Restaurant Trade Area Research

The upscaling of the non-tipping restaurant segment continues - http://www.restaurantnews.com/boston-market-completes-nationwide-upgrades-in-400-restaurants/ - highlights include:

Addition of Dining Room Ambassadors – Guests will notice a higher level of service designed to make the dining experience more pleasurable in this fast-casual concept

MUCH more at the link of the upgrades:

——————————————————–

Oldie but goodie link - Zagat Fast Food Survey Rates 136 Major Dining Chains From Breakfast to Burgers, Dessert to Drive-Thrus - http://www.restaurantnews.com/zagat-fast-food-survey-rates-136-major-dining-chains-from-breakfast-to-burgers-dessert-to-drive-thrus/

—————————————–

Meanwhile… How Lunchtime Is Turning Into Snack Time  - http://online.wsj.com/article/SB10001424052748703720004575477652910948336.html?mod=googlenews_wsj – smaller portion options to fit snack movement. And, White Castle Inducts Its Most Dedicated Fans Into Cravers Hall of Fame - http://www.restaurantnews.com/white-castle-inducts-its-most-dedicated-fans-into-cravers-hall-of-fame/ - in some cases the super user is priceless. Brand loyalty. And, in UPSCALE locations - perhaps this benefit is worthwhile in today’s new normal of competition - Restaurants Now Realizing That the iPad Makes Life Easier - http://www.switched.com/2011/01/04/restaurants-ipad-makes-life-easier/?icid=main%7Chtmlws-main-w%7Cdl8%7Csec3_lnk2%7C193449

————————————–

Some year to year sales numbers - Chick-Fil-A, 2010 up nearly 6% same store - http://www.restaurantnews.com/chick-fil-a-continues-sales-growth-momentum-in-2010/ - Jack-In-The-Box, up 1.1% first quarter compared to year ago - http://www.restaurantnews.com/jack-in-the-box-inc-reports-first-quarter-fy-2011-earnings-updates-guidance-for-fy-2011/

——————————-

Thanks for visiting. Dig deeper for much more.

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.

No question about this trend to having the choice of smaller portioned food items at restaurants - including FF examples of: “Boston Market’s Market Sliders sandwiches, McDonald’s Snack Wraps, Burger King’s experiment with BK Burger Shots and Jack in the Box’s Mini Sirloin Burgers” - the point is also well made in the article about price point sensitivity in the new normal. http://www.palmbeachpost.com/money/malled-restaurants-offering-small-sized-items-with-big-728206.html - more too at the article.

I love this article - Subway to Change Cheese Distribution Strategy After Web Campaign? - talk about the customer being right - again. http://www.urlesque.com/2010/06/02/subway-to-change-cheese-distribution-strategy/

‘Social Media’ Are Top Buzz Words of NRA Show - don’t forget that `social contact/media’ when greeting your customer in the restaurant or at the drive-thru window. `Friendliness’ is one of the true drivers of increased sales and increased frequency of usage. http://www.qsrmagazine.com/articles/news/story.phtml?id=10970

http://www.reuters.com/article/idUSTRE64Q42Q20100527 - Hunger for burgers overcomes economic fears - an article whose focus is the Five Guys chain and its success despite the economic landscape.

http://www.restaurantnews.com/firehouse-subs-announces-23-new-restaurants-in-salt-lake-city/ - Firehouse Subs goes wild with development in Salt Lake City.

From a bit back - Quiznos launches Operating Partner Program - http://www.fastcasual.com/article.php?id=17949&na=1&s=2 - if I am reading this right - 5,000 and you can be in the restaurant business.

Don’t leave yet - explore my sidebar for more about restaurants.

In what only makes sense in the New Normal - offering the same food in smaller portions and prices - can only be a win win for operators (as long as profit margin in maintained). Includes chains such as California Pizza Kitchen - http://www.usatoday.com/money/industries/food/2010-03-30-smallplates30_ST_N.htm and Cheesecake Factory.

Working on a major post for the weekend - checkback - I’d love you to bookmark and make Restaurant Trade Area Research a frequent stop in your internet surfing.