Restaurant Trade Area Research

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:

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.

Quiznos Carves Out Broader Niche - http://online.wsj.com/article/SB10001424052748704089904575093520021777354.html Sandwich Chain to Expand Locations at Convenience Stores and Filling Stations - Smart move IMO.

http://www.shorpy.com/node/7841?size=_original - Ask Us About Our Poultry: 1942 - Times have changed a bit.

BK Franchisee Speaks Out - …Owner of 312 Burger Kings says the company is paying a steep price for “extreme affordability.” http://www.qsrmagazine.com/articles/exclusives/0310/burgerking-1.phtml - The price price price mantra.

Restaurant Performance Index Declines Slightly in January, but Optimism for Future Business Conditions Strengthens - http://restaurantnews.com/restaurant-performance-index-declines-slightly-in-january-but-optimism-for-future-business-conditions-strengthens/ Please, remember the same BS happened last year.

Bans, Taxes Seen as Effective Against Junk Food - http://www.aolnews.com/health/article/bans-taxes-seen-as-effective-weapons-against-junk-food/19389723 A 5.2 percent tax on soft drinks, already levied in several states, reduces consumption only enough to shave three ounces from a 279-pound frame, Always be on the watch for our worthless politicians.

Finally, I recently had a contact wanting to find out user information for a chain that I was very familiar with - thinking, evidently, that information is similar in different markets. (HUH?) — I hope that is not what YOU think?

BTW - spring is a great time for the MarketView - find out more about my service at www.squidoo.com/tradeareasurveys or - 678-467-8650 and ask for Rick or leave a message.

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.

It seems that many fast food restaurants have too narrow a target demographic and don’t spread out their age targeting on television commercials as they should - including a direct targeting of the customer aged 18-24  (Krystal being an exception.) - especially considering how hard it is to get the 18-24 age group to actually USE a FF coupon. Indeed, I’ve done research where less than 2% of the age group used coupons while upwards of 30% in other older age brackets was the case. So, the question is how to motivate usage within the young 18-24 year old cell.

Answer. VISUALLY target them with `frequency club’ bounceback card/coupon - make sure the dated card only involves a reasonable frequency level like I’ve described in my recent posts. (For example, 2 visits in 2 months - with a discount for each of those purchases.) So, if the young person KNOWS that the next two times they use your restaurant they get 20% off (or similar) the total bill - anytime in the next two months — that will be much more likely to influence a spontaneous purchase with the brand — versus a 1% chance of usage of a coupon in the paper or mailbox mailing.

Restaurant links for today:

http://www.walletpop.com/blog/2009/11/11/subway-wants-your-breakfast-business/?icid=main|htmlws-main-n|dl8|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F11%2F11%2Fsubway-wants-your-breakfast-business%2F Subway moves into the breakfast daypart. Can Subway bakery or Atlanta Bread Company positioning be far away?

http://www.walletpop.com/blog/2009/10/29/chinese-chickens-which-fast-food-chain-may-serve-you-this-scary/?icid=main|htmlws-main-n|dl3|link4|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F10%2F29%2Fchinese-chickens-which-fast-food-chain-may-serve-you-this-scary%2F - Chinese chicken: Which fast food chain may serve you this scary import?

www.RestaurantNews.com BTW, you can see my ad at this website - which has lots of interesting content too.