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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Just a few posts ago - I suggested that as a result of the new normal for the restaurant segment of American Business - that perhaps we could look for some restaurant chain which currently has tipping as part of the experience to drop it altogether or modify it significantly. http://restauranttradearearesearch.com/2010/09/13/could-new-business-model-for-casual-restaurants-be-no-tipping/ Wondering out-loud if the rise of the fast casual segment (Panera Bread and many other variations) has to do somewhat with the perceived savings involved with tips; especially with party sizes such as families.

A way, seemingly, of giving the family a cooked to order experience usually in what can be described as a busy but fun atmosphere; while still having the image not being fast food to boot. Simply, a less expensive, substitute, for the old `casual’ restaurant experience. A trade down with benefits - both in being `better’ than fast food (heat lamps, uncertainty) and less costly than smiling for a wait person.

Also, one has to wonder if the new normals overall effect of bringing the range of travel somewhat towards home if not at home for vacations - the so-called Staycation - might allow for the consumer to justify at least a level of maintenance to the previous level of restaurant usage (after having adjusted somewhat downward in frequency). The adjustments of the middle class to the economic outlooks around them.

Which further begs the question? Can a no-tipping option at the causal restaurants really be off the table? Is a new business model really that hard to envision? Would business BOOM? (To whoever did it first?)

It’s Friday night, you decide to take `the fam’ of 4 (two growing teens) to dinner at a place that will have good food and good times (where you can have a beer). In the `olden days’ that might mean a visit to Chili’s or Friday’s - but - with the rise of the `fast casual’ segment of the restaurant business - it might mean taking `the fam’ to one of those new `upscale’ burger places; such as a place called Canyon’s in Woodstock, Georgia; but, most likely, such a place now exists within your community too with one of a thousand names.

These `fast casuals’ often have beer, wine, big screen TV’s and a fun atmosphere - AND - serve your food to your table when ready - with the `house waitresses’ (whoever grabs your food immediately when it become available from the kitchen - as opposed to IT sitting under a lamp while YOUR waitress is busy with others). And, when the good, hot, quality food is served by a friendly wait person -  it mentally hits the `restaurant decision maker’ - who has already paid for the food at the counter when ordering the made to order food - “I can save a LOT of money here (compared to a `casual’ style restaurant) — BECAUSE I don’t even tip anyone.”

And, in this economy of the new normal, where any purchase demands Quality of product AND at a VALUE price- can the days of 5-10 dollar tips be with us much longer for a `fam’ meal? Or, is it more likely that some casual restaurant will begin to treat `wait staff’ like other businesses models that do NOT depend on `customers supporting’ the employees paylevels - AND ATTITUDES? (Wait staffs can easily have `attitude’ problems when being overworked, undertipped, or having fewer customers and income than in the past - which makes one feel more obligated to tip 20% than before.)

Let’s compare a now typical choice in the restaurant marketplace.

                                  Casual Dining                      Fast Casual

Four meals                    36.00                                    28.00

Soft Drink/2 Beers      10.00                                      9.00

Tip                                       7.00                                      0.00

Total                                  53.00                                  37.00 

Is tipping beginning to be perceived as `needless markup’ and as `hidden costs’? Would customers be happy to know that a wait person is a salaried employee? Will customers really miss the 3 `checkbacks’ on how the meal is/was - or the dessert selling? Would wait person `turnover’ be reduced? Would wait person attitude be improved knowing livelihood was not dependent on upselling and frugal customers?

Would meals really cost that much more if tipping was eliminated? Shouldn’t business models exist that are not tip dependent in table service restaurants? If the new normal continues - I think we will find out - after all - wouldn’t `we pay our employees well, so you don’t have to’ - make sense?

(Customers could still have a voluntary 1.00 `check off `superior service recognition’ box on a bill too.)

Restaurant Food Service Equipment
Design and Equipment for Restaurants and Foodservice: A Management View

Interesting report that focuses on the aging population and how that segment uses restaurants less than other age groups - more insights at the link - http://www.restaurantnews.com/us-restaurant-traffic-will-grow-less-than-population-growth-over-next-decade-reports-npd

No tipping, quality food - Fast Casual Establishes Itself as Niche Restaurant Category, According to Mintel - http://www.restaurantnews.com/fast-casual-establishes-itself-as-niche-restaurant-category-according-to-mintel/ is the real question when will the `casual’ restaurants - with tipping - change their business model? Will waiters and waitresses soon be `salaried employees’?

Firehouse CEO: Sites Thriving - http://www.swtimes.com/business/article_470f9536-aaca-11df-b0f2-001cc4c002e0.html - Comps are UP.

More aggressive price point focus of the new normal - Luby’s Introduces All You Can Eat Breakfast for Only $4.99 - http://www.restaurantnewsrelease.com/lubys-introduces-all-you-can-eat-breakfast-for-only-4-99/853387/ - and, as you know, the only segment growing is Breakfast.

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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.

Today’s link talks about everyone’s favorite niche in the new normal - the fast casual restaurant. And, in this link “Technomic’s 2010 Top 100 Fast-Casual Chain Restaurant Reportprovides rankings, analysis and profiles of the leading chains, and helps chain operators and foodservice suppliers understand emerging trends and players in today’s fastest growing segment.” - interesting reading with hard numbers to ignore. http://www.restaurantnews.com/fast-casual-chains-continue-to-grow-and-benefit-from-recession-finds-technomic/ 

Many FF chains are toying with the high-tech side of the marketplace - even to the point - like Sonic recently - of texting you each time you come into a trade area - When the Customer Is in the Neighborhood - http://online.wsj.com/article/SB10001424052748704238104574601944230186368.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop - (I would hope that it has some upper limit as one can easily transverse multi trade areas in nothing more than a trip to the mall.) Is this Jetson’s stuff - or - pure annoyance.

Indeed, the previous link leads me to this GREAT article - http://www.revenuejournal.com/blog/great-marketing-and-selling-crisis-2010-and-how-escape-it

Force #2: No one wants to be “sold to.”

Force #3: Any entrepreneur or CEO with a conscience is in the midst of a spiritual crisis.

Force #4: Shaky economic climate - on a global scale.

Force #5: Personal reluctance to spend.

On top of all this, it’s personal. ———- Make sure to read this great link and please check around this site for much more.