Restaurant Trade Area Research

In my decades of doing Trade Area Research, specializing in `attrition estimates’, — I’ve often done projects that involved market expansion considering new store locations that involved one franchisee vs another. Usually, these project originated with companies in which I was the National Supplier of this service (two national fast food chains) but occasionally not (being known by different franchisee’s in the same market who hired me as an arbitrator/fact finder).

Most national fast food brands have a policy concerning `trade area infringment’ - with the establishment of `what level of attrition’ is `acceptable’ with new store development (those `acceptable’ dollars leaving YOUR pocket and bottom line). And, most fast food brands have a policy of `who pays’ for such research too. Want to find out that type of info? — Then send me an e-mail at southernsurveys@aol.com - describe your situation and I will tell you more specifics (please include a contact phone number).

Today’s Restaurant Links

Brown Bagging at Lunch Hurting Restaurant Sales

http://www.qsrmagazine.com/articles/news/story.phtml?id=6996 —A fantastic, research supported, four minute read with many insights - but, perhaps an exaggerated title about brown baggers as the `increase’ is barely measurable (35 increasing to 38 times (a year?)) and is probably within the range of `plus or minus’ for the two compared surveys. Here’s a quote from the article :

“There are a number of factors adversely affecting the mid-day meal business at restaurants, and brown-bagging is one of them,” says Harry Balzer, vice president, The NPD Group, and author of Eating Patterns in America. “Certainly the economy, growing unemployment, the erosion of disposable personal income, slow-down in number of women entering the workforce, and more telecommuting options are also influencing consumers’ lunchtime behaviors

Frankly, to me, the decrease of sales is likely the erosion of disposable income and telecommuting - brown bagging is the result as opposed to a cause. Indeed, for consumers living in under-penetrated fast food markets (one FF several miles away) the increase in GAS prices is probably a factor too. After all, the 3.99 combo is REALLY 5.99 if the roundtrip is 10 miles and you get 20 miles a gallon.

The reality of smaller trade areas is increasing - and - not just because of the gas price — I will talk more about that in future posts.

KFC’s Vegetarian Sandwich - Isn’t

http://consumerist.com/5027777/kfcs-vegetarian-sandwich-isnt-stop-kidding-yourself-that-fast-food-restaurants-have-vegetarian-options  I almost had to laugh at this article due to the HARD vegetarian position. Indeed, make sure to read the comments as they are most insightful.

Drive-Thru Reseach Study 2007

http://www.qsrmagazine.com/reports/drive-thru_time_study/  This is a MUST read about how different fast food brands are dealing with Drive-thru business - vital, of course, to nearly all FF and the bottom line. This is not a short read but worth it. Here’s a sample table: