-Food Chains In For Job-Loss Pain - http://money.cnn.com/news/newsfeeds/articles/djf500/200906031622DOWJONESDJONLINE000812_FORTUNE5.htm

Same store sale figures - Not good news for some - down as much as 8% for Arby’s - Qdoba’s down;  BK, Wendy’s, Jack In The Box slightly up. http://www.mediabuyerplanner.com/entry/41524/burger-king-promotes-value/

http://www.rttnews.com/Content/BreakingNews.aspx?Node=B1&Id=947907%20&Category=Breaking%20News

Don’t leave before visiting my Squidoo site - where I explain some of the services I offer www.squidoo.com/tradeareasureys - thanks.

12. April 2009

Are We - Nearing The Bottom - Or - At The New Normal?

As far as the Woodstock Georgia fast food market is concerned  - restaurants continue to be under competitive pressures with strong discounting and `new and interesting’ promotions to offset the continued shrinking of customer bases. Indeed, just recently, ABC - the Atlanta Bread Company in Woodstock had a Sunday evening `Murder theater’ (with actors of course) near closing time for which tickets at 10.00 per head were sold. These `patrons’ would have an additional chance to purchase food and dessert from the unit too - for enjoyment when watching the play.

And, the discounting continues at all levels from Waffle Houses 4.99 meals, to 4.00 KFC meals, to 99 cent Dunkin Donut specials, to the buck level at Checkers, Wendy’s and — whatever special Arby’s has going at a various promotion period. In the nearby Sandy Plains/Shallowford area the Boston Market was doing bounce back coupons for buy one meal - get one meal —— that’s up to a 6.99 value — (and one our family took advantage of) and up to 50% off. And, within the past month, Arby’s was giving the `RoastBurger’ away with the purchase of a drink (& Quizno’s also gave away it’s small sandwich.)

Couple all this with promotions from the last posting - many of which are still going on in one form or another (including daypart pricing) - and you have a very sensitive price market the likes of which haven’t been seen in a long long time, if ever. Increasingly, `eating out’ is positioned by the media as the one way that Americans are cutting back and saving money. And, again increasingly, the eating out `habit’ is being broken at some level.

Indeed, the extreme multi times a week users (4+ times a week)  - while usually not  a huge element in most fast foods - is largely gone - as these hardest regulars have become part of the once a week users - generally. And, while most of the two times a week or once a week users have hung on in most circumstances - especially in white collar, lunch oriented restaurants - those users are probably most reduced in the evening timeframes.

Probably most affected frequency wise in customer bases are the occasional once a month type users - who have often fallen into the `never use anymore’ or seldom use category - as consumers tighten up into their most favorite choices. NEW customers, once a mainstay at 3-8% of all fast food customers is again - almost nil. (Why waste precious money on places without a proven track record?)

So, with all this - with restaurants of all kinds closing (which does help others who survive in degrees) - with frequency rates dropping - with price pressures at every turn - the question must be asked if this is the bottom to be endured - or - a new normal? (No one wants to think it could be worse - and indeed - as competition closes - the `replacement effect’ of the `new meal occasions’ to be filled in the local market - will modify - to a degree - further downturns.)

Indeed, if the downturn continues for much longer - say - another year (an overly negative view compared to consensus) - we could see some companies go to a more innovative way of pricing their food products. Perhaps combos will once again reflect a real `savings’ as opposed to an easy way to order in a few words. Perhaps we will see the drive thru priced in a different manner - compared to inside customers. Perhaps drinks will become cheaper at the drive-thru (as no re-fills occur).

Indeed, perhaps we will see `customer loyalty’ cards be set at effective levels - buy two combos get one free - for example —- as opposed to cards that required too many uses to motivate a customer base. Or, even `in-store’ contests to motivate the bigger instore spender - or - targeting the very largest purchasers (only) with a `discount’ on that next purchase (setting the level at transactions in the highest 5% total) - showing recognition of these remaining `special’ customers.

Because, as Dylan said, the times,  they are a changin - and, previous practices and marketing approaches - especially if they all sound the same - may have little useful effect. It may take new approaches and new ideas of consumerism to survive to the other side of the downturn - and - it’s not too early to begin to consider such ideas.

23. February 2009

Fast Food and Dine-In Restaurants Slash Prices To Maintain Customer Bases

Hello, welcome back to the Restaurant Trade Area Research (RTAR) blog - thanks for stopping for a read. And, as you can see by the title of this post — once again in our depressed economy - where the discretionary dollar is scarce - where one restaurant unit after another closes - price points remain criteria number one for most restaurant chains.

Locally in northern Georgia - Mcdonald’s and Steak and Shake have met the Sonic reduced drink prices in the afternoon - Checkers has finally positioned a dollar menu — and as mentioned before Quizno’s `reduced prices’. And, two more restaurants have bitten the dust in the Woodstock Ga. market - Sonny’s BBQ (unbelievably) and the Woodstock Restaurant (daily buffet) - bringing nearly half a dozen closed up restaurants to Woodstock HWY 92 in the last few years.

But, it doesn’t end there - as the casual sit-downs are firing back on the price front with TGIF’s offering a buy one get one — with that being matched by other competitors like O’Charlies. And:

1-Wendy’s —- 3conmics (99cent choices) 2. Free Pancakes at IHOP tomorrow 3. Denny’s recent free grand slam breakfast 4. Steak and Shake’s recent `free combo’s for a year’ giveaway at local Atlanta locations 5. Fazoli’s - BOGO (buy one - get one) 6. Dunkin Donuts 1.99 breakfast combo 7. Starbucks - Breakfast value meal 3.95 — 8. McDonald’s Specials (like 3.33 for a Big Mac Combo) 9. Ruby Tuesday’s combo’s at 5.99 — Likewise Hooters 5.99

Makes one wonder when some chain will be bold enough in the south to make sweet tea a different price 24 hours a day - like 59 cents with any other purchase.

Finally, seems the burger front may be heating up - first Burger King’s mini’s will put pressure on Krystal’s and Roast Burgers at Arby’s - should compel trial. 

1. February 2009

At The Beginning Of 2009 - It’s All About Price Price Price

Hello, thanks for returning to my Restaurant Trade Area Research (RTAR) website - I’m back and ready to comment on the utterly new marketing situation all businesses are facing during this economic downturn. This blog decided to `wait’ during the last 10 weeks - rather than comment `daily’ on the possibility of financial meltdown and market disruptions. Knowing that you, a franchisee - knew the real business situation better than the commentators on Tv or in-print.

But, seeing now that 10 weeks after the end of the first cash crisis, that we seem to be facing, again, the solvency of the very banking system — it at least seems prudent to update the on-going strategies being employed with marketing and ad dollars - by various fast food, casual, and sit-down restaurants in 2009 – and that strategy - not surprisingly — has one focus — PRICE. (Ad language for `cost’ — the perception of the consumer.)

As you may know, when we left off in Nov. it was about price too - various price points - and now - we have the same only ratcheted up a degree. I can only comment about the local Atlanta media marketing and local store market close to Woodstock, Ga. That said, I’m pretty sure that each is generally reflective of the nation as a whole.

Perhaps most noteworthy and of immediate concern to the competitive marketplace is Quiznos advertising campaign about `reducing prices’ on food. Period. Not, come in for a reduced price combo or similar deal or bounceback coupon value — no - the actual phrase positioning `reducing prices’. Their local couponing has a 2.00 off any regular sub and buy any sub and get a chips and regular drink FREE. Combine the everyday reduced prices with an additional 2.00 coupon — and the price for loyalty and new trial customers - has just been increased.

And, as you know, - for years - Sonic - has offered reduced drink prices during the afternoon. And, as you know, since Chick-Fil-A  (and Hardee’s) started selling quality milkshakes - those that previously sold shakes (especially Dairy Queen and Steak and Shake) - have probably been under some pressure on a signature item. The response - an aggressive coupon campaign by Steak and Shake and not only that, locally, in Woodstock, Ga at least — reduced price shakes from 2-4 in the afternoon. A very good aggressive response and making true dayparting of pricing a strategy that deserves a second look. (Such as reduced coffee pricing after 4 PM.) Not only that, recently, Steak and Shake had a special of those small burgers that are now favorites of Casual Restaurants too - attack on all fronts.

Fortunately, the above examples are the only ones talking about reducing prices (although - O’Charlies has pushed the casual market with the 7.99 price point advertising - instead of the usual 9.99) and, ultimately,  your customer ticket total. But, all the others are doing the same in their own manner. Here’s just a re-cap:

McDonalds - To soften the price INCREASE for the double cheeseburger from the old price of 99cents to 1.19 - the `old’ price of the double cheeseburger Combo for 2.99 is retained. (Only those cheapies will face that 20 cent increase.)

Wendy’s - Pure price positioning - 3conomics — with the focus on 99 cent choices of only Wendy’s quality and variety. (McDonald’s has countered with ads supporting their  3 - 2.99 combos too.)

Arby’s - From 1.99 Chicken Sandwich choices to 3.99 specific combo choices — low price positionings for Arby’s.

Taco Bell — Ads geared to products BELOW 99 cents each.

Checkers - New `99cent’ offerings.

IHOP - All you can eat pancakes.

Zaxby’s - 5.25 (or about) Combo’s.

About the only ones holding to a non price strategy at the moment are the potentially `low  priced’ Krystal (hard to reduce the price on a burger of that size) and `high quality’ brands - such as Chick-Fil-A. And, Burger King - continues to do what the King does best - be edgy.

The RTAR will get back to regular postings, with weekly links, with more opinions, and more updating  of the sidebar (and more) for this webpage - hope you like the changes to come in 2009. I want to suggest looking at the full 2008 postings of merit by  hitting the link in my sidebar review of 2008.

Continue down the page for much more. See you next week.

7. November 2008

Fast Food Price Points

Often when I do fast food research we ask customers to give a rating about price or cost of the food. What I’ve found about ratings is that it all depends on what one wants to pay - 4.00 is too high for some and wonderful for others - as is 6.00 or even more (on occasion).

That said, currently, three main price points are the main focus of advertising – 1.00 or less — 2.99 `meals’ —– 5.00 price points. My suggestion to clients of FF stores has always been to `offer’ the various price points to not shut out part of their FF market (for at least part of the year if not always) - specifically those more money conscious  customers in these tough economic times and shrinking trade areas.

Makes one wonder if  `recession combos’  might be a good marketing idea - small fry, smaller main sandwich, small `value’ drink - small price.

BTW - Last months stats were the best yet for this blog - thanks for reading. I hope you continue down this page as there is lots of good info and links. Finally, have you visited my Squidoo site yet at www.squidoo.com/tradeareasurveys ?

Today’s Restaurant Links

`A&W’ Begins Revival In Wisconsin’

http://www.postcrescent.com/article/20081107/APC0701/811070568/1436/APC03

`Fastest Fast Food’

http://www.nbcaugusta.com/news/local/33604619.html Cool test done by TV station at Arby’s Wendy’s, BK, and McDonald’s — drive thru, order number one combo and set the stopwatch. Cool quick read - who do you think won?

`Fast Food Order Accuracy Rising’

http://www.freep.com/article/20081103/BUSINESS07/81102051 Fewer language problems and better qualified workers in economic downturn.

`Fast Food Warpath’

http://www.thisisscunthorpe.co.uk/showbiz/Jamie-Oliver-fast-food-warpath/article-456067-detail/article.html The continuing rise in fast food limitation laws.

15. October 2008

The Burger `King’

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?

8. October 2008

`Marry A Goat’?

Filed under: Chick-Fil-A, Arby's, McDonald's, fast food law, drive-thru's, Advertising — Rick Phillips @ 07:45

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.

1. October 2008

Mapping Trade Areas For Expansion

Filed under: trading away from FF, O Zone, Arby's, Wendy's — Rick Phillips @ 06:09

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.

16. September 2008

Spend Less Here (Trade Down) - The `New’ Fast Food Mantra

This weekend I was watching some sports on TV when the `new’ Burger King ad with the King came on the screen. Anything with the KING gets my attention. This one  began with a `consumer’ holding a BK sandwich, who evidently `finds’ money in his pocket (that shouldn’t be there) and he is complaining about this to a policeman. The policeman says `reverse pickpocket’ and asks for a description - which, while being given by the `consumer’ results in the classic `THERE HE IS’ - cops and `robbers’ chase.

Off to the races goes The King crossing over a busy street while evading the law. Only to be SMASHED by a yellow cab. (With an impact that could easily kill a real person and you the observer literally feel it.) Yes, the first viewing had my full attention and brought amusement in addition to the message of BK itself — you can save money by eating with us. Expect to see more of the reverse pickpocket.

The BK ad ran within minutes of another FF comparison ad - this one for Capt D’s (seafood). In this one, in a parking lot aside of a Red Lobster, — customers of the RL are approached and asked how much money their meal cost. I saw two different ads on this and one said 80 dollars and the other 100 dollars - at which moment the Capt D’s renegade interviewer brings the RL party over to a makeshift area with a long folding table where Capt D’s employees crank out one meal after another and tell the RL group they could have had `all this’ and spent 40.00 less. The mantra, again; you can save money eating with us.

Which brings me to the two `fake restaurant’ ads currently in the Atlanta market being run by FF brands. The first is the *obnoxious Pizza Hut ads where it is `their pasta’ which is being served in the restaurant that evening. So, after `candid’ praise for the pasta - the `upscale’ diners `laugh’ about how they were fooled by the quality. Indeed, why would you be a fool and go to a sit down restaurant, pay thru the roof, — when you can get `restaurant quality’ delivered to your door. The mantra, you can save money here, by eating at home.

(* what is actually obnoxious is the version of the ad where the PH girl rips her `apron’ off to reveal her PH identification - she does it in a manner that somehow shouts — ~you idiots-jokes on YOU~).

OR, you can also find the other fake restaurant ad for Hardees and their Big Burger products. The idea; don’t pay 8.00 for a 4.00 burger. The mantra; you can save money by eating with us.

Finally, in Atlanta, Arby’s stores seem onto the price position with the 99 cent ArbyQ plastered (tastefully) over the store outside banners — while the Checkers down the road makes sure its customerbase knows it has 69 cent Sundays and Wednesdays.

Because of the economic uncertainty, the market for the upper middle and lower upper classes for FF restaurants is increasing. Promoting the `savings’ with quality  via trading down is one approach - expect to see this even more.

Today’s Restaurant Links

How KFC Captured The China Market

http://www.chinadaily.com.cn/opinion/2008-09/16/content_7030941.htm  Very interesting history of the marketing.

Blackouts in Power are Packing Restaurants That Are Open

http://www.wcpo.com/content/specials/2008/blackout_2008/story.aspx?content_id=98bd59f7-59dc-46ac-9e38-b3fcfe7b1b01   Being ready in an emergency with power and personnel.

Banning Drive-Thru’s In Madison

http://www.dailycardinal.com/article/20431  The desire by some to control others is unlimited; this is a building issue in FF.

The Proposal For a Fast Food TAX

http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/09/05/187813.aspx

Who knows what is coming.

The 174 Dollar FF Meal

http://www2.highlandstoday.com/content/2008/aug/31/pulled-over/

 

Thanks for visiting today — much more below — if you want to know more about my services visit the blogroll on this page.

 

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