Restaurant Trade Area Research

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

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.

This is a move that could, could, really shake up the breakfast daypart - especially for anyone looking for a NON-Biscuit breakfast choice. I do have a problem with the suggested 7AM planned start time. That said, I can see Subways with successful breakfasts begin to cut into the morning traffic at NON-Biscuit brands/bakeries. Finally, why NOT use ones property in all dayparts - only common sense - but, with the new normal - this will need a long term view to be successful.  http://www.google.com/hostednews/ap/article/ALeqM5iIXB-1yC23zyltFqu3kHqI5_PBwwD9ELQBM00

Speaking of the new normal - here’s a link predicting - correctly - that the 1 dollar menu price point is here to stay - until things improve at the discretionary spending levels of consumers feeling poorer - regardless of what the media says (from the low return on savings rates to the reduction in home values to the unemployed neighbor). http://www.dailyfinance.com/story/investing/1-fast-food-deals-tied-to-the-economy/19413284/

More on my research background here - http://streetlevelviews.com/5.html and here is an example of `street level views’ - http://www.youtube.com/watch?v=zTRO81RR7DA

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.

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/