Restaurant Trade Area Research

One of the ideas that I’ve personally stressed over the years to clients is to look at their customer base in two manners, trade area and customer frequency segments (heavy users, etc.). And, one of those categories is the VERY occasional user - especially customers that either live in the trade area or frequently use other retail nearbyand therefore pass by said FF brand often. These aware non users (lets say haven’t been to the restaurant in over a year or so) often were users at a higher frequency `back in the day’ (or may have fallen off the usage chart since the new normal). Some FF brands may even consider this market segment to be in the trier-rejector category; often seeing no reason to even market to them.

(Which is silly. Getting those early in life visits to RE-visit is perhaps JUST as easy as getting REAL new users.)

I bring all this up to clarify what my usage of these restaurant brands were before a `re-introductionary’ visit recently (for blogging purposes and for a rotation of tastes, a phrase often heard in FF customer research, especially with male customers). Anyway, here’s a review of a recent visit to Schlotzsky’s,  and Krystal’s.

(These visits happened in summer 2011.)

The Krystal’s my daughter and I visited for a weekday lunch (during her summer teacher break) was located on Canton Rd. (Marietta) - something I drive by anyday I go inside the perimeter or even down to a near `farmers market’ type location further `down’ (south) on Canton. Despite going past the restaurant several hundred times at least since my last visit ,this was our/my first visit inside in several years;(and perhaps we had used the drive thru once in that time period). All this low frequency despite loving the mouthfeel of the Krystal Steamed Burger for decades now. LOW frequency does not mean rejection of brand something FF marketers should remember.

First, upon entry, the Reader Board seemed VERY confusing to look at, and was very strange in that NO combo’s were priced at the 3.00 dollar(s) level at all. Indeed, it was hard to even find the prices for ANY individual products, and they only appeared shuffled over to the side and corner last read (lower right for me).

In fact, after consideration, the combo meals almost seemed designed for parties of two (which isn’t necessarily a bad idea) almost — I’m speaking of combos with 4 and 5 hamburgers being featured.

I saw the Angus Offerings - but internally I think of only the key signature product, the Krystal.(Back of mind thinks, steamed angus?)

We entered about 11:35 AM or so, with the counter having no customers and the order taker cleaning or straightening the front lobbyish area. She gave a nice greeting saying it would be a moment and then apologized again for the 10 second delay, if that, when she was at the register. She was friendly when we told her we needed to look the menu over, and that it had been a bit of time since our last visit.

Eventually, I got 2 Cheese Krystals, fries, and a sweet tea. (Certainly, there should be a combo for this, right? But wasn’t.) - And, my daughter got a sampler of corn dog, Chile dog, mini chicken and Krystal (I think) - this came in a combo with fries and a drink. After paying @12 bucks total, we were given the `number flag’ that have become famous at the `fast casual’ segment - signifying that our food is cooked fresh (or fresher) and that `service’ is being given as we no longer have to `lobby wait’ as customers did in the `old’ pre-new normal days of commerce.

We entered the carpeted eating area - which consisted of 6 or so parties, including at least one person using the free trendy `fast casual mandatory’ Wi-fi service offered. We waited under 3 minutes for our meal delivery.

Which turned out to be wrong (daughters order, not the sampler mix ordered). She kept the right stuff and waited for I believe a chili dog to arrive a minute or two later.

We began eating.

We both thought the fries were VERY good - meaty, yet crispy and hot. Restaurant quality. All the `junk’ food for both of us was satisfying with a great remembering of `the tastes of Krystals’ for myself. My sweet tea was very good also.

The ambiance was okay and had fun images/pictures on the wall, mainly depicting a younger set of folks than was represented in the restaurant ultimately. (Surprisingly, the customer mix was nearly 50/50 sex, white/black race mix, parties of two/one about equal, strong majority over 35). I liked the music although the format now escapes me.

VERDICT - A bit high priced for the products offered IMO - causing a slight value perception problem, especially considering `old’ perceptions of pricing would be of the `cheaper days’ and cheap  Bag of Krystal’s promotions. However, the price was not totally out of line or a usage killer. 

Indeed, the pricing, for the  service of table food delivery, and wi-fi, - is NOT out of line. That said, my perception of a direct competitor of Krystal would be Checkers, not fast casual. (And, IMO, Checkers offers much more value perception.) Certainly, the ambiance isn’t of the level of an Atlanta Bread Company, or even a Boston Market or Zaxby’s, or most of the re-done McDonald’s interiors. And, the fast casuals simply have a higher quality perception with their food and health levels than any of the FF’s (except for Subway IMO, and now, perhaps, with Wendy’s regaining it a bit).

So, would the `new again’ visit be enough to have me stop for a lunch on the way to the farmers market now for an inside meal, or, for breakfast on the way to I-75? (Wrong side of street for easy evening access.)

Not really for me. A low end wi-fi with a non female ambiance FF restaurant, even with great mouthfeel, trying to be a fast casual restaurant - isn’t quite compelling enough. (It’s now been 4 months and I haven’t returned or used the drive-thru.) That said, perhaps a re-directed effort in a couple of marketing strategies might have an effect (such as a 2 Krystal combo?).

—————————————–

The Schlotzsky’s we visited was in Woodstock on Highway 92 across from Home Depot. That was yesterday about 10 til noon - a weekday. It had been at least two years or more since we had been to this location. When this location opened, we used it as much as once a month for a couple of years. Back then, the store had some operation problems, order problems, even cost of order problems - with our orders - a number of times.

Upon entry, we immediately notice the interior changes, NO order window to monitor to pick up ones order (a definite improvement) and the complete removing of the drink/soup service station from the order/lobby area. Wow. Much better.

The wood furniture, tables and chairs, appears to be `darker’ and more upscale than before too. Moved also is the salad area with pre-made salads (no longer offering potato salads and other things).

The menu board is simpler than Krystal’s for sure and easy to understand. The prices are very consistant with a premium sandwich location. Combo’s are clearly marked.

—————————————

That’s how far this post got a few months ago. I have not returned to Schlotzskys either.

===================

The blogging is going to re-start soon. Thanks for your patience.

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.

————————————-

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