Restaurant Trade Area Research

15. May 2011

In-N-Out Burger Expands To North Texas, People Line Up For MILES

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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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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Thanks for your visit today.

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17. December 2010

Recent Restaurant Research Findings - And More

Market Research done with 1,000 adults over 18 by Harris Interactive (internet sample?) conducted for Cintas — showed the top reasons a person would `never eat at a restaurant again’ - here’s the findings:

• Unclean Dishware   86%
          • Unpleasant Odors   85%
          • Dirty Restrooms   75%
          • Unclean Tables   74%
          • Poor Service   74%
          • Dirty Floors   68%
          • Poor Staff Appearance   65%
          • Dirty Glass and Windows   51%

Source: http://www.restaurantnews.com/top-three-reasons-why-restaurant-customers-dont-return/

In other research findings: 1,300 Restaurant Owners say - Half of Restaurant Owners Proclaim, “Social Will Never Work” -http://technorati.com/business/small-business/article/half-of-restaurant-owners-proclaim-social/#ixzz18NLxwNLT - The study was conducted by MustHaveMenus - a company specializing in Menu Templates. Anyway, here’s the key findings:

• 42% of restaurant owners and managers invest in social media efforts (including blog participation, and managing their Twitter and Facebook accounts.
• 12% of restaurants and caterers hire someone to manage their social media presence.
• 23% of respondents do not believe that they need to use social media as a marketing tool.
• 23% of respondents believe that they don’t have time to devote to social media, along with all their other restaurant management duties

My concern is that like all `offers’ - interest fades as time goes onward and fades quicker the more `restaurant social media’s’ that the customer is signed up to receive.

And, yes - a THIRD research study by Intellaprice - a pricing intelligence firm (now THERE is a niche) - gave the results of a 21 market study of
12,000 beverages and 14,000 food items from casual dining brands - —- And, the results? (Drumroll) According to Intellaprice’s research, lunch entrées are up by $.93, dinner entrées rose by $.72, and kids entrées spiked by $.30.
Drinks also were UP in prices slightly. The article speaks of the loss-leader products hoping to bring in customers who will switch or bring in others who are not ordering the loss leader — more details at http://www.restaurantnews.com/casual-dining-entree-and-drink-prices-up-in-2010/ (no wonder Fast Casual continues to make inroads)

In other news:

An example of the loss leader is what Burger King is now promoting - it’s two for one Chicken Sandwich deal - http://www.restaurantnews.com/burger-king-offers-two-for-one-original-chicken-sandwich-deal/ and in more BK news - BK will be slashing their Miami Corporate staff - http://www.miamiherald.com/2010/12/06/1959749/burger-king-to-cut-261-jobs-in.html

Meanwhile - O’Charley’s Inc. Announces Restaurant Closings - http://www.restaurantnews.com/ocharleys-inc-announces-restaurant-closings/ – 11 stores to be exact and 5 of another brand.

Next up - three stories on Panera Bread - How Panera Bread Kept Rising Through the Recession - http://www.businessweek.com/investor/content/nov2010/pi2010118_183529.htm - and one method was NOT cutting costs. Up next, Panera Bread Introduces MyPanera Loyalty Program - http://www.restaurantnews.com/panera-bread-introduces-mypanera-loyalty-program/ - with some unique twists. And, finally, Panera Opens ANOTHER non-profit place - http://www.restaurantnews.com/panera-bread-foundation-opens-second-panera-cares-community-cafe/ in Michigan.

A&W uses social media for a `contest giveaway’ as a promotion point for introducing a 3 dollar value meal positioning - A&W Restaurants New $3 Big Taste Meals Bring Back Big Taste to Bland Value Menus - http://www.restaurantnews.com/aw-restaurants-new-3-big-taste-meals-bring-back-big-taste-to-bland-value-menus/ - the top prize is a trip worth up to 4K and three other prizes.

Thanks for visiting today - have a look around the sidebar for more.

29. October 2010

Pay What You Want Panera’s Begin To Pay Off

The whole concept was startling at first - but now - is beginning to rub off on the community. Great PR, cool business plan - find out details about how it is going at the link - http://www.stltoday.com/business/article_f77cccaf-f498-5bb7-9b72-eb641095a175.html - The only part of this story that I would’ve like to know more about was - did ANY of the truly down and out make it a regular thing to work to get the free meal coupon.

Meanwhile, Restaurants cook up marketing to counter downturn - http://www.ajc.com/business/restaurants-cook-up-marketing-691103.html - marketing like flipping a coin to see if you pay for a meal - free margaritas, etc. Link has lots of good data related to the national and Atlanta markets.

Here’s a fun story on the McRib Cult - Meet the tireless hunters of the McDonald’s McRib - http://chicagobreakingbusiness.com/2010/10/meet-the-mcrib-hunters.html would you drive 10 hours for a McRib?

Top Of Mind Restaurant Research? Right here - http://www.youtube.com/my_videos?feature=mhum

25. October 2010

No Tipping Fast Casual Segment - The Staycation Of The New Normal

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?)

17. August 2010

And The Survey Of 6,518 Zagat Restaurant Users Says…

Winners of the various categories are: 

Healthy Food - Subway - Mega Chain; Jason’s Deli - Large Chain

Coffee - Starbucks, Dunkin Donuts, McDonalds

Best Burger - Five Guys, In-N-Out Burger, Wendy’s

Best Fries - McDonald’s, In-N-Out Burger, Five Guys

Best Milkshake - Dairy Queen

Best Value - McDonald’s, Panera Bread

Best Drive-Thru - McDonalds

Most Popular - Subway

More details at this link - http://www.restaurantnews.com/zagat-fast-food-survey-rates-136-major-dining-chains-from-breakfast-to-burgers-dessert-to-drive-thrus/

5. April 2010

Breakfast War Begins Today

Today’s headline is in honor of the entry of Subway into the breakfast daypart nationwide. To me, most likely to be `hurt’ would be the `Morning Bakery’ type places (Atlanta Bread Company, Panera Bread, etc) as they also are `walk-in’ - non biscuit - 7AM opening type of places. Subway’s entry also makes it harder for other FF restaurants that are not heavily in the breakfast daypart to start up - such as Wendy’s, Arby’s, some Chicken chains - even a fast casual like Moe’s.

Some Restaurant Links in the news:

Wendy’s/Arby’s Group, Inc. Q4 2009 Earnings Call Transcript - Interesting - bottom line Arby’s still way off for 2009 compared to 2008 (9%) — much more. http://seekingalpha.com/article/191999-wendys-arbys-group-inc-q4-2009-earnings-call-transcript?page=1

http://www.fastcompany.com/magazine/143/next-tech-happy-hour.html -Social Network Rockets Houlihan Restaurants’ Profits - Interesting read.

Battle For Breakfast Diners Intensifying - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124241 Premium coffee’s - all day breakfasts - coming soon.

Here’s a great example of competition in a down economy - Where a Meal Can Cost a Fortune, 99¢ Pizza Catches On - http://www.nytimes.com/2010/03/16/nyregion/16pizza.html 

Eateries emphasize bar areas, happy hours to lure customers amid recession - http://www.orlandosentinel.com/business/os-alcohol-sales-restaurants-20100313,0,4791182.story

Fish survives fall from sky, lands outside sushi bar - Here’s a fun link for you all - http://weblogs.sun-sentinel.com/news/specials/weirdflorida/blog/2010/04/fish_survives_fall_from_sky_la_1.html

Great news for Five Guys Burgers - http://www.portfolio.com/views/blogs/daily-brief/2010/03/25/five-guys-burgers-and-fries-tops-growth-charts - Fastest growing 2009.

More on my services at www.squidoo.com/tradeareasurveys - thanks for visiting today - please bookmark.

23. March 2010

Panera Is First National Chain to Post Calorie Counts

Calorie Counts 

Considering that `calorie count on menu board’ is the sidebar category of mine that is the most clicked - this move does not surprise me. Can it really hurt? Isn’t there a way to move customers to higher profit items too? - http://www.cnbc.com/id/35801022 - From the article - “Scott Davis, Panera’s chief concept officer, said posting the information at stores operated in areas where it is mandated has had no impact on the company’s sales. Instead, people shifted their orders to healthier picks, with many selecting the company’s You Pick Two option, which offers smaller portion sizes”

Restaurant Chains Tap the Power of Music - Live entertainment - anything to make your location unique and a destination point - will be needed occasionally in `the new normal’. http://www.chainleader.com/article/452270-Restaurant_Chains_Tap_the_Power_of_Music.php

Thanks for visiting today - have a look around my sidebar —>

(image source - http://www.toptenreviews.com/i/rev/scrn/large/2757-fast-food-calorie-counter5.jpg)

1. March 2010

Moe’s Positions 2-1 Thursdays - Party Size Targeting Via Weekpart Pricing

One of the few available ways to increase sales is to increase the size of the eating party - here (perhaps you have seen the ads featuring Bo Bice) Moe’s smartly does just that. Indeed, by targeting a `workday’ Moe’s is even encouraging the development of the `office workers luncheon `date” (no romance required). And, by establishing work pairs eating out together - it will surely `happen’ on non-2-1 days too. Excellent idea.

More links to - including:

Vowel Sounds Influence Consumers’ Price Perceptions - http://www.cnbc.com/id/34919366 

10 Worst Sandwiches in America - http://health.yahoo.com/experts/eatthis/43781/10-worst-sandwiches-in-america/ - A list you don’t want to be on - such as FF chains - Arby’s, Panera, Red Robin, Subway, Blimpie, Quizno’s.

Unemployment Takes a Bite Out of Breakfast - http://www.aolnews.com/money/article/unemployment-takes-a-bite-out-of-breakfast/19367237 - Down 4% — even 8% off breakfast sandwiches at 7-11.

http://www.slashfood.com/2010/02/23/burger-king-unveils-secret-weapon-for-new-steakhouse-xt-burger/ BK goes huge. 7 oz Burger - new broilers.

http://restaurantnews.com/short-orders-news-bites-from-across-the-web-022510/ Just showing off that last weeks post was carried by restaurantnews.com - cool.

Hungry for Returns? Try Wendy’s/Arby’s Group - http://seekingalpha.com/article/185953-hungry-for-returns-try-wendy-s-arby-s-group

Return soon for more.

13. October 2009

Building Restaurant `Loyalty’

My research at fast food restaurants has shown that it takes a `certain’ level - generally - for customers to say `I use this restaurant/brand the MOST’. And, even in the new normal of the Great Recession, that level is around once a week usage. Only about 1 in 5 customers don’t offer a FF restaurant they use most often when asked. A loyalty - often felt with justification and pride almost. “they are the friendliest here” “they know me here” “this is super convenient for me”.

Sometimes, operators need to literally `look’ for ways to develop that special relationship with their customer base. And, once again, ways exist around the margin to create that `special user’ - to develop a loyalty. And, here’s just one example (I have more) - let’s say your restaurant is one of those that likes to advertise or position later summer hours - how about a special `bounceback loyalty card’ that is ONLY given to customers AFTER 10 and for use ONLY after 10? The night-owl club. 20% all summer for those `special folks’ who visit after ten.

Occupying that special place for customers - generating loyalty - almost a must in today’s competitive environment.

Restaurant Links for today:

Wingstop Reaches 25 Consecutive Quarters of Positive Comp Sales - http://www.reuters.com/article/pressRelease/idUS111102+12-Oct-2009+BW20091012

Darden net income up, sales down in 1Q -http://orlando.bizjournals.com/orlando/stories/2009/09/28/daily24.html Including Red Lobster off by nearly 8%.

Food Fight: Franchisees Caught in the Middle - http://online.wsj.com/article/SB125492481356270841.html Important read of three minutes.

UPDATE 1-Ruby Tuesday posts higher profit - http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0739123320091007 However, sales were off 3%.

Sales meetings at YOUR store? It’s working for Panera Bread
http://www.nrn.com/landingPage.aspxmenu_id=1416&coll_id=554&id=374238#ixzz0Tp32Jvc2

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