Restaurant Trade Area Research

31. May 2011

The Restaurant `Value’ Coupon Dilemma

Filed under: Groupon, less sodium, Hardee's, Healthy Fast Food, Subway, Carl's Jr — Rick Phillips @ 10:12

In the new normal after the crash of 08 - restaurant people have been suddenly had a new outlet for `marketing’ - the so-called `value’ coupon offers of Groupon and many others. This article goes in detail to the positives and yes, the NEGATIVES (and backlash forming) - well worth your read. http://seattletimes.nwsource.com/html/foodwine/2014755353_webcoupons13.html?prmid=head_main ——–

Customers are SPEAKING up about what might increase their FREQUENCY of usage of your restaurant in this article - some highlights - Calorie and Nutrition info, snack items, more breakfast and Chicken offerings, — and more at the link - http://www.restaurantnews.com/consumers-serve-up-advice-to-restaurants-looking-to-increase-the-frequency-of-their-visits/ —

Hardee’s and Carl’s Jr GO TURKEY - http://www.restaurantnews.com/carls-jr-hardees-first-national-fast-food-chains-offering-charbroiled-turkey-burgers/ - and position the health claims.

SUBWAY reduces sodium by 28% - smart move, under marketed - http://www.restaurantnews.com/subway-restaurants-reduce-sodium/

More along these same lines of trends - Restaurants say consumers are finally ordering healthier meals - http://www.usatoday.com/money/industries/food/2011-04-12-healthy-food-restaurants-applebees.htm

See the sidebar `labels’ for categories of interest to you. Thanks.

6. April 2011

SMART - Subway Makes Bacon Egg Cheese Footlong Of The Month

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.

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.

30. September 2010

A Wendy’s Breakfast - Is Third Time A Charm?

The only big burger chain without a breakfast presence in the marketplace - will try it again in 3 test markets - for the third (is that all?) time. The effort will be including oatmeal bars, egg sandwiches, paninis and burritos (which evidently are being demanded elsewhere?) to entice the new users set already in their morning drive breakfast routine. (Where’s the toast? Bacon? Pancakes?) - Perhaps in direct mocking of the BK new breakfast ads with marching males - Wendy’s could use Sexy Secretaries or something similar? - more at the link behind the move into extending dayparts http://www.ajc.com/business/wendys-sees-opportunity-in-618248.html

Speaking of burritos - Carl’s Jr., Green Burrito Open 500th Dual-Branded Restaurant - http://www.restaurantnews.com/carls-jr-green-burrito-open-500th-dual-branded-restaurant/

And, speaking of opening - Steak ‘n Shake Opens New Prototype Restaurant in Rome, Georgia - Same seating, @1/3 less to build - better view of grill for patrons - more at link http://www.restaurantnews.com/steak-n-shake-opens-new-prototype-restaurant-in-rome-georgia/

New McDonald

http://www.fastcompany.com/files/imagecache/panoramic_image/files/MOD-105-Weil-1.jpg

And speaking of makeovers - here’s a great story about the man who is re-designing McDonald’s - http://www.fastcompany.com/magazine/149/super-style-me.html

My YouTube Channel which has free 2010 Top Of Mind Research about Restaurant Brands - http://www.youtube.com/my_videos?feature=mhum

3. August 2010

Pizza Hut Slashes Menu Prices

Prices Slashed

http://www.scootaboutkneescooters.com/images/prices-slashed.gif

Well, that is a little of an exaggeration perhaps - but what they have done is get the new lower price point in front of the public AND have brought clarity in pricing to the pizza category - mediums now start at 8.00 with up to three toppings. —- Along a related front - amazingly, we travel thru yet another summer without one major FF chain matching McDonald’s 1.00 Iced Tea prices. Amazing.

Now, you know RTAR loves surveys and especially the results of surveys - like this one - Cracker Barrel Receives Top Ratings in National Independent Consumer Study - http://www.restaurantnews.com/cracker-barrel-receives-top-ratings-in-national-independent-consumer-study/ - not only that Cracker Barrel won 31 of 50 rated attributes.

And, in another study - US Restaurant Count Down by 5,204 From Last Year, Reports NPD - that is about 1% of all restaurants and the first decline since the study began in 1976 - The new normal settles in.

Here’s a new Carl’s Jr. & Hardee’s product sure to grab some headlines - The 12 Inch BURGER - http://www.usatoday.com/money/industries/food/2010-07-16-footlong16_ST_N.htm 

More new products - WENDY’S Upscales Salads - http://www.restaurantnews.com/wendys-introduces-new-line-of-premium-salads/ - will upscale price diminish results?

More links tomorrow.

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.

5. August 2008

Limited Marketing Dollars and What To Do With Them

Nearly all of the clients I have are owners of franchised restaurants - and = one thing they nearly always have in common is that they have limited `marketing dollars’ above and beyond the % they already pay to corporate to market the brand-name. That said, they do have SOME dollars and the decisions as to whether to sponsor a youth team, local charity golf tournament, do limited in-store marketing via bouncebacks, or buy billboards - are important image and marketing decisions.

When choosing to spend those limited dollars, it’s probably best to `do both’ - local image building and REAL marketing such as billboards. One of the `advantages’ that comes from using my services - doing what I call the MarketView — is that the owner knows the CUSTOMER BASE SIZE and type of user - of every individual unit in a market. And, based on that information - the owner knows which units are best and worst in converting their total customer base into `heavy’ users (some chains define this as the once a week customer, others, the once a month customer). Accordingly, the owner then has some direction from the research on how to spend those precious and limited local marketing dollars.

Much more on Customer Base Estimates in future posts - or - find out more at my squidoo website www.squidoo.com/tradeareasurveys.

TODAY’S RESTAURANT LINKS

Are Fast Food Building Restrictions Constitutional?

http://worldnetdaily.com/index.php?fa=PAGE.view&pageId=71377  Michael Ackley does a satire piece about how `gray’ the law becomes when thinking of `fast food restaurants’. A quick two minute read you don’t want to miss.

The Rise of the Breakfast Segment

http://ap.google.com/article/ALeqM5jGpPSjXCwpcs-JKUmPG3Gy5sht8QD92BG2380  Excellent article on how chains are increasingly looking at breakfast items as the way to more sales. Denny’s new containers and IHOP’s increase in take out over the past year is examined; as well as the reasons the FF chains have been successful in stealing the business from the sit-down breakfast eateries. Notes that some chains are thinking of offering breakfast items all day long. Finally gets into new offerings from FF restaurants including Carl’s Jr new product: “that features two eggs, bacon, sausage and cheese between grilled sourdough bread.”

Forget The Free Food and Drink Refills

http://www.startribune.com/business/26188614.html?location_refer=Most%20Emailed:Homepage:12 This story covers the many ways that restaurant owners are mitigating the increase in prices for foods and the increasing reluctance of patrons to eat out often. Here’s a quote from the 3 minute article:

The real problem, they argue, is that many large chains overbuilt at a time when Americans were starting to pull back on restaurant spending….Now, unable to raise prices to match rising wholesale food costs, so-called “menu makeovers” have become increasingly common

America’s WORST Restaurants For Kids Revealed

http://www.emediaworld.com/press_release/release_detail.php?id=120323  WOW - amazing article that GRADES each chain for offerings and other attributes related to healthy eating.  Getting A’s were Chick-Fil-A, Subway and Wendy’s - Getting F’s were Applebees, IHOP, Olive Garden, Outback, Red Lobster and T.G. I. Friday’s. A 3 minute, must read article.

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