Restaurant Trade Area Research

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.

—————————————-

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.)

——————————

Thanks for your visit today.

Do you need market research? http://www.squidoo.com/tradeareasurveys

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

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.

When the term `survival’ is used concerning any restaurant chain - it is not good news - especially when trying to change the positioning to more upscale in the new normal. But, that is exactly what RT is trying to do to create some positioning difference from competitors such as  Applebees, T.G.I. Friday’s and Chili’s. Read more of the strategy here - http://www.theledger.com/article/20100722/NEWS/7225054/1001

And, as you the restaurant owner knows that the new normal means - US Restaurant Count Down by 5,204 From Last Year, Reports NPD - http://www.restaurantnews.com/us-restaurant-count-down-by-5204-from-last-year-reports-npd/ 

McDonald’s, once again, is heads and tails above the rest in effectively following the trend to fresh and fruit - Customers Go Bananas for McDonald’s New McCafé Real Fruit Smoothies - http://www.restaurantnewsrelease.com/customers-go-bananas-for-mcdonalds-new-mccafe-real-fruit-smoothies/852184/

Or, you can take this approach to new products - being outrageous - KFC’s Double Down fails to take off http://money.cnn.com/2010/07/14/news/companies/kfc_double_down/index.htm?source=yahoo_quote

Here’s another story on Wendy’s going upscale with their salads (and upscale in price) - http://www.walletpop.com/blog/2010/07/09/wendys-upgrading-salads-but-it-will-cost-you/

And, Ruby Tuesday’s is not the only casual restaurant hoping to advance in the new normal - Can O’Charley’s find a recipe for success? - http://www.dnj.com/article/DN/20100704/BUSINESS01/7040332/1088/BUSINESS/Can+O+Charley+s+find+a+recipe+for+success

More Soon.