Hello, welcome to my restaurant blog - thanks for visiting today. As you can see, today’s post is about Boston Market taking on two simultaneous marketing campaigns concerning price points. The first, at least in Atlanta, was TV ads for a 5.00-meat + 1.00 sides price point - and now followed by a 2.99 `mini-meal’ positioning. My reaction to this is — I always think it is a good idea to provide products at the price points that folks associate with ones business idea (ie: fast foods should have a dollar menu AND a full priced offering menu) — that said, BOTH of these positions - IMO - seem not exactly a `fit’ for BM. One too expensive - one, slightly too cheap.

Here’s some links too:

http://restaurantnews.com/2-99-market-meal-deals-at-boston-market/

Nutter proposes 2-cent-per-ounce sweet-drink tax - http://www.philly.com/philly/news/homepage/20100304_Nutter_proposes_2-cent-per-ounce_sweet-drink_tax.html Here comes the government.

I first meet chef X in a local library and he slips me a brown business card with nothing but his name typewritten on the front http://www.boston.com/lifestyle/food/articles/2010/03/03/underground_and_off_limits_paid_suppers_by_pro_chefs_are_way_to_dine_well_clandestinely/

I have more current restaurant links at www.squidoo.com/tradeareasurveys — thanks for visiting today.

It was only something that I saw online yesterday - but - has FS dropped prices on sandwiches to 4.00 after 4PM? —– Nice response to Subways dayparting and even earlier.  —- Daypart pricing; needed during the new normal.

Here’s some links too:

They will have the regular - http://www.wickedlocal.com/westport/features/x531840012/THEYLL-HAVE-THE-REGULAR-Frequent-customers-add-spice-to-SouthCoast-eateries The critical importance of `regulars’ in these economic times.

http://news.cnet.com/8301-13772_3-10456332-52.html Oh oh - seems Denny’s has allowed an error about it’s twitter account on it’s main menu for months - read the strange tale.

I have more links on my Squidoo site too www.squidoo.com/tradeareasurveys . Tell a friend about this blog. Thanks.

One of the few available ways to increase sales is to increase the size of the eating party - here (perhaps you have seen the ads featuring Bo Bice) Moe’s smartly does just that. Indeed, by targeting a `workday’ Moe’s is even encouraging the development of the `office workers luncheon `date” (no romance required). And, by establishing work pairs eating out together - it will surely `happen’ on non-2-1 days too. Excellent idea.

More links to - including:

Vowel Sounds Influence Consumers’ Price Perceptions - http://www.cnbc.com/id/34919366 

10 Worst Sandwiches in America - http://health.yahoo.com/experts/eatthis/43781/10-worst-sandwiches-in-america/ - A list you don’t want to be on - such as FF chains - Arby’s, Panera, Red Robin, Subway, Blimpie, Quizno’s.

Unemployment Takes a Bite Out of Breakfast - http://www.aolnews.com/money/article/unemployment-takes-a-bite-out-of-breakfast/19367237 - Down 4% — even 8% off breakfast sandwiches at 7-11.

http://www.slashfood.com/2010/02/23/burger-king-unveils-secret-weapon-for-new-steakhouse-xt-burger/ BK goes huge. 7 oz Burger - new broilers.

http://restaurantnews.com/short-orders-news-bites-from-across-the-web-022510/ Just showing off that last weeks post was carried by restaurantnews.com - cool.

Hungry for Returns? Try Wendy’s/Arby’s Group - http://seekingalpha.com/article/185953-hungry-for-returns-try-wendy-s-arby-s-group

Return soon for more.

Recently, I found this to be of great help to a particular client who uses my consulting. Indeed, I’d be happy to come to your market and fashion the same type of system for your FF unit too.

The first thing I’d like to do in this post - is the ranking of `customer purchaser types’. And, first and foremost, the #1 type of customer is the LARGE transaction customer - the one that spends over 150% more than the average transaction - (typically a three or more party size - but, we are NOT worried about the size of the party, only the transaction total). Now, the specific marketing opportunity you want to offer for ANY of the `customer types’ - are the customers who are NOT using any incentives (coupons or programs) for THIS purchase. IF they are already `bouncing back’ - that is just what we want to see or develop. Examples of the approach I suggest will be found in this post.

#2 Customer type - Full price, big sandwich, combo. Yes, of course, the vanishing bread and butter customer - vital to the bottom line of most FF’s.  — IF you are not using my `full’ method (of asking certain customers how often they use YOUR unit - or - how many days since last visit) and lack knowledge of this customers frequency — it is vital to `market’ the idea of the `3 visit’ combo club (my suggestion to have an actual effective campaign for these folks is 3 visits).

#3 Customer type - Full price, multi-product purchaser. These are the folks who don’t get a drink - or skip the fries - or are buying for multiple people but not going the combo route. The marketing strategy for these parties is to `target the product not purchased’. For example, you have an order for two sandwiches and two fries - no drink — for that order, the bounceback is a coupon for a greatly discounted drink on the next purchase (or a discounted dessert or side if those are what’s missing).

#4 Customer Type - Full price, single product purchase only. To these customers - offer either a straight (say 10%) small discount on next purchase - or a `real value’ combo coupon (beyond normal pricing). These types of customers often fit into the various `clubs’ I have talked about in the past as yet another marketing opportunity - ie: - `drink club’ `dessert club’ etc.

#5 Customer Type - Value price (ie:dollar menus, etc), multi-product purchases. Market with significant combo coupon (to trade out of the lower priced items) or `frequency club’ targeting with VERY SMALL reward.

#6 Customer Type - Value price - single product. Again, market with significant combo coupon, or, specific discounted full price item, and GREAT service.

Now, the above is just ONE of my many ideas of how to market to your real existing customer base. And, obviously, is not with details that I’d fill you in with if you were a client.

Another of my favorites is the occasional - cross promotion - such as promoting a weekend coupon to your evening weekday customers - who share the same Trade Area often.

Find out more about my services at 678-467-8650 (cell) -> leave a message if you do not reach me directly and I will call you back.

I will have a major post in the next couple of days - until then - I’d like to give you some restaurant links I’ve been following lately on my Squidoo Trade Area Site. Yes, you may want to bookmark my Squidoo site too www.squidoo.com/tradeareasurveys as I update the restaurant links often.

Links:Chic-Fil-A — posts 42nd year of sales growth - http://restaurantnews.com/chick-fil-a-marks-42-years-of-annual-sales-growth-in-2009/

Number of U.S. restaurants slipped in fall 2009 - http://www.pizzamarketplace.com/article.php?id=17201 The new normal.

Using Menu Psychology to Entice Diners - http://www.nytimes.com/2009/12/23/dining/23m enus.html?_r=4&pagewanted=1&emc=eta1 I can here the operations directors scoffing right now.

Burger King’s ‘Superfan’ Might Just Be Your Grandma - http://adage.com/article?article_id=141964 Believe it.

Dubai Diners Flock To Eat New ‘Camel Burger’ - http://somalilandpress.com/11568/dubai-diners-flock-to-eat-new-camel-burger/ I’d flock for a Camel Burger, how about you?

Even more on my Squidoo site.
 

Just links today. 

 Wow. Here is a real possibility for segmentation - the KING will love this http://money.cnn.com/2010/01/22/news/companies/burger_king_whopper_bar/?hpt=P1

Deep Dish Trouble: Owner of Pizzeria Uno Files for Bankruptcy Protection - http://www.dailyfinance.com/story/company-news/deep-dish-trouble-owner-of-pizzeria-uno-files-for-bankruptcy-pr/19325537/?icid=main|htmlws-main-w|dl3|link5|http%3A%2F%2Fwww.dailyfinance.com%2Fstory%2Fcompany-news%2Fdeep-dish-trouble-owner-of-pizzeria-uno-files-for-bankruptcy-pr%2F19325537%2F

Great thinking outside of the box right here - includes flowers on the table too AND a photographer to remember the event — for only 11.99 - reservations needed. http://news.holidash.com/2010/01/15/candle-lit-valentines-day-dinner-at-white-castle/?icid=main|htmlws-main-w|dl8|link6|http%3A%2F%2Fnews.holidash.com%2F2010%2F01%2F15%2Fcandle-lit-valentines-day-dinner-at-white-castle%2F I can’t see why this same idea couldn’t work for other FF’s.

Fast Food Jobs and What They Pay - http://jobs.aol.com/articles/photos/fast-food-jobs-and-what-they-pay/2475605/?icid=main|htmlws-main-n|dl4|link7|http%3A%2F%2Fjobs.aol.com%2Farticles%2Fphotos%2Ffast-food-jobs-and-what-they-pay%2F2475605%2F And the winner is ……….. Arby’s

And, Arby’s scores again right here - http://www.slashfood.com/2009/11/20/arbys-lures-sports-fans-with-free-food/?icid=main|htmlws-main-n|dl6|link5|http%3A%2F%2Fwww.slashfood.com%2F2009%2F11%2F20%2Farbys-lures-sports-fans-with-free-food%2F

Read more about the services I offer at www.squidoo.com/tradeareasurveys thanks.

The trend for dayparting and weekparting continues - this time it’s Moe’s with an American Idol ad last night saying `Two For One on Thursdays with purchase of two drinks’ - expect to see even more in 2010 as more and more fast food retailers realize that this is the new normal of the Great Recession.

Just a quick post today to note the continued positioning being taken by various fast food restaurants locally - today - as the title suggests - Checkers had a reader board advertising lower evening combo pricing. Excellent idea and could encourage more combos during this higher customer transaction size period/daypart. This joins the limited 1/2 price - daypart pricing by Sonic and Steak And Shake for mid-day drinks.

Lastly for today - thanks for your support in 2009. Here’s some statistics about this website. In 2008 this website had 5,788 unique visitors - in 2009, 18,805 unique visitors (as many as 2,572 in a month). In 2008 this website had @9,300 page views and in 2009, over 28,000 page views.

Much more will be coming soon too - bookmark and return. Oh, and make sure to see in the sidebar an overview of the important posts of 2009.

It seems that many fast food restaurants have too narrow a target demographic and don’t spread out their age targeting on television commercials as they should - including a direct targeting of the customer aged 18-24  (Krystal being an exception.) - especially considering how hard it is to get the 18-24 age group to actually USE a FF coupon. Indeed, I’ve done research where less than 2% of the age group used coupons while upwards of 30% in other older age brackets was the case. So, the question is how to motivate usage within the young 18-24 year old cell.

Answer. VISUALLY target them with `frequency club’ bounceback card/coupon - make sure the dated card only involves a reasonable frequency level like I’ve described in my recent posts. (For example, 2 visits in 2 months - with a discount for each of those purchases.) So, if the young person KNOWS that the next two times they use your restaurant they get 20% off (or similar) the total bill - anytime in the next two months — that will be much more likely to influence a spontaneous purchase with the brand — versus a 1% chance of usage of a coupon in the paper or mailbox mailing.

Restaurant links for today:

http://www.walletpop.com/blog/2009/11/11/subway-wants-your-breakfast-business/?icid=main|htmlws-main-n|dl8|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F11%2F11%2Fsubway-wants-your-breakfast-business%2F Subway moves into the breakfast daypart. Can Subway bakery or Atlanta Bread Company positioning be far away?

http://www.walletpop.com/blog/2009/10/29/chinese-chickens-which-fast-food-chain-may-serve-you-this-scary/?icid=main|htmlws-main-n|dl3|link4|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F10%2F29%2Fchinese-chickens-which-fast-food-chain-may-serve-you-this-scary%2F - Chinese chicken: Which fast food chain may serve you this scary import?

www.RestaurantNews.com BTW, you can see my ad at this website - which has lots of interesting content too.

Nothing like being a bit late to the party - or - making the move while a 5.01 Combo advertising campaign is going onward - but Arby’s has finally moved to match the direct FF competition. Seems the shift away from advertising specific products and tastes continues.

Also seen lately is Capt. D’s once again positioning their food and prices compared to Red Lobster - this time showing a party of two that they could have fed a party of four AND gotten 15.00 back. The tradedown customer is a legit positioning for sure for `dinner’ FF restaurants.

Finally, some other restaurant links:

Hundreds line up to apply for a job at In-N-Out Burger - http://www.ksl.com/?nid=148&sid=8366210

Study: Consumers Prefer E-mail Interaction to Social Media - http://blog.sellsiusrealestate.com/marketing-tips/study-consumers-prefer-e-mail-interaction-to-social-media/2009/10/16/

As I’ve mentioned in the last few posts - the customer frequency of your customer base is the number one attribute of concern to your fast food restaurant. And, if you want your customer base to `listen’ to your promotions - perhaps it is time to treat them like a `listener’ to your channel/brand. One that they can be `loyal’ to (as I mentioned in the last post) - one they are connected with - involved with.

Indeed, it might be time in this new era of the Great Recession - to use one of the old standards of giveaways that radio used for decades to `maintain’ and grow listenership - and that is — give away LOCAL MONEY. Literally at the store level. To `listeners’ (customers) who followed the `promotion’ for entry.

So, for `drink-only, drive-thru’ customers - that meant using `their’ Drink Only `clubcard’ (which had a discount for drinks two and three) twice more for a chance at entry in the `monthly customer loyalty drawing’. Other folks would be turning in their `nite-owl’ cards with a similar idea to forming a (sub) brand loyalty - or a breakfast club.

Likewise, operators need to reach out to other - mainstream frequency programs - and use them in the same manner; (such as combo club, sandwich club, dessert club, or all milkshake purchases today get entry, etc.) - all for a chance to enter the LOCAL `money giveaway’. Indeed, the chance to `win’ 100 or 200 bucks - EVERY month - will stay in the customers mind.

Winners will be `announced’ on the outside reader board (giving customers a reason to read it at other times too) and inside too. The drawing will be LIVE in the store - creating an event. The winner will be posted on a winners board for all to see. JOE SMITH - 200 DOLLAR WINNER - COMBO CLUB CUSTOMER.

In the meantime, the `entries’ (the club cards with E-Mail addresses or phone numbers/addresses) will provide you with a usable custom marketing base for your selected marketing efforts. For your new loyal `audience’.

My research at fast food restaurants has shown that it takes a `certain’ level - generally - for customers to say `I use this restaurant/brand the MOST’. And, even in the new normal of the Great Recession, that level is around once a week usage. Only about 1 in 5 customers don’t offer a FF restaurant they use most often when asked. A loyalty - often felt with justification and pride almost. “they are the friendliest here” “they know me here” “this is super convenient for me”.

Sometimes, operators need to literally `look’ for ways to develop that special relationship with their customer base. And, once again, ways exist around the margin to create that `special user’ - to develop a loyalty. And, here’s just one example (I have more) - let’s say your restaurant is one of those that likes to advertise or position later summer hours - how about a special `bounceback loyalty card’ that is ONLY given to customers AFTER 10 and for use ONLY after 10? The night-owl club. 20% all summer for those `special folks’ who visit after ten.

Occupying that special place for customers - generating loyalty - almost a must in today’s competitive environment.

Restaurant Links for today:

Wingstop Reaches 25 Consecutive Quarters of Positive Comp Sales - http://www.reuters.com/article/pressRelease/idUS111102+12-Oct-2009+BW20091012

Darden net income up, sales down in 1Q -http://orlando.bizjournals.com/orlando/stories/2009/09/28/daily24.html Including Red Lobster off by nearly 8%.

Food Fight: Franchisees Caught in the Middle - http://online.wsj.com/article/SB125492481356270841.html Important read of three minutes.

UPDATE 1-Ruby Tuesday posts higher profit - http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0739123320091007 However, sales were off 3%.

Sales meetings at YOUR store? It’s working for Panera Bread
http://www.nrn.com/landingPage.aspxmenu_id=1416&coll_id=554&id=374238#ixzz0Tp32Jvc2

Recently, my daughter related to me how a national FF restaurant was doing a `bounceback’ (stuffed without mention into a drive-thru bag) `free combo’ promotion. It was either buy 4 more and the fifth one was free or buy 5 more and the 6th was free. You had until the end of the year (so about twice a month to get the freebee).

Now, while I applaud the effort - since the frequency of your CURRENT customer base is most important customer attribute in the `new normal’ of the Great Recession - it falls WAY short of real motivation or of doing what it seeks to do - which is to increase frequency or market share.

Why not?

Because it simply isn’t motivating. To the VAST majority of the customer base as it has too high a threshold for compliance. Additionally, it gives away food for free to those who probably don’t even need a motivation to use your restaurant - your weekly or more often user.

Indeed, the next level of usage - those that use your restaurant once every two to three weeks (which can be a large movable segment) - are generally those who do NOT use your brand most often - for whatever reason (perception of high cost, not as convenient, service issues) and are indeed - UNLIKELY to increase their usage pattern over 2 - 3 months - a long time - for the special deal. We don’t even need to mention the once a month user or less often user — which is the vast majority of the customers of your customer base.

So, what should have been done?

Well, first, if the FF chain really wanted to bring a discount on their combo’s to certain folks over the next 5 visits within a certain time frame — give it to them EACH VISIT. Meaning, the next 5 visits before the new year when you buy a combo it’s 20% off. Saving money EACH time - can address high cost perception problems - and be motivating EACH time.

But, even that is NOT what I would recommend - as the timeframe is too long and the purchase requirement too big. So, obviously, I’m suggesting fewer purchases in a smaller timeframe - at a targeted customer (which you determine by asking your customer ONE question at the time of purchase).

To find out which question - to which type of customer - you need my services. 678-467-8650; ask for Rick.

First, let it be said that my usage of nearly ALL of the restaurants has already assumed the `new normal’ of the Great Recession. Regardless of what cheerleading the media may be doing about the economy - most folks are now cautious on discretionary spending - of which, restaurant visits - even to a degree Fast Food restaurant visits - has been impacted. 

 In alphabetical order:

Arby’s - I `responded’ to the ads for the `Roast Burger’ earlier in the year and was not impressed. I refused to respond to the Marry a Goat `humor’  ad campaign and somewhat like the recent 5.01 combo or pricing (the one cent being for Quality).  That said, generally, I perceive that Arby’s as expensive without having coupons from the coupon mail drop a few times a year. Additionally, they  `streamlined’ their `fries’ - dropping my favorite the Homestyle. How can they NOT promote the Jamoca Shake?

Atlanta Bread Company (ABC) - Remodeled nicely. Upgraded to real plates and silverware. Messy to clean up. Can be crowded and slow service. Female favorite. Good soups and combo prices. Mellow atmosphere.

Burger Inn - Local  legend - all fresh cooked. Great breakfast customer base. Friendly people; newspapers available often. Excellent onion rings. Beefy hamburgers. Male favorite.

Burger King - I like the current billboard promotion about the Double Cheeseburger for a buck, real value - but - haven’t gotten it.  I have ordered the Mini burgers more than once however and view that as an excellent addition. Amazingly, the Woodstock BK got rid of Real Sweet Tea years ago (my assumption is that is still the case) and thereby nearly ended my usage — I can’t stand the fake sweet tea out of a machine. Operations should be aware that changing ICONic drinks can have a big effect. — Finally, where is the KING?

Capt. D’s - Perhaps my favorite FF in Woodstock. Quality, Quick, and Quantity with good value pricing. Covers all reasonable price points including lunch specials and on-going `specialities’ that have all prices. Excellent choice of sides. Funny ads earlier in the year comparing to Red Lobster pricing. Friendly greeting and thanking when exiting. Good inside music.

Checkers - Still a viable concept (double drive thru) - chicken wings were a good addition earlier in year - somehow it fits. Catchy phrase “you gotta eat” recognizable for smaller chain levels of advertising. Covers all price points well with a good mix of products. The Woodstock store does Sunday Pricing - good idea - hasn’t ever motivated me for their `down sized’ versions. Could probably `play-up’ the FUN theme a little bit more.

Chick-Fil-A - Woodstock’s Chick-Fil-A is amazingly busy. Overwhelmingly busy whenever they do a promotion like 2-1 for a chicken sandwich or free food giveaway. Excellent quick service regardless of how long the lines are - especially at the drive-thru. (However, I’ve detected a time or two a usage of `workers in India’ taking my orders — I’m not kidding - and, in this time of underemployment in America - that is NOT right to save a few cents that way.) Real Milk Shakes were genius. Consistent quality. Friendly employees. Clean. ————— All that said, the Woodstock inside service in the sit-down area can be horrid and when is Chick-Fil-A gonna get some normal fries? Also, one takes a chance when getting the baked potato.

Dairy Queen -  The standard in Ice Cream desserts from the drive-thru. Haven’t used but really like the new pricing structure in ads 2/3 3/4 4/5.00 - interesting approach. Unfortunately, for me, the food hasn’t broke thru.

Dunkin Donuts - Right on the Strip - I’ve never used location. Certainly they can advertise donuts and donut prices more.  (IF I knew a quick Donut sweet was 99 cents for example - it would come to mind for `dessert’ or breakfast purchase more often. Never seen a place less concerned with establishing a price point understanding. Just how much does a dozen donuts cost?)

Firehouse Subs - Expensive but Excellent. Can be slow. Friendly employees. TV’s to watch. Good real sweet tea. Small, can be crowded.

Five Guys Hamburgers - Tangential to Woodstock in Sandy Plains area — good operation - waiting for a Woodstock Location (several good places available perhaps too).

IHOP - Expensive, right? What specials?

KFC - Closed but not forgotten. Also was one, like BK, to drop sweet tea for a time.

Krystal’s - Krystal `fix’ a must a few times a year. (Canton Road.) Ad’s featuring Crispy Onions on burger looks very compelling. Wi-Fi add - good idea.

McDonald’s - Woodstocks unit re-designs and updates the interiour often - which is nice. Clean. Service can range from excellent to very poor (weekends). Can often find an AJC or USA today in newspaper bin. Separate kids area - thumbs up. Fries can vary in quality. Best FF fish sandwich.

New China Buffet - Lunch value leader. Good quality food. Friendly employees. Priced by the pound to go. Widest variety of food.

O’Charlies - Stopped going shortly after changed menu restricting Prime Rib to Sundays only.

Panda Express - Have never used. Pass by back of lot 3 times a week on way to Walmart.

Po Folks - AKA Folks —> Expesive for what you get.

Ruby Tuesday’s — How could they get rid of German Potato Salad? (pet peeve). Good miniburgers and platter pricing. Easy to split orders. Great salad bar still.

Sonic - I really like their ad’s inside the car with the main guy and his friend and the main guy and his wife. Classic. Best onion rings in Woodstock at FF. To me, tasteless burgers. Fun to use. Daypart pricing on drinks in the afternoon. Fun music playing.

Steak And Shake -  Best Milkshake in Woodstock. Can be very expensive without coupons and very reasonable with coupons. Great variety of sides. Great music inside.

Subway - Good with pricing with coupons. Good quality. Can be SLOW service. GOOD real sweet tea. Fresh. Daily specials a good way to address pricing. Excellent variety of sandwiches.

Taco Bell - Good cheap price positioning. Good Chalupa’s. Good real sweet tea. Good service speed. Good quality overall.

Wendy’s - Huge variety in quality - excellent one time - poorish the next. What the heck happened to the fries - almost tasteless compared to yesteryear. I’m told good salads. Expensiveish compared to McD’s. Baked potato good price/quality.

Thanks for reading - feel free to comment.

Here’s some links also:

KFC Closes Its Doors to Fight Hunger - http://www.slashfood.com/2009/09/30/kfc-closes-its-doors-to-fight-hunger/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.slashfood.com%2F2009%2F09%2F30%2Fkfc-closes-its-doors-to-fight-hunger%2F Community involvemet matters - look at the results of the survey on this page too.

A Real Whopper? NASCAR’s Stewart to take live polygraph test in ad  - http://www.walletpop.com/blog/2009/09/30/a-real-whopper-nascars-stewart-to-take-live-polygraph-test-in//?icid=main|htmlws-main|dl1|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F09%2F30%2Fa-real-whopper-nascars-stewart-to-take-live-polygraph-test-in%2F%2F BK, attention grabber again.

Eat, drink, and spend money: Restaurants ply diners with cheap booze - http://www.dailyfinance.com/2009/09/29/eat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b/#continued?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.dailyfinance.com%2F2009%2F09%2F29%2Feat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b%2F%23continued