Restaurant Trade Area Research

It’s worth thinking back about 2010 — what fast food ads do you remember? (I wrote this in late Jan.)

For me, Pizza came to mind first; from the 10 Dollar  price point positioning of Pizza Hut (which offered value and an immediate clarification on pricing, always a nebulous weak point for the Pizza category) to the Domino’s ads about `sending in a picture of your pizza’ and real pizza in ads from now on with no special effects (a reaching out to be more real to people - in essence just what that Undercover Boss series does).

Yes, that funny ad with those Valley Girl type secretaries eating Hardee’s Fresh Chicken Fingers comes to mind still too; and, Wendy’s Sea Salt Fries, but that was recent. Okay, I still have a memory or two of McDonald’s different `Wraps’ type offerings, Arby’s 1.00 Menu - and Subway now offering Breakfast (all three of which induced not one actionby myself until recently trying Arby’s Buck Items). Nearly all the rest is a wash. Money swept under the bridge of TV Fast Food Advertising.

Zaxby’s is simply that easy to whistle same music theme over and over and the folksy endorsement by small celebrities - IHOP is endlessly pushing slightly expensive breakfasts IMO - all the Casual Restaurants such as Friday’s are endlessly pushing the under 10.00 price point (and ignoring that I will be paying a tip beyond any price point that EXcludes a drink to begin with) (not real) - and, where has the Burger KING went anyway? Price is also what I remember about Capt. D’s ads - and Steak and Shake - while price AND size is what I remember about Taco Bell. (As I go mentally thru my local Woodstock Ga. Fast Food Market.)

My guess is that some marketing departments are patting themselves on the back - they have gotten the point thru to a weary America that `eating out’ can fit into a reduced `frills’ budget diet the new normal has put America onto.

But, PRICE may be less compelling - especially emotionally to a consumer - than the reward of trying a new product offering that sounds especially good; one that you may be excited to tell a friend about. And, less compelling than trying to directly talk to consumers like the Pizza category did in 2010. IMO.

So, what would I do if it were MY ad dollar?

I’d want to stand out.

For example, to `reach the consumer’ would 4 thirty second ads bunched with a block of perhaps 4 minutes of similar ads each time - sound like a way to stand out — OR — WOULD A TWO MINUTE `SHOWCASE’ AD? —————– Heck, even 24 - Five second logos might have more impact than the standard forgettable 30 second ad a week into a new ad flight.

IMO, with `Showcase’ Ads - Brands can address all the marketing categories with 3 or 4 variations (a strategy not often used) - first and foremost, the `frequency-rejecter’ - that is the core population base that is aware of your brand, has used it in the past - but now, it has been so long, as to be a `trier-rejector’ (at least to YOU the owner of the brand) of the brand - having replaced it with other choices.

IMO, many of these people can be lured back - and many fall into the influenced by advertising campaigns motif - that ad agencies have long relied upon for improvement of sales during sales campaigns. IMO, they could be targeted MUCH more via a Showcase ad.

After all, REGULAR users are JUST that - and are UNLIKELY to be significantly changing their Frequency of Usage over any term; other than to bump up the next visit interval by a few days, perhaps. Much more effective ways exist to market to your existing customer base than TV mass advertising.

Of course, the ultimate boom would exist on MAKING A NEW USER ENTIRELY - the total rejecter; never user (for all practical purposes) - certainly a Showcase Ad for these extremely low awareness of what your brand IS market - can become better informed and tempted about what YOU have to offer via your brand.

These LOW-KEY, almost, aw-shucks ads - like an infomercial - are the emotional connection to change behaviour ——— not the mind numbing, what did I just see, 30 second blasts of normalcy.

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See just how different regular fast food users are compared to rejecters at my YouTube channel or by following these links:

Frequent user of Fast Food - http://www.youtube.com/watch?v=zTRO81RR7DA 

Hates Fast Food - http://www.youtube.com/watch?v=x8G9OAFlquI

The only big burger chain without a breakfast presence in the marketplace - will try it again in 3 test markets - for the third (is that all?) time. The effort will be including oatmeal bars, egg sandwiches, paninis and burritos (which evidently are being demanded elsewhere?) to entice the new users set already in their morning drive breakfast routine. (Where’s the toast? Bacon? Pancakes?) - Perhaps in direct mocking of the BK new breakfast ads with marching males - Wendy’s could use Sexy Secretaries or something similar? - more at the link behind the move into extending dayparts http://www.ajc.com/business/wendys-sees-opportunity-in-618248.html

Speaking of burritos - Carl’s Jr., Green Burrito Open 500th Dual-Branded Restaurant - http://www.restaurantnews.com/carls-jr-green-burrito-open-500th-dual-branded-restaurant/

And, speaking of opening - Steak ‘n Shake Opens New Prototype Restaurant in Rome, Georgia - Same seating, @1/3 less to build - better view of grill for patrons - more at link http://www.restaurantnews.com/steak-n-shake-opens-new-prototype-restaurant-in-rome-georgia/

http://www.fastcompany.com/files/imagecache/panoramic_image/files/MOD-105-Weil-1.jpg

And speaking of makeovers - here’s a great story about the man who is re-designing McDonald’s - http://www.fastcompany.com/magazine/149/super-style-me.html

My YouTube Channel which has free 2010 Top Of Mind Research about Restaurant Brands - http://www.youtube.com/my_videos?feature=mhum

It’s scant data but this website is once again in the Alexa Rankings - http://www.alexa.com/siteinfo/restauranttradearearesearch.com# - the stats from 1&1 my host would indicate a growing readership too.

So, I have now seen the TV ad campaign for the new Burger King Breakfast menu —– to me —– OK, but, strange IMO. I mean, ONLY MEN marching in the street? (I noted the various types of men from office to laborer to `funny’ still in bathrobe man.) I thought BK wanted to slowly move to less emphasis on ONLY the male target. The commercial also left me wondering what these products were that I only had a few seconds to view all together.

Recently got two very different coupons via the mail for Honeybaked Ham and CiCi’s. HH offered a 6.99 combo and CiCi’s offered a 3.99 adult buffet. Now my first statement is that CiCi’s hasn’t offered this price point for quite sometime, and, became famous for it when the chain was in full expansion mode prior to the new normal. Except for the fact that the coupon was only for one person (why not make it for more than one on the same coupon) - it was a very compelling reason `to return’ to having CiCi’s be part of the mix of restaurants used. Whereas, my first thought about HH was - WTH? — What is the NORMAL price if this is the `value’ they now are offering (and in the same plaza as a Subway with a 3.99 daily deal)? And, who in the world is this coupon trying to compete with - O’Charley’s?

I’ve also caught sight of the fact that the Woodstock Steak and Shake - in addition to meeting the new afternoon dayparting of drink prices (like Sonic) - to attract some of those `convenience store’ types — they now offer the same 2-1 deal from 2AM to 4AM — very cool.

And, here’s a new technology that even mentions usage by Fast Food Chains - Bump Uses License Plate Image Recognition to Text Fellow Drivers  - Includes this statement:

Fast food restaurants, for example, could use the technology to offer personalized menus to drive-thru customers, as based on their previous selections

http://www.switched.com/2010/09/16/bump-uses-license-plate-image-recognition-to-text-fellow-drivers/?icid=main%7Chtmlws-main-w%7Cdl5%7Csec3_lnk2%7C171298

When I do some of my on the street - top of mind interviewing - I often ask my respondents about recall for Restaurant Advertising - here’s an example interview - http://www.youtube.com/watch?v=zTRO81RR7DA. Anyway, as I got to thinking of it just now - I thought I’d `do myself’ so to speak.

And the ad I like the most - is - Hardee’s; specifically the two `valley’ girl secretaries who are eating the `fresh’ breaded Chicken Strips and ignoring the `annoying’ phone calls they should be answering. To me, it’s hilarious and gets the message across about Freshness and upscaled.

The Wendy’s `talking couple’ ads about the new Fresh Salads (different types being featured) also comes across as promoting the Freshness and upscaled - with a bit of humor too. (The distracting relationship of the male and female Wendy’s worker.)

The Domino’s Pizza chief with his `not fluffed up’ pizza photography ads are next for me. Connects that his (Domino’s) pizza is Real Food and to not wanting to `fool the customer’ (implying the others do). The invite for consumers to send in their own pictures also connects at the personal level.

Captain D’s slogan recently - `Cookin in the Kitchen’ - caught my attention for its snappiness and food shots.

Chili’s - 5.99 Hamburgers caught my attention for low price point for sit-down casual (tipping locations) and product shot.

Steak and Shake coupons for Butter Pecan milkshakes increased my desire to go.

KFC - I’ve caught myself singing - G Double O D Goooooood - reluctantly a time or two. Catchy.

Quizno’s - 3, 4, and 5 dollar combos. Like this idea of a sliding combo price.

The laid back Zaxby’s tune - so easy to whistle.

More Top of mind Restaurant Videos Here - http://www.youtube.com/my_videos?feature=mhum

Welcome to Restaurant Trade Area Research - the restaurant blog written by a 30+ year restaurant researcher who has personally  interviewed thousands and thousands of fast food customers. (How’s that for a mouthful?) - Today’s topic, what seems to be the new need - `shooting the works’ to maintain or grow market share in the `new normal’.

Examples include:

Expanded Dayparting Focus - Subway going into the breakfast market is the first to come to mind - Daypart pricing is also notable with `2-4 pm’ reduced beverage costs (Steak & Shake — Sonic) — Weekpart Combo Specials , such as Moe’s Thursday Two for One’s - Subway’s after 5 footlong pricing, etc.

Seasonal dayparting — summers `late night positioning’ has been going on for years (open til 2Am on weekends type of stuff), and, it’s been noted recently that in the casual niche, 12AM or later, was recently claimed in the Atlanta media market by Applebee’s. At Fast Foods, `summer late nights’ is almost a requirement for some (Wendy’s, Taco Bell) but is an opportunity for others too (such as a Krystal’s potential muchie crowd,  or even sandwich niche restaurant).

Outrageous Product - The incredible focus on low price points within advertising (which has muddied the field) has made new product introductions even more important to appeal to the `trier-rejecters’/aware non-users of any fast food brand. One method to get attention is the outrageous product - such as KFC’s Double Chicken Sandwich. And, most recently Burger King’s move into Bone-In Ribs - would be an `unexpected’ example of a `new product’ that should `create new trial’ - especially with good word of mouth - especially during summer. (Perfect `season’ new product introduction.)

Expand Competition Into Other Niches - Recent examples of this include McDonald’s continued focus on beverages such as premium coffee and other choices. Burger Kings new Ribs carves out part of the sit-down market (and the `upscale’ `trade down’) as does it’s Brunch positioning in some markets. The new `upscale’ Milkshakes by Chic-Fil-A, Hardee’s and Zaxby’s –> reach into the `Dairy Queen’/Baskin Robbins niche.

The `Health’ Market - Long heralded as the next sure thing (only problem was that in the 80’s-90’s market was still non-existent) , the `Healthy Fast Food’ market may finally be available - due in large to the already established `Bakery’ niche being taken ALREADY by the female demographic that has turned FROM fast food choices in the last 8 years or so, - to places like Panera Bread or Atlanta Bread Company or others. To me, it seems the natural ones to attack this would be sandwich chains like Quizno’s - Blimpie’s - Subway.

Upgraded Products/Serving Quality - Angus Beef now is an example of offering the `upgraded product at a premium price’ niche. Obviously it also attacks the `fast casual’ growing segment (the stepdown from casual tipping establishments). I’ve already mentioned BK’s Ribs. KFC roasted chicken could be seen by some as an upgrade in health perception.

Selling Branded Products — To me, it is a little self-defeating - BUT - White Castle has frozen product as do many other restaurant chains. To me, I’ve never found these pre-packaged foods to be as appetizing. How about you? Then again, Dunkin Donuts coffee seems logical - and I know that I’d buy a Big Mac Sauce if it was ever offered.

Fancy, Social, E-Mail Marketing Database Building - To me,  working with a stores known customer bases information - and the customer base itself - is VERY attractive too - and is needed to not lose an edge to the competition. That said, some areas seem to have the potential to eventually become overdone and self-defeating (the free food promotion costs - or extreme motivational discounts) and eventually will have it’s `day-come’ due to overuse.

For example, lets say you sign up with a store chain that will provide you a coupon code every time you go to their restaurant trade area — if you signed up with multiple chains you eventually would not wade thru the offerings and IF you did act on one - it would be the one `giving the most savings’. Coupon people are indeed driven by costs - which will drive down your profits and establish a two-tier payment pricing - and confuse the customer base about the real price/value of your products. GPS `coupons’ will not replace friendly smiles, eye contact and good operations. (Within this blog I’ve talked about specific marketing that can be done with your EXISTING customer base via ONE question frequency targeting - or - NO question `menu’- total purchase targeting.)

The `New Marketing’ for the `New Normal’ goes way beyond buying the 25-54 demo slightly focused on one sex - and expecting success. No, the new normal demands running on all cylinders in multiple directions - and catering to a stores unique customer base.

Thanks for reading today - if you check out my sidebar - you may find a category of interest to you. You can also read more about my MarketView research at www.squidoo.com/tradeareasurveys .

Putting promotion and advertising dollars behind various price points is nothing new in the restaurant category - but - in 2010 - it would seem to be of huge importance based on the current crop of ad positionings positioning prices. For example - check out this list of price points promoted in the past year in the Atlanta ADI at least:

79 cents - Taco Bell (occasionally).

99cents - Wendy’s Value Menu - Capt. D’s sides

1.00 - McDonald’s Dollar Menu; Burger King, Arby’s, Checkers

1.50 (2/3.00) - Checkers, Dairy Queen (occasionally)

1.99 - Snack meals - Mrs. Winners, Church’s, KFC (occasionally), Dunkin Donuts, 

2.00 Denny’s

2.50 Subway Breakfast Combo

Meals For One

2.99 Combo’s - McDonald’s, Wendy’s, Krystal, Boston Market

3.99 Long John Silvers, KFC, (4.00)Firehouse Subs >4Pm (4.00) Steak & Shake, (4.00) Quizno’s, 3.99 Hardee’s, (4.00) Denny’s

5.00 - Subway Footlong, Boston Market 5.oo + sides, (5.01) Arby’s, (4.99) Waffle House, (4.99) CiCi’s Pizza, (5.00) Little Ceasar Pizza, (4.99) Denny’s, 5.00 - Capt. D’s lunch, (4.99) - Zaxby’s,

5.99 Domino’s Pizza, 6.00-Denny’s

8.00 Denny’s

6.99-9.99 - Friday’s, Ruby Tuesday’s, Ryan’s, Golden Corral, (10.00) Pizza Hut, Folks Restaurant, Red Lobster, Olive Garden, Applebees,

And now, with smaller portions becoming more accepted at a reduced price (often with more profit however) - the under 10.00 to eat AT a restaurant perception continues to grow.

Just a quick post today to note the continued positioning being taken by various fast food restaurants locally - today - as the title suggests - Checkers had a reader board advertising lower evening combo pricing. Excellent idea and could encourage more combos during this higher customer transaction size period/daypart. This joins the limited 1/2 price - daypart pricing by Sonic and Steak And Shake for mid-day drinks.

Lastly for today - thanks for your support in 2009. Here’s some statistics about this website. In 2008 this website had 5,788 unique visitors - in 2009, 18,805 unique visitors (as many as 2,572 in a month). In 2008 this website had @9,300 page views and in 2009, over 28,000 page views.

Much more will be coming soon too - bookmark and return. Oh, and make sure to see in the sidebar an overview of the important posts of 2009.

First, let it be said that my usage of nearly ALL of the restaurants has already assumed the `new normal’ of the Great Recession. Regardless of what cheerleading the media may be doing about the economy - most folks are now cautious on discretionary spending - of which, restaurant visits - even to a degree Fast Food restaurant visits - has been impacted. 

 In alphabetical order:

Arby’s - I `responded’ to the ads for the `Roast Burger’ earlier in the year and was not impressed. I refused to respond to the Marry a Goat `humor’  ad campaign and somewhat like the recent 5.01 combo or pricing (the one cent being for Quality).  That said, generally, I perceive that Arby’s as expensive without having coupons from the coupon mail drop a few times a year. Additionally, they  `streamlined’ their `fries’ - dropping my favorite the Homestyle. How can they NOT promote the Jamoca Shake?

Atlanta Bread Company (ABC) - Remodeled nicely. Upgraded to real plates and silverware. Messy to clean up. Can be crowded and slow service. Female favorite. Good soups and combo prices. Mellow atmosphere.

Burger Inn - Local  legend - all fresh cooked. Great breakfast customer base. Friendly people; newspapers available often. Excellent onion rings. Beefy hamburgers. Male favorite.

Burger King - I like the current billboard promotion about the Double Cheeseburger for a buck, real value - but - haven’t gotten it.  I have ordered the Mini burgers more than once however and view that as an excellent addition. Amazingly, the Woodstock BK got rid of Real Sweet Tea years ago (my assumption is that is still the case) and thereby nearly ended my usage — I can’t stand the fake sweet tea out of a machine. Operations should be aware that changing ICONic drinks can have a big effect. — Finally, where is the KING?

Capt. D’s - Perhaps my favorite FF in Woodstock. Quality, Quick, and Quantity with good value pricing. Covers all reasonable price points including lunch specials and on-going `specialities’ that have all prices. Excellent choice of sides. Funny ads earlier in the year comparing to Red Lobster pricing. Friendly greeting and thanking when exiting. Good inside music.

Checkers - Still a viable concept (double drive thru) - chicken wings were a good addition earlier in year - somehow it fits. Catchy phrase “you gotta eat” recognizable for smaller chain levels of advertising. Covers all price points well with a good mix of products. The Woodstock store does Sunday Pricing - good idea - hasn’t ever motivated me for their `down sized’ versions. Could probably `play-up’ the FUN theme a little bit more.

Chick-Fil-A - Woodstock’s Chick-Fil-A is amazingly busy. Overwhelmingly busy whenever they do a promotion like 2-1 for a chicken sandwich or free food giveaway. Excellent quick service regardless of how long the lines are - especially at the drive-thru. (However, I’ve detected a time or two a usage of `workers in India’ taking my orders — I’m not kidding - and, in this time of underemployment in America - that is NOT right to save a few cents that way.) Real Milk Shakes were genius. Consistent quality. Friendly employees. Clean. ————— All that said, the Woodstock inside service in the sit-down area can be horrid and when is Chick-Fil-A gonna get some normal fries? Also, one takes a chance when getting the baked potato.

Dairy Queen -  The standard in Ice Cream desserts from the drive-thru. Haven’t used but really like the new pricing structure in ads 2/3 3/4 4/5.00 - interesting approach. Unfortunately, for me, the food hasn’t broke thru.

Dunkin Donuts - Right on the Strip - I’ve never used location. Certainly they can advertise donuts and donut prices more.  (IF I knew a quick Donut sweet was 99 cents for example - it would come to mind for `dessert’ or breakfast purchase more often. Never seen a place less concerned with establishing a price point understanding. Just how much does a dozen donuts cost?)

Firehouse Subs - Expensive but Excellent. Can be slow. Friendly employees. TV’s to watch. Good real sweet tea. Small, can be crowded.

Five Guys Hamburgers - Tangential to Woodstock in Sandy Plains area — good operation - waiting for a Woodstock Location (several good places available perhaps too).

IHOP - Expensive, right? What specials?

KFC - Closed but not forgotten. Also was one, like BK, to drop sweet tea for a time.

Krystal’s - Krystal `fix’ a must a few times a year. (Canton Road.) Ad’s featuring Crispy Onions on burger looks very compelling. Wi-Fi add - good idea.

McDonald’s - Woodstocks unit re-designs and updates the interiour often - which is nice. Clean. Service can range from excellent to very poor (weekends). Can often find an AJC or USA today in newspaper bin. Separate kids area - thumbs up. Fries can vary in quality. Best FF fish sandwich.

New China Buffet - Lunch value leader. Good quality food. Friendly employees. Priced by the pound to go. Widest variety of food.

O’Charlies - Stopped going shortly after changed menu restricting Prime Rib to Sundays only.

Panda Express - Have never used. Pass by back of lot 3 times a week on way to Walmart.

Po Folks - AKA Folks —> Expesive for what you get.

Ruby Tuesday’s — How could they get rid of German Potato Salad? (pet peeve). Good miniburgers and platter pricing. Easy to split orders. Great salad bar still.

Sonic - I really like their ad’s inside the car with the main guy and his friend and the main guy and his wife. Classic. Best onion rings in Woodstock at FF. To me, tasteless burgers. Fun to use. Daypart pricing on drinks in the afternoon. Fun music playing.

Steak And Shake -  Best Milkshake in Woodstock. Can be very expensive without coupons and very reasonable with coupons. Great variety of sides. Great music inside.

Subway - Good with pricing with coupons. Good quality. Can be SLOW service. GOOD real sweet tea. Fresh. Daily specials a good way to address pricing. Excellent variety of sandwiches.

Taco Bell - Good cheap price positioning. Good Chalupa’s. Good real sweet tea. Good service speed. Good quality overall.

Wendy’s - Huge variety in quality - excellent one time - poorish the next. What the heck happened to the fries - almost tasteless compared to yesteryear. I’m told good salads. Expensiveish compared to McD’s. Baked potato good price/quality.

Thanks for reading - feel free to comment.

Here’s some links also:

KFC Closes Its Doors to Fight Hunger - http://www.slashfood.com/2009/09/30/kfc-closes-its-doors-to-fight-hunger/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.slashfood.com%2F2009%2F09%2F30%2Fkfc-closes-its-doors-to-fight-hunger%2F Community involvemet matters - look at the results of the survey on this page too.

A Real Whopper? NASCAR’s Stewart to take live polygraph test in ad  - http://www.walletpop.com/blog/2009/09/30/a-real-whopper-nascars-stewart-to-take-live-polygraph-test-in//?icid=main|htmlws-main|dl1|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F09%2F30%2Fa-real-whopper-nascars-stewart-to-take-live-polygraph-test-in%2F%2F BK, attention grabber again.

Eat, drink, and spend money: Restaurants ply diners with cheap booze - http://www.dailyfinance.com/2009/09/29/eat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b/#continued?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.dailyfinance.com%2F2009%2F09%2F29%2Feat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b%2F%23continued

Hello, welcome back to the Restaurant Trade Area Research (RTAR) blog - thanks for stopping for a read. And, as you can see by the title of this post — once again in our depressed economy - where the discretionary dollar is scarce - where one restaurant unit after another closes - price points remain criteria number one for most restaurant chains.

Locally in northern Georgia - Mcdonald’s and Steak and Shake have met the Sonic reduced drink prices in the afternoon - Checkers has finally positioned a dollar menu — and as mentioned before Quizno’s `reduced prices’. And, two more restaurants have bitten the dust in the Woodstock Ga. market - Sonny’s BBQ (unbelievably) and the Woodstock Restaurant (daily buffet) - bringing nearly half a dozen closed up restaurants to Woodstock HWY 92 in the last few years.

But, it doesn’t end there - as the casual sit-downs are firing back on the price front with TGIF’s offering a buy one get one — with that being matched by other competitors like O’Charlies. And:

1-Wendy’s —- 3conmics (99cent choices) 2. Free Pancakes at IHOP tomorrow 3. Denny’s recent free grand slam breakfast 4. Steak and Shake’s recent `free combo’s for a year’ giveaway at local Atlanta locations 5. Fazoli’s - BOGO (buy one - get one) 6. Dunkin Donuts 1.99 breakfast combo 7. Starbucks - Breakfast value meal 3.95 — 8. McDonald’s Specials (like 3.33 for a Big Mac Combo) 9. Ruby Tuesday’s combo’s at 5.99 — Likewise Hooters 5.99

Makes one wonder when some chain will be bold enough in the south to make sweet tea a different price 24 hours a day - like 59 cents with any other purchase.

Finally, seems the burger front may be heating up - first Burger King’s mini’s will put pressure on Krystal’s and Roast Burgers at Arby’s - should compel trial. 

Hello, thanks for returning to my Restaurant Trade Area Research (RTAR) website - I’m back and ready to comment on the utterly new marketing situation all businesses are facing during this economic downturn. This blog decided to `wait’ during the last 10 weeks - rather than comment `daily’ on the possibility of financial meltdown and market disruptions. Knowing that you, a franchisee - knew the real business situation better than the commentators on Tv or in-print.

But, seeing now that 10 weeks after the end of the first cash crisis, that we seem to be facing, again, the solvency of the very banking system — it at least seems prudent to update the on-going strategies being employed with marketing and ad dollars - by various fast food, casual, and sit-down restaurants in 2009 – and that strategy - not surprisingly — has one focus — PRICE. (Ad language for `cost’ — the perception of the consumer.)

As you may know, when we left off in Nov. it was about price too - various price points - and now - we have the same only ratcheted up a degree. I can only comment about the local Atlanta media marketing and local store market close to Woodstock, Ga. That said, I’m pretty sure that each is generally reflective of the nation as a whole.

Perhaps most noteworthy and of immediate concern to the competitive marketplace is Quiznos advertising campaign about `reducing prices’ on food. Period. Not, come in for a reduced price combo or similar deal or bounceback coupon value — no - the actual phrase positioning `reducing prices’. Their local couponing has a 2.00 off any regular sub and buy any sub and get a chips and regular drink FREE. Combine the everyday reduced prices with an additional 2.00 coupon — and the price for loyalty and new trial customers - has just been increased.

And, as you know, - for years - Sonic - has offered reduced drink prices during the afternoon. And, as you know, since Chick-Fil-A  (and Hardee’s) started selling quality milkshakes - those that previously sold shakes (especially Dairy Queen and Steak and Shake) - have probably been under some pressure on a signature item. The response - an aggressive coupon campaign by Steak and Shake and not only that, locally, in Woodstock, Ga at least — reduced price shakes from 2-4 in the afternoon. A very good aggressive response and making true dayparting of pricing a strategy that deserves a second look. (Such as reduced coffee pricing after 4 PM.) Not only that, recently, Steak and Shake had a special of those small burgers that are now favorites of Casual Restaurants too - attack on all fronts.

Fortunately, the above examples are the only ones talking about reducing prices (although - O’Charlies has pushed the casual market with the 7.99 price point advertising - instead of the usual 9.99) and, ultimately,  your customer ticket total. But, all the others are doing the same in their own manner. Here’s just a re-cap:

McDonalds - To soften the price INCREASE for the double cheeseburger from the old price of 99cents to 1.19 - the `old’ price of the double cheeseburger Combo for 2.99 is retained. (Only those cheapies will face that 20 cent increase.)

Wendy’s - Pure price positioning - 3conomics — with the focus on 99 cent choices of only Wendy’s quality and variety. (McDonald’s has countered with ads supporting their  3 - 2.99 combos too.)

Arby’s - From 1.99 Chicken Sandwich choices to 3.99 specific combo choices — low price positionings for Arby’s.

Taco Bell — Ads geared to products BELOW 99 cents each.

Checkers - New `99cent’ offerings.

IHOP - All you can eat pancakes.

Zaxby’s - 5.25 (or about) Combo’s.

About the only ones holding to a non price strategy at the moment are the potentially `low  priced’ Krystal (hard to reduce the price on a burger of that size) and `high quality’ brands - such as Chick-Fil-A. And, Burger King - continues to do what the King does best - be edgy.

The RTAR will get back to regular postings, with weekly links, with more opinions, and more updating  of the sidebar (and more) for this webpage - hope you like the changes to come in 2009. I want to suggest looking at the full 2008 postings of merit by  hitting the link in my sidebar review of 2008.

Continue down the page for much more. See you next week.