Restaurant Trade Area Research

8. May 2010

Same Sales, Same Number Transactions, Same Marketing?

Filed under: infrequent customers, customer frequency, Customer Base Size, MarketView — Rick Phillips @ 09:47

Often when I do FF research for a client - they may have stores whose monthly sales are very close to each other as are the number of monthly transactions - and one would might assume that each store would be best suited to similar marketing. But, the owner operator of the store knows that one store in particular seems to `do well’ whenever the TV ad plan is in force; but for what reason?

It’s a simple reason, the store that `does well’ when the brand is on TV - has a MUCH larger customer base size. What you say? How can that be, the stores have similar sales and similar transactions (and therefore similar sales per transaction too) - what is the difference?

The answer, the store with the much larger customer base has MORE INFREQUENT Customers - that make up the transaction base. Those infrequent customers - of which one store has many more of - react to the ADS - and voila - a real bump in sales.

This is the kind of information an owner can use to place billboards, and get a real effect - or to run truly successful `bouncebacks’ with the customer base. AND, this customer base info is the kind of information you get via my MarketView methodology for your market. Only the MarketView has the TRUE customer base sizes for the operator to finally understand individual store marketing needs.

More on Customer Base Sizes here - http://restauranttradearearesearch.com/2008/08/10/customer-base-size-it-can-be-calculated/

More about my MarketView here - www.squidoo.com/tradeareasurveys - thanks for visiting again today.

8. October 2009

A Real Customer Frequency Program

Filed under: customer frequency, bouncebacks, Customer Base Size, frequency of usage — Rick Phillips @ 14:32

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.

16. September 2009

Wake Up - Restaurant Customer Base Frequency is MOST Important

Filed under: customer frequency, Customer Base Size, fast food law, frequency of usage — Rick Phillips @ 08:35

This is a subject I’ve covered before http://restauranttradearearesearch.com/2008/08/10/customer-base-size-it-can-be-calculated/ but, it is well worth revisiting in the economics of The Great Recession and the `new normal’ that many restaurateurs are facing. Indeed, many are waking up to the idea that it will be necessary to `woo’ the existing customer base if one is to survive - as `new customers’ are not likely to be a significant factor. Indeed, in branded fast food restaurants - it’s likely that up to 1/2 of ALL new customers to a store in a given year - are likely `main’ customers of one of the other locations of a particular brand. Meaning - that visit is generated from prior usage in a more convenient location to this user. These are customers that you are likely to get over a year whether you advertise or not - and - other `new customers’ will likely be new `work’ customers - again, to which - little `extra’ marketing is needed. (Many workers are new to a given area each year.)

Now, in the link above - you can calculate that upwards of 40% of all transactions at a unit - were made by about 13% of the customers. Those, of course, are the built in creme for any restaurant - and - really - should be marketed differently than the REMAINING 87% who come less frequently.

Can you afford to ignore 87% of your customer base - without making any special effort to improve their frequency of usage of your store?

Now, in all honesty - part of that 87% may be virtually unmarketable as far as increasing their frequency - but, that said, many ARE marketable in a manner that addresses their frequency. The problem has been that UP TILL NOW - all `frequency programs’ have largely fallen flat on their face . And, there is a good reason for this — they address frequency in a fantasylike manner with this 87%. IE-Customer Frequency Cards.

Indeed, of the 87% who are `infrequent users’ - a full 2/3’s of the customerbase fall into the once a month or less frequency - do you really believe that a `loyalty card’ that has 6 punch-outs is going to be handy, used, or motivating if it results in ONE meal savings a year or at most two? The answer is a clear NO.

In fact, the only ones you are giving free meals to are your customer base that would have visited you anyway. Not much logic to that. (That isn’t to say that the frequent customer base can’t be marketed to - as I will expand on in future posts.)

So, what CAN be done about frequency for infrequent customers - what could be really motivating? Well, bookmark my site and return again for the upcoming answer.

More restaurant links:

Childhood Obesity Report Calls For Government Regulations to Limit Access to ‘Unhealthy’ Restaurant Chains - http://www.cnsnews.com/news/article/53374

27. August 2009

Zipcode Marketing Your Real Customer Base- Part 3

Various `reasons’ can produce a research result for a unit that shows `low home zipcodes’ locally - compared to the full data. As I indicated in Part 1 - some stores can have figures as low as having only 23% or so of their customer base coming from their main two home zipcodes - other stores can be as high as over 50%.  One reason for a low figure might be the stores proximity to an interstate or along a very busy business corridor. Indeed, by have REAL customer data via the MarketView - an owner can establish a particular level as a goal - focusing efforts in the market to establish a minimum home market for all units. 

In Part 2 - I showed that these different levels of `home zipcodes’ in a customer base could mean the difference of having 10,000 available customers to market to versus under 5,000 (meaning available customers in the top two zipcodes to a store - often the one the store is in and the next nearest - most primary areas for homes to the unit). Once again, with the customer data - owners can decide best how to allocate marketing funds.

So, what else can be done with MarketView Customer Base data?

How about taking the known number of customers in a given zipcode and compare that to the census figures for how many live in a zipcode - and - voila - you suddenly have the Penetration Percentage of Customers within a zipcode for a FF unit. And, real research can show differences in these top two zipcodes of units to vary from 6% to over 20%. (The final penetration figure is the number of users as opposed to customers - and yes - the MarketView gives you that by knowing the nunber of customers per order.)

Finally, knowing this real data - via the MarketView - allows for the allocation of funds to achieve an objective; be it - boosting the poorest of penetration stores or targeting the best penetrated stores.

More Restaurant Links for Today:

http://www.slashfood.com/2009/08/25/kfc-double-down-chicken-sandwich-loses-the-bun/?icid=main|htmlws-main|dl4|link5|http%3A%2F%2F  KFC new product an amazing sight — I can see protests by the food police on this one. Must see picture.

http://www.rimag.com/info/CA6670228.html The 400 largest restaurant chains. Lots of sales data too.

http://www.qsrweb.com/article.php?id=15565&na=1&s=2 Popeye’s Chicken sales higher.

26. August 2009

Zipcode Marketing Your Real Customer Base - Part 2

When you use the MarketView design - part of the findings via our customer base formula - tells the owner, literally, an estimate on `how many’ customers do I have at this unit. Then, when that is combined with the knowledge of what percentage of transactions are with customers in the top two zipcodes for a store — the operator ends up knowing the number of customers that live in a certain zipcode(s).

In the same market I spoke of yesterday - one store had over 11,000 customers who lived in the top two zipcodes to that store; whereas, other stores had less than 5,000 customers in the top two zipcodes. So, once again, in this time of limited marketing dollars - targeting the most customers is good business and smart money.

More restaurant links for you:

http://www.nrn.com/breakingNews.aspx?id=370226 Carl’s Jr. and Hardee’s sales slip in June, July.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ak1s1RK9PVp4 Wendy’s and Arby’s sales off too. This link also talks about how restaurant visits overall were down for the first time since 1981 (shows how my post about spring research `expecting an increase’ was dead on http://restauranttradearearesearch.com/2009/04/19/does-new-restaurant-research-point-to-real-surge-in-confidence-and-more-restaurant-spending-or-not/)

http://www.qsrweb.com/article.php?id=15504&na=1&s=2 Taco Bell about to add breakfast.

http://www.couponcravings.com/2009/08/wednesday-free-fruittea-with-sandwich.html Arby’s `free sandwich’ with drink purchase today.

http://www.bloggingstocks.com/2009/07/06/new-mcdonalds-to-include-recharging-stations-for-electric-cars/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.bloggingstocks.com%2F2009%2F07%2F06%2Fnew-mcdonalds-to-include-recharging-stations-for-electric-cars%2F Yep, McDonald’s to offer re-charging for electric cars at some new units.

25. August 2009

Zipcode Marketing Your Real Customer Base

Part of the data the MarketView I offer asks the customer for their zipcode - pretty basic. Yet, the outcome of the data - can paint a very revealing picture of a stores customer base. Indeed, let me paint that picture with REAL data from a MarketView project.

For example, in a recent MarketView with over 10 units - the range of customers who came from the stores main two zipcodes - varied from 23% to 58%. And, as I have mentioned many times already in this blog - stores with similar sales figures often have totally different individual marketing needs. Indeed, since the above figures are real - lets say in a fairly large market that you buy a full zipcode distribution for your Fast Food Brands restaurant coupons into the homes of your market.

Not too hard to figure out which ones will do the best - does it?

What if you decided to save some cash and only target the stores that have their data show that over 50% of the stores customer base comes from the top two zipcodes? Pretty smart - don’t you think? And, is a real targeting of your marketing dollars.

Here’s some other FF restaurant links of interest:

http://lubbockonline.com/stories/082309/bus_485065787.shtml After the boost from an Obama visit - 5 Guys hamburgers is up to 450 stores.

Church’s Chicken benefits from goodwill from $20,000 giveaway - http://www.qsrweb.com/article.php?id=15523&prc=66&page=58 Being local, giving a sense of helping in this down economic time - important.

JPMorgan downgrades Burger King on sales - http://www.forbes.com/feeds/ap/2009/08/03/ap6733181.html This is based solely on the continued unemployment seen in 2010 - which will affect all FF restaurants.

15. May 2009

Effective Billboard Advertising

Filed under: In-and-Out burgers, billboards, Customer Base Size, Advertising, MarketView — Rick Phillips @ 08:05

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

12. April 2009

Are We - Nearing The Bottom - Or - At The New Normal?

As far as the Woodstock Georgia fast food market is concerned  - restaurants continue to be under competitive pressures with strong discounting and `new and interesting’ promotions to offset the continued shrinking of customer bases. Indeed, just recently, ABC - the Atlanta Bread Company in Woodstock had a Sunday evening `Murder theater’ (with actors of course) near closing time for which tickets at 10.00 per head were sold. These `patrons’ would have an additional chance to purchase food and dessert from the unit too - for enjoyment when watching the play.

And, the discounting continues at all levels from Waffle Houses 4.99 meals, to 4.00 KFC meals, to 99 cent Dunkin Donut specials, to the buck level at Checkers, Wendy’s and — whatever special Arby’s has going at a various promotion period. In the nearby Sandy Plains/Shallowford area the Boston Market was doing bounce back coupons for buy one meal - get one meal —— that’s up to a 6.99 value — (and one our family took advantage of) and up to 50% off. And, within the past month, Arby’s was giving the `RoastBurger’ away with the purchase of a drink (& Quizno’s also gave away it’s small sandwich.)

Couple all this with promotions from the last posting - many of which are still going on in one form or another (including daypart pricing) - and you have a very sensitive price market the likes of which haven’t been seen in a long long time, if ever. Increasingly, `eating out’ is positioned by the media as the one way that Americans are cutting back and saving money. And, again increasingly, the eating out `habit’ is being broken at some level.

Indeed, the extreme multi times a week users (4+ times a week)  - while usually not  a huge element in most fast foods - is largely gone - as these hardest regulars have become part of the once a week users - generally. And, while most of the two times a week or once a week users have hung on in most circumstances - especially in white collar, lunch oriented restaurants - those users are probably most reduced in the evening timeframes.

Probably most affected frequency wise in customer bases are the occasional once a month type users - who have often fallen into the `never use anymore’ or seldom use category - as consumers tighten up into their most favorite choices. NEW customers, once a mainstay at 3-8% of all fast food customers is again - almost nil. (Why waste precious money on places without a proven track record?)

So, with all this - with restaurants of all kinds closing (which does help others who survive in degrees) - with frequency rates dropping - with price pressures at every turn - the question must be asked if this is the bottom to be endured - or - a new normal? (No one wants to think it could be worse - and indeed - as competition closes - the `replacement effect’ of the `new meal occasions’ to be filled in the local market - will modify - to a degree - further downturns.)

Indeed, if the downturn continues for much longer - say - another year (an overly negative view compared to consensus) - we could see some companies go to a more innovative way of pricing their food products. Perhaps combos will once again reflect a real `savings’ as opposed to an easy way to order in a few words. Perhaps we will see the drive thru priced in a different manner - compared to inside customers. Perhaps drinks will become cheaper at the drive-thru (as no re-fills occur).

Indeed, perhaps we will see `customer loyalty’ cards be set at effective levels - buy two combos get one free - for example —- as opposed to cards that required too many uses to motivate a customer base. Or, even `in-store’ contests to motivate the bigger instore spender - or - targeting the very largest purchasers (only) with a `discount’ on that next purchase (setting the level at transactions in the highest 5% total) - showing recognition of these remaining `special’ customers.

Because, as Dylan said, the times,  they are a changin - and, previous practices and marketing approaches - especially if they all sound the same - may have little useful effect. It may take new approaches and new ideas of consumerism to survive to the other side of the downturn - and - it’s not too early to begin to consider such ideas.

23. February 2009

Fast Food and Dine-In Restaurants Slash Prices To Maintain Customer Bases

Hello, welcome back to the Restaurant Trade Area Research (RTAR) blog - thanks for stopping for a read. And, as you can see by the title of this post — once again in our depressed economy - where the discretionary dollar is scarce - where one restaurant unit after another closes - price points remain criteria number one for most restaurant chains.

Locally in northern Georgia - Mcdonald’s and Steak and Shake have met the Sonic reduced drink prices in the afternoon - Checkers has finally positioned a dollar menu — and as mentioned before Quizno’s `reduced prices’. And, two more restaurants have bitten the dust in the Woodstock Ga. market - Sonny’s BBQ (unbelievably) and the Woodstock Restaurant (daily buffet) - bringing nearly half a dozen closed up restaurants to Woodstock HWY 92 in the last few years.

But, it doesn’t end there - as the casual sit-downs are firing back on the price front with TGIF’s offering a buy one get one — with that being matched by other competitors like O’Charlies. And:

1-Wendy’s —- 3conmics (99cent choices) 2. Free Pancakes at IHOP tomorrow 3. Denny’s recent free grand slam breakfast 4. Steak and Shake’s recent `free combo’s for a year’ giveaway at local Atlanta locations 5. Fazoli’s - BOGO (buy one - get one) 6. Dunkin Donuts 1.99 breakfast combo 7. Starbucks - Breakfast value meal 3.95 — 8. McDonald’s Specials (like 3.33 for a Big Mac Combo) 9. Ruby Tuesday’s combo’s at 5.99 — Likewise Hooters 5.99

Makes one wonder when some chain will be bold enough in the south to make sweet tea a different price 24 hours a day - like 59 cents with any other purchase.

Finally, seems the burger front may be heating up - first Burger King’s mini’s will put pressure on Krystal’s and Roast Burgers at Arby’s - should compel trial. 

13. August 2008

Spending Per Year - Per Customer - By Frequency of Usage

Hello, welcome back. This blog is one of the few on the internet about restaurants by a real market researcher of fast food restaurants. I’ve been sharing some insights and I hope you bookmark my blog and return on a regular basis.

Today’s post is dependent on the previous two posts - so, you may need to dig down for a fuller understanding. Essentially, I’ve been outlining some specific REAL information from about a decade ago for a 3 store FF brand that had sales of @2,670,000.00 combined. And, in the last post I revealed the actual size of the combined customer base - based on my Customer Base Formula. Today, I’d like to show what that MEANS in terms of spending by any individual customer within a specific frequency of usage scale. For example:

49 - 4x’s a week users - spend 80,000.00 per yr - @1.6k yr-130mo-31 week

400-2-3x’s week users - 348,000.00 per yr - @870.00 yr - 72mo-16 week

1,800 - Once a wk users- 642,000 yr - @357.00 yr - 30mo - 7 week

3,600 - Once every 2-3 wks - 642,000 yr - @177.00 yr - 15mo - 3.40 week

3,700 - Once a month users - 321,000yr - @86.00 yr - 7mo - 1.66 week

5,400-Once every 2-3 mtn - 241,000yr - @ 44.00 yr - 3.68mo - 85cents/wk

2,100-Once every 4-6 months- 26,000yr - @12.00yr - 1.00mo -24cents/wk

21,700-Less than every 6 mo - 187,000yr - @8.61yr - 72cents a month and 18 cents a week

These stores had 7% first time users spending about 187,000 a year — 2,100 new customers a month or about 25,000 new customers in a year.

Now, just to ask you as a  restaurant owner — if you knew that @21,000 of your 38,000 customer base spent less than 9 dollars a year at your store - would you be willing to try a method to change it? IF SO, give me a call on my cell ——– you can find that information by going to my site about Trade Area Surveys — www.squidoo.com/tradeareasurveys

Now - today’s restaurant links.

“…nutritious fast food. Maybe it’s not so bad after all.”

http://blog.nj.com/parentalguidance/2008/07/i_was_wrong_about_fresh_apple.html Maybe, just maybe, the Tide is turning.

“…research from Just Kids Inc’s Global Kid Study, which showed that children daydream about helping others and are becoming more altruistic.”

http://www.brandrepublic.com/News/838897/McDonalds-launches-conservation-themed-Happy-Meal/   Perhaps someone will beat McD’s at this in the states?

Economic Slowdown Forces Choices in Food

http://www.ausfoodnews.com.au/2008/08/12/economic-slowdown-forces-trade-down-in-food-spend.html   Holds true worldwide.

Panda Express Thrives On Orange Chicken

http://www.latimes.com/business/la-fi-panda13-2008aug13,1,3381302.story Success story - focused on customers.

That’s all for today — remember to bookmark this page. Thanks.

10. August 2008

Customer Base Size - It CAN Be Calculated

Despite what you as a restaurant owner may have been told - the number of transactions your restaurant does, compared to another time frame (say a year ago) - does NOT mean your customer base size has a direct correlation. THE ONLY WAY TO KNOW YOUR CUSTOMER BASE SIZE IS WITH REAL MARKETING RESEARCH.

Why? Because your customer base size isn’t dependent on the number of transactions - it is dependent on WHICH CATEGORY of user makes the transaction. For example, if 24% of your customer transactions are with once a week users and 24% of your customer transactions are with customers who come every two or three weeks (see last post below as an example) — THEN OBVIOUSLY, THE NUMBER OF CUSTOMERS WITHIN THE EVERY 2-3 WEEKS CUSTOMER BASE IS OVER TWICE THE NUMBER OF CUSTOMERS (who come about half as often).

So, it is THE MIX of customers - that determines the number of actual customers in your customer base. Your year to year transactions could be UP and yet your customer base may be DOWN in size - AND VICE VERSA. I will literally tell you more about `the formula’ soon - in future posts. Or, find out more by visiting my Trade Area site at www.squidoo.com/tradeareasurveys

But as promised, more from the figures of last post:

3 stores - $2,670,000 Sales (rounded)

customers that come

4+ times wk - 3% of trans - 80,000 in sales - 49 customers - 1,630.00 yr

2 or 3 times a week - 13% of trans - 348,000 sales - 398 customers - 874yr

Once a week - 24% of trans - 642,000 in sales - 1,796 cust - 357.00 yr

Once every 2-3 weeks - 24% of trans - 642,000 in sales - 3,628cust - 177yr

Once a month - 12% of trans - 321,000 in sales - 3,704 - 86.00 yr

Once every 2or3 months - 9% of trans - 241,000 in sales - 5,454 - 44yr

Once every 4to6 months - 1% of trans - 26,000 in sales - 2,145 - 12yr

Less than every 6 months - 7% of trans - 187,000 in sales - 21,758 - 8yr

First time users - 7% of trans - 187,000 in sales - 25,376yr

As you can see from the figures above, for this 3 store contiguous FF market - 9 years ago - 14% of transactions (bottom two frequency levels) contained 46,000 people while the top 16% of the transactions contained less than 500 people. YEAH, how you market MATTERS.

But, understanding your REAL customer base is essential to not wasting dollars. —————— Hey, feel free to leave a comment - and please, bookmark and return for slices of restaurant research and restaurant links. Also, forward my/this link to others who own a restaurant. Thanks.

Today’s Restaurant Links

McDonald’s Success Continues

http://www.allheadlinenews.com/articles/7011881489 Same store sales figures -, less than one minute read.

Chick-Fil-A; Much More Than Just Chicken

http://www.thecitizen.com/~citizen0/node/30742 Remember my previous post about Friendliness being the attribute with the most `customer’ power? Getting  the details right about customer serviceis an attribute of Chick-Fil-A. Re-juvenate that drink sir?

Cleveland’s Soul Food Festival

http://www.cleveland.com/entertainment/index.ssf/2008/08/tickets_going_fast_for_clevela.html

Quick read - being apart of the community is priceless.

 

Survey Yields Worrisome Restaurant Cutback By Customers

http://www.bizjournals.com/tampabay/stories/2008/08/04/daily44.html 3 minute read based on REAL research — is it true that only 15% of all customers are unaffected in this downturn in their usage of restaurants? Worrisome and applies to all markets.

Fast Food Is Bad

http://www.lavistasun.com/site/tab6.cfm?newsid=19896507&BRD=2712&PAG=461&dept_id=557008&rfi=6  The ragging continues in this two minute tirade about parents not setting good examples.

 

Finally, my blogroll on the right will tell you more about my marketing research services. Come back Tuesday for more - thanks for reading, again, please send this link to another restaurant owner like yourself.

7. August 2008

Sales Dollars By Customer Frequency Level

Hello restaurant owners, and welcome back to Restaurant Trade Area Research - where I share over 30 years of insights from doing restaurant research - and, link to the latest of interest in the restaurant universe. Today I want to share with you the actual findings in a 3 store market about a decade ago.

While I won’t go into the extreme measures that need to be employed to have a VALID sample to begin with at a fast food restaurant (but you can find out more at my other information site www.squidoo.com/tradeareasurveys) - here are the results I want you to consider.

3 stores - $2,670,000 Sales (rounded)

customers that come 4+ times wk - 3% of trans - 80,000 in sales

2 or 3 times a week - 13% of trans - 348,000 sales

Once a week - 24% of trans - 642,000 in sales

Once every 2-3 weeks - 24% of trans - 642,000 in sales

Once a month - 12% of trans - 321,000 in sales

Once every 2or3 months - 9% of trans - 241,000 in sales

Once every 4to6 months - 1% of trans - 26,000 in sales

Less than every 6 months - 7% of trans - 187,000 in sales

First time users - 7% of trans - 187,000 in sales

You would be surprised how many owners DON’T think of their real customer base in this manner - what levels ACTUALLY provide the real dollars to a store. This weekend in this blog - I will expand on the data above. But, now, to today’s restaurant links - feel free to comment too.

Today’s Links

Fast Food Prices On The Rise

http://c13.zedo.com//ads2/f/341180/1/172/0/305001132/305001132/0/305/331/zz-V1-pop1217960041201.html?a=;l=;p= Video report too with story.

Healthy Fast Food For Kids A Tall Order

http://www.webmd.com/parenting/news/20080804/healthy-fast-food-for-kids-a-tall-order  This is a report issued by Center for Science in the Public Interest which rips a new opening for many restaurant brands. Detailed read with lots of interesting facts.

New Jobs In Fast Food

http://www.istockanalyst.com/article/viewiStockNews+articleid_2450358.html This article is about a company that provides your drive thru order taking with folks working out of their home.

Is a Fast Food BAN - Racist?

http://www.momlogic.com/2008/08/fast_food_banned_in_poor_areas.php#over1 After all, how can those fatties in Beverly Hills be helped?

Arby’s Signs Development Agreement For 41 New Stores In New York Metro Area Over 10 Years

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080805006617&newsLang=en

 

Again, would love to read your comments. Thanks for stopping by - bookmark for more this weekend.

 

 

5. August 2008

Limited Marketing Dollars and What To Do With Them

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.

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