Restaurant Trade Area Research

22. March 2011

Gas Prices Worry Restaurant `Recovery’

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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2. March 2011

New Arby’s Branding - `It’s Good Mood Food’

Continuing the theme that fast food is `good’ - such as KFC’s slogan - That’s So S-O G DoubleO D Gooood” - Arby’s has launched its latest effort with `It’s Good Mood Food’. ——— This positioning statement  brings to life the brand’s positioning – “Exciting tastes you can feel good about … every day.” http://www.restaurantnews.com/arbys-announces-new-its-good-mood-food-marketing-campaign/ - “This campaign is focused on our target audience, Balance Seekers, who want and need to eat fast food because of their busy lifestyles, but do not want to feel guilty about eating it. They’re telling us that Arby’s has something over other fast food restaurants… a balance of higher quality, more wholesome food that they can feel good about eating,” said Steve Davis, chief marketing officer, Arby’s Restaurant Group, Inc. “We like to think that stopping by Arby’s makes their day a little brighter. With this campaign, we’re recommitting our team to inspire good moods each and every day.”

Whereas the rollout was given this treatment at NRN - http://www.nrn.com/article/arby%E2%80%99s-puts-premium-beef-menu - Robert Kraut, Arby’s senior vice president for advertising and marketing communications, said the sandwich was targeting about 35 percent of Arby’s customers — those heavy fast food users “who don’t necessarily feel good about the choices that are available to them” and are looking for something that’s better for them than a hamburger, but not necessarily a light meal.

Here’s a link to a sample commercial - http://www.youtube.com/watch?feature=player_embedded&v=Gzz0wY2Vobk

The Arby’s moves are not limited to a new commercial flight with a new set of words to absorb, as Arby’s has finally moved into THE premium word associated with Beef - Angus - with a Angus Three Cheese & Bacon Sandwich. It may be the first of several Angus choices in the future. Prices are 4.99 for the sandwich. Robert Kraut, Arby’s senior vice president for advertising and marketing communications, said the sandwich was targeting about 35 percent of Arby’s customers — those heavy fast food users “who don’t necessarily feel good about the choices that are available to them”Arby’s is also now offering a 1.99 side salad with two types of lettuce, cheese and tomato that can be substituted for Fries in the combo pricing. And, a premium summer milkshake is ready in the wings. Finally add to that the new `Steakhouse’ onion rings and new bite size breakfast dessert - and lastly new pep rallies and crew trainings designed to make the customer’s day special - and you have nearly a whole new focus and intensity. (Will they be SHOUTING hello and goodbye like at the local Capt. D’s?)

So, what’s my take on it all?

Well, first, it’s important to note that Arby’s HAD to do something new -  as the impact of the `new normal’ was about as steep on the brand as for any of the major FF players. And, in general, Arby’s follows thru with playing catch-up to some of the major trends such as premium Angus offerings, a premium side salad that is substitutible for combos - and something new during breakfast - finally becoming a competitor for all three positionings with other FF brands. Additionally, the more upscale Onion Rings and `unique’ but I’m not sure premium Milkshake offerings are steps in the right direction and competitiveness in terms of Milkshakes. (Who ever thought Milkshakes would be NEW again?)

So, Arby’s has followed thru to continue to enhance the `quality food’ perception advantages it once was semi-privy to in the FF arena; but, had lost it’s advantage of having, due to chains like McDonald’s `upscaling’ of various items; and, similarly priced sandwich chains such as Panera Bread or Atlanta Bread Company upscaling at comparible non-tipping prices.

And, the 4.99 pricing of the Angus sandwich is something that should add to franchisees bottomline - something much needed with the addition of the 1.00 and low priced value choices - pushed hard last year to establish a market presence at the price point against long time players.

I also like the slogan more than some of Arby’s recent offerings such as `I’m Thinking Arby’s’ or `I’d Marry A Goat’ or that 5.01 combo pricing, or Tastes Growing Up.  At least this slogan is talking about the food, a long time Arby’s advantage and attribute needing a revival in the Arby’s customers mind. And, what is NOT to like about trying to drive this whole new positioning from the bottom up with the crew memebers and management. ——————- It’s very like a line being drawn in the sand for a new beginning attitude. (And a good time of year for it coming into spring too.)

BUT, ———- you knew there would be a but - right?

Are heavy FF users really looking for a 4.99 sandwich price point? Searching for new sandwiches for 5.00 in the new normal? (That isn’t a foot long.) And, wouldn’t the marketplace of consumers that isn’t finding at FF restaurants a healthier mix - also, not going to be interested in a Three Cheese Bacon sandwich? (Will this really be pulling the women back to Arby’s from Panera Bread?)

Also, just to be picky, IF someone was in a `good mood’ - they likely wouldn’t be choosing FF - as in the new normal, fast casual seems the more likely target for the consumer. And, IF someone was having a hankering for `mood food’ - ie:comfort food - once again, FF would not be a first choice for the consumer, (think Piccadilly’s, Waffle House,). And, IF they wanted their food to put them in a `good mood’ - again, FF is simply not the first choice (think upscale upscale).

However, the bottom line to all of this is finally a positive for Arby’s, who now is a player for the 1.00 price point, combo subsituting, Angus seeking, Premium sandwich and Milkshake markets, of which it had almost no presence within until recently. Arby’s products have long had a uniqueness to them, and by joining the mainstream of where FF is going, they have helped themselves change accordingly with these new above trending positionings.

Ultimately, however, it will be a process - as Arby’s is playing catch-up largely IMO. And, 5.00 Angus sandwiches simply will not be getting the attention of most women, now a signficant portion of the FF market;  (Menu census research stuff.) nor of those who recently became users because of the 1.00 menu - those who didn’t trade down (Yikes). Because IF one were to judge who might be made most happy by Arby’s new moves - the big eater man who loves his Angus and Premium Onion Rings and Soft Drink - and who spends @ 9.00 in the process - is probably wondering why beer isn’t on the menu.

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The Angus sandwich is reviewed here - http://www.slashfood.com/2011/03/01/arbys-angus-three-cheese-and-bacon-sandwich-reviewed/?icid=main%7Chtmlws-main-w%7Cdl13%7Csec1_lnk3%7C204094 - it got a `B’. (Possible grade inflation based on review IMO.)

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15. February 2011

Reel In Some Restaurant Links

For example: Long John Silver’s Reels In New Logo, Message - http://www.restaurantnews.com/long-john-silvers-reels-in-new-logo-message/ – `We Speak Fish’ - Simple, direct, targeted. Compelling? And, LJS, on selling block? http://www.restaurantnews.com/yum-brands-looking-to-sell-long-john-silvers-and-aw-all-american-restaurants/

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Jack in the Box Guests Reel In $2.99 Fish Sandwich Combo Meal - http://www.restaurantnews.com/jack-in-the-box-guests-reel-in-2-99-fish-sandwich-combo-meal/ - Action price point for FF.

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Moe’s continues its interest in `weekparting’ with - Moe’s Southwest Grill Supports Meatless Mondays With Vegetarian and Flexitarian Meal Options - http://www.restaurantnews.com/moes-southwest-grill-supports-meatless-mondays-with-vegetarian-and-flexitarian-meal-options/ - Side targeting of `health’ segment.

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McDonald’s comparable global January sales up over 5% - http://www.restaurantnews.com/mcdonalds-january-global-comparable-sales-rise-5-3/ - BIG Boy comparible Down over 1% http://www.restaurantnews.com/frischs-reports-higher-sales-and-earnings-in-the-second-quarter-of-fiscal-2011/ - blames attrition to new stores! ——– O’Charley’s same store sales down - http://www.restaurantnews.com/ocharleys-inc-reports-fourth-quarter-and-fiscal-2010-results/

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Sbarro in trouble? http://www.restaurantnews.com/debt-burdened-sbarro-could-slice-some-shops/

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More soon.

9. August 2010

Stevi B’s Pizza Celebrates Second Annual Free Pizza Day on August 19

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

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