Restaurant Trade Area Research

Here’s the opening tease from the article link:  `Inflation and restaurants is not a new theme, but add gasoline prices and the mixture could be explosive.’  - http://www.cnbc.com/id/41430184

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More ways our society is changing via the Restaurant Industry - Nearly 50 Percent of Restaurants Owned by Women - http://www.restaurantnews.com/nearly-50-percent-of-restaurants-owned-by-women/

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The funding issue - United Capital Finances $2 million for Five Guys Burgers and Fries Operator - http://www.restaurantnews.com/united-capital-finances-2-million-for-five-guys-burgers-and-fries-operator/ - has lent to many franchise brands.

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More FREE stuff -Perkins Giving Away Free Pancakes on ‘Perkins Pancake Day’ - http://www.restaurantnews.com/perkins-giving-away-free-pancakes-on-perkins-pancake-day/

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Some new restaurant products being marketed - McDonald’s Angus Third Pounder Line Gets Bolder With Chipotle BBQ Bacon - http://www.restaurantnews.com/mcdonalds-angus-third-pounder-line-gets-bolder-with-chipotle-bbq-bacon/ - three hot words in one Angus, Chipotle, Bacon. ——— Here, Jack In The Box continues the Upscaling of Milkshakes with FF - Jack in the Box Shakes Up Menu with New Mint Oreo Cookie Shake - http://www.restaurantnews.com/jack-in-the-box-shakes-up-menu-with-new-mint-oreo-cookie-shake/ — and - here, Domino’s looks to strengthen a brand extension -Domino’s Introduces New Wings and Boneless Chicken - http://www.restaurantnews.com/dominos-introduces-new-wings-and-boneless-chicken/

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More, soon.

Market Research done with 1,000 adults over 18 by Harris Interactive (internet sample?) conducted for Cintas — showed the top reasons a person would `never eat at a restaurant again’ - here’s the findings:

Source: http://www.restaurantnews.com/top-three-reasons-why-restaurant-customers-dont-return/

In other research findings: 1,300 Restaurant Owners say - Half of Restaurant Owners Proclaim, “Social Will Never Work” -http://technorati.com/business/small-business/article/half-of-restaurant-owners-proclaim-social/#ixzz18NLxwNLT - The study was conducted by MustHaveMenus - a company specializing in Menu Templates. Anyway, here’s the key findings:

• 42% of restaurant owners and managers invest in social media efforts (including blog participation, and managing their Twitter and Facebook accounts.
• 12% of restaurants and caterers hire someone to manage their social media presence.
• 23% of respondents do not believe that they need to use social media as a marketing tool.
• 23% of respondents believe that they don’t have time to devote to social media, along with all their other restaurant management duties

My concern is that like all `offers’ - interest fades as time goes onward and fades quicker the more `restaurant social media’s’ that the customer is signed up to receive.

And, yes - a THIRD research study by Intellaprice - a pricing intelligence firm (now THERE is a niche) - gave the results of a 21 market study of
12,000 beverages and 14,000 food items from casual dining brands - —- And, the results? (Drumroll) According to Intellaprice’s research, lunch entrées are up by $.93, dinner entrées rose by $.72, and kids entrées spiked by $.30.
Drinks also were UP in prices slightly. The article speaks of the loss-leader products hoping to bring in customers who will switch or bring in others who are not ordering the loss leader — more details at http://www.restaurantnews.com/casual-dining-entree-and-drink-prices-up-in-2010/ (no wonder Fast Casual continues to make inroads)

In other news:

An example of the loss leader is what Burger King is now promoting - it’s two for one Chicken Sandwich deal - http://www.restaurantnews.com/burger-king-offers-two-for-one-original-chicken-sandwich-deal/ and in more BK news - BK will be slashing their Miami Corporate staff - http://www.miamiherald.com/2010/12/06/1959749/burger-king-to-cut-261-jobs-in.html

Meanwhile - O’Charley’s Inc. Announces Restaurant Closings - http://www.restaurantnews.com/ocharleys-inc-announces-restaurant-closings/ – 11 stores to be exact and 5 of another brand.

Next up - three stories on Panera Bread - How Panera Bread Kept Rising Through the Recession - http://www.businessweek.com/investor/content/nov2010/pi2010118_183529.htm - and one method was NOT cutting costs. Up next, Panera Bread Introduces MyPanera Loyalty Program - http://www.restaurantnews.com/panera-bread-introduces-mypanera-loyalty-program/ - with some unique twists. And, finally, Panera Opens ANOTHER non-profit place - http://www.restaurantnews.com/panera-bread-foundation-opens-second-panera-cares-community-cafe/ in Michigan.

A&W uses social media for a `contest giveaway’ as a promotion point for introducing a 3 dollar value meal positioning - A&W Restaurants New $3 Big Taste Meals Bring Back Big Taste to Bland Value Menus - http://www.restaurantnews.com/aw-restaurants-new-3-big-taste-meals-bring-back-big-taste-to-bland-value-menus/ - the top prize is a trip worth up to 4K and three other prizes.

Thanks for visiting today - have a look around the sidebar for more.

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.

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.

I live only about 2.5 miles from a Stevi B’s - it’s pretty good pizza - that said, when it opened our family used to use it 3-6 tmes a year - but, it’s been 3-4 years since our last use. That said, free food can indeed bring in the old users (now nonusers) - and, IF they give that pizza to the customers as they leave - they may indeed stimulate some `take out’ business in the future. (Especially if the pizza re-heats well.) http://www.restaurantnewsrelease.com/stevi-bs-pizza-celebrates-second-annual-free-pizza-day-on-august-19/852283/ Free Food - Part of the New Normal.

(Finally) Blimpie Introduces New Lighter Stuff Menu - The Lighter Stuff menu is comprised of six deliciously healthy items, all less than 400 calories and six grams of fat. - with a celebrity endorser and all - http://www.restaurantnews.com/blimpie-introduces-new-lighter-stuff-menu/ - Just how many years ago was Jared?

“It’s Bo Time” - http://www.charlotteobserver.com/2010/07/19/1572009/bojangles-fries-up-new-ad-slogan.html - Will Bojangles new slogan live up to the impressive KFC `So Good’? Are you motivated?

Arby’s goes interactive to introduce a new 1.00 sandwich - New Web App Morphs Your Photo Into “Arby’s Junior” Character - http://www.restaurantnewsrelease.com/become-an-arbys-junior/852235/  will cutesy work? That said, the description of the sandwich sounds like a taste treat for one dollar: the Jr. Deluxe features oven-roasted, thinly sliced roast beef, topped with crisp, fresh lettuce, ripe tomato and mayo on a toasted sesame seed bun. 

And, why not try the new media when - Starbucks Tops 10 Million Facebook Fans - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=132008

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.

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.

Forget having a good brand image. Forget about having a good product at a fair value. Forget having excellent store operations or effective advertising. No, the apparent way to customers is giving the food away for free (of which the promotion itself usually results in long service delays and perceptions of poor operations) sometimes without even the need to purchase a drink or side.

Is this the best strategy the chains can come up with? Even in these down times - scrapping along with consumers adjusting their frequency of fast food and overall restaurant usage? And, if one chain every 10 days or so is offering - free - how about a price offer that doesn’t give away the house and all profits?

How about a different tack - say - 79 cent ice cold soft drinks all summer long. Such a tactic would make the reduction `not permanent’; yet would offer real value - even allowing the customer to pay full price for a sandwich without feeling ripped off. Or, do the 79 cent drinks only on weekends to target the more `local’ home customers (and making your business base continue to give some profits during the week).