Restaurant Trade Area Research

The upscaling of the non-tipping restaurant segment continues - http://www.restaurantnews.com/boston-market-completes-nationwide-upgrades-in-400-restaurants/ - highlights include:

Addition of Dining Room Ambassadors – Guests will notice a higher level of service designed to make the dining experience more pleasurable in this fast-casual concept

MUCH more at the link of the upgrades:

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Oldie but goodie link - Zagat Fast Food Survey Rates 136 Major Dining Chains From Breakfast to Burgers, Dessert to Drive-Thrus - http://www.restaurantnews.com/zagat-fast-food-survey-rates-136-major-dining-chains-from-breakfast-to-burgers-dessert-to-drive-thrus/

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Meanwhile… How Lunchtime Is Turning Into Snack Time  - http://online.wsj.com/article/SB10001424052748703720004575477652910948336.html?mod=googlenews_wsj – smaller portion options to fit snack movement. And, White Castle Inducts Its Most Dedicated Fans Into Cravers Hall of Fame - http://www.restaurantnews.com/white-castle-inducts-its-most-dedicated-fans-into-cravers-hall-of-fame/ - in some cases the super user is priceless. Brand loyalty. And, in UPSCALE locations - perhaps this benefit is worthwhile in today’s new normal of competition - Restaurants Now Realizing That the iPad Makes Life Easier - http://www.switched.com/2011/01/04/restaurants-ipad-makes-life-easier/?icid=main%7Chtmlws-main-w%7Cdl8%7Csec3_lnk2%7C193449

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Some year to year sales numbers - Chick-Fil-A, 2010 up nearly 6% same store - http://www.restaurantnews.com/chick-fil-a-continues-sales-growth-momentum-in-2010/ - Jack-In-The-Box, up 1.1% first quarter compared to year ago - http://www.restaurantnews.com/jack-in-the-box-inc-reports-first-quarter-fy-2011-earnings-updates-guidance-for-fy-2011/

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Thanks for visiting. Dig deeper for much more.

No question about this trend to having the choice of smaller portioned food items at restaurants - including FF examples of: “Boston Market’s Market Sliders sandwiches, McDonald’s Snack Wraps, Burger King’s experiment with BK Burger Shots and Jack in the Box’s Mini Sirloin Burgers” - the point is also well made in the article about price point sensitivity in the new normal. http://www.palmbeachpost.com/money/malled-restaurants-offering-small-sized-items-with-big-728206.html - more too at the article.

I love this article - Subway to Change Cheese Distribution Strategy After Web Campaign? - talk about the customer being right - again. http://www.urlesque.com/2010/06/02/subway-to-change-cheese-distribution-strategy/

‘Social Media’ Are Top Buzz Words of NRA Show - don’t forget that `social contact/media’ when greeting your customer in the restaurant or at the drive-thru window. `Friendliness’ is one of the true drivers of increased sales and increased frequency of usage. http://www.qsrmagazine.com/articles/news/story.phtml?id=10970

http://www.reuters.com/article/idUSTRE64Q42Q20100527 - Hunger for burgers overcomes economic fears - an article whose focus is the Five Guys chain and its success despite the economic landscape.

http://www.restaurantnews.com/firehouse-subs-announces-23-new-restaurants-in-salt-lake-city/ - Firehouse Subs goes wild with development in Salt Lake City.

From a bit back - Quiznos launches Operating Partner Program - http://www.fastcasual.com/article.php?id=17949&na=1&s=2 - if I am reading this right - 5,000 and you can be in the restaurant business.

Don’t leave yet - explore my sidebar for more about restaurants.

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 .

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.

Hello, welcome to my restaurant blog - thanks for visiting today. As you can see, today’s post is about Boston Market taking on two simultaneous marketing campaigns concerning price points. The first, at least in Atlanta, was TV ads for a 5.00-meat + 1.00 sides price point - and now followed by a 2.99 `mini-meal’ positioning. My reaction to this is — I always think it is a good idea to provide products at the price points that folks associate with ones business idea (ie: fast foods should have a dollar menu AND a full priced offering menu) — that said, BOTH of these positions - IMO - seem not exactly a `fit’ for BM. One too expensive - one, slightly too cheap.

Here’s some links too:

http://restaurantnews.com/2-99-market-meal-deals-at-boston-market/

Nutter proposes 2-cent-per-ounce sweet-drink tax - http://www.philly.com/philly/news/homepage/20100304_Nutter_proposes_2-cent-per-ounce_sweet-drink_tax.html Here comes the government.

I first meet chef X in a local library and he slips me a brown business card with nothing but his name typewritten on the front http://www.boston.com/lifestyle/food/articles/2010/03/03/underground_and_off_limits_paid_suppers_by_pro_chefs_are_way_to_dine_well_clandestinely/

I have more current restaurant links at www.squidoo.com/tradeareasurveys — thanks for visiting today.

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.

Hello, welcome back - I hope your Labor Day holiday was relaxing - that said, my thoughts go out to previous restaurant clients in Louisiana. Today, I want to spend this paragraph encouraging restaurant owners to `get the big view’ of their real market situation. To understand that NEXT year - with proper information - you can do real local marketing that impacts your units.

How you ask?

By doing my MarketView research for which you can find more info about at www.squidoo.com/tradeareasurveys — or go to the site for contact information for my services. If you call, make sure to ask me about the project I did for a fast food chain last year that involved doing over 10 stores and testing over 12 new site locations within the market - for under 30,000.00.

Now - onward to today’s restaurant links:

When Sonic Comes To Town

http://blogs.wenatcheeworld.com/thay/2008/08/28/sonic-wenatchees-newest-health-food-restaurant/ Just a fun story about a NEW restaurant for this community - Sonic. Covers the insanity of a grand opening, roller-skates, and the dealing with an unfamiliar menu by the consumer. Includes less than glorified pictures of the product served and at 10 bucks nonetheless.

Athens Burgers Opens New Restaurant

http://www.mantecabulletin.com/main.asp?SectionID=28&SubSectionID=58&ArticleID=59128&TM=16382.6 Here’s a newer concept to read about. Interesting combination.

Slow Food Conference

http://www.dallasnews.com/sharedcontent/dws/ent/stories/DN-slowfood_0901gl.ART0.State.Edition1.4da40ac.html More and more stories emphasis is on going local with sources of products. Love the `meet the fisherman’ concept.

Wendy’s Rolls Out Double-Stack Nationwide at 99 Cents

http://sev.prnewswire.com/food-beverages/20080829/CLF006A29082008-1.html  Also, is giving away thousands of double stacks over the next year too - find out how.

Discount Dining

http://www.baltimoresun.com/entertainment/dining/bal-bz.restaurants02sep02,0,3747451.story Covers the story as to how restaurants are responding with lower price points in this economic downturn. Covers the marketing efforts of Boston Market, BJ’s Restaurants and Starbucks to name just a few.

Police Warn about TAKEOVER Robberies

http://www.nrn.com/breakingNews.aspx?id=358002&menu_id=1368  Good advice about this growing concern.

Spying On Suburbia - Eating At Arby’s

http://www.richmondchic.com/index.php/mind-body/article/spying-on-suburbia-a-home-like-arbys/268  Strange to interesting perceptions from this blog about Arby’s — 16.00 for two fast food.

Kiss an Attendent at a Fast Food Restaurant

http://www.latimes.com/theguide/music/la-gd-scavenger1-2008sep1,0,5200506.story Wild scavenger hunt includes wild ideas.