Restaurant Trade Area Research

5. June 2011

Sodapalooza - And, The Untapped Fast Food `Drink’ Positioning

Sodapalooza is what the billboard sign screams in East Cobb, Georgia - it’s the new 49cents drink promotion at Race Trac http://www.racetrac.com/AwesomeDeals.aspx - a southeastern convenience store chain. Indeed, the competitors price is all of 59cents this summer (Quik Trip) I believe. And, as we all know McDonald’s has had 1.00 any sweet tea (occasionally all drinks too) of any size.

Unbelievably, to me, the reluctance to challenge McDonald’s great positioning continues with few exceptions. In Atlanta - Sonic, Steak and Shake and Chick Fil A - all have a dayparted two for one in the afternoon (do you ride around with others in the afternoon?) non-meal hours. While a reaction, it is somewhat whimpy. And, no other FF’s even seem to `get it’.

Hence, the huge rise in `drinkless’ FF orders (those so-called value combos eventually saved the average consumer nothing or perhaps a quarter and users knew that it had become more of an ordering and operations way of pigeonholeing consumers) — which has even given way to `sandwich only’ orders in the New Normal.

Consumers remember the days when Iced Tea was just coming onto FF menus — and IT WAS ALWAYS CHEAPER — much cheaper. What ever happened to that? Are FF outlets really going to lose money IF they `re-position’ drink prices? What if `any size drink’ was 79cents with a full priced sandwich? Wouldn’t that be easy? Certainly better ideas exist to return the drink to the orders than what is currently being marketed by nearly all FF brands.

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15. March 2010

Restaurant Links - March 2010

Quiznos Carves Out Broader Niche - http://online.wsj.com/article/SB10001424052748704089904575093520021777354.html Sandwich Chain to Expand Locations at Convenience Stores and Filling Stations - Smart move IMO.

http://www.shorpy.com/node/7841?size=_original - Ask Us About Our Poultry: 1942 - Times have changed a bit.

BK Franchisee Speaks Out - …Owner of 312 Burger Kings says the company is paying a steep price for “extreme affordability.” http://www.qsrmagazine.com/articles/exclusives/0310/burgerking-1.phtml - The price price price mantra.

Restaurant Performance Index Declines Slightly in January, but Optimism for Future Business Conditions Strengthens - http://restaurantnews.com/restaurant-performance-index-declines-slightly-in-january-but-optimism-for-future-business-conditions-strengthens/ Please, remember the same BS happened last year.

Bans, Taxes Seen as Effective Against Junk Food - http://www.aolnews.com/health/article/bans-taxes-seen-as-effective-weapons-against-junk-food/19389723 A 5.2 percent tax on soft drinks, already levied in several states, reduces consumption only enough to shave three ounces from a 279-pound frame, Always be on the watch for our worthless politicians.

Finally, I recently had a contact wanting to find out user information for a chain that I was very familiar with - thinking, evidently, that information is similar in different markets. (HUH?) — I hope that is not what YOU think?

BTW - spring is a great time for the MarketView - find out more about my service at www.squidoo.com/tradeareasurveys or - 678-467-8650 and ask for Rick or leave a message.

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