Restaurant Trade Area Research

I had seen the billboards but had somehow missed any TV ads for the new Wendy’s W Burger. So, when I eventually did see the TV and it showed the `special sauce’ - my mind instantly went off as a lover of the Big Mac nearly 50 years. When aware of that fact - which I did not pick up from the billboards - in only days I stopped to try it.

Now, interestingly, only days before I had paid 3.91 including Tax for a Wendy’s single at drive thru - it having been since the `improvement’ since I had tasted the new offering. And, the single was `upscaled’ in my opinion - but, in all honesty - 3.91 is a stretch for the product. So, with that in my mind - I went IN this time and ordered the W (making it a combo) for only a little over a buck more than the Single alone.

I was immediately impressed with the sandwich and LOVED the `positioning between the Big Mac and the Whopper’ (even moreso if any BK’s still have the `King’ - their version of the BM) — LOVED the positioning. Indeed, my mind thought, WHY  are they not positioning it that way too? Indeed, the sandwich HASN’T what McDonald’s I’m sure would love to be able to dump - the extra slice of bread between the two patties; thereby giving lots of meat ratio in every bite in comparison.

Yet, the sandwich was uniquely targeted at the whopper too - with the larger lettuce piece(s) and tomato. And, at that time I thought that McDonald’s better have some concern about this sandwich pulling from it’s very core oldtime base customer. All in all - I was impressed.

My second time was nearly as good as the first and was only two days later- but, I got this one to go, with no sides or drinks - paid less than before - had a better sandwich value in my mind than the Single OR Big Mac - but realized that for WENDY’s the tradedown would have to be a hit to the bottom line IMO; especially in comparison to the probable profit margin on the Single.

Then, weeks later, I went inside for another combo while a unit was having operation problems (At Trickum In Woodstock, two Saturday’s ago) - the manager on duty was yelling loudly at the crew about being prepared in advance. It startled the folks in line it was so loud. I hoped no one would walk off the job as the place seemed understaffed and the wait was already mounting. However, the real letdown was upon opening the W - gone were the lettuce and tomato - (I had asked for some extra sauce on it and it was swimming in it) - one little slice of onion, NOTHING else. It was a total turn off and problems were only mounting at the line and counter so I simply ate it.

Interestingly, I said to the counter girl - `how much would it cost if someone asked for the sauce on a Single’ - she said it would be FREE as all toppings are free. For some reason the answer surprised me - could some just as easily ask for Big Mac sauce on a dollar hamburger? Or, the Wendy’s 99cent offerings?

So, I haven’t been back - it’s been a few weeks and probably a bit longer than normal for my Wendy’s visits (prior to W usually a single combo): and as you can see from the link - others are not so impressed with Wendy’s either as in this recent article saying it would http://www.dailyfinance.com/2012/01/12/why-wendys-will-never-be-great-again/?icid=maing-grid10%7Chtmlws-main-bb%7Cdl3%7Csec1_lnk3%26pLid%3D127010 never be great again.

I wouldn’t go that far - but - the positioning of the W could have been structured  a lot better to attract actual new customers from their main competitors IMO. Heck, SELL the sauce in the store in jars - like Big Boy.

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These Two Guys Had The Same Impression As Me On First Tasting

One more time - Links without commentary.

New Concept, Coal Burger, Set to Sizzle in the Woodlands - http://www.restaurantnews.com/new-concept-coal-burger-set-to-sizzle-in-the-woodlands/ ——— New 1/4 Pound Southern Style Chicken Sandwich Debuts at Church’s Chicken Restaurants - http://www.restaurantnews.com/new-1-4-pound-southern-style-chicken-sandwich-debuts-at-churchs-chicken-restaurants/  —- Jack in the Box Introduces New Bourbon BBQ Steak Grilled Sandwich - http://www.restaurantnews.com/jack-in-the-box-introduces-new-bourbon-bbq-steak-grilled-sandwich/ —- Benihana Sizzles with Five-Course Filet Mignon and Hibachi Chicken for Two - http://www.restaurantnews.com/benihana-sizzles-with-five-course-filet-mignon-and-hibachi-chicken-for-two/ —— and today’s fun link - http://www.hamburgerchains.com/

Part Three tomorrow

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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In an excellent marketing move very likely to covert some folks into NEW breakfast users - Subway has made the Bacon, Egg, and Cheese Flatbread - The FOOTLONG 5.00 Sub of the month. One would assume that introducing a new daypart into a long standing competitive marketplace segment, breakfast, as Subway did last year, is a slow go at best. However, this featuring of the breakfast daypart sandwich - ALLDAY- should certainly get lunch and evening trial and therefore potentially stimulate the breakfast daypart. (Hasn’t McDonald’s said in the past that they were going to make their fun menu an allday choice? Burgers before 10:30 and Biscuits in the afternoon?) http://www.subwayfreshbuzz.com/menu/footlong_of_the_month/ GREAT IDEA.

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IS Sbarro going under? - Sbarro Wins Court Approval of $16.5 Million Financing While in Bankruptcy  - http://www.bloomberg.com/news/2011-04-05/sbarro-wins-court-approval-of-16-5-million-financing-while-in-bankruptcy.html - article sites rising cheese costs and slowing consumer sales. Long time brand names going under reflects the real market IMO.

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Carl Jr’s and Hardee’s go ALL IN on Turkey Burgers. - http://www.restaurantnews.com/carls-jr-hardees-first-national-fast-food-chains-offering-charbroiled-turkey-burgers/ - FIVE versions, heath positioning — first to do — great moves. Is TURKEY the next Angus?

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Meanwhile, BK has pulled back on forcing stores to stay open til 2AM - http://www.miamiherald.com/2010/12/15/1973901/burger-king-pulls-back-on-after.html — win for franchisees –  Here’s Saladworks approach to helping new franchisee operators find new site locations - http://www.restaurantnews.com/saladworks-executive-team-searching-for-new-sites/ - excellent reading.  —– My only suggestion would be to have some outside independent person (like myself) who has conducted trade area research at hundreds of FF restaurants - to also provide suggestions, especially if a location of the brand is already in the market and cannibalization is an issue.

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Sometimes it is funny reading employee reactions to various advertising campaigns - like this of an Arby’s employee - http://www.ryanlmueller.com/2011/02/nibble-giggle-repeat.html and here is another opinion - http://makethelogobigger.blogspot.com/2011/03/mcarbys.html

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In more evidence of the `recovery’ being largely spotty, segmented,  and a reflection of `reverse attrition’ from the closing of so many restaurants - Seafood restaurant sales largely in the tank - http://www.orlandosentinel.com/business/os-eating-less-seafood-20110227,0,711787.story and, as I’m sure you are aware - Analysis: U.S. immigration probe fears weigh on Chipotle - http://www.reuters.com/article/2011/03/01/us-usa-immigration-chipotle-idUSTRE72007S20110301

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Thanks for your visit today and return visit. Please bookmark and return - www.restauranttradearearesearch.com - Oh, lots to explore in the sidebar.

The last one that needs to be told is you - right? - http://www.nytimes.com/2011/03/04/business/media/04adco.html?_r=1 - from the article: “there tends to be a correlation between gasoline prices and Q.S.R. sales”

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This could be helpful - Five Restaurants That GET Social Media - http://www.huffingtonpost.com/wiley-cerilli/social-media-marketing-5-_b_835294.html#s253220&title=Zengo - (slide presentation)

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Meanwhile …. Restaurant Chains See Growth Despite Economy - http://www.restaurantnews.com/restaurant-chains-see-growth-despite-economy/ - Highlight: Top 500 Chains Up 1.8% in 2010. Huge differences by segments.

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Newsworthy study - Study: Hispanics Reward Kids with  Salty Snacks - http://www.qsrmagazine.com/news/study-hispanics-reward-kids-snacks - and other findings about the fast growing segment.

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Price Marketing, Customer Connection, - Popeye’s `Pay Day’ Deal - ONE DAY Only - Tomorrow - (3-23) - http://www.restaurantnews.com/popeyes-cooks-up-one-day-only-pay-day-deal/ – 8 pieces/4.99

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Nine reactions to the new Arby’s Campaign `Good Mood Food’ - http://pjlehrer.blogspot.com/2011/03/do-you-feel-guilty-when-you-eat-fast.html

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The sidebar has labels you may be interested in reading.

Thanks for your visit.

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.

Keeping the offerings fresh to attract new customers and retain existing customers is a must for most chain FF restaurants - here - Church’s Chicken introduces the Chicken Mini Sandwich at the 89cent and 2 for 1.49 price points - here’s the description:

all white meat breast filet on a toasted, slightly sweet bun topped with lettuce, creamy Original or Spicy mayonnaise and a crunchy dill pickle chip.

Sounds good - and certainly could help Church’s at this lower price point for consideration for that market segment of FF users that often don’t consider Chicken.

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Meanwhile, Fazoli’s Introduces Four New Mini Bakes - http://www.restaurantnews.com/fazolis-introduces-four-new-mini-bakes/ - at =3.99 - value pricing and value sizing once again.

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Oh, an update on the Woodstock Fast Food Market - on the main Hwy 92 Strip another Chicken Casualty - Mrs. Winners - right across the street from the first name brand to fall in the new normal KFC. —– Philly CheeseSteak has added Chicken Nuggets —– (strange) — Bubba Q was selling 15 dollar meals online for 7 bucks.

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More soon.

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

Well, you certainly know where I stand on listening to customers - but - this is a classic article that takes on KFC for not addressing its own perceptions head on: quoting from the post:

Me, if I were forging brand strategy, I’d defiantly promote my dietary incorrectness. I’d flip the bird at the food police and wave my greasy napkin as a battle flag. Sure beats lying — not only on moral grounds, but on the basis of pure common sense. What could possibly make KFC think that anyone buys their sad little charades? They either have no respect for the crap-eating public or no idea how to search Twitter. Here just the top few of thousands in the same vein:

http://adage.com/article?article_id=144143 – So, how about TRUTH as a brand positioning?

Here’s another KFC post - about its new slogan - the fifth in five years - and one they will stick with they say - Battered KFC Gives Itself Another Spin - http://adage.com/article?article_id=144035

Here’s some big news - Denny’s Inks Deal with AARP - and, with the 20% discount between 4-10 PM - it’s like a dayparting price. Who will be next to go after the over 50 market? http://www.restaurantnews.com/dennys-inks-deal-with-aarp/

A successful chain that hasn’t introduced a new sandwich in TWO decades? — Yepper, Chick-fil-A Heats up Menu with New Spicy Chicken Sandwich - http://www.restaurantnews.com/chick-fil-a-heats-up-menu-with-new-spicy-chicken-sandwich/

The headline on this story is - Have It Whose Way? - At Burger King, management and franchisees are locked in battle over the company’s direction - Seems everything from late night hours to 1.00 double cheeseburgers and more is prompting the public battle. http://online.wsj.com/article/SB10001424052748704869304575109240807702512.html

Thanks for visiting today. Much more on this site - take a look around.

As I mentioned in one of my first blog posts in this blog - http://restauranttradearearesearch.com/2008/08/17/mcdonalds-perception-change/ – competitors better realize the time is now if not last week to fear the FF giant. Talk about having all the right tools, and understanding that research, and understanding a customer base - it will only get tougher if you do not have the arches in front of your store. What are YOU doing about understanding your customer base?

Anyway - this `new idea’ is to make McDonald’s more `leisurely’ — absolutely could work too IMO. http://www.chicagotribune.com/business/ct-biz-0413-mcdonalds-makeover–20100412,0,2749029.story

In other news - Colonel Punishment - The significance of the KFC Double Down - the takeaway from this post is that it all ISN’T price price price in 2010 as the manner to create a buzz. That said, this product has already been panned. http://money.cnn.com/2010/04/15/news/companies/kfc_double_down.fortune/index.htm 

And, Firehouse Subs grabs some good PR with this Firehouse Subs Launches “Chip In” Program - http://restaurantnews.com/firehouse-subs-launches-chip-in-program/

Thanks for visiting today - in the sidebar you can see the most important posts of 2008 and 2009 - I exclude ones with links and just put the ones with `my articles’ - so give it a look. Thanks.

And, this first review is not too positive with grades from C+ to F for each of the first standard sandwich offerings. Seems the reviewer had very salt sensitive buds (as it seems anyone ready to write a negative food impression has to have) and hated the mouth favorite, a `Steak-Um’s’ similar choice. Interestingly, the reviewer tried NONE of the sandwiches custom made - (strange as wouldn’t nearly all of those that walk in custom make these?). http://www.slashfood.com/2010/04/05/subway-breakfast-sandwiches-reviewed/?

Seems Burgerville is having strong success with various online strategies - worth a browse here - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124407

Here’s a pretty deep thought and science experiment as to what happens when folks view a Fast Food Sign - Simply the logo. Seems it makes them read faster, seeks ways to save time and other effects. Really shows how deep our impressions can be and affect behaviour. http://www.parentcentral.ca/parent/healthzone/mindmood/article/786836–how-a-fast-food-sign-changes-your-day

In this era of the new normal - where your restaurant brand in staking out a price point or points — comes this NEW level of price positioning - Denny’s has gone to promoting FOUR price value points http://restaurantnews.com/dennys-redefines-the-value-menu/ - see the full offerings at 2,4,6,and 8 dollars here.

KFC is about to introduce a new SUPER sandwich sure to raise the eyebrows of many - great picture of this TWO patty sandwich with NO bun. http://www.cnbc.com/id/36191290 I wonder what the demos on this sandwich would be? (Who Eats What menu research is always very interesting - something that YOU can do at your restaurant too via my services as part of the MarketView.)

Find out more about the MarketView here - www.squidoo.com/tradeareasurveys — I also have some current restaurant links at that site too.