Restaurant Trade Area Research

I had seen the billboards but had somehow missed any TV ads for the new Wendy’s W Burger. So, when I eventually did see the TV and it showed the `special sauce’ - my mind instantly went off as a lover of the Big Mac nearly 50 years. When aware of that fact - which I did not pick up from the billboards - in only days I stopped to try it.

Now, interestingly, only days before I had paid 3.91 including Tax for a Wendy’s single at drive thru - it having been since the `improvement’ since I had tasted the new offering. And, the single was `upscaled’ in my opinion - but, in all honesty - 3.91 is a stretch for the product. So, with that in my mind - I went IN this time and ordered the W (making it a combo) for only a little over a buck more than the Single alone.

I was immediately impressed with the sandwich and LOVED the `positioning between the Big Mac and the Whopper’ (even moreso if any BK’s still have the `King’ - their version of the BM) — LOVED the positioning. Indeed, my mind thought, WHY  are they not positioning it that way too? Indeed, the sandwich HASN’T what McDonald’s I’m sure would love to be able to dump - the extra slice of bread between the two patties; thereby giving lots of meat ratio in every bite in comparison.

Yet, the sandwich was uniquely targeted at the whopper too - with the larger lettuce piece(s) and tomato. And, at that time I thought that McDonald’s better have some concern about this sandwich pulling from it’s very core oldtime base customer. All in all - I was impressed.

My second time was nearly as good as the first and was only two days later- but, I got this one to go, with no sides or drinks - paid less than before - had a better sandwich value in my mind than the Single OR Big Mac - but realized that for WENDY’s the tradedown would have to be a hit to the bottom line IMO; especially in comparison to the probable profit margin on the Single.

Then, weeks later, I went inside for another combo while a unit was having operation problems (At Trickum In Woodstock, two Saturday’s ago) - the manager on duty was yelling loudly at the crew about being prepared in advance. It startled the folks in line it was so loud. I hoped no one would walk off the job as the place seemed understaffed and the wait was already mounting. However, the real letdown was upon opening the W - gone were the lettuce and tomato - (I had asked for some extra sauce on it and it was swimming in it) - one little slice of onion, NOTHING else. It was a total turn off and problems were only mounting at the line and counter so I simply ate it.

Interestingly, I said to the counter girl - `how much would it cost if someone asked for the sauce on a Single’ - she said it would be FREE as all toppings are free. For some reason the answer surprised me - could some just as easily ask for Big Mac sauce on a dollar hamburger? Or, the Wendy’s 99cent offerings?

So, I haven’t been back - it’s been a few weeks and probably a bit longer than normal for my Wendy’s visits (prior to W usually a single combo): and as you can see from the link - others are not so impressed with Wendy’s either as in this recent article saying it would http://www.dailyfinance.com/2012/01/12/why-wendys-will-never-be-great-again/?icid=maing-grid10%7Chtmlws-main-bb%7Cdl3%7Csec1_lnk3%26pLid%3D127010 never be great again.

I wouldn’t go that far - but - the positioning of the W could have been structured  a lot better to attract actual new customers from their main competitors IMO. Heck, SELL the sauce in the store in jars - like Big Boy.

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These Two Guys Had The Same Impression As Me On First Tasting

Hello - let’s pick up where summer left off a month ago. Also, I’ve written up my experiences at two restaurants recently - look for that soon.

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Of course, huge news was the http://www.myce.com/news/court-fines-restaurants-over-40k-for-playing-music-without-a-license-50280/ 40K dollar fine for playing unlicensed music by BMI - do they realize their business model sounds like a shakedown? And, with sales off 6% in the first quarter http://www.usatoday.com/money/industries/food/story/2011/08/Burger-King-freshens-fast-food-image-kicks-King-to-the-curb/50046768/1 BK has kicked the KING to the curb. Says they will be targeting MOM? Good luck with that one. ———— Meanwhile…… Chili’s passes  ONE MILLION facebook fans - http://www.restaurantnews.com/chilis-celebrates-1000000-facebook-fans-with-party-and-free-chilis-for-a-year-for-one-lucky-fan/ and While Castle won a Consumer Reports survey for most craved Hamburger http://www.restaurantnews.com/white-castle-beats-out-the-big-three-hamburger-chains-in-a-national-survey/.

More tomorrow.

Days of not having access and a backlog of links to begin with has resulted in now three days of links - without comments. Enjoy.

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Moe’s to get new, fresher menu - http://www.ajc.com/business/moes-to-get-new-802477.html —- Cracker Barrel and The Grascals Celebrate #1 Debut on Billboard Bluegrass Chart - http://www.restaurantnews.com/cracker-barrel-and-the-grascals-celebrate-1-debut-on-billboard-bluegrass-chart/ — Burger King Settles Value Menu Franchisee Lawsuit - http://abcnews.go.com/Business/wireStory?id=13400051 — McDonal’s sales http://www.restaurantnews.com/mcdonalds-announces-strong-sales-and-earnings-growth-for-first-quarter-2011/ - —- 2011 Best Service Winners - Top 50 Restaurant List - http://www.opentable.com/promo.aspx?ref=7465&pid=443

I still have lots of links in the bin - Oh, and I have a new blog about Restaurants too - first post is up - http://restaurantadvertisingcommericals.blogspot.com/ - it reviews a Hardee’s commercial out currently.

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 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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Thanks for your visit today and return visit. Please bookmark and return - www.restauranttradearearesearch.com - Oh, lots to explore in the sidebar.

Ronald McDonald of course. The icon. The legend. Say it isn’t so, please, say it isn’t so — http://www.dailyfinance.com/story/company-news/ronald-mcdonald-put-to-pasture-as-fast-food-chain-gentrifies/19866419/ - more than likely, IMO, is that he is being given a marketing `rest’ to avoid burnout also. It also helps to not confuse the new McDonald’s perceptions (hey, it’s for adults too) just yet with the old-time favorite.

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Saw the new Dairy Queen ads which take on (poke fun at) the whole use of the word `Good’ in advertising campaigns by fast food brands (wonder who).

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Here’s a cheap fun idea - use your FF brand blog or social media to challenge a `celebrity’ in some manner - Denny’s Calls Out ‘Man v. Food’ Star Adam Richman - http://www.hospitality-industry.com/index.php/news/comments/dennys_calls_out_man_v._food_star_adam_richman/ could you eat 40 dollars of food from Denny’s? How about 20 dollars?

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Continuing to enhance at an important price point - Burger King Beefs Up Value Menu with BK Stackers - http://www.restaurantnews.com/burger-king-beefs-up-value-menu-with-bk-stackers/

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Meanwhile….

Cici’s continues push on price point - CiCi’s Pizza Announces $4.99 Endless Value Dinner Campaign - http://www.restaurantnews.com/cicis-pizza-announces-4-99-endless-value-dinner-campaign/  and Sonic - SONIC Adds Four New Premium Beef Hot Dogs to Menu - http://www.restaurantnews.com/sonic-adds-four-new-premium-beef-hot-dogs-to-menu/

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Thanks for your visit - RTAR’s Alexa rank - http://www.alexa.com/siteinfo/restauranttradearearesearch.com# - will post again soon as I have lots of links ready to go.

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

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

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

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

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

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

In other news:

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

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

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

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

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

It’s scant data but this website is once again in the Alexa Rankings - http://www.alexa.com/siteinfo/restauranttradearearesearch.com# - the stats from 1&1 my host would indicate a growing readership too.

So, I have now seen the TV ad campaign for the new Burger King Breakfast menu —– to me —– OK, but, strange IMO. I mean, ONLY MEN marching in the street? (I noted the various types of men from office to laborer to `funny’ still in bathrobe man.) I thought BK wanted to slowly move to less emphasis on ONLY the male target. The commercial also left me wondering what these products were that I only had a few seconds to view all together.

Recently got two very different coupons via the mail for Honeybaked Ham and CiCi’s. HH offered a 6.99 combo and CiCi’s offered a 3.99 adult buffet. Now my first statement is that CiCi’s hasn’t offered this price point for quite sometime, and, became famous for it when the chain was in full expansion mode prior to the new normal. Except for the fact that the coupon was only for one person (why not make it for more than one on the same coupon) - it was a very compelling reason `to return’ to having CiCi’s be part of the mix of restaurants used. Whereas, my first thought about HH was - WTH? — What is the NORMAL price if this is the `value’ they now are offering (and in the same plaza as a Subway with a 3.99 daily deal)? And, who in the world is this coupon trying to compete with - O’Charley’s?

I’ve also caught sight of the fact that the Woodstock Steak and Shake - in addition to meeting the new afternoon dayparting of drink prices (like Sonic) - to attract some of those `convenience store’ types — they now offer the same 2-1 deal from 2AM to 4AM — very cool.

And, here’s a new technology that even mentions usage by Fast Food Chains - Bump Uses License Plate Image Recognition to Text Fellow Drivers  - Includes this statement:

Fast food restaurants, for example, could use the technology to offer personalized menus to drive-thru customers, as based on their previous selections

http://www.switched.com/2010/09/16/bump-uses-license-plate-image-recognition-to-text-fellow-drivers/?icid=main%7Chtmlws-main-w%7Cdl5%7Csec3_lnk2%7C171298

BK goes directly after the only daypart still expanding in visits - Breakfast; with upscale type items, a 4.29 full breakfast platter, AND 1.00 value items too. Did I mention pancakes?

Ads begin 9-13 and info will be positioned broadly for the next 11 weeks. http://www.restaurantnews.com/burger-king-rolls-out-new-breakfast-menu/ more details at the link.

Here’s the story of a chain that has largely gotten the whole `new normal’ right - Taco Bell - Taco Bell CMO David Ovens Sees Hot Opportunities - http://www.brandweek.com/bw/content_display/news-and-features/direct/e3ic193b6eacf48409b5f5a56dbec655408 good coverage of his marketing strategies in this interview.

New To This Blog? http://restauranttradearearesearch.com/important-posts-of-2009/

http://restauranttradearearesearch.com/important-posts-in-2008/

With banks lending most of the money - the #2 Burger chain is sold -blaming focus on the 18-35 year old male as one positioning problem with the brand - http://www.npr.org/blogs/thetwo-way/2010/09/02/129604272/burger-king-sold-for-3-26-billion-to-private-investors - here’s to hoping the BK `King’ Character is safe.

Hardee’s develops for the only increasing segment of visitors - breakfast - and focuses on having the product `mobile’ for users - Hardee’s Makes a Breakfast Classic Portable with New Country Fried Steak ‘N’ Gravy Biscuit - http://www.restaurantnewsrelease.com/hardees-makes-a-breakfast-classic-portable-with-new-country-fried-steak-n-gravy-biscuit/853611/ - still, is GRAVY on a biscuit - really `mobile’?

Meanwhile - instead of pursuing the `Gravy’ crowd at breakfast - Ruby Tuesday’s is going Healthier and Lower Calorie at Lunch - Ruby Tuesday Highlights More Healthy Options on New Menu - http://www.restaurantnews.com/ruby-tuesday-highlights-more-healthy-options-on-new-menu/ - the salad bar allows RT’s to have more of a positioning in this area compared to a Chili’s, etc.

More about my services here - www.squidoo.com/tradeareasurveys - have a safe Labor Day Weekend.

The evidence is starting to pile up about one response to the new normal is that Fast Food brands should enhance the  restaurant experience available - almost regardless of price point - because in large part it is aimed at those `trading down’ from the sit-down and tip waitress at lunch segment - and at the already existing non-tip fast casual (such as a Five Guys).

Examples include Wendy’s new redone Premium Salads priced at around 6.00 - and the large variety of `Angus’ Big Burgers available at most of the major chains now. (Can Buffalo Burgers be far away?) It would also include the upscaling of Milkshakes at Chick-Fil-A and Hardee’s - to the recent bone-in BBQ of Burger King - to the upscaling, at least perception wise, to many McDonald offerings such as the yogurt choices and coffee.

These new positionings, which often include a dash of health perceptions mixed with a sprinkle of indulgence, can be fairly and profitably priced within the fast food price points compared to fast casual and especially when compared to ANY RESTAURANT THAT DEPENDS ON TIPS FOR ITS EMPLOYEES. As today’s customer, in the new normal, is no longer disregarding any `additional charges’ as frivolous.

Indeed, when today’s restaurant using customer sees a Chili’s ad about the Burgers choices (with fries) starting at 5.99 - they know that - even getting water (the continuing trade-down) - that with tax their bill will be pushing 6.50 - which with tip (can you really tip under a dollar in a sit-down environment with table cloths) would be another buck (or two to not look cheap) - making the 5.99 advertised price point, more like 7.50+ and they are still drinking water. (The 1.79 and up prices on drinks at these places do them no help perceptually either). Indeed, throw in the drink, tax, (and now a two dollar tip) and you are talking 10.00 nearly - for the cheapest 5.99 advertised price point.

And, perceptions like that - add up to Fast Food brands having some opportunity for brand extensions with good profit price points. Doing this, while retaining the `value’ and yes - even the `dollarish’ price points too. (Dollarish (things under 1.49) would be a fun positioning.)

Lastly, since the new normal could be here for years and years, expect this trend in Fast Food brands to be a continuing process as brands find profitable brand extensions once thought of as not possible or too out of character for FF. Does this mean `value sized portions’ of something as exotic as `Prime Rib’ - before you say impossible - remember, this is the new normal. Crabcakes anyone?

Here’s some thoughts of a 50 year old multi time a day FF eater - http://www.youtube.com/watch?v=T2H_pEFuSSo - and more about my services is right here www.squidoo.com/tradeareasurveys too.

What GREAT PR for a German prototype unit - very worthy read - http://www.slashfood.com/2010/06/16/the-future-looks-green-for-burger-king/

Here’s another way some FF brands are attacking development in the new normal - Tight Credit Is Turning Franchisers Into Lenders - http://www.nytimes.com/2010/06/10/business/smallbusiness/10sbiz.html?src=busln 

Noisy Dining Can Hurt Your Bottom Line - Getting the correct level and type of music is often a hit or miss guess - this article hopefully raises some awareness of the issue. - http://www.memphisdailynews.com/editorial/Article.aspx?id=50229

Domino’s Claims Victory With Pizza Makeover Strategy - and with good reason - take a look at these comps - http://adage.com/article?article_id=143764

Thanks for visiting again today.

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.

Well, you certainly know where I stand on listening to customers - but - this is a classic article that takes on KFC for not addressing its own perceptions head on: quoting from the post:

Me, if I were forging brand strategy, I’d defiantly promote my dietary incorrectness. I’d flip the bird at the food police and wave my greasy napkin as a battle flag. Sure beats lying — not only on moral grounds, but on the basis of pure common sense. What could possibly make KFC think that anyone buys their sad little charades? They either have no respect for the crap-eating public or no idea how to search Twitter. Here just the top few of thousands in the same vein:

http://adage.com/article?article_id=144143 – So, how about TRUTH as a brand positioning?

Here’s another KFC post - about its new slogan - the fifth in five years - and one they will stick with they say - Battered KFC Gives Itself Another Spin - http://adage.com/article?article_id=144035

Here’s some big news - Denny’s Inks Deal with AARP - and, with the 20% discount between 4-10 PM - it’s like a dayparting price. Who will be next to go after the over 50 market? http://www.restaurantnews.com/dennys-inks-deal-with-aarp/

A successful chain that hasn’t introduced a new sandwich in TWO decades? — Yepper, Chick-fil-A Heats up Menu with New Spicy Chicken Sandwich - http://www.restaurantnews.com/chick-fil-a-heats-up-menu-with-new-spicy-chicken-sandwich/

The headline on this story is - Have It Whose Way? - At Burger King, management and franchisees are locked in battle over the company’s direction - Seems everything from late night hours to 1.00 double cheeseburgers and more is prompting the public battle. http://online.wsj.com/article/SB10001424052748704869304575109240807702512.html

Thanks for visiting today. Much more on this site - take a look around.

Welcome to Restaurant Trade Area Research - the restaurant blog written by a 30+ year restaurant researcher who has personally  interviewed thousands and thousands of fast food customers. (How’s that for a mouthful?) - Today’s topic, what seems to be the new need - `shooting the works’ to maintain or grow market share in the `new normal’.

Examples include:

Expanded Dayparting Focus - Subway going into the breakfast market is the first to come to mind - Daypart pricing is also notable with `2-4 pm’ reduced beverage costs (Steak & Shake — Sonic) — Weekpart Combo Specials , such as Moe’s Thursday Two for One’s - Subway’s after 5 footlong pricing, etc.

Seasonal dayparting — summers `late night positioning’ has been going on for years (open til 2Am on weekends type of stuff), and, it’s been noted recently that in the casual niche, 12AM or later, was recently claimed in the Atlanta media market by Applebee’s. At Fast Foods, `summer late nights’ is almost a requirement for some (Wendy’s, Taco Bell) but is an opportunity for others too (such as a Krystal’s potential muchie crowd,  or even sandwich niche restaurant).

Outrageous Product - The incredible focus on low price points within advertising (which has muddied the field) has made new product introductions even more important to appeal to the `trier-rejecters’/aware non-users of any fast food brand. One method to get attention is the outrageous product - such as KFC’s Double Chicken Sandwich. And, most recently Burger King’s move into Bone-In Ribs - would be an `unexpected’ example of a `new product’ that should `create new trial’ - especially with good word of mouth - especially during summer. (Perfect `season’ new product introduction.)

Expand Competition Into Other Niches - Recent examples of this include McDonald’s continued focus on beverages such as premium coffee and other choices. Burger Kings new Ribs carves out part of the sit-down market (and the `upscale’ `trade down’) as does it’s Brunch positioning in some markets. The new `upscale’ Milkshakes by Chic-Fil-A, Hardee’s and Zaxby’s –> reach into the `Dairy Queen’/Baskin Robbins niche.

The `Health’ Market - Long heralded as the next sure thing (only problem was that in the 80’s-90’s market was still non-existent) , the `Healthy Fast Food’ market may finally be available - due in large to the already established `Bakery’ niche being taken ALREADY by the female demographic that has turned FROM fast food choices in the last 8 years or so, - to places like Panera Bread or Atlanta Bread Company or others. To me, it seems the natural ones to attack this would be sandwich chains like Quizno’s - Blimpie’s - Subway.

Upgraded Products/Serving Quality - Angus Beef now is an example of offering the `upgraded product at a premium price’ niche. Obviously it also attacks the `fast casual’ growing segment (the stepdown from casual tipping establishments). I’ve already mentioned BK’s Ribs. KFC roasted chicken could be seen by some as an upgrade in health perception.

Selling Branded Products — To me, it is a little self-defeating - BUT - White Castle has frozen product as do many other restaurant chains. To me, I’ve never found these pre-packaged foods to be as appetizing. How about you? Then again, Dunkin Donuts coffee seems logical - and I know that I’d buy a Big Mac Sauce if it was ever offered.

Fancy, Social, E-Mail Marketing Database Building - To me,  working with a stores known customer bases information - and the customer base itself - is VERY attractive too - and is needed to not lose an edge to the competition. That said, some areas seem to have the potential to eventually become overdone and self-defeating (the free food promotion costs - or extreme motivational discounts) and eventually will have it’s `day-come’ due to overuse.

For example, lets say you sign up with a store chain that will provide you a coupon code every time you go to their restaurant trade area — if you signed up with multiple chains you eventually would not wade thru the offerings and IF you did act on one - it would be the one `giving the most savings’. Coupon people are indeed driven by costs - which will drive down your profits and establish a two-tier payment pricing - and confuse the customer base about the real price/value of your products. GPS `coupons’ will not replace friendly smiles, eye contact and good operations. (Within this blog I’ve talked about specific marketing that can be done with your EXISTING customer base via ONE question frequency targeting - or - NO question `menu’- total purchase targeting.)

The `New Marketing’ for the `New Normal’ goes way beyond buying the 25-54 demo slightly focused on one sex - and expecting success. No, the new normal demands running on all cylinders in multiple directions - and catering to a stores unique customer base.

Thanks for reading today - if you check out my sidebar - you may find a category of interest to you. You can also read more about my MarketView research at www.squidoo.com/tradeareasurveys .