Restaurant Trade Area Research

22. March 2010

Restaurant Links - Late March

Filed under: buying intentions, free wi-fi, 10.00, coupons, lower prices, brand loyalty, Pizza Hut — Rick Phillips @ 16:51

A $10 Pizza Hut promotion that launched late last year in Dallas and went nationwide last month has helped the country’s largest pizza seller regain some of the sales it lost to lower-priced chains - Family eats for 10.00 is a winner in the new normal - http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-PizzaHut_26bus.ART.State.Edition1.3cf3be9.html

Consumer Insights Survey: Restaurant Brand Loyalty Remains High Despite Declining Visits - And, from the article - “Edwards explained that in order for brands to grow their customer base today, they must provide a trigger that prompts a consumer to try something that’s out of their comfort zone. ….The Consumer Verdict: Coupons Are the Answer…Of twelve options, the most frequent reason (36%) for considering switching to trial a new restaurant was a coupon or discount. A separate question validated this finding, with more than half of consumers indicating that a coupon or discount offer did recently prompt them to a visit a restaurant they might not have otherwise tried.” - http://restaurantnews.com/consumer-insights-survey-restaurant-brand-loyalty-remains-high-despite-declining-visits/ - Other notable statistics include:

Free WiFi: Is it right for your QSR? - Interesting story - http://www.qsrweb.com/article.php?id=17531&na=1


 

24. February 2010

Ranking Customer `Purchaser Types’ - And - Specific Marketing To Each

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.

13. November 2009

Targeting The 18-24 Year Old Customer

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.

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