Restaurant Trade Area Research

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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Look around the sidebar for more - thanks for your visit today.

Here’s a detailed article about WHY Red Lobsters demographics may be indexed strongly with Black customers - hint: think `menu census’ (a great form of research too) - http://atlantapost.com/2011/04/05/understanding-red-lobsters-popularity-amongst-african-american-diners/

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One way that FF restaurants are defining their `upscaleness’ over the last few years has been `Milkshakes’ (with a capital M) - such as this new premium offering from Chick-Fil-A - Chick-fil-A Whips Up New Banana Pudding Milkshake - http://www.restaurantnews.com/chick-fil-a-whips-up-new-banana-pudding-milkshake/

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Taco Bell has responded to the `fake meat’ rumors that some charge or accept with an open ear - such as here - http://www.thatsfit.com/2011/03/18/do-you-believe-taco-bell-is-real-meat/ - with an advertising response http://www.youtube.com/watch?v=0DeJGN_QfTQ - speaking up for content (sourcing) is VERY important. Good Move.

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Speaking of content - Dunkin’ Donuts Serves Up New Big ‘N Toasty Breakfast Sandwich - http://www.restaurantnews.com/dunkin-donuts-serves-up-new-big-n-toasty-breakfast-sandwich/ - DD continues to make inroads into the ONLY growing daypart segment (really) breakfast. That said, I’ve seen the ads and can’t help but think that drive-thru users (and possibly road eaters) couldn’t help but get YOKEY when biting into the sandwich. (However, they do make the fried egg yoke looked pretty cooked.)

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Thanks for your visit today.

Hello RTAR fans - sorry for the lack of posting - but today, 2011 and this blog starts anew once again. First, I want to thank everyone for their support in 2010: indeed, as you can see from this link - this blog remains in the top Alexa Rankings -  
http://www.alexa.com/siteinfo/restauranttradearearesearch.com# thanks to your interest and support. Please share RTAR with others.

Anyway, tons has happened in six weeks so let’s get started:

First, McDonald’s has been continuing it sales increases - partly thru dead on new product introductions that capitalize on the only segment that is growing - breakfast; and health - McDonald’s Offers New Fruit & Maple Oatmeal - http://www.restaurantnews.com/mcdonalds-offers-new-fruit-maple-oatmeal/ and this link talks about just how BIG the Happy Meal is to McDonald’s - Just How Happy Does the Happy Meal Make McDonald’s? - http://adage.com/article?article_id=147271 - how about sales bigger than IHOP? Wow.

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Indeed, this article wonders: Can Starbucks Adapt Like McDonald’s Has? - http://blogs.forbes.com/investor/2010/11/04/can-starbucks-adapt-like-mcdonalds-has/

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Indeed, the coffee giant may want to keep an eye over their shoulder as Dunkin’ Brands Opens Its 16,000th Location Worldwide - http://www.restaurantnews.com/dunkin-brands-opens-its-16000th-location-worldwide/

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General Restaurant News, Trends - Alcohol Sales at Restaurants and Bars Expected to Increase by Nearly 2 Percent in 2011 - http://www.restaurantnews.com/alcohol-sales-at-restaurants-and-bars-expected-to-increase-by-nearly-2-percent-in-2011/ – and here is a real interesting look at basics: Marketing Sense Isn’t the Same as Common Sense - and uses Little Caesar’s as it’s kicking horse - http://adage.com/columns/article?article_id=146846; meanwhile, Trendspotters Pick Top Five Food Trends at Winter Fancy Food Show - http://www.restaurantnews.com/trendspotters-pick-top-five-food-trends-at-winter-fancy-food-show/ Belgian Waffles and Tea for example.

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Meanwhile, the industry as a whole continues to sputter in a horizontal mode - Restaurant industry sees slow recovery - http://www.suntimes.com/business/3485891-420/restaurants-percent-industry-npd-chicago.html - highlights from this link includes HARD Data like this:

http://oncetherewerelions.files.wordpress.com/2009/08/green-arches.jpg

Just when you thought some things were sacred - http://www.restaurantnews.com/the-golden-arches-go-green/ just four so far in the country - expect this as a trend.

Bring back the favorites is a time-tested marketing idea - White Castle’s Popular Original Slider-Scented Candles - http://www.restaurantnews.com/white-castles-popular-original-slider-scented-candles-returns-for-the-holiday-season/

Here’s another targeted seasonal marketing effort by Popeye’s - Popeyes Cajun Style Turkeys are Back! - http://www.restaurantnews.com/popeyes-cajun-style-turkeys-are-back/

Here’s a catchy way to sell a limited time offering - Whataburger Introduces New Whataburger 5-3-1 - http://www.restaurantnews.com/whataburger-introduces-new-whataburger-5-3-1/ - with five pickles, 3 onion rings and one great sauce. Available for about 5 weeks and starting and ending at 3PM. Cute.

Meanwhile, a natural competitor in the growing morning daypart should be Dunkin Donuts, - and perhaps this will be just the addition they need - Pancake Breakfast on the Go: Dunkin’ Donuts Adds to Its Menu With New Pancake Bites - http://www.prnewswire.com/news-releases/pancake-breakfast-on-the-go-dunkin-donuts-adds-to-its-menu-with-new-pancake-bites-106606363.html

Some 3rd Quarter sales numbers tomorrow.

Once again, McDonald’s is on the cutting edge - great story - http://www.dailymail.co.uk/sciencetech/article-1322180/McDonalds-tracks-burglars-spraying-artificial-DNA-make-getaway.html

Dunkin Donuts expanding in TN. - http://www.restaurantnews.com/dunkin-donuts-announces-seven-new-restaurants-in-tennessee/ - make sure to see my questions and answers about Trade Area Surveys here before you do any expansions and to know more about your market - http://www.squidoo.com/tradeareasurveys

IHOP is re-positioning a portion of its menu to attract the light eaters - http://www.restaurantnews.com/ihop-makes-lower-calorie-dining-choices-simple-with-new-menu-items-and-tips/

When was the last time you did any research with Fast Food Rejectors? Here one here: http://www.youtube.com/watch?v=x8G9OAFlquI

Winners of the various categories are: 

Healthy Food - Subway - Mega Chain; Jason’s Deli - Large Chain

Coffee - Starbucks, Dunkin Donuts, McDonalds

Best Burger - Five Guys, In-N-Out Burger, Wendy’s

Best Fries - McDonald’s, In-N-Out Burger, Five Guys

Best Milkshake - Dairy Queen

Best Value - McDonald’s, Panera Bread

Best Drive-Thru - McDonalds

Most Popular - Subway

More details at this link - http://www.restaurantnews.com/zagat-fast-food-survey-rates-136-major-dining-chains-from-breakfast-to-burgers-dessert-to-drive-thrus/

Image From - http://fastfood.freedomblogging.com/files/2008/05/tacobell_valuemenu_web.jpg

In my last post http://restauranttradearearesearch.com/2010/04/21/price-point-stalking-the-new-normal/ - where I provided a list of price positionings that I’ve seen various restaurant chains promote in the past year in the Atlanta ADI - I made the point (I hope) of `how crowded’ some price points are. (AND PROBABLY HOW HARD IT IS TO STAND OUT AND CLAIM A PRICE POINT).

That said, the chains are doing it for a reason - price talks in this new normal. The minimum price to have the chains `experience’ - whether it’s 79 cents at Taco Bell, a Buck at Arby’s, 1.99 Breakfast combo at Dunkin Donuts, 2.50 Subway breakfast combo, 2.99 Boston Market 4.99 Pickadilly’s (who I forgot to include) …ect. ect. ect. — is gobbling up significant portions of marketing efforts and probably not contributing significantly to the bottom line of operating revenue. It can also make the `regular priced fare’ appear to be much more expensive in  a perceptual sense. (Also, unless you are Taco Bell, someone will ALWAYS be cheaper - why pay more?.)

All that said, appealing to multiple price points - including the one that seemingly IS affordable (the minimum prices) - may continue to be important strategic positioning until a real recovery begins - if and when. BUT, now that these minimums are already in place, some shift in ad revenue should happen to emphasize other important restaurant and FF restaurant attributes. (Fun, quickness, food quality, etc.)

Thanks for visiting today - I offer the MarketView, read about it here - www.squidoo.com/tradeareasurveys .

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.

One has to wonder how many years it of `the new normal’ that competitors will let McDonalds claim this value attribute to themselves in the FF arena — will everyone play catch-up? Will anyone have the nerve to go super-low on the Iced Tea as a response (other than convenience outlets)?http://online.wsj.com/article/SB10001424052748704743404575127551110770616.html 

Twitter’s allure is tough to translate into dollars, but one national name, Dunkin’ Donuts, is tracking results and ramping up its presence on the microblogging site. – Treating your customer base right is important - twitter can be part of it - http://www.portfolio.com/companies-executives/2010/03/16/dunkin-donuts-tracking-twitter-in-effort-to-turn-tweets-into-sales/

Franchising Redux at Sizzler Restaurants - Interesting Q & A with a head person - http://www.chainleader.com/article/453688-Executive_Q_A_Franchising_Redux_at_Sizzler_Restaurants.php 

The ultimate giveaway and crowd pleaser - The Chains With Free Food Prizes and the People (600,000!) Who Want Them - http://online.wsj.com/article/SB10001424052748704688604575125753339035336.html?mod=WSJ_latestheadlines 

See my research on trade areas at Squidoo - www.squidoo.com/tradeareasurveys

First, let it be said that my usage of nearly ALL of the restaurants has already assumed the `new normal’ of the Great Recession. Regardless of what cheerleading the media may be doing about the economy - most folks are now cautious on discretionary spending - of which, restaurant visits - even to a degree Fast Food restaurant visits - has been impacted. 

 In alphabetical order:

Arby’s - I `responded’ to the ads for the `Roast Burger’ earlier in the year and was not impressed. I refused to respond to the Marry a Goat `humor’  ad campaign and somewhat like the recent 5.01 combo or pricing (the one cent being for Quality).  That said, generally, I perceive that Arby’s as expensive without having coupons from the coupon mail drop a few times a year. Additionally, they  `streamlined’ their `fries’ - dropping my favorite the Homestyle. How can they NOT promote the Jamoca Shake?

Atlanta Bread Company (ABC) - Remodeled nicely. Upgraded to real plates and silverware. Messy to clean up. Can be crowded and slow service. Female favorite. Good soups and combo prices. Mellow atmosphere.

Burger Inn - Local  legend - all fresh cooked. Great breakfast customer base. Friendly people; newspapers available often. Excellent onion rings. Beefy hamburgers. Male favorite.

Burger King - I like the current billboard promotion about the Double Cheeseburger for a buck, real value - but - haven’t gotten it.  I have ordered the Mini burgers more than once however and view that as an excellent addition. Amazingly, the Woodstock BK got rid of Real Sweet Tea years ago (my assumption is that is still the case) and thereby nearly ended my usage — I can’t stand the fake sweet tea out of a machine. Operations should be aware that changing ICONic drinks can have a big effect. — Finally, where is the KING?

Capt. D’s - Perhaps my favorite FF in Woodstock. Quality, Quick, and Quantity with good value pricing. Covers all reasonable price points including lunch specials and on-going `specialities’ that have all prices. Excellent choice of sides. Funny ads earlier in the year comparing to Red Lobster pricing. Friendly greeting and thanking when exiting. Good inside music.

Checkers - Still a viable concept (double drive thru) - chicken wings were a good addition earlier in year - somehow it fits. Catchy phrase “you gotta eat” recognizable for smaller chain levels of advertising. Covers all price points well with a good mix of products. The Woodstock store does Sunday Pricing - good idea - hasn’t ever motivated me for their `down sized’ versions. Could probably `play-up’ the FUN theme a little bit more.

Chick-Fil-A - Woodstock’s Chick-Fil-A is amazingly busy. Overwhelmingly busy whenever they do a promotion like 2-1 for a chicken sandwich or free food giveaway. Excellent quick service regardless of how long the lines are - especially at the drive-thru. (However, I’ve detected a time or two a usage of `workers in India’ taking my orders — I’m not kidding - and, in this time of underemployment in America - that is NOT right to save a few cents that way.) Real Milk Shakes were genius. Consistent quality. Friendly employees. Clean. ————— All that said, the Woodstock inside service in the sit-down area can be horrid and when is Chick-Fil-A gonna get some normal fries? Also, one takes a chance when getting the baked potato.

Dairy Queen -  The standard in Ice Cream desserts from the drive-thru. Haven’t used but really like the new pricing structure in ads 2/3 3/4 4/5.00 - interesting approach. Unfortunately, for me, the food hasn’t broke thru.

Dunkin Donuts - Right on the Strip - I’ve never used location. Certainly they can advertise donuts and donut prices more.  (IF I knew a quick Donut sweet was 99 cents for example - it would come to mind for `dessert’ or breakfast purchase more often. Never seen a place less concerned with establishing a price point understanding. Just how much does a dozen donuts cost?)

Firehouse Subs - Expensive but Excellent. Can be slow. Friendly employees. TV’s to watch. Good real sweet tea. Small, can be crowded.

Five Guys Hamburgers - Tangential to Woodstock in Sandy Plains area — good operation - waiting for a Woodstock Location (several good places available perhaps too).

IHOP - Expensive, right? What specials?

KFC - Closed but not forgotten. Also was one, like BK, to drop sweet tea for a time.

Krystal’s - Krystal `fix’ a must a few times a year. (Canton Road.) Ad’s featuring Crispy Onions on burger looks very compelling. Wi-Fi add - good idea.

McDonald’s - Woodstocks unit re-designs and updates the interiour often - which is nice. Clean. Service can range from excellent to very poor (weekends). Can often find an AJC or USA today in newspaper bin. Separate kids area - thumbs up. Fries can vary in quality. Best FF fish sandwich.

New China Buffet - Lunch value leader. Good quality food. Friendly employees. Priced by the pound to go. Widest variety of food.

O’Charlies - Stopped going shortly after changed menu restricting Prime Rib to Sundays only.

Panda Express - Have never used. Pass by back of lot 3 times a week on way to Walmart.

Po Folks - AKA Folks —> Expesive for what you get.

Ruby Tuesday’s — How could they get rid of German Potato Salad? (pet peeve). Good miniburgers and platter pricing. Easy to split orders. Great salad bar still.

Sonic - I really like their ad’s inside the car with the main guy and his friend and the main guy and his wife. Classic. Best onion rings in Woodstock at FF. To me, tasteless burgers. Fun to use. Daypart pricing on drinks in the afternoon. Fun music playing.

Steak And Shake -  Best Milkshake in Woodstock. Can be very expensive without coupons and very reasonable with coupons. Great variety of sides. Great music inside.

Subway - Good with pricing with coupons. Good quality. Can be SLOW service. GOOD real sweet tea. Fresh. Daily specials a good way to address pricing. Excellent variety of sandwiches.

Taco Bell - Good cheap price positioning. Good Chalupa’s. Good real sweet tea. Good service speed. Good quality overall.

Wendy’s - Huge variety in quality - excellent one time - poorish the next. What the heck happened to the fries - almost tasteless compared to yesteryear. I’m told good salads. Expensiveish compared to McD’s. Baked potato good price/quality.

Thanks for reading - feel free to comment.

Here’s some links also:

KFC Closes Its Doors to Fight Hunger - http://www.slashfood.com/2009/09/30/kfc-closes-its-doors-to-fight-hunger/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.slashfood.com%2F2009%2F09%2F30%2Fkfc-closes-its-doors-to-fight-hunger%2F Community involvemet matters - look at the results of the survey on this page too.

A Real Whopper? NASCAR’s Stewart to take live polygraph test in ad  - http://www.walletpop.com/blog/2009/09/30/a-real-whopper-nascars-stewart-to-take-live-polygraph-test-in//?icid=main|htmlws-main|dl1|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F09%2F30%2Fa-real-whopper-nascars-stewart-to-take-live-polygraph-test-in%2F%2F BK, attention grabber again.

Eat, drink, and spend money: Restaurants ply diners with cheap booze - http://www.dailyfinance.com/2009/09/29/eat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b/#continued?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.dailyfinance.com%2F2009%2F09%2F29%2Feat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b%2F%23continued

The new price of `free’ continues within the fast food category - this week - I’m aware of a dayparted Sonic free Root Beer Float and a free donut at Dunkin Donuts (with purchase) and I’m pretty sure I saw a coupon for an Arby’s `weekparted’ free Kids meal (on weekends with purchase). To be honest, I think there was at least one more.

Well, at least the new FREE involves some targeting. Targeting families to get into a weekend Arby’s visit - good idea. Targeting the sweet tooth by Sonic in the evening (this promo was after 8PM) - creating that `float, at night, in the summer idea - and also making this FREE promotion FREE - good idea. Dunkin Donuts getting some free trial by coffee users - good idea.

Also newsworthy on the `re-pricing’ of fast food restaurant visits is McDonald’s (at least locally) going 1.00 for all sizes of any soft drink (a la carte) (until Sept.30th) - NOT just the sweet tea. Smart - something I suggested all chains should consider in prior posts about how to deal with the `new’ normal in restaurant usage.

And, that new normal continues to make it a rough go as these links indicate:

Fast-Food Chains In For Job-Loss Pain - http://money.cnn.com/news/newsfeeds/articles/djf500/200906031622DOWJONESDJONLINE000812_FORTUNE5.htm

Same store sale figures - Not good news for some - down as much as 8% for Arby’s - Qdoba’s down;  BK, Wendy’s, Jack In The Box slightly up. http://www.mediabuyerplanner.com/entry/41524/burger-king-promotes-value/

http://www.rttnews.com/Content/BreakingNews.aspx?Node=B1&Id=947907%20&Category=Breaking%20News

Don’t leave before visiting my Squidoo site - where I explain some of the services I offer www.squidoo.com/tradeareasureys - thanks.