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.

In the new normal after the crash of 08 - restaurant people have been suddenly had a new outlet for `marketing’ - the so-called `value’ coupon offers of Groupon and many others. This article goes in detail to the positives and yes, the NEGATIVES (and backlash forming) - well worth your read. http://seattletimes.nwsource.com/html/foodwine/2014755353_webcoupons13.html?prmid=head_main ——–

Customers are SPEAKING up about what might increase their FREQUENCY of usage of your restaurant in this article - some highlights - Calorie and Nutrition info, snack items, more breakfast and Chicken offerings, — and more at the link - http://www.restaurantnews.com/consumers-serve-up-advice-to-restaurants-looking-to-increase-the-frequency-of-their-visits/ —

Hardee’s and Carl’s Jr GO TURKEY - http://www.restaurantnews.com/carls-jr-hardees-first-national-fast-food-chains-offering-charbroiled-turkey-burgers/ - and position the health claims.

SUBWAY reduces sodium by 28% - smart move, under marketed - http://www.restaurantnews.com/subway-restaurants-reduce-sodium/

More along these same lines of trends - Restaurants say consumers are finally ordering healthier meals - http://www.usatoday.com/money/industries/food/2011-04-12-healthy-food-restaurants-applebees.htm

See the sidebar `labels’ for categories of interest to you. Thanks.

There is brand loyalty and there is brand loyaty - http://www.huffingtonpost.com/2011/05/12/in-n-out-burger-north-texas-expansion_n_861172.html?icid=main%7Chtmlws-main-w%7Cdl1%7Csec3_lnk3%7C213092 with video. Up until now I had been blissfully unaware of In-N-Out’s Christian connections. ————————-

Holy Smokes. Panera Bread has added choice sirloin steak to the breakfast daypart, salad offerings, and sandwich segments of it’s menu - quality marketing moves - http://www.fastcasual.com/article/181104/Panera-Bread-beefs-up-menu-with-steak-sandwiches-salad ——————————————-

Meanwhile…. Wendy’s Fries Beat McDonald’s in National Taste Test - http://www.restaurantnews.com/wendys-fries-beat-mcdonalds-in-national-taste-test/ - if it was ME - I’d position this information to all the NON TRIERS — ad, two friends, one gives facts to the other and says `You mean you haven’t tried them yet?’  ————————————–

McDonald’s to increase prices one percent - http://www.slashfood.com/2011/04/22/mcdonalds-to-bump-prices-yet-ads-wax-fifties-nostalgic/ ———————

And, here’s an interesting research study about the breakfast daypart with consumers which provides actionable understandings - Research Reveals Restaurant Diners Want Healthier Breakfast - http://www.restaurantnews.com/research-reveals-restaurant-diners-want-healthier-breakfast/ - healthy fast food, a growing segment for sure. —- here is more proof of the pudding - Lower Calorie Items Gaining Momentum on Restaurant Menus - http://www.restaurantnews.com/lower-calorie-items-gaining-momentum-on-restaurant-menus/

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One must pat KFC on the back for this inexpensive marketing move - pay a few coeds to advertise your bunless sandwich - targeted at males - on the buns (backsides, butts, buttocks) of pretty college coeds. Is `anything fried’ becoming a male dominated target demo? As the link says `a head turning’ idea - http://www.restaurantnews.com/kfc-places-double-down-ads-on-the-backsides-of-sweat-pants-worn-by-college-co-eds/

At this link - http://www.slashfood.com/2010/09/23/vegans-cheer-dennys-new-burger/?icid=main%7Chtmlws-main-w%7Cdl3%7Csec3_lnk1%7C172876 - you can read another winner from Denny’s (after their AARP success) - here  - heading in the opposite direction to the Double Down of KFC - is Denny’s new Vegan Burger - picking up on the new `health’ positioning and burger trends in one product. Also, burgers are a strong lunch product often times.

Two Subway new products reviewed - http://www.slashfood.com/2010/09/21/subways-fiery-turkey-jalapeno-and-steak-and-cheese-subs-reviewed/?icid=main%7Chtmlws-main-w%7Cdl8%7Csec3_lnk3%7C172053

Here is a real fun read - On Colonel Sanders’ 120th Birthday, Survey Reveals Young Americans Unclear If KFC Founder Was Real Person - http://www.restaurantnews.com/on-colonel-sanders-120th-birthday-survey-reveals-young-americans-unclear-if-kfc-founder-was-real-person/ - don’t miss this and what can happen to icons and brand images.

My YouTube Channel which has free 2010 Top Of Mind Research about Restaurant Brands - http://www.youtube.com/my_videos?feature=mhum

With banks lending most of the money - the #2 Burger chain is sold -blaming focus on the 18-35 year old male as one positioning problem with the brand - http://www.npr.org/blogs/thetwo-way/2010/09/02/129604272/burger-king-sold-for-3-26-billion-to-private-investors - here’s to hoping the BK `King’ Character is safe.

Hardee’s develops for the only increasing segment of visitors - breakfast - and focuses on having the product `mobile’ for users - Hardee’s Makes a Breakfast Classic Portable with New Country Fried Steak ‘N’ Gravy Biscuit - http://www.restaurantnewsrelease.com/hardees-makes-a-breakfast-classic-portable-with-new-country-fried-steak-n-gravy-biscuit/853611/ - still, is GRAVY on a biscuit - really `mobile’?

Meanwhile - instead of pursuing the `Gravy’ crowd at breakfast - Ruby Tuesday’s is going Healthier and Lower Calorie at Lunch - Ruby Tuesday Highlights More Healthy Options on New Menu - http://www.restaurantnews.com/ruby-tuesday-highlights-more-healthy-options-on-new-menu/ - the salad bar allows RT’s to have more of a positioning in this area compared to a Chili’s, etc.

More about my services here - www.squidoo.com/tradeareasurveys - have a safe Labor Day Weekend.

Excellent article that once again shows McDonald’s to be ahead of the competition- the dietitian even uses the new `key words’ like reduced salt and balanced diet - http://www.sun-sentinel.com/business/sfl-mcdonalds-nutrition-042210,0,3516216.story .

And, here’s an example of the above - It’s a new season for consumers as 16 companies, chains announce reductions in salt - http://www.startribune.com/lifestyle/health/92129669.html .

The 189,000.00 Nightmare - happened to Waffle House - http://www.newsobserver.com/2010/04/21/447056/a-189000-nightmare.html .

Do you have a pizza restaurant? If so, this is the news source for you - http://pizza-news.net/ .

Finally, thanks for the great response to last Saturday’s post http://restauranttradearearesearch.com/2010/05/08/same-sales-same-number-transactions-same-marketing/. If you are new to RTAR please look around. Thanks for your visit today.

Hello restaurant owners, and welcome back to Restaurant Trade Area Research - where I share over 30 years of insights from doing restaurant research - and, link to the latest of interest in the restaurant universe. Today I want to share with you the actual findings in a 3 store market about a decade ago.

While I won’t go into the extreme measures that need to be employed to have a VALID sample to begin with at a fast food restaurant (but you can find out more at my other information site www.squidoo.com/tradeareasurveys) - here are the results I want you to consider.

3 stores - $2,670,000 Sales (rounded)

customers that come 4+ times wk - 3% of trans - 80,000 in sales

2 or 3 times a week - 13% of trans - 348,000 sales

Once a week - 24% of trans - 642,000 in sales

Once every 2-3 weeks - 24% of trans - 642,000 in sales

Once a month - 12% of trans - 321,000 in sales

Once every 2or3 months - 9% of trans - 241,000 in sales

Once every 4to6 months - 1% of trans - 26,000 in sales

Less than every 6 months - 7% of trans - 187,000 in sales

First time users - 7% of trans - 187,000 in sales

You would be surprised how many owners DON’T think of their real customer base in this manner - what levels ACTUALLY provide the real dollars to a store. This weekend in this blog - I will expand on the data above. But, now, to today’s restaurant links - feel free to comment too.

Today’s Links

Fast Food Prices On The Rise

http://c13.zedo.com//ads2/f/341180/1/172/0/305001132/305001132/0/305/331/zz-V1-pop1217960041201.html?a=;l=;p= Video report too with story.

Healthy Fast Food For Kids A Tall Order

http://www.webmd.com/parenting/news/20080804/healthy-fast-food-for-kids-a-tall-order  This is a report issued by Center for Science in the Public Interest which rips a new opening for many restaurant brands. Detailed read with lots of interesting facts.

New Jobs In Fast Food

http://www.istockanalyst.com/article/viewiStockNews+articleid_2450358.html This article is about a company that provides your drive thru order taking with folks working out of their home.

Is a Fast Food BAN - Racist?

http://www.momlogic.com/2008/08/fast_food_banned_in_poor_areas.php#over1 After all, how can those fatties in Beverly Hills be helped?

Arby’s Signs Development Agreement For 41 New Stores In New York Metro Area Over 10 Years

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080805006617&newsLang=en

Again, would love to read your comments. Thanks for stopping by - bookmark for more this weekend.