Restaurant Trade Area Research

24. February 2010

Ranking Customer `Purchaser Types’ - And - Specific Marketing To Each

Recently, I found this to be of great help to a particular client who uses my consulting. Indeed, I’d be happy to come to your market and fashion the same type of system for your FF unit too.

The first thing I’d like to do in this post - is the ranking of `customer purchaser types’. And, first and foremost, the #1 type of customer is the LARGE transaction customer - the one that spends over 150% more than the average transaction - (typically a three or more party size - but, we are NOT worried about the size of the party, only the transaction total). Now, the specific marketing opportunity you want to offer for ANY of the `customer types’ - are the customers who are NOT using any incentives (coupons or programs) for THIS purchase. IF they are already `bouncing back’ - that is just what we want to see or develop. Examples of the approach I suggest will be found in this post.

#2 Customer type - Full price, big sandwich, combo. Yes, of course, the vanishing bread and butter customer - vital to the bottom line of most FF’s.  — IF you are not using my `full’ method (of asking certain customers how often they use YOUR unit - or - how many days since last visit) and lack knowledge of this customers frequency — it is vital to `market’ the idea of the `3 visit’ combo club (my suggestion to have an actual effective campaign for these folks is 3 visits).

#3 Customer type - Full price, multi-product purchaser. These are the folks who don’t get a drink - or skip the fries - or are buying for multiple people but not going the combo route. The marketing strategy for these parties is to `target the product not purchased’. For example, you have an order for two sandwiches and two fries - no drink — for that order, the bounceback is a coupon for a greatly discounted drink on the next purchase (or a discounted dessert or side if those are what’s missing).

#4 Customer Type - Full price, single product purchase only. To these customers - offer either a straight (say 10%) small discount on next purchase - or a `real value’ combo coupon (beyond normal pricing). These types of customers often fit into the various `clubs’ I have talked about in the past as yet another marketing opportunity - ie: - `drink club’ `dessert club’ etc.

#5 Customer Type - Value price (ie:dollar menus, etc), multi-product purchases. Market with significant combo coupon (to trade out of the lower priced items) or `frequency club’ targeting with VERY SMALL reward.

#6 Customer Type - Value price - single product. Again, market with significant combo coupon, or, specific discounted full price item, and GREAT service.

Now, the above is just ONE of my many ideas of how to market to your real existing customer base. And, obviously, is not with details that I’d fill you in with if you were a client.

Another of my favorites is the occasional - cross promotion - such as promoting a weekend coupon to your evening weekday customers - who share the same Trade Area often.

Find out more about my services at 678-467-8650 (cell) -> leave a message if you do not reach me directly and I will call you back.

30. July 2008

Original FernBar Giant Bennigan’s Closes Company Stores

When it flashed across the newswires and TV headlines - most readers were stunned - suddenly, a restaurant icon was `shutting its doors’ - Bennigan’s. No, this was not your lowly newbie who was closing after 50 stores; this was one with hundreds and a history. And, if you have been under a rock for the last 18 hours - the news is that the company owned stores are closing. You will find the link below.

Is there any marketing trade area information in all this? Perhaps.

For example, if a company unit was near a franchisee restaurant - some of that company unit customer base may become part of the large  `occasional’ users customer base of any given unit. Certainly billboard ads in the vicinity of the closed store with an `open stores location’ could be effective - or - targeting the likely home zipcode of the closed store with direct mail. (Perhaps corporate will share such info if they have done the appropriate research at the store level in the past.)

Finally, not ALL of the corporate units would have been `bad’ sales - aggressive restaurateurs could open franchisee units and fill in the void in valid market areas. That said, suddenly the market has many more empty restaurants waiting for a new concept.

Today’s Links

Bennigan’s

http://www.marketwatch.com/news/story/bennigans-franchising-company-lp-steak/story.aspx?guid=%7BE5283276-F8A1-44C4-8D83-EB9857B37D11%7D&dist=hppr   Franchisee’s to remain open.

Bennigan’s Wake

http://www.chicagotribune.com/business/chi-wed-bennigans-closing-jul30,0,6474654.story Longer, more in-depth read on the industry.

Denny’s Second Quarter Numbers

http://www.marketwatch.com/news/story/dennys-corporation-reports-results-second/story.aspx?guid=%7B2B41FDD2-AB42-402E-BCB2-42880BCED8F6%7D&dist=hppr Hard to put up `up’ numbers these days.

Banning Fast Food Drive Thru Windows

http://network.nationalpost.com/np/blogs/posted/archive/2008/07/29/better-watch-your-butts-in-calgary.aspx Beware of this sentiment.

Cheesy Macaroni Bites

http://laist.com/2008/07/29/simply_wrong_food_jack_in_the_boxs_1.php New Product of Jack In The Box; interesting product picture.

 

27. July 2008

Here Comes The Government

This blog is saddened to report the continuation of government restrictions into how you run your business and where you run your business. In this instance, the `how’ would be the government demand to use or not use a particular cooking oil (regardless as to the outcome of the final product - including taste - one of the most important attributes to your customer base) and the `where’ is the new restrictions on where fast food restaurants CAN’T be developed. Can fast food brands eventually be expected to fund the `alternative’ restaurants too? After-all, what’s to prevent a city council on deciding that FF restaurants would be `better’ for the community if they weren’t open 7 days a week?

Today’s Links

California Outlaws Trans-fats and Bans Fast Food Outlets in Defined Area

http://www.telegraph.co.uk/news/worldnews/northamerica/usa/2461615/Los-Angeles-bans-new-fast-food-outlets-and-California-outlaws-trans-fats.html 

It was funny seeing the 800 plus article titles on this one — only a few positioned the move on trans-fats with a positive headline title. One can only imagine what may happen if politicians turn their interest againist the industry.

Fast Food Goes To The Movies

http://www.sfgate.com/cgi-bin/blogs/sfgate/detail?blogid=26&entry_id=28501 

Quick read on the movie tie-in’s currently going on. Specifically tells what each restaurant chain DID on their end of the relationship (T-Shirts for workers, special cups, etc.)

Crowd MOBS Taco Bell Opening

http://www.rutlandherald.com/apps/pbcs.dll/article?AID=/20080724/NEWS01/807240408/1002/NEWS01  

This is a wonderful article you don’t want to miss about how folks LOVE getting their fast food. A great counter balance to the desire to BAN fast food elsewhere. ———- One comment however, always be ready for an amazing first opening day crowd and have your operations in order. Remember, one bad experience can turn 15% against a second visit.

Majority Stake in Applebee’s Franchisee Sold

http://www.nrn.com/breakingNews.aspx?id=356918&menu_id=1368

I was involved with Applebee’s findings when they had one unit on Memorial Drive in Atlanta and W.R. Grace was the interested party. Want to have a researcher like that - give me a shout - find my number on my squidoo site www.squidoo.com/tradeaareasurveys .

 11.23 For Lunch At Steak and Shake

http://www.indystar.com/apps/pbcs.dll/article?AID=/20080721/BUSINESS09/807210323/1109/BUSINESS09

Yet, somehow, that is not the ultimate problem? Article covers the challenges to the new company leader.

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