Restaurant Trade Area Research

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 .

I once pulled into a fast food restaurant in Tennessee off I-75, and, was going thru the drive-thru, when, after the speaker, I encountered a smiling young lady doing `surveys’. Being a marketing researcher who has conducted thousands of similar surveys and also who has trained hundreds to do the same - this was the big moment - a validation of what I did. But, after my answer to the first question (the coming from question) I was asked to move ahead to the window (my answer was that I had traveled from KY on a vacation). Knowing that they would want more info than that - I asked what the survey was about - she indicated it was about a new store that would be north of this one, also on a I-75 exit (I would have passed this first). I said, don’t you want to ask me more questions - “no, I can fill it out myself”.

Unfortunately, it’s very unlikely this interviewer was doing her job and certainly there were more questions about an attrition situation — which is of vital importance to the operator of the exisiting unit in question. And, while this level of `research’ is not usual, and also is WORTH NOTHING, it often represents a fair portion of the data (using interviewers not trained or supervised upon beginning real interviewing). As you know, as an owner of a restaurant — millions may ride on the outcome of `cannibalization’ surveys - if done at multiple units in a market.

Having the highest level of data collection is of utmost importance to expansion within a trade market - a service I provide - read more about trade area surveys at www.squidoo.com/tradeareasurveys .

Today’s Links

1. http://money.cnn.com/news/newsfeeds/articles/apwire/e6edbb1117015e037cd739ba89205815.htm

DineEquity Inc releases 2Q sales for same stores - shows IHOP up, Applebee’s down. Quick read.

2.

http://www.bizjournals.com/triangle/stories/2008/06/23/daily27.html

Olive Garden has same store increase, not as good for others in company.

3. http://www.streetinsider.com/IPOs/Dave+&+Busters+Holdings+(DANB)+Files+$170M+IPO/3816999.html

Dave and Busters files IPO. We have D&B in Atlanta - the evolution of this concept has been well executed. The TV ads of the combo food and fun price were well positioned. FUN sells.

4 - LINK OF THE DAY — “TGI FRIDAY’S” Research study. - http://www.chainleader.com/article/CA6578744.html?industryid=47553

Wonderful research study showing the benefits of research and customer satisfaction - and, what attributes to focus on to achieve that result. Free food, of course - but much more. A great marketing article.