Restaurant Trade Area Research

The evidence is starting to pile up about one response to the new normal is that Fast Food brands should enhance the  restaurant experience available - almost regardless of price point - because in large part it is aimed at those `trading down’ from the sit-down and tip waitress at lunch segment - and at the already existing non-tip fast casual (such as a Five Guys).

Examples include Wendy’s new redone Premium Salads priced at around 6.00 - and the large variety of `Angus’ Big Burgers available at most of the major chains now. (Can Buffalo Burgers be far away?) It would also include the upscaling of Milkshakes at Chick-Fil-A and Hardee’s - to the recent bone-in BBQ of Burger King - to the upscaling, at least perception wise, to many McDonald offerings such as the yogurt choices and coffee.

These new positionings, which often include a dash of health perceptions mixed with a sprinkle of indulgence, can be fairly and profitably priced within the fast food price points compared to fast casual and especially when compared to ANY RESTAURANT THAT DEPENDS ON TIPS FOR ITS EMPLOYEES. As today’s customer, in the new normal, is no longer disregarding any `additional charges’ as frivolous.

Indeed, when today’s restaurant using customer sees a Chili’s ad about the Burgers choices (with fries) starting at 5.99 - they know that - even getting water (the continuing trade-down) - that with tax their bill will be pushing 6.50 - which with tip (can you really tip under a dollar in a sit-down environment with table cloths) would be another buck (or two to not look cheap) - making the 5.99 advertised price point, more like 7.50+ and they are still drinking water. (The 1.79 and up prices on drinks at these places do them no help perceptually either). Indeed, throw in the drink, tax, (and now a two dollar tip) and you are talking 10.00 nearly - for the cheapest 5.99 advertised price point.

And, perceptions like that - add up to Fast Food brands having some opportunity for brand extensions with good profit price points. Doing this, while retaining the `value’ and yes - even the `dollarish’ price points too. (Dollarish (things under 1.49) would be a fun positioning.)

Lastly, since the new normal could be here for years and years, expect this trend in Fast Food brands to be a continuing process as brands find profitable brand extensions once thought of as not possible or too out of character for FF. Does this mean `value sized portions’ of something as exotic as `Prime Rib’ - before you say impossible - remember, this is the new normal. Crabcakes anyone?

Here’s some thoughts of a 50 year old multi time a day FF eater - http://www.youtube.com/watch?v=T2H_pEFuSSo - and more about my services is right here www.squidoo.com/tradeareasurveys too.

I remember when Coors Beer was a legend before national distribution and the loyalty levels and desire to `score’ some when available — For some, the In-N-Out move will draw the same response. - Texas seems the next move - http://www.dailyfinance.com/story/company-news/in-n-out-burger-dallas-texas/19491184/

O’Charlies continues the new normal advertising - price points - O’Charley’s Launches New Ultimate Choices Menu - grabbing three points with below 10.00 to identify with - http://www.restaurantnews.com/ocharleys-launches-new-ultimate-choices-menu/ 

Here’s some older news - California County Bans Toys With Fast-Food Meals - here comes the government again - http://www.aolnews.com/nation/article/santa-clara-county-bans-toys-with-fattening-meals/19456492

Thanks for your visit - make sure to look around for much more about restaurants and research about restaurants.

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 .

Hello, welcome to my restaurant blog - thanks for visiting today. As you can see, today’s post is about Boston Market taking on two simultaneous marketing campaigns concerning price points. The first, at least in Atlanta, was TV ads for a 5.00-meat + 1.00 sides price point - and now followed by a 2.99 `mini-meal’ positioning. My reaction to this is — I always think it is a good idea to provide products at the price points that folks associate with ones business idea (ie: fast foods should have a dollar menu AND a full priced offering menu) — that said, BOTH of these positions - IMO - seem not exactly a `fit’ for BM. One too expensive - one, slightly too cheap.

Here’s some links too:

http://restaurantnews.com/2-99-market-meal-deals-at-boston-market/

Nutter proposes 2-cent-per-ounce sweet-drink tax - http://www.philly.com/philly/news/homepage/20100304_Nutter_proposes_2-cent-per-ounce_sweet-drink_tax.html Here comes the government.

I first meet chef X in a local library and he slips me a brown business card with nothing but his name typewritten on the front http://www.boston.com/lifestyle/food/articles/2010/03/03/underground_and_off_limits_paid_suppers_by_pro_chefs_are_way_to_dine_well_clandestinely/

I have more current restaurant links at www.squidoo.com/tradeareasurveys — thanks for visiting today.