Well, you certainly know where I stand on listening to customers - but - this is a classic article that takes on KFC for not addressing its own perceptions head on: quoting from the post:

Me, if I were forging brand strategy, I’d defiantly promote my dietary incorrectness. I’d flip the bird at the food police and wave my greasy napkin as a battle flag. Sure beats lying — not only on moral grounds, but on the basis of pure common sense. What could possibly make KFC think that anyone buys their sad little charades? They either have no respect for the crap-eating public or no idea how to search Twitter. Here just the top few of thousands in the same vein:

http://adage.com/article?article_id=144143 – So, how about TRUTH as a brand positioning?

Here’s another KFC post - about its new slogan - the fifth in five years - and one they will stick with they say - Battered KFC Gives Itself Another Spin - http://adage.com/article?article_id=144035

Here’s some big news - Denny’s Inks Deal with AARP - and, with the 20% discount between 4-10 PM - it’s like a dayparting price. Who will be next to go after the over 50 market? http://www.restaurantnews.com/dennys-inks-deal-with-aarp/

A successful chain that hasn’t introduced a new sandwich in TWO decades? — Yepper, Chick-fil-A Heats up Menu with New Spicy Chicken Sandwich - http://www.restaurantnews.com/chick-fil-a-heats-up-menu-with-new-spicy-chicken-sandwich/

The headline on this story is - Have It Whose Way? - At Burger King, management and franchisees are locked in battle over the company’s direction - Seems everything from late night hours to 1.00 double cheeseburgers and more is prompting the public battle. http://online.wsj.com/article/SB10001424052748704869304575109240807702512.html

Thanks for visiting today. Much more on this site - take a look around.

Welcome to Restaurant Trade Area Research - the restaurant blog written by a 30+ year restaurant researcher who has personally  interviewed thousands and thousands of fast food customers. (How’s that for a mouthful?) - Today’s topic, what seems to be the new need - `shooting the works’ to maintain or grow market share in the `new normal’.

Examples include:

Expanded Dayparting Focus - Subway going into the breakfast market is the first to come to mind - Daypart pricing is also notable with `2-4 pm’ reduced beverage costs (Steak & Shake — Sonic) — Weekpart Combo Specials , such as Moe’s Thursday Two for One’s - Subway’s after 5 footlong pricing, etc.

Seasonal dayparting — summers `late night positioning’ has been going on for years (open til 2Am on weekends type of stuff), and, it’s been noted recently that in the casual niche, 12AM or later, was recently claimed in the Atlanta media market by Applebee’s. At Fast Foods, `summer late nights’ is almost a requirement for some (Wendy’s, Taco Bell) but is an opportunity for others too (such as a Krystal’s potential muchie crowd,  or even sandwich niche restaurant).

Outrageous Product - The incredible focus on low price points within advertising (which has muddied the field) has made new product introductions even more important to appeal to the `trier-rejecters’/aware non-users of any fast food brand. One method to get attention is the outrageous product - such as KFC’s Double Chicken Sandwich. And, most recently Burger King’s move into Bone-In Ribs - would be an `unexpected’ example of a `new product’ that should `create new trial’ - especially with good word of mouth - especially during summer. (Perfect `season’ new product introduction.)

Expand Competition Into Other Niches - Recent examples of this include McDonald’s continued focus on beverages such as premium coffee and other choices. Burger Kings new Ribs carves out part of the sit-down market (and the `upscale’ `trade down’) as does it’s Brunch positioning in some markets. The new `upscale’ Milkshakes by Chic-Fil-A, Hardee’s and Zaxby’s –> reach into the `Dairy Queen’/Baskin Robbins niche.

The `Health’ Market - Long heralded as the next sure thing (only problem was that in the 80’s-90’s market was still non-existent) , the `Healthy Fast Food’ market may finally be available - due in large to the already established `Bakery’ niche being taken ALREADY by the female demographic that has turned FROM fast food choices in the last 8 years or so, - to places like Panera Bread or Atlanta Bread Company or others. To me, it seems the natural ones to attack this would be sandwich chains like Quizno’s - Blimpie’s - Subway.

Upgraded Products/Serving Quality - Angus Beef now is an example of offering the `upgraded product at a premium price’ niche. Obviously it also attacks the `fast casual’ growing segment (the stepdown from casual tipping establishments). I’ve already mentioned BK’s Ribs. KFC roasted chicken could be seen by some as an upgrade in health perception.

Selling Branded Products — To me, it is a little self-defeating - BUT - White Castle has frozen product as do many other restaurant chains. To me, I’ve never found these pre-packaged foods to be as appetizing. How about you? Then again, Dunkin Donuts coffee seems logical - and I know that I’d buy a Big Mac Sauce if it was ever offered.

Fancy, Social, E-Mail Marketing Database Building - To me,  working with a stores known customer bases information - and the customer base itself - is VERY attractive too - and is needed to not lose an edge to the competition. That said, some areas seem to have the potential to eventually become overdone and self-defeating (the free food promotion costs - or extreme motivational discounts) and eventually will have it’s `day-come’ due to overuse.

For example, lets say you sign up with a store chain that will provide you a coupon code every time you go to their restaurant trade area — if you signed up with multiple chains you eventually would not wade thru the offerings and IF you did act on one - it would be the one `giving the most savings’. Coupon people are indeed driven by costs - which will drive down your profits and establish a two-tier payment pricing - and confuse the customer base about the real price/value of your products. GPS `coupons’ will not replace friendly smiles, eye contact and good operations. (Within this blog I’ve talked about specific marketing that can be done with your EXISTING customer base via ONE question frequency targeting - or - NO question `menu’- total purchase targeting.)

The `New Marketing’ for the `New Normal’ goes way beyond buying the 25-54 demo slightly focused on one sex - and expecting success. No, the new normal demands running on all cylinders in multiple directions - and catering to a stores unique customer base.

Thanks for reading today - if you check out my sidebar - you may find a category of interest to you. You can also read more about my MarketView research at www.squidoo.com/tradeareasurveys .

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.

It was only something that I saw online yesterday - but - has FS dropped prices on sandwiches to 4.00 after 4PM? —– Nice response to Subways dayparting and even earlier.  —- Daypart pricing; needed during the new normal.

Here’s some links too:

They will have the regular - http://www.wickedlocal.com/westport/features/x531840012/THEYLL-HAVE-THE-REGULAR-Frequent-customers-add-spice-to-SouthCoast-eateries The critical importance of `regulars’ in these economic times.

http://news.cnet.com/8301-13772_3-10456332-52.html Oh oh - seems Denny’s has allowed an error about it’s twitter account on it’s main menu for months - read the strange tale.

I have more links on my Squidoo site too www.squidoo.com/tradeareasurveys . Tell a friend about this blog. Thanks.

Just a quick post today to note the continued positioning being taken by various fast food restaurants locally - today - as the title suggests - Checkers had a reader board advertising lower evening combo pricing. Excellent idea and could encourage more combos during this higher customer transaction size period/daypart. This joins the limited 1/2 price - daypart pricing by Sonic and Steak And Shake for mid-day drinks.

Lastly for today - thanks for your support in 2009. Here’s some statistics about this website. In 2008 this website had 5,788 unique visitors - in 2009, 18,805 unique visitors (as many as 2,572 in a month). In 2008 this website had @9,300 page views and in 2009, over 28,000 page views.

Much more will be coming soon too - bookmark and return. Oh, and make sure to see in the sidebar an overview of the important posts of 2009.

My research at fast food restaurants has shown that it takes a `certain’ level - generally - for customers to say `I use this restaurant/brand the MOST’. And, even in the new normal of the Great Recession, that level is around once a week usage. Only about 1 in 5 customers don’t offer a FF restaurant they use most often when asked. A loyalty - often felt with justification and pride almost. “they are the friendliest here” “they know me here” “this is super convenient for me”.

Sometimes, operators need to literally `look’ for ways to develop that special relationship with their customer base. And, once again, ways exist around the margin to create that `special user’ - to develop a loyalty. And, here’s just one example (I have more) - let’s say your restaurant is one of those that likes to advertise or position later summer hours - how about a special `bounceback loyalty card’ that is ONLY given to customers AFTER 10 and for use ONLY after 10? The night-owl club. 20% all summer for those `special folks’ who visit after ten.

Occupying that special place for customers - generating loyalty - almost a must in today’s competitive environment.

Restaurant Links for today:

Wingstop Reaches 25 Consecutive Quarters of Positive Comp Sales - http://www.reuters.com/article/pressRelease/idUS111102+12-Oct-2009+BW20091012

Darden net income up, sales down in 1Q -http://orlando.bizjournals.com/orlando/stories/2009/09/28/daily24.html Including Red Lobster off by nearly 8%.

Food Fight: Franchisees Caught in the Middle - http://online.wsj.com/article/SB125492481356270841.html Important read of three minutes.

UPDATE 1-Ruby Tuesday posts higher profit - http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0739123320091007 However, sales were off 3%.

Sales meetings at YOUR store? It’s working for Panera Bread
http://www.nrn.com/landingPage.aspxmenu_id=1416&coll_id=554&id=374238#ixzz0Tp32Jvc2

First, let it be said that my usage of nearly ALL of the restaurants has already assumed the `new normal’ of the Great Recession. Regardless of what cheerleading the media may be doing about the economy - most folks are now cautious on discretionary spending - of which, restaurant visits - even to a degree Fast Food restaurant visits - has been impacted. 

 In alphabetical order:

Arby’s - I `responded’ to the ads for the `Roast Burger’ earlier in the year and was not impressed. I refused to respond to the Marry a Goat `humor’  ad campaign and somewhat like the recent 5.01 combo or pricing (the one cent being for Quality).  That said, generally, I perceive that Arby’s as expensive without having coupons from the coupon mail drop a few times a year. Additionally, they  `streamlined’ their `fries’ - dropping my favorite the Homestyle. How can they NOT promote the Jamoca Shake?

Atlanta Bread Company (ABC) - Remodeled nicely. Upgraded to real plates and silverware. Messy to clean up. Can be crowded and slow service. Female favorite. Good soups and combo prices. Mellow atmosphere.

Burger Inn - Local  legend - all fresh cooked. Great breakfast customer base. Friendly people; newspapers available often. Excellent onion rings. Beefy hamburgers. Male favorite.

Burger King - I like the current billboard promotion about the Double Cheeseburger for a buck, real value - but - haven’t gotten it.  I have ordered the Mini burgers more than once however and view that as an excellent addition. Amazingly, the Woodstock BK got rid of Real Sweet Tea years ago (my assumption is that is still the case) and thereby nearly ended my usage — I can’t stand the fake sweet tea out of a machine. Operations should be aware that changing ICONic drinks can have a big effect. — Finally, where is the KING?

Capt. D’s - Perhaps my favorite FF in Woodstock. Quality, Quick, and Quantity with good value pricing. Covers all reasonable price points including lunch specials and on-going `specialities’ that have all prices. Excellent choice of sides. Funny ads earlier in the year comparing to Red Lobster pricing. Friendly greeting and thanking when exiting. Good inside music.

Checkers - Still a viable concept (double drive thru) - chicken wings were a good addition earlier in year - somehow it fits. Catchy phrase “you gotta eat” recognizable for smaller chain levels of advertising. Covers all price points well with a good mix of products. The Woodstock store does Sunday Pricing - good idea - hasn’t ever motivated me for their `down sized’ versions. Could probably `play-up’ the FUN theme a little bit more.

Chick-Fil-A - Woodstock’s Chick-Fil-A is amazingly busy. Overwhelmingly busy whenever they do a promotion like 2-1 for a chicken sandwich or free food giveaway. Excellent quick service regardless of how long the lines are - especially at the drive-thru. (However, I’ve detected a time or two a usage of `workers in India’ taking my orders — I’m not kidding - and, in this time of underemployment in America - that is NOT right to save a few cents that way.) Real Milk Shakes were genius. Consistent quality. Friendly employees. Clean. ————— All that said, the Woodstock inside service in the sit-down area can be horrid and when is Chick-Fil-A gonna get some normal fries? Also, one takes a chance when getting the baked potato.

Dairy Queen -  The standard in Ice Cream desserts from the drive-thru. Haven’t used but really like the new pricing structure in ads 2/3 3/4 4/5.00 - interesting approach. Unfortunately, for me, the food hasn’t broke thru.

Dunkin Donuts - Right on the Strip - I’ve never used location. Certainly they can advertise donuts and donut prices more.  (IF I knew a quick Donut sweet was 99 cents for example - it would come to mind for `dessert’ or breakfast purchase more often. Never seen a place less concerned with establishing a price point understanding. Just how much does a dozen donuts cost?)

Firehouse Subs - Expensive but Excellent. Can be slow. Friendly employees. TV’s to watch. Good real sweet tea. Small, can be crowded.

Five Guys Hamburgers - Tangential to Woodstock in Sandy Plains area — good operation - waiting for a Woodstock Location (several good places available perhaps too).

IHOP - Expensive, right? What specials?

KFC - Closed but not forgotten. Also was one, like BK, to drop sweet tea for a time.

Krystal’s - Krystal `fix’ a must a few times a year. (Canton Road.) Ad’s featuring Crispy Onions on burger looks very compelling. Wi-Fi add - good idea.

McDonald’s - Woodstocks unit re-designs and updates the interiour often - which is nice. Clean. Service can range from excellent to very poor (weekends). Can often find an AJC or USA today in newspaper bin. Separate kids area - thumbs up. Fries can vary in quality. Best FF fish sandwich.

New China Buffet - Lunch value leader. Good quality food. Friendly employees. Priced by the pound to go. Widest variety of food.

O’Charlies - Stopped going shortly after changed menu restricting Prime Rib to Sundays only.

Panda Express - Have never used. Pass by back of lot 3 times a week on way to Walmart.

Po Folks - AKA Folks —> Expesive for what you get.

Ruby Tuesday’s — How could they get rid of German Potato Salad? (pet peeve). Good miniburgers and platter pricing. Easy to split orders. Great salad bar still.

Sonic - I really like their ad’s inside the car with the main guy and his friend and the main guy and his wife. Classic. Best onion rings in Woodstock at FF. To me, tasteless burgers. Fun to use. Daypart pricing on drinks in the afternoon. Fun music playing.

Steak And Shake -  Best Milkshake in Woodstock. Can be very expensive without coupons and very reasonable with coupons. Great variety of sides. Great music inside.

Subway - Good with pricing with coupons. Good quality. Can be SLOW service. GOOD real sweet tea. Fresh. Daily specials a good way to address pricing. Excellent variety of sandwiches.

Taco Bell - Good cheap price positioning. Good Chalupa’s. Good real sweet tea. Good service speed. Good quality overall.

Wendy’s - Huge variety in quality - excellent one time - poorish the next. What the heck happened to the fries - almost tasteless compared to yesteryear. I’m told good salads. Expensiveish compared to McD’s. Baked potato good price/quality.

Thanks for reading - feel free to comment.

Here’s some links also:

KFC Closes Its Doors to Fight Hunger - http://www.slashfood.com/2009/09/30/kfc-closes-its-doors-to-fight-hunger/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.slashfood.com%2F2009%2F09%2F30%2Fkfc-closes-its-doors-to-fight-hunger%2F Community involvemet matters - look at the results of the survey on this page too.

A Real Whopper? NASCAR’s Stewart to take live polygraph test in ad  - http://www.walletpop.com/blog/2009/09/30/a-real-whopper-nascars-stewart-to-take-live-polygraph-test-in//?icid=main|htmlws-main|dl1|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F09%2F30%2Fa-real-whopper-nascars-stewart-to-take-live-polygraph-test-in%2F%2F BK, attention grabber again.

Eat, drink, and spend money: Restaurants ply diners with cheap booze - http://www.dailyfinance.com/2009/09/29/eat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b/#continued?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.dailyfinance.com%2F2009%2F09%2F29%2Feat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b%2F%23continued

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. 

Hello, thanks for returning to my Restaurant Trade Area Research (RTAR) website - I’m back and ready to comment on the utterly new marketing situation all businesses are facing during this economic downturn. This blog decided to `wait’ during the last 10 weeks - rather than comment `daily’ on the possibility of financial meltdown and market disruptions. Knowing that you, a franchisee - knew the real business situation better than the commentators on Tv or in-print.

But, seeing now that 10 weeks after the end of the first cash crisis, that we seem to be facing, again, the solvency of the very banking system — it at least seems prudent to update the on-going strategies being employed with marketing and ad dollars - by various fast food, casual, and sit-down restaurants in 2009 – and that strategy - not surprisingly — has one focus — PRICE. (Ad language for `cost’ — the perception of the consumer.)

As you may know, when we left off in Nov. it was about price too - various price points - and now - we have the same only ratcheted up a degree. I can only comment about the local Atlanta media marketing and local store market close to Woodstock, Ga. That said, I’m pretty sure that each is generally reflective of the nation as a whole.

Perhaps most noteworthy and of immediate concern to the competitive marketplace is Quiznos advertising campaign about `reducing prices’ on food. Period. Not, come in for a reduced price combo or similar deal or bounceback coupon value — no - the actual phrase positioning `reducing prices’. Their local couponing has a 2.00 off any regular sub and buy any sub and get a chips and regular drink FREE. Combine the everyday reduced prices with an additional 2.00 coupon — and the price for loyalty and new trial customers - has just been increased.

And, as you know, - for years - Sonic - has offered reduced drink prices during the afternoon. And, as you know, since Chick-Fil-A  (and Hardee’s) started selling quality milkshakes - those that previously sold shakes (especially Dairy Queen and Steak and Shake) - have probably been under some pressure on a signature item. The response - an aggressive coupon campaign by Steak and Shake and not only that, locally, in Woodstock, Ga at least — reduced price shakes from 2-4 in the afternoon. A very good aggressive response and making true dayparting of pricing a strategy that deserves a second look. (Such as reduced coffee pricing after 4 PM.) Not only that, recently, Steak and Shake had a special of those small burgers that are now favorites of Casual Restaurants too - attack on all fronts.

Fortunately, the above examples are the only ones talking about reducing prices (although - O’Charlies has pushed the casual market with the 7.99 price point advertising - instead of the usual 9.99) and, ultimately,  your customer ticket total. But, all the others are doing the same in their own manner. Here’s just a re-cap:

McDonalds - To soften the price INCREASE for the double cheeseburger from the old price of 99cents to 1.19 - the `old’ price of the double cheeseburger Combo for 2.99 is retained. (Only those cheapies will face that 20 cent increase.)

Wendy’s - Pure price positioning - 3conomics — with the focus on 99 cent choices of only Wendy’s quality and variety. (McDonald’s has countered with ads supporting their  3 - 2.99 combos too.)

Arby’s - From 1.99 Chicken Sandwich choices to 3.99 specific combo choices — low price positionings for Arby’s.

Taco Bell — Ads geared to products BELOW 99 cents each.

Checkers - New `99cent’ offerings.

IHOP - All you can eat pancakes.

Zaxby’s - 5.25 (or about) Combo’s.

About the only ones holding to a non price strategy at the moment are the potentially `low  priced’ Krystal (hard to reduce the price on a burger of that size) and `high quality’ brands - such as Chick-Fil-A. And, Burger King - continues to do what the King does best - be edgy.

The RTAR will get back to regular postings, with weekly links, with more opinions, and more updating  of the sidebar (and more) for this webpage - hope you like the changes to come in 2009. I want to suggest looking at the full 2008 postings of merit by  hitting the link in my sidebar review of 2008.

Continue down the page for much more. See you next week.