Restaurant Trade Area Research

Ronald McDonald of course. The icon. The legend. Say it isn’t so, please, say it isn’t so — http://www.dailyfinance.com/story/company-news/ronald-mcdonald-put-to-pasture-as-fast-food-chain-gentrifies/19866419/ - more than likely, IMO, is that he is being given a marketing `rest’ to avoid burnout also. It also helps to not confuse the new McDonald’s perceptions (hey, it’s for adults too) just yet with the old-time favorite.

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Saw the new Dairy Queen ads which take on (poke fun at) the whole use of the word `Good’ in advertising campaigns by fast food brands (wonder who).

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Here’s a cheap fun idea - use your FF brand blog or social media to challenge a `celebrity’ in some manner - Denny’s Calls Out ‘Man v. Food’ Star Adam Richman - http://www.hospitality-industry.com/index.php/news/comments/dennys_calls_out_man_v._food_star_adam_richman/ could you eat 40 dollars of food from Denny’s? How about 20 dollars?

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Continuing to enhance at an important price point - Burger King Beefs Up Value Menu with BK Stackers - http://www.restaurantnews.com/burger-king-beefs-up-value-menu-with-bk-stackers/

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Meanwhile….

Cici’s continues push on price point - CiCi’s Pizza Announces $4.99 Endless Value Dinner Campaign - http://www.restaurantnews.com/cicis-pizza-announces-4-99-endless-value-dinner-campaign/  and Sonic - SONIC Adds Four New Premium Beef Hot Dogs to Menu - http://www.restaurantnews.com/sonic-adds-four-new-premium-beef-hot-dogs-to-menu/

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Thanks for your visit - RTAR’s Alexa rank - http://www.alexa.com/siteinfo/restauranttradearearesearch.com# - will post again soon as I have lots of links ready to go.

Keeping the offerings fresh to attract new customers and retain existing customers is a must for most chain FF restaurants - here - Church’s Chicken introduces the Chicken Mini Sandwich at the 89cent and 2 for 1.49 price points - here’s the description:

all white meat breast filet on a toasted, slightly sweet bun topped with lettuce, creamy Original or Spicy mayonnaise and a crunchy dill pickle chip.

Sounds good - and certainly could help Church’s at this lower price point for consideration for that market segment of FF users that often don’t consider Chicken.

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Meanwhile, Fazoli’s Introduces Four New Mini Bakes - http://www.restaurantnews.com/fazolis-introduces-four-new-mini-bakes/ - at =3.99 - value pricing and value sizing once again.

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Oh, an update on the Woodstock Fast Food Market - on the main Hwy 92 Strip another Chicken Casualty - Mrs. Winners - right across the street from the first name brand to fall in the new normal KFC. —– Philly CheeseSteak has added Chicken Nuggets —– (strange) — Bubba Q was selling 15 dollar meals online for 7 bucks.

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More soon.

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.