Restaurant Trade Area Research

20. April 2011

Survey Says…. McDonald’s Wins `Coffee Loyalty’

In what can only be considered somewhat eye-opening, much like the subject matter - McDonald’s clearly wins in this study of over 15,000 respondents (customers) for loyalty in the important coffee segment of customers - especially for the still growing breakfast daypart. More menu census data extensions - http://www.nacsonline.com/NACS/News/Daily/Pages/ND0418112.aspx and speaking of McDonald’s - check out this fun list floating around of the `secret menus’ you can order from FF restaurants if you know what to ask for - http://www.ranker.com/list/mcdonald_s-secret-menu-items/secret-menu-items - BIG MAC dipping sauce for french fries? Hmmm. The above article also links to the secret menus of other FF restaurants too. Much like this article of the Cult origins of various FF choices - http://www.minyanville.com/special-features/articles/McDonalds-McDonald-brothers-Ray-Kroc-history/11/23/2010/id/31222

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Meanwhile, in modern marketing … Arby’s Flash Mob Descends Upon Times Square - http://www.restaurantnews.com/arbys-flash-mob-descends-upon-times-square/ - with video. Instant karma via marketing? group spoofed Gene Kelly’s dance in Singing in the Rain and helped spread a good mood to passersby.

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More upscaling news at Fast Food brands - Fazoli’s - http://www.kentucky.com/2011/03/12/1667393/in-era-of-failing-restaurant-chains.html - following the lead of Boston Market and others with upscale plateware and lobby services. Nice full article on the turnaround in progress.

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Hardee’s and Carl’s Jr sales, year to year, same store - Hardee’s Up 4.4%, Carl’s Jr Down 4.8%.

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Thanks for your visit today - have a look around if this is your first time here.

28. March 2011

Boston Market Completes Nationwide Upgrades in 400 Restaurants

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

  • Plateware – For guests dining in, Boston Market will serve the food on real plates and stainless steel knives, forks and spoons.
  • MUCH more at the link of the upgrades:

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    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/

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    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

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    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/

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    Thanks for visiting. Dig deeper for much more.

    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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    4. September 2010

    McDonald’s Plans Upgrades To Wal-Mart-Based Restaurants

    Could this move make the mallpad strip even more competitive - especially for the `leaving Walmart’ drive thru traffic? - http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201007160959dowjonesdjonline000442&title=mcdonalds-plans-upgrades-to-wal-mart-based-restaurants

    Starbucks Will Win the Wi-Fi War - http://www.pcworld.com/article/203304/starbucks_will_win_the_wifi_war.html

    Or, will they?

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