Restaurant Trade Area Research

I had seen the billboards but had somehow missed any TV ads for the new Wendy’s W Burger. So, when I eventually did see the TV and it showed the `special sauce’ - my mind instantly went off as a lover of the Big Mac nearly 50 years. When aware of that fact - which I did not pick up from the billboards - in only days I stopped to try it.

Now, interestingly, only days before I had paid 3.91 including Tax for a Wendy’s single at drive thru - it having been since the `improvement’ since I had tasted the new offering. And, the single was `upscaled’ in my opinion - but, in all honesty - 3.91 is a stretch for the product. So, with that in my mind - I went IN this time and ordered the W (making it a combo) for only a little over a buck more than the Single alone.

I was immediately impressed with the sandwich and LOVED the `positioning between the Big Mac and the Whopper’ (even moreso if any BK’s still have the `King’ - their version of the BM) — LOVED the positioning. Indeed, my mind thought, WHY  are they not positioning it that way too? Indeed, the sandwich HASN’T what McDonald’s I’m sure would love to be able to dump - the extra slice of bread between the two patties; thereby giving lots of meat ratio in every bite in comparison.

Yet, the sandwich was uniquely targeted at the whopper too - with the larger lettuce piece(s) and tomato. And, at that time I thought that McDonald’s better have some concern about this sandwich pulling from it’s very core oldtime base customer. All in all - I was impressed.

My second time was nearly as good as the first and was only two days later- but, I got this one to go, with no sides or drinks - paid less than before - had a better sandwich value in my mind than the Single OR Big Mac - but realized that for WENDY’s the tradedown would have to be a hit to the bottom line IMO; especially in comparison to the probable profit margin on the Single.

Then, weeks later, I went inside for another combo while a unit was having operation problems (At Trickum In Woodstock, two Saturday’s ago) - the manager on duty was yelling loudly at the crew about being prepared in advance. It startled the folks in line it was so loud. I hoped no one would walk off the job as the place seemed understaffed and the wait was already mounting. However, the real letdown was upon opening the W - gone were the lettuce and tomato - (I had asked for some extra sauce on it and it was swimming in it) - one little slice of onion, NOTHING else. It was a total turn off and problems were only mounting at the line and counter so I simply ate it.

Interestingly, I said to the counter girl - `how much would it cost if someone asked for the sauce on a Single’ - she said it would be FREE as all toppings are free. For some reason the answer surprised me - could some just as easily ask for Big Mac sauce on a dollar hamburger? Or, the Wendy’s 99cent offerings?

So, I haven’t been back - it’s been a few weeks and probably a bit longer than normal for my Wendy’s visits (prior to W usually a single combo): and as you can see from the link - others are not so impressed with Wendy’s either as in this recent article saying it would http://www.dailyfinance.com/2012/01/12/why-wendys-will-never-be-great-again/?icid=maing-grid10%7Chtmlws-main-bb%7Cdl3%7Csec1_lnk3%26pLid%3D127010 never be great again.

I wouldn’t go that far - but - the positioning of the W could have been structured  a lot better to attract actual new customers from their main competitors IMO. Heck, SELL the sauce in the store in jars - like Big Boy.

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These Two Guys Had The Same Impression As Me On First Tasting

There is brand loyalty and there is brand loyaty - http://www.huffingtonpost.com/2011/05/12/in-n-out-burger-north-texas-expansion_n_861172.html?icid=main%7Chtmlws-main-w%7Cdl1%7Csec3_lnk3%7C213092 with video. Up until now I had been blissfully unaware of In-N-Out’s Christian connections. ————————-

Holy Smokes. Panera Bread has added choice sirloin steak to the breakfast daypart, salad offerings, and sandwich segments of it’s menu - quality marketing moves - http://www.fastcasual.com/article/181104/Panera-Bread-beefs-up-menu-with-steak-sandwiches-salad ——————————————-

Meanwhile…. Wendy’s Fries Beat McDonald’s in National Taste Test - http://www.restaurantnews.com/wendys-fries-beat-mcdonalds-in-national-taste-test/ - if it was ME - I’d position this information to all the NON TRIERS — ad, two friends, one gives facts to the other and says `You mean you haven’t tried them yet?’  ————————————–

McDonald’s to increase prices one percent - http://www.slashfood.com/2011/04/22/mcdonalds-to-bump-prices-yet-ads-wax-fifties-nostalgic/ ———————

And, here’s an interesting research study about the breakfast daypart with consumers which provides actionable understandings - Research Reveals Restaurant Diners Want Healthier Breakfast - http://www.restaurantnews.com/research-reveals-restaurant-diners-want-healthier-breakfast/ - healthy fast food, a growing segment for sure. —- here is more proof of the pudding - Lower Calorie Items Gaining Momentum on Restaurant Menus - http://www.restaurantnews.com/lower-calorie-items-gaining-momentum-on-restaurant-menus/

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Sometimes one has to wonder at the length of time it takes some chains to respond to favorites of other chains - especially when in direct competition with - and IMO, that is what the D.T. Double is. That said, better late than never — will BK figure it out next? (Or was that the Big King?) And, that said, I’d love to be eating a Big Boy at Frisch’s - http://www.nrn.com/article/wendys-tests-dt-double-texas-rhode-island - special `sauces’ on Burgers - not new, but quite compelling.

And, Wendy’s is not thru the testing above either - here’s a new Burger too (upscaled) and those can’t miss TV ads for the new Sea Salt Natural Fries -  http://www.slashfood.com/2010/11/10/wendys-new-daves-hot-n-juicy-cheeseburger-and-sea-salt-fri/?icid=main%7Chtmlws-main-w%7Cdl3%7Csec4_lnk2%7C183477

It’s news that is a month old from the elections - San Francisco bans Happy Meals - :Under the ordinance, scheduled to take effect in December 2011, restaurants may include a toy with a meal if the food and drink combined contain fewer than 600 calories, and if less than 35% of the calories come from fat. - http://www.latimes.com/business/la-fi-happy-meals-20101103,0,5438230.story

In Italian Restaurant news - OpenTable Diners Reveal Their Top Fifty Italian Restaurants Across the U.S. - http://www.restaurantnews.com/opentable-diners-reveal-their-top-fifty-italian-restaurants-across-the-us/ and one more OpenTable link - http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/10/02/BU8S1FN0O8.DTL – OpenTable coupons follow Groupon’s lead

Check the sidebar for more to consider.

Interesting study, not restricted to restaurant coupons by any means, shows that the `wealthy’ are most likely. If out more at the link: http://www.walletpop.com/blog/2010/11/15/who-is-most-likely-to-use-a-coupon/?icid=main%7Chtmlws-main-w%7Cdl3%7Csec1_lnk3%7C184330

Interested in buying any franchise? Want to Buy a Franchise? The Requirements Went Up - http://online.wsj.com/article/SB10001424052748704361504575552803956439716.html

 New French Fries for Wendy’s? With Sea Salt? Wendy’s Introduces New Natural-Cut Sea Salt Fries - http://www.restaurantnews.com/wendys-introduces-new-natural-cut-sea-salt-fries/ and while this article states that Wendy’s has not re-designed their fries before — I definitely remember Wendy’s having thicker fries years ago.

Third Quarter sales up 4.3% at Texas Roadhouse - http://www.restaurantnews.com/texas-roadhouse-inc-announces-third-quarter-2010-results/ and at Pizza Inn - sales off over 4% comparable - http://www.restaurantnews.com/pizza-inn-inc-reports-results-for-first-quarter-fiscal-year-2011/

More tomorrow.

Looking for revenue anywhere they can get it in this new normal - politicians in Omaha put a 2.5% tax on restaurant diners - forcing them to drive to other communities to avoid the tax.  http://www.ketv.com/r/25247993/detail.html

New Chicken Taco at Church’s Chickent - http://www.restaurantnews.com/churchs-chicken-on-the-go-with-the-new-crispy-chicken-taco/ - nice brand extension here for `on-the-go’ targeting too (did I see a burrito now offered at Hardee’s in Woodstock Ga?).

Wingstop Reaches 29 Consecutive Quarters of Positive Comp Store Sales  - http://www.restaurantnews.com/wingstop-reaches-29-consecutive-quarters-of-positive-comp-store-sales/

Will Arby’s and Wendy’s increase prices? - http://www.walletpop.com/blog/2010/10/01/are-wendys-and-arbys-going-to-beef-up-menu-prices/ – kinda a strange article to me as any beef price increases would certainly hit everyone.

Speaking of beef - Regional Chains Feed Hunger For Burgers - http://www.msnbc.msn.com/id/38420989/ns/business-local_business/

From the in-case you missed it file - McDonald’s sss up 4.9% in August - http://www.restaurantnews.com/mcdonalds-posts-strong-global-comparable-sales-august-up-4-9/

More about my services at www.squidoo.com/tradeareasurveys

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

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.

With second quarter sales off 7% - more and more franchisees are not confident with the new emphasis on sandwiches and grilled chicken - one decades long franchisee even said this: “Roger Eaton and his company don’t give a rat’s ass,” - http://www.businessweek.com/magazine/content/10_34/b4192019553596.htm?chan=magazine+channel_news+-+companies+%2B+industries much more detail at the link.

And KFC isn’t the only big name with continued lower secondquarter sales as Arby’s is once again off 7.4% and Wendy’s is off 1.7% http://www.restaurantnews.com/wendys-arbys-group-reports-2nd-quarter-2010-results/ - that said, Wendy’s/Arby’s plans expansion abroad with duel branded stores - http://www.ajc.com/business/wendys-arbys-to-open-588791.html

Meanwhile, while some chains go overseas for expansion - Chick-Fil-A plans to go into urban USA locations - http://www.ajc.com/business/chick-fil-a-plans-589960.html

And, speaking of GOING into new areas - New food-truck trend rolls into Akron - Vehicles promote fresh, unique fare, pose competition to eateries - http://www.ohio.com/news/top_stories/100353574.html making existing restaurants uneasy.

And, speaking of being uneasy in the restaurant business - Restaurants seek recipe for economic sustenance - So, with the fear of the unknown come new marketing strategies, including lots of social media and some creative pricing packages. Restaurants are also learning the value of truly connecting to the community they call home and making sure their new and regular customers are given top-notch food, delivered with a smile. - http://mddailyrecord.com/2010/08/05/restaurants-seek-recipe-for-economic-sustenance/ the bad news, of course, is that the `new normal’ is quickly becoming the new reality.

More down sales from O’Charley’s too - same-store sales at O’Charley’s company-operated restaurants declined by 7.9 percent - http://www.restaurantnews.com/ocharleys-inc-reports-results-for-the-second-quarter-of-2010/

More about my services at www.squidoo.com/tradeareasurveys

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.

http://www.scootaboutkneescooters.com/images/prices-slashed.gif

Well, that is a little of an exaggeration perhaps - but what they have done is get the new lower price point in front of the public AND have brought clarity in pricing to the pizza category - mediums now start at 8.00 with up to three toppings. —- Along a related front - amazingly, we travel thru yet another summer without one major FF chain matching McDonald’s 1.00 Iced Tea prices. Amazing.

Now, you know RTAR loves surveys and especially the results of surveys - like this one - Cracker Barrel Receives Top Ratings in National Independent Consumer Study - http://www.restaurantnews.com/cracker-barrel-receives-top-ratings-in-national-independent-consumer-study/ - not only that Cracker Barrel won 31 of 50 rated attributes.

And, in another study - US Restaurant Count Down by 5,204 From Last Year, Reports NPD - that is about 1% of all restaurants and the first decline since the study began in 1976 - The new normal settles in.

Here’s a new Carl’s Jr. & Hardee’s product sure to grab some headlines - The 12 Inch BURGER - http://www.usatoday.com/money/industries/food/2010-07-16-footlong16_ST_N.htm 

More new products - WENDY’S Upscales Salads - http://www.restaurantnews.com/wendys-introduces-new-line-of-premium-salads/ - will upscale price diminish results?

More links tomorrow.

America’s number 3 Fast Food Chain changing hands is big news indeed - http://www.businessweek.com/news/2010-06-11/wendy-s-arby-s-investor-peltz-approached-on-takeover-update2-.html.

Taco Bell’s Two Dollar price point promotion is being well received in the new normal - “Taco Bell’s two dollar value meal is potentially game changing,” says Gary Stibel, Founder and CEO…..One dollar meals drastically limit the quantity a restaurant can offer and often leave consumers wanting.  This is strategic to Taco Bell because the bullseye of their target audience is the young male who doesn’t eat restaurant food, he ‘hoovers’ it. ….the original Chief Marketing Officer of Taco Bell, points out that “one of the bases for PepsiCo’s acquisition of Taco Bell was the ability to deliver good tasting, filling foods to young men at prices that were attractive to the guest and profitable to the owner.  It is one of the strengths of Mexican food in a crowded QSR marketplace.” - More here - http://www.restaurantnews.com/the-2-value-meal-could-be-a-game-changer-for-taco-bell/ 

Taco Bell recently used this Fun Idea to promote the 2 dollar price point - Taco Bell Asks Federal Reserve to Circulate More $2 Bills - http://www.restaurantnews.com/taco-bell-asks-federal-reserve-to-circulate-more-2-bills/

In other price point positioning news - Boston Market Debuts New Market Sliders For $2.99 - http://www.restaurantnews.com/boston-market-debuts-new-market-sliders-for-2-99/ - and combos for 4.99 - very aggressive.

And, score another one for McDonald’s - McDonald’s Ads to Showcase Undiscovered Artists and Bands - as this is an incredibly great idea to target the under 25 segment. - McDonald’s Ads to Showcase Undiscovered Artists and Bands - brilliant, again - http://www.restaurantnews.com/mcdonalds-ads-to-showcase-undiscovered-artists-and-bands/

I appreciate your visit today. Have a look around www.restauranttradearearesearch.com .

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.

Today’s headline is in honor of the entry of Subway into the breakfast daypart nationwide. To me, most likely to be `hurt’ would be the `Morning Bakery’ type places (Atlanta Bread Company, Panera Bread, etc) as they also are `walk-in’ - non biscuit - 7AM opening type of places. Subway’s entry also makes it harder for other FF restaurants that are not heavily in the breakfast daypart to start up - such as Wendy’s, Arby’s, some Chicken chains - even a fast casual like Moe’s.

Some Restaurant Links in the news:

Wendy’s/Arby’s Group, Inc. Q4 2009 Earnings Call Transcript - Interesting - bottom line Arby’s still way off for 2009 compared to 2008 (9%) — much more. http://seekingalpha.com/article/191999-wendys-arbys-group-inc-q4-2009-earnings-call-transcript?page=1

http://www.fastcompany.com/magazine/143/next-tech-happy-hour.html -Social Network Rockets Houlihan Restaurants’ Profits - Interesting read.

Battle For Breakfast Diners Intensifying - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124241 Premium coffee’s - all day breakfasts - coming soon.

Here’s a great example of competition in a down economy - Where a Meal Can Cost a Fortune, 99¢ Pizza Catches On - http://www.nytimes.com/2010/03/16/nyregion/16pizza.html 

Eateries emphasize bar areas, happy hours to lure customers amid recession - http://www.orlandosentinel.com/business/os-alcohol-sales-restaurants-20100313,0,4791182.story

Fish survives fall from sky, lands outside sushi bar - Here’s a fun link for you all - http://weblogs.sun-sentinel.com/news/specials/weirdflorida/blog/2010/04/fish_survives_fall_from_sky_la_1.html

Great news for Five Guys Burgers - http://www.portfolio.com/views/blogs/daily-brief/2010/03/25/five-guys-burgers-and-fries-tops-growth-charts - Fastest growing 2009.

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