Restaurant Trade Area Research

3. September 2010

Burger King Sold For $3.26 Billion To Private Investors

With banks lending most of the money - the #2 Burger chain is sold -blaming focus on the 18-35 year old male as one positioning problem with the brand - http://www.npr.org/blogs/thetwo-way/2010/09/02/129604272/burger-king-sold-for-3-26-billion-to-private-investors - here’s to hoping the BK `King’ Character is safe.

Hardee’s develops for the only increasing segment of visitors - breakfast - and focuses on having the product `mobile’ for users - Hardee’s Makes a Breakfast Classic Portable with New Country Fried Steak ‘N’ Gravy Biscuit - http://www.restaurantnewsrelease.com/hardees-makes-a-breakfast-classic-portable-with-new-country-fried-steak-n-gravy-biscuit/853611/ - still, is GRAVY on a biscuit - really `mobile’?

Meanwhile - instead of pursuing the `Gravy’ crowd at breakfast - Ruby Tuesday’s is going Healthier and Lower Calorie at Lunch - Ruby Tuesday Highlights More Healthy Options on New Menu - http://www.restaurantnews.com/ruby-tuesday-highlights-more-healthy-options-on-new-menu/ - the salad bar allows RT’s to have more of a positioning in this area compared to a Chili’s, etc.

More about my services here - www.squidoo.com/tradeareasurveys - have a safe Labor Day Weekend.

2. September 2010

Top Of Mind Restaurant Ads

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

28. August 2010

NPD Says - Restaurant Traffic To NOT Keep Pace With Population Increase

Interesting report that focuses on the aging population and how that segment uses restaurants less than other age groups - more insights at the link - http://www.restaurantnews.com/us-restaurant-traffic-will-grow-less-than-population-growth-over-next-decade-reports-npd

No tipping, quality food - Fast Casual Establishes Itself as Niche Restaurant Category, According to Mintel - http://www.restaurantnews.com/fast-casual-establishes-itself-as-niche-restaurant-category-according-to-mintel/ is the real question when will the `casual’ restaurants - with tipping - change their business model? Will waiters and waitresses soon be `salaried employees’?

Firehouse CEO: Sites Thriving - http://www.swtimes.com/business/article_470f9536-aaca-11df-b0f2-001cc4c002e0.html - Comps are UP.

More aggressive price point focus of the new normal - Luby’s Introduces All You Can Eat Breakfast for Only $4.99 - http://www.restaurantnewsrelease.com/lubys-introduces-all-you-can-eat-breakfast-for-only-4-99/853387/ - and, as you know, the only segment growing is Breakfast.

More about my services can be found at www.squidoo.com/tradeareasurveys

18. August 2010

Fast Food Trading Up To Catch Customers Trading Down

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.

17. August 2010

And The Survey Of 6,518 Zagat Restaurant Users Says…

Winners of the various categories are: 

Healthy Food - Subway - Mega Chain; Jason’s Deli - Large Chain

Coffee - Starbucks, Dunkin Donuts, McDonalds

Best Burger - Five Guys, In-N-Out Burger, Wendy’s

Best Fries - McDonald’s, In-N-Out Burger, Five Guys

Best Milkshake - Dairy Queen

Best Value - McDonald’s, Panera Bread

Best Drive-Thru - McDonalds

Most Popular - Subway

More details at this link - http://www.restaurantnews.com/zagat-fast-food-survey-rates-136-major-dining-chains-from-breakfast-to-burgers-dessert-to-drive-thrus/

16. August 2010

With Down Sales, KFC Franchisees Are Squawking

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

9. August 2010

Stevi B’s Pizza Celebrates Second Annual Free Pizza Day on August 19

I live only about 2.5 miles from a Stevi B’s - it’s pretty good pizza - that said, when it opened our family used to use it 3-6 tmes a year - but, it’s been 3-4 years since our last use. That said, free food can indeed bring in the old users (now nonusers) - and, IF they give that pizza to the customers as they leave - they may indeed stimulate some `take out’ business in the future. (Especially if the pizza re-heats well.) http://www.restaurantnewsrelease.com/stevi-bs-pizza-celebrates-second-annual-free-pizza-day-on-august-19/852283/ Free Food - Part of the New Normal.

(Finally) Blimpie Introduces New Lighter Stuff Menu - The Lighter Stuff menu is comprised of six deliciously healthy items, all less than 400 calories and six grams of fat. - with a celebrity endorser and all - http://www.restaurantnews.com/blimpie-introduces-new-lighter-stuff-menu/ - Just how many years ago was Jared?

“It’s Bo Time” - http://www.charlotteobserver.com/2010/07/19/1572009/bojangles-fries-up-new-ad-slogan.html - Will Bojangles new slogan live up to the impressive KFC `So Good’? Are you motivated?

Arby’s goes interactive to introduce a new 1.00 sandwich - New Web App Morphs Your Photo Into “Arby’s Junior” Character - http://www.restaurantnewsrelease.com/become-an-arbys-junior/852235/  will cutesy work? That said, the description of the sandwich sounds like a taste treat for one dollar: the Jr. Deluxe features oven-roasted, thinly sliced roast beef, topped with crisp, fresh lettuce, ripe tomato and mayo on a toasted sesame seed bun. 

And, why not try the new media when - Starbucks Tops 10 Million Facebook Fans - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=132008

6. August 2010

Ruby Tuesday’s Recipe for Survival Is New Menu, Look

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.

3. August 2010

Pizza Hut Slashes Menu Prices

Prices Slashed

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.

12. July 2010

`Tight Targeting’

Filed under: tight targeting, new normal, market sales, marketing dollars, MarketView — Rick Phillips @ 10:01

Often when owners do the MarketView at their fast food restaurants they find in the crosstabs interesting information of which they simply were not aware. For example, a store may find that ONLY `Drive-Thru’ customers before 5 PM had a low frequency of usage (compared to all after 5 customers at the drive-thru OR any segment of in-store users) - and specifically target JUST that `tight targeting’ to get the most bang for the buck.

OR, the data may show that one age group - say those over 55 - indexed lower on frequency of usage than all other segments - resulting in an easy `visual’ `tight targeting’ effort with those customers.

OR, the data may show a particular zipcode that simply isn’t performing for the store (on-site it requires asking) which would allow for a `tight targeting’ marketing effort. In the new normal - tight targeting may be all one can afford.

More about the MarketView here - www.squidoo.com/tradeareasurveys

7. July 2010

Domino’s Uses Authentic Food Photography in New Marketing Efforts

Filed under: Domino's Pizza, free wi-fi, Starbucks, new products — Rick Phillips @ 16:13

In the new normal - everyone is tired of the endless `marketing’ and pitching of products that do not live up to expectations - especially visually. But now, Domino’s Pizza has gone the extra step in advertising their product - showing THE REAL THING. Honesty, a worthwhile, unique attribute in advertising and enough to make this stand out - http://www.restaurantnews.com/dominos-puts-authentic-food-photography-in-marketing-picture/ 

Starbucks - FREE WI-FI - and more coming - Later this fall, Starbucks plans to introduce the Starbucks Digital Network, in partnership with Yahoo!. This new online experience, currently planned for U.S. company-operated stores, will offer customers free, unrestricted access to a collection of paid sites and services, exclusive content and previews, free downloads and local community news. - http://www.restaurantnews.com/starbucks-turns-on-free-wi-fi-for-customers-july-1st/

Being connected - Being Real - in the new normal.

29. June 2010

Denny’s AARP Pact Is Generating Results

As you know, - when this was announced I KNEW it was a winner - read more about the details here and why Denny’s has committed to a 3 year run with this relationship. http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=130303 - great customer targeting here.

The Happy Meal regulations - http://www.daily49er.com/opinion/happy-meal-regulations-1.2264397

Double Dip After all? - The hard real data about our economy - http://modeledbehavior.com/2010/06/23/double-dip-after-all/

25. June 2010

Fast Casual - The I Don’t Want To Tip - Nearly A Restaurant Restaurant

Filed under: no tipping, fast casual, new normal, Sonic — Rick Phillips @ 11:45

Today’s link talks about everyone’s favorite niche in the new normal - the fast casual restaurant. And, in this link “Technomic’s 2010 Top 100 Fast-Casual Chain Restaurant Reportprovides rankings, analysis and profiles of the leading chains, and helps chain operators and foodservice suppliers understand emerging trends and players in today’s fastest growing segment.” - interesting reading with hard numbers to ignore. http://www.restaurantnews.com/fast-casual-chains-continue-to-grow-and-benefit-from-recession-finds-technomic/ 

Many FF chains are toying with the high-tech side of the marketplace - even to the point - like Sonic recently - of texting you each time you come into a trade area - When the Customer Is in the Neighborhood - http://online.wsj.com/article/SB10001424052748704238104574601944230186368.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop - (I would hope that it has some upper limit as one can easily transverse multi trade areas in nothing more than a trip to the mall.) Is this Jetson’s stuff - or - pure annoyance.

Indeed, the previous link leads me to this GREAT article - http://www.revenuejournal.com/blog/great-marketing-and-selling-crisis-2010-and-how-escape-it

The Great Marketing and Selling

Crisis of 2010 - and how to escape it

 - Force #1: All those “traditional” marketing vehicles and methods have lost their power, and no one is really sure how and if the new vehicles and methods can replace them.

Force #2: No one wants to be “sold to.”

Force #3: Any entrepreneur or CEO with a conscience is in the midst of a spiritual crisis.

Force #4: Shaky economic climate - on a global scale.

Force #5: Personal reluctance to spend.

On top of all this, it’s personal. ———- Make sure to read this great link and please check around this site for much more.

22. June 2010

Hardee’s Introduces Hand-Breaded Chicken Tenders

Hardee’s continues its move to offering a more upscale `handmade’ product for its customers (one suggested by a franchisee who was having success with it in another restaurant he owned) - http://www.restaurantnews.com/hardees-introduces-hand-breaded-chicken-tenders/

In other research - Breakfast Accounts for Nearly 60% of U.S. Restaurant Industry Traffic Growth Over the Past Five Years - http://www.restaurantnews.com/breakfast-accounts-for-nearly-60-of-u-s-restaurant-industry-traffic-growth-over-the-past-five-years/ being a player in all dayparts is becoming needed in the new normal.

Since you are here - look around before you go - http://restauranttradearearesearch.com/important-posts-of-2009/

21. June 2010

Folks Restaurant Woodstock - Bingo Monday Evenings

Having `connections’ with customers and people in general in this new normal is important for the restaurant category - and - Folks Restaurant in Woodstock Georgia - like many brands - `needs users’ - and anything that gets them coming to the restaurant is `good business’ (or a sign of desperation?) - so, why not try to cater to those `Bingo’ fanatics.

Another idea in Woodstock was the recent `reservations only’ Father/Daughter Date Night at Chick-Fil-A — `two more restaurants that are `using the works’ - in the new normal.

More links too:

Bojangles’ Gives Big Awards to Top Locations - and the winning location got 10 Grand — cool — http://www.qsrmagazine.com/articles/news/story.phtml?id=11117

Here’s an epic article about McDonald’s effect on the world - Happy meals: Why McDonald’s has been a positive force for change - http://www.independent.co.uk/life-style/food-and-drink/features/happy-meals-why-mcdonalds-has-been-a-positive-force-for-change-1972152.html 

Want to see some recent (June 7th) on the street research with a 50 year old male who by 2 pm had already eaten at two fast food restaurants? — http://www.youtube.com/watch?v=T2H_pEFuSSo - If you want feedback on your brand contact me at 678-467-8650

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