Restaurant Trade Area Research

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

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.

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’.

Hello, welcome back to Restaurant Trade Area Research - and today - that is just what will be discussed.

Markets which use my MarketView marketing research design find out the information needed to have truly effective billboard advertising. And, no, I’m NOT talking about `what’ is even on the billboard - I’m talking about placement.

Yes, placement - one of those  P’s of marketing. How you ask?

Well, the MarketView maps your trade area for each of your stores in an ADI and more importantly for this `effectiveness’ - finds out important customer information which determines the actual customer base size of an individual store in a market.

While it may seem counter-intuitive, your store with the largest volume may NOT be the store with the largest customer base - indeed, some of your lowest volume stores may fit that characteristic. How you ask?

Well, any store, and often lower sales volume stores - have LARGE customer bases with INFREQUENT users - indeed, some Fast Food Units may have 10-15,000 or more infrequent users compared to other units. And that is a lot of extra users being exposed to a particular billboard ad.

Additionally, because a unit (and market) has had its customer base Trade Area mapped as part of the research of the MarketView, even the side of the street for most exposure to the most customers can easily be selected for better billboard effectiveness.

Read here for more about Customer Base Size: http://restauranttradearearesearch.com/2008/08/10/customer-base-size-it-can-be-calculated/

http://restauranttradearearesearch.com/category/customer-base-size/

Here’s another restaurant link - a good news story:

http://www.businessweek.com/magazine/content/09_16/b4127068288029.htm?chan=top+news_top+news+index+-+temp_small+business

Hello, thanks for visiting my blog about restaurant research - something I’ve done for over 30 years. As you might know, I’ve been trying to bring to you a blend of posts - some with insights about marketing research and others just commentary on the whole subject of restaurants.

The data of this website also indicates that on posting days — we are getting 100’s of visitors who sometimes hit and read as many as 8 links each (but, generally it’s 2-5 links each). I say that so that you know that if you just continue to `read down’ the page that you will probably find lots of interest to a restaurant owner or manager like yourself. (Corporate folks are allowed to read too. Lol)

Today, I’ve decided to continue last weeks look at particular fast food (FF) commercials (last weeks post was Arby’s `Marry A Goat’ ad) - this week I’m posting on one of my personal alltime favorites - The Burger `King’ — if you’d like to know more about his history - use this link - http://en.wikipedia.org/wiki/The_Burger_King .

As you know, I panned Arby’s `Marry The Goat’ ad as `too edgy’ in my last posting (that said, it does get across the main selling idea of a combo at 5.00) and just too creepy. No, for creepy, - at an appropriate level - The Burger `King’ is the epitome. It is also great that `King’ is only used sparingly and with many different commercial versions on-going.

My favorite King commercial is, as I posted recently, - the `reverse bandit’ King who ends up getting SMASHED by a car. Totally smashed in a manner that a human would never survive - only the King - with the unchanging face.

Two different chains - two different takes on saving money - with two different takes on Creepiness. I can’t wait for Halloween.

Restaurant Links For Today

`Bud For A Burger’ - Pot Not Currency At McDonalds

http://www.cbs12.com/news/pannullo_4710070___article.html/pay_marijuana.html Figured we’d start with the humor — yep, someone tried to buy food with marijuana. Humorous 20 second read.

`Economy Weakens Restaurant Stocks’

http://latimesblogs.latimes.com/money_co/2008/10/worries-about-c.html Cheesecake Factory singled out.

`Casual Dining Chains - Seek Compelling Attributes For Sales’

http://www.walletpop.com/article/_a/bbdp/casual-dining-chains-hunger-for-change/210940?icid=200100397×1211186403x1200670159  This is a LONG in-depth article about the many ways that the casual dining chains (Ruby Tuesday’s, Friday’s - etc) are trying to re-tool their approach to the American consumer.

`The Delivery Debate’ - Should FF Consider?

http://www.qsrmagazine.com/articles/features/120/delivery_debate-1.phtml A well balanced read about the whole subject - pro, con, and other viewpoints. A good read for sure. Brand extensions are important.

`Krystal’s Drive IN Concept’

http://www.franchising.com/pressreleases/9135/ Here’s an example of a brand extension.

`New Zaxby’s’

http://www.murfreesboropost.com/news.php?viewStory=13214 Make sure any locations you open get coverage of this level. Great example of PR. (From a bit back.)

`New Opinion On Food Labeling’

http://voices.washingtonpost.com/checkup/2008/10/restaurant_food_labels_revisit.html This is a quick read about someone who changes their mind about FF chains printing calorie counts and such — interesting read.

Ok, that’s it for today, please bookmark us and comeback next week — also, please keep reading down the page. How about a comment?

While I’m not sure of how many markets have the new Arby’s ad - sometimes attention grabbing `humorous’ ads might not be worth it. If you haven’t seen the new ad - two workers out in a field are hungry for lunch; one guy laments he has only 5 bucks; the other says we can go to Arby’s for any of their toasted subs, curly fries, and a drink for 5 bucks (hope the guy has some pocket change for the tax); and his friend, not believing the deal says if that is so `I’ll marry a goat’.

Flash forward to the `friend’ now dressed in a tux sitting next to a goat in full bride headset — while his friend sitting across from him, while gawking at the goat, whispers from behind his Toasted Sub with a wink to his friend that `She’s HOT’. Leaving the viewer wondering about the newlyweds first evening together as the punchline humor.

Verdict - 4.99 combos on a large sandwich at Arby’s good - usage of marginal humor - not so good. Especially after multiple viewings.

Ok, onwards to today’s links — with MUCH emphasis on Drive-thru’s.

QSR Names FF Restaurant With Best Drive-thru

http://www.marketwatch.com/news/story/qsr-magazine-names-americas-best/story.aspx?guid=%7B2EA0E58A-DFBE-48D6-8AA9-0FA581B99F7C%7D&dist=hppr Chick-fil-A is overall winner - most accurate and clearest speakers. Much more in this excellent 2 minute read.

The END of the Drive-Thru?

http://www.qsrmagazine.com/articles/features/120/emissions-1.phtml  Talk about how idling laws in Canada may become important to even your business.

Amputee On Motorized Scooter Banned From Drive-Thru

http://www.mirror.co.uk/news/top-stories/2008/10/07/mcdonald-s-ban-amputee-on-mobility-scooter-from-drive-thru-115875-20782800  Common sense but a fun article.

Is Drive-Thru Nation in Idle?

http://www.nj.com/independentpress/index.ssf/2008/10/lost_in_suburbia_losing_direct.html The continuing `drive’ against drive-thrus — from bank tellers to libraries and post offices - and of course - restaurants.

The Education of the Fast Food Nation

http://media.www.theorion.com/media/storage/paper889/news/2008/10/08/Opinion/Fast-Food.Nation.Needs.Lesson.In.Healthy.Eating-3475751.shtml

That is it for today — much more below too.

This weekend I was watching some sports on TV when the `new’ Burger King ad with the King came on the screen. Anything with the KING gets my attention. This one  began with a `consumer’ holding a BK sandwich, who evidently `finds’ money in his pocket (that shouldn’t be there) and he is complaining about this to a policeman. The policeman says `reverse pickpocket’ and asks for a description - which, while being given by the `consumer’ results in the classic `THERE HE IS’ - cops and `robbers’ chase.

Off to the races goes The King crossing over a busy street while evading the law. Only to be SMASHED by a yellow cab. (With an impact that could easily kill a real person and you the observer literally feel it.) Yes, the first viewing had my full attention and brought amusement in addition to the message of BK itself — you can save money by eating with us. Expect to see more of the reverse pickpocket.

The BK ad ran within minutes of another FF comparison ad - this one for Capt D’s (seafood). In this one, in a parking lot aside of a Red Lobster, — customers of the RL are approached and asked how much money their meal cost. I saw two different ads on this and one said 80 dollars and the other 100 dollars - at which moment the Capt D’s renegade interviewer brings the RL party over to a makeshift area with a long folding table where Capt D’s employees crank out one meal after another and tell the RL group they could have had `all this’ and spent 40.00 less. The mantra, again; you can save money eating with us.

Which brings me to the two `fake restaurant’ ads currently in the Atlanta market being run by FF brands. The first is the *obnoxious Pizza Hut ads where it is `their pasta’ which is being served in the restaurant that evening. So, after `candid’ praise for the pasta - the `upscale’ diners `laugh’ about how they were fooled by the quality. Indeed, why would you be a fool and go to a sit down restaurant, pay thru the roof, — when you can get `restaurant quality’ delivered to your door. The mantra, you can save money here, by eating at home.

(* what is actually obnoxious is the version of the ad where the PH girl rips her `apron’ off to reveal her PH identification - she does it in a manner that somehow shouts — ~you idiots-jokes on YOU~).

OR, you can also find the other fake restaurant ad for Hardees and their Big Burger products. The idea; don’t pay 8.00 for a 4.00 burger. The mantra; you can save money by eating with us.

Finally, in Atlanta, Arby’s stores seem onto the price position with the 99 cent ArbyQ plastered (tastefully) over the store outside banners — while the Checkers down the road makes sure its customerbase knows it has 69 cent Sundays and Wednesdays.

Because of the economic uncertainty, the market for the upper middle and lower upper classes for FF restaurants is increasing. Promoting the `savings’ with quality  via trading down is one approach - expect to see this even more.

Today’s Restaurant Links

How KFC Captured The China Market

http://www.chinadaily.com.cn/opinion/2008-09/16/content_7030941.htm  Very interesting history of the marketing.

Blackouts in Power are Packing Restaurants That Are Open

http://www.wcpo.com/content/specials/2008/blackout_2008/story.aspx?content_id=98bd59f7-59dc-46ac-9e38-b3fcfe7b1b01   Being ready in an emergency with power and personnel.

Banning Drive-Thru’s In Madison

http://www.dailycardinal.com/article/20431  The desire by some to control others is unlimited; this is a building issue in FF.

The Proposal For a Fast Food TAX

http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/09/05/187813.aspx

Who knows what is coming.

The 174 Dollar FF Meal

http://www2.highlandstoday.com/content/2008/aug/31/pulled-over/

Thanks for visiting today — much more below — if you want to know more about my services visit the blogroll on this page.

Last year, I personally interviewed several thousand fast food customers (in-store and drive-thru) in a variety of fast food brands for Trade Area Research purposes. (Do you need trade research before expanding your market?) This was normal for me as I have  personally interviewed thousands of fast food customers for dozens of years. And, as you might know, certain questions are nearly standard on questionnaires trying to understand customer behaviour - such as the fast food restaurant that the customer uses `most often’.

In the 1980’s and even into the late 1990’s - when adults answered that question for me — when the answer was McDonald’s - they would immediately offer a `reason’, in an apologetic tone, which invariably was `the kids’. That is not to say that I didn’t hear `they are everywhere’ and `they are cheap’ on occasion. Nevertheless, the interesting thing was that `other brands’ such as Wendy’s or Arby’s or Chick-Fil-A  or others (such as sandwich chains Subway) - most often users ALMOST NEVER offered up `embarrassing’ reasons for their usage of a particular brand most. Only McDonald’s. It was almost a case of doing `marketing’ too well.

Then, McDonald’s focused less on kids and more on product and product quality. I began to hear folks say that they liked a `particular new product’ at McDonald’s that they went for `most often’. Kids, as a reason, was definitely fading quickly (I informed my clients who at first seemed surprised in the early 2000’s — it was the kind of information that only came from literally being on the ground for multiple brands for decades) - the return of McDonald’s was approaching.

The moral - If the biggest can change a negative perception — other brands, most of which have neutral images, can also build a positive one - like McDonald’s has done.

Today’s Restaurant Links

“People are requesting kids premiums that are more socially responsible,”

http://www.ajc.com/business/content/business/stories/2008/08/16/restaurant_toys_educational.html Wendy’s and Chick-Fil-A jump on `Educational’ kids toys. Strong feedback. Three minute read.

Individual Responsibility And Its Enemies

http://www.mtexpress.com/index2.php?ID=2005122089  Bringing ethics into the fast food discussion with force. Shows how `choices’ and having a restaurant business are related. Three minute read.

Parking Mad At McDonald’s

http://icwestlothian.icnetwork.co.uk/courier/news/tm_headline=parking-mad-at-fast-food-chain&method=full&objectid=21526230&siteid=92284-name_page.html After the positive McDonald’s opinion above - here is an example of not respecting the customer. Probably.

Arby’s Expands Savings Potential With Cellfire Mobile Coupons

http://money.cnn.com/news/newsfeeds/articles/prnewswire/200808130900PR_NEWS_USPR_____AQW047.htm Here’s a new coupon niche.

Are Restaurant Stocks A BUY?

http://www.chicagotribune.com/business/yourmoney/chi-ym-restaurants-0817-cpaug17,0,4787885.story Article says yes if you have a longer time horizon of 2-3 years; while detailing how over stocked the trade areas are with restaurants. Predicts store closings. Four minute read.

Many Many more - current links below. Bookmark and return please. Leave a comment if you wish.

Nearly all of the clients I have are owners of franchised restaurants - and = one thing they nearly always have in common is that they have limited `marketing dollars’ above and beyond the % they already pay to corporate to market the brand-name. That said, they do have SOME dollars and the decisions as to whether to sponsor a youth team, local charity golf tournament, do limited in-store marketing via bouncebacks, or buy billboards - are important image and marketing decisions.

When choosing to spend those limited dollars, it’s probably best to `do both’ - local image building and REAL marketing such as billboards. One of the `advantages’ that comes from using my services - doing what I call the MarketView — is that the owner knows the CUSTOMER BASE SIZE and type of user - of every individual unit in a market. And, based on that information - the owner knows which units are best and worst in converting their total customer base into `heavy’ users (some chains define this as the once a week customer, others, the once a month customer). Accordingly, the owner then has some direction from the research on how to spend those precious and limited local marketing dollars.

Much more on Customer Base Estimates in future posts - or - find out more at my squidoo website www.squidoo.com/tradeareasurveys.

TODAY’S RESTAURANT LINKS

Are Fast Food Building Restrictions Constitutional?

http://worldnetdaily.com/index.php?fa=PAGE.view&pageId=71377  Michael Ackley does a satire piece about how `gray’ the law becomes when thinking of `fast food restaurants’. A quick two minute read you don’t want to miss.

The Rise of the Breakfast Segment

http://ap.google.com/article/ALeqM5jGpPSjXCwpcs-JKUmPG3Gy5sht8QD92BG2380  Excellent article on how chains are increasingly looking at breakfast items as the way to more sales. Denny’s new containers and IHOP’s increase in take out over the past year is examined; as well as the reasons the FF chains have been successful in stealing the business from the sit-down breakfast eateries. Notes that some chains are thinking of offering breakfast items all day long. Finally gets into new offerings from FF restaurants including Carl’s Jr new product: “that features two eggs, bacon, sausage and cheese between grilled sourdough bread.”

Forget The Free Food and Drink Refills

http://www.startribune.com/business/26188614.html?location_refer=Most%20Emailed:Homepage:12 This story covers the many ways that restaurant owners are mitigating the increase in prices for foods and the increasing reluctance of patrons to eat out often. Here’s a quote from the 3 minute article:

The real problem, they argue, is that many large chains overbuilt at a time when Americans were starting to pull back on restaurant spending….Now, unable to raise prices to match rising wholesale food costs, so-called “menu makeovers” have become increasingly common

America’s WORST Restaurants For Kids Revealed

http://www.emediaworld.com/press_release/release_detail.php?id=120323  WOW - amazing article that GRADES each chain for offerings and other attributes related to healthy eating.  Getting A’s were Chick-Fil-A, Subway and Wendy’s - Getting F’s were Applebees, IHOP, Olive Garden, Outback, Red Lobster and T.G. I. Friday’s. A 3 minute, must read article.

When it flashed across the newswires and TV headlines - most readers were stunned - suddenly, a restaurant icon was `shutting its doors’ - Bennigan’s. No, this was not your lowly newbie who was closing after 50 stores; this was one with hundreds and a history. And, if you have been under a rock for the last 18 hours - the news is that the company owned stores are closing. You will find the link below.

Is there any marketing trade area information in all this? Perhaps.

For example, if a company unit was near a franchisee restaurant - some of that company unit customer base may become part of the large  `occasional’ users customer base of any given unit. Certainly billboard ads in the vicinity of the closed store with an `open stores location’ could be effective - or - targeting the likely home zipcode of the closed store with direct mail. (Perhaps corporate will share such info if they have done the appropriate research at the store level in the past.)

Finally, not ALL of the corporate units would have been `bad’ sales - aggressive restaurateurs could open franchisee units and fill in the void in valid market areas. That said, suddenly the market has many more empty restaurants waiting for a new concept.

Today’s Links

Bennigan’s

http://www.marketwatch.com/news/story/bennigans-franchising-company-lp-steak/story.aspx?guid=%7BE5283276-F8A1-44C4-8D83-EB9857B37D11%7D&dist=hppr   Franchisee’s to remain open.

Bennigan’s Wake

http://www.chicagotribune.com/business/chi-wed-bennigans-closing-jul30,0,6474654.story Longer, more in-depth read on the industry.

Denny’s Second Quarter Numbers

http://www.marketwatch.com/news/story/dennys-corporation-reports-results-second/story.aspx?guid=%7B2B41FDD2-AB42-402E-BCB2-42880BCED8F6%7D&dist=hppr Hard to put up `up’ numbers these days.

Banning Fast Food Drive Thru Windows

http://network.nationalpost.com/np/blogs/posted/archive/2008/07/29/better-watch-your-butts-in-calgary.aspx Beware of this sentiment.

Cheesy Macaroni Bites

http://laist.com/2008/07/29/simply_wrong_food_jack_in_the_boxs_1.php New Product of Jack In The Box; interesting product picture.

This blog is saddened to report the continuation of government restrictions into how you run your business and where you run your business. In this instance, the `how’ would be the government demand to use or not use a particular cooking oil (regardless as to the outcome of the final product - including taste - one of the most important attributes to your customer base) and the `where’ is the new restrictions on where fast food restaurants CAN’T be developed. Can fast food brands eventually be expected to fund the `alternative’ restaurants too? After-all, what’s to prevent a city council on deciding that FF restaurants would be `better’ for the community if they weren’t open 7 days a week?

Today’s Links

California Outlaws Trans-fats and Bans Fast Food Outlets in Defined Area

http://www.telegraph.co.uk/news/worldnews/northamerica/usa/2461615/Los-Angeles-bans-new-fast-food-outlets-and-California-outlaws-trans-fats.html 

It was funny seeing the 800 plus article titles on this one — only a few positioned the move on trans-fats with a positive headline title. One can only imagine what may happen if politicians turn their interest againist the industry.

Fast Food Goes To The Movies

http://www.sfgate.com/cgi-bin/blogs/sfgate/detail?blogid=26&entry_id=28501 

Quick read on the movie tie-in’s currently going on. Specifically tells what each restaurant chain DID on their end of the relationship (T-Shirts for workers, special cups, etc.)

Crowd MOBS Taco Bell Opening

http://www.rutlandherald.com/apps/pbcs.dll/article?AID=/20080724/NEWS01/807240408/1002/NEWS01  

This is a wonderful article you don’t want to miss about how folks LOVE getting their fast food. A great counter balance to the desire to BAN fast food elsewhere. ———- One comment however, always be ready for an amazing first opening day crowd and have your operations in order. Remember, one bad experience can turn 15% against a second visit.

Majority Stake in Applebee’s Franchisee Sold

http://www.nrn.com/breakingNews.aspx?id=356918&menu_id=1368

I was involved with Applebee’s findings when they had one unit on Memorial Drive in Atlanta and W.R. Grace was the interested party. Want to have a researcher like that - give me a shout - find my number on my squidoo site www.squidoo.com/tradeaareasurveys .

 11.23 For Lunch At Steak and Shake

http://www.indystar.com/apps/pbcs.dll/article?AID=/20080721/BUSINESS09/807210323/1109/BUSINESS09

Yet, somehow, that is not the ultimate problem? Article covers the challenges to the new company leader.

I once pulled into a fast food restaurant in Tennessee off I-75, and, was going thru the drive-thru, when, after the speaker, I encountered a smiling young lady doing `surveys’. Being a marketing researcher who has conducted thousands of similar surveys and also who has trained hundreds to do the same - this was the big moment - a validation of what I did. But, after my answer to the first question (the coming from question) I was asked to move ahead to the window (my answer was that I had traveled from KY on a vacation). Knowing that they would want more info than that - I asked what the survey was about - she indicated it was about a new store that would be north of this one, also on a I-75 exit (I would have passed this first). I said, don’t you want to ask me more questions - “no, I can fill it out myself”.

Unfortunately, it’s very unlikely this interviewer was doing her job and certainly there were more questions about an attrition situation — which is of vital importance to the operator of the exisiting unit in question. And, while this level of `research’ is not usual, and also is WORTH NOTHING, it often represents a fair portion of the data (using interviewers not trained or supervised upon beginning real interviewing). As you know, as an owner of a restaurant — millions may ride on the outcome of `cannibalization’ surveys - if done at multiple units in a market.

Having the highest level of data collection is of utmost importance to expansion within a trade market - a service I provide - read more about trade area surveys at www.squidoo.com/tradeareasurveys .

Today’s Links

1. http://money.cnn.com/news/newsfeeds/articles/apwire/e6edbb1117015e037cd739ba89205815.htm

DineEquity Inc releases 2Q sales for same stores - shows IHOP up, Applebee’s down. Quick read.

2.

http://www.bizjournals.com/triangle/stories/2008/06/23/daily27.html

Olive Garden has same store increase, not as good for others in company.

3. http://www.streetinsider.com/IPOs/Dave+&+Busters+Holdings+(DANB)+Files+$170M+IPO/3816999.html

Dave and Busters files IPO. We have D&B in Atlanta - the evolution of this concept has been well executed. The TV ads of the combo food and fun price were well positioned. FUN sells.

4 - LINK OF THE DAY — “TGI FRIDAY’S” Research study. - http://www.chainleader.com/article/CA6578744.html?industryid=47553

Wonderful research study showing the benefits of research and customer satisfaction - and, what attributes to focus on to achieve that result. Free food, of course - but much more. A great marketing article.

Hello to everyone in the restaurant industry, welcome to my new blog, my name is Rick Phillips. In this blog, I intend to draw on over 30 years of direct, in the field, restaurant research that I have conducted for numerous restaurant chains. Some of this research was qualitative - focus groups or one-on-one research; most of it was quantitative - done on-site with 10’s of thousands of restaurant customers over three decades.

Ideally, this blog will speak to the restaurant owner who wants to read frequently about store operations, marketing issues and promoting ones business. It will often feature links to daily stories in the restaurant field - spiked  with  my commentary and analysis. I hope you enjoy the daily links - such as these three today July 10th 2008:

Denny’s Responds To America’s Demand For Breakfast

Link - http://www.marketwatch.com/news/story/dennys-responds-americas-demand-breakfast/story.aspx?guid=%7B0911022C-AD79-4B44-8B1C-7376F7D1A870%7D&dist=hppr  Denny’s introduces  the `Denny’s Dome’ to facilitate To Go business. The `Denny’s Dome’ is an innovative, multi-level and task, carrying device that seems to handle any type of full sized breakfast - and keeps it fresh and hot up to a half-hour.You have to see the picture of this multi-leveled  see-thru container - which even has a method for keeping foods crispy (read to find out the science).  >>>>>>>>>>>> RATR Rating - 9 - Interestingly, in the 1980’s I conducted one-on-one research for several package good companies; even in the 80’s `tupperware’ type of containers could store foods at the same temperture they were first stored at  for HOURS. The funny part was research respondents were worried about `bacteria’ forming if the food was kept hot for an extended period — but - at 1/2 hour - that should not be a perception problem. Indeed, this is a great idea and seems like the top of the line product/device that `to-go’ food customers may have been waiting for. It also could increase the size of the stores trade area since the product would remain warm to take home to nearly any local area. For example, it could permit the `drive thru the area’  customer traffic to `stop in and pick up’ a breakfast before driving home 8 miles away - such as having a store by a Home Depot or other big box store. Additionally, in these cash strapped times, it allows for the customer to avoid the tip, possibly increasing customer frequency (viewed as a surcharge these days?) - that said, many tip at the counter on the pick-up orders.

Lack of Advertising May Have Doomed Fast Food Restaurant

Link - http://www.beaumontenterprise.com/business/local/lack_of_advertising_may_have_shut_down_fast-food_restaurant_07-08-2008_18_17_04.html Article indicates that having a poor location, and difficult obstructions to your restaurant - along with having an unfamiliar product (being the only franchisee in a market) AND a lack of advertising and community invovlement - MIGHT have been reasons for a Krystal’s demise.  >>>>>>>>>>>> RATR Rating - 7 - One of the things this blog will do is feature stories about the success or lack of success of various fast food restaurants - chains or individual stores. Indeed, my experience in seeing first hand hundreds of fast food outlets - both high and low sales units - provides me an overview of characteristics important to customers. This article, which could be written about many thousands of restaurants nationwide, is an example. One finding I’ve had for example is the near absolute neccessity of making flow of customers onto the restaurant property mindless - hurdles should NEVER have to be jumped - especially if you value your female customer base. The article implies that perhaps the demograhics weren’t the exact fit either - while demographic `fits’ might be nice - the size of home and worker bases within specific milage is more important to success. Often your demos for a restaurant won’t fit the area - but - your restaurant does fine by dominating within your subgrouping (besting your competitive environment). Finally, of course, being NEW or ALONE in a market (brandwise) does usually require some outreach or education of your market about your restaurant - and probably does require even some advertising. But, what RTAR suggests is that when one’s unit is in sales trouble (as opposed to a unit that never has good sales, after initial opening month) is to look first at the competitive environment (new restaurants) and then at operations (frequently some daypart - ie: employee group - is the problem; this will first show up slowly as only the Heaviest store user is aware of the operation problem - they are forgiving as they love the product or the location - but they will reduce frequency. If the problem, daypart related, continues - a unit can be in for a big decline suddenly after 6 weeks or so.) Finally, it’s unlikely your store will go out of business do to a lack of `community involvement’ - but - obviously, a banner at the local softball field - can be worth it’s weight in G.

Fast Food Veggie and Fruit Carts

Link - http://www.redorbit.com/news/business/1468962/call_for_fastfood_fruit_and_veg_carts/ >>>>>>>

RATR  Rating - 6 - Story is about a call in England to favor push carts that feature fruits and veggies so that folks get their needed five servings daily. —– Could the `States’ be next? Could real food be the next `brand extension’ for FF restaurants?

Thanks so much for reading this first blog post - To find out more about my services - please use my blogroll to my other `restaurant sites’. Please bookmark this site, I will try to post 3 or 4 times a week the type of stories owners of restaurants want to read.