Restaurant Trade Area Research

17. December 2010

Recent Restaurant Research Findings - And More

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:

• Unclean Dishware   86%
          • Unpleasant Odors   85%
          • Dirty Restrooms   75%
          • Unclean Tables   74%
          • Poor Service   74%
          • Dirty Floors   68%
          • Poor Staff Appearance   65%
          • Dirty Glass and Windows   51%

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.

27. October 2010

Jimmy John’s Union Vote Loses 87-85

Makes one wonder if the fast food Jimmy John workers can smell victory next time - http://www.dailyfinance.com/story/company-news/jimmy-johns-failed-union-vote-for-fast-food-workers/19686891/

Meanwhile, the fast food marketing ramps up in the new normal - with FREE Food once again the hook for A&W - http://news.mydaily.com/2010/10/26/free-meal-at-aw-coupon/?icid=main%7Chtmlws-main-w%7Cdl6%7Csec3_lnk1%7C180026 all for nothing more than a `like’ on their Facebook Page.

caramel crumb biscuit

hhttp://restaurantnews.com/wp-content/uploads/2010/10/Hardees-Caramel-Crumb-Biscuit.jpg 

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)

At the link - my 2010 favorite fast food commercial - http://www.restaurantnews.com/carls-jr-introduces-freshly-prepared-hand-breaded-chicken-tenders/ - check it out.

Now, while the Hardee’s/Carl’s Jr ad may be my favorite - Pizza Hut and Domino’s run away with ‘quick service restaurant’ commercials of the year  - http://www.nydailynews.com/money/2010/10/16/2010-10-16_pizzas_big_slice_of_best_ads_pie.html#ixzz13ZBFMwBt Starbucks had the number one ad and Taco Bell was also represented as was Chili’s and Dairy Queen.

Thanks for visiting today.

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.

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