Restaurant Trade Area Research

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

Recently, I conducted the MarketView in an eastern seaboard market at all the units of a particular ADI and all owned by one owner. The MarketView is my name for a type of research design that digs into the fundamentals of any market. All kinds of interesting and useful information comes from doing real marketing research at your stores.

An example of this is shown below:

Store One                                                 Store Two

820,000               2006 Sales                             790,000

13%        Uses This FF Brand Most               24%

20%       Uses This FF At Least 1 Week       42%

161K       Annual Sales To 1+ Week User    331K

20K        Total Repeat Customer Base*        13K    *customer base formula

Smart marketing can address each of these stores specific marketing needs. Only by having real customer based information allows for smart spending of those precious marketing dollars. Make sure to visit my Squidoo page that explains more about the MarketView at www.squidoo.com/tradeareasurveys.

Today’s Restaurant Links

`Former Bojangles Exec’s Now Qdoba Men’

http://www.chainleader.com/article/CA6607112.html?industryid=47555

`Fast Food Shops To Be Banned Near Schools In UK’

http://www.dailymail.co.uk/news/article-1079655/Fast-food-shops-banned-near-schools.html 

`IS Fast Food Poised For A Fast Fall?’

http://www.forbes.com/markets/2008/10/22/mcdonalds-earnings-closer-markets-equity-cx_mp_1022markets44.html

Thanks for stopping by today — much more is below too. Bookmark this site and return for more updates. If you have some comments we’d love to hear them. 

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.

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.

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.

At the corner of Sandy Plains Road and Hwy 92 in North Atlanta you will find a Back Yard Burgers that has gone out of business. Most likely the owners did their due diligence and checked out the basics like traffic counts and the demographic profile of the area. Not only that, I bet what they found sounded perfect for the Back Yard Burgers positioning as an upscale hamburger restaurant. Indeed, the intersection has huge amounts of traffic and the demographics of the area would indicate `families’, plenty of roof tops, and plenty of income.  That said, the fact that a Checkers went out of business at the corner on the opposite side of the street - could have indicated that the location be viewed with caution. (The Checkers challenged an existing McDonald’s. The corner is now home to an Italian sit down restaurant.)

So, what happened? Personally, since I was a VERY light user (3 times in perhaps 3 years) I can’t speak to operations of the unit - but the experiences of my 3 in-store visits went very well. No negatives. So, assuming it wasn’t an operation problem - what gives?

What gives is that you need MORE than perfect demos and traffic counts; you need to understand the real market potential of an intersection. And, the real traffic flows for `your side of the street’.

First off, before you think the intersection was `too busy’ and had huge back-up’s of traffic that no one would want to get `re-involved’ with after visiting the restaurant - forget that. This is a well flowing traffic pattern. That said, most restaurant owners are aware that some intersections are `too busy’ and don’t make a `good spot’ sometimes.

No, it wasn’t that at all. The problem with the traffic counts in this instance was that most of it was `long - flow traffic’ — most of it going miles beyond that intersection as a final destination. Additionally, the location had difficult access due to raised cement in the median - bad access especially can limit great lunch numbers; and females.

Additionally, the trade area likely did not have good daytime worker demographics - as one would assume the `hamburgers’ skews male in positioning - and, likely, not even a strong daytime worker number compared to other intersections with less traffic.

Finally, another word about demographics — a given stores demo’s will almost NEVER fit the demo’s for a 1-3-5 mile area. Most restaurants need to know what subgroups are likely to be important (those with higher indexes) to a normal store like theirs. IF you have a restaurant that features 1/3 lb. burgers — you might want to know the indexing of males within the real trade area. (The real trade area of this store was probably ONLY Sandy Plains Rd. and probably mostly on their side of the traffic flow within 2 miles before Wigley Rd. — NOT a big real trade area.)

But, finally, the real story in this instance - was probably the competitive environment. A Five Guys opened in the direct competitive area, probably cutting off and being `first’ to a large part of Back Yard Burgers lunch traffic and even dinner traffic - and in a more accessible (in and out) location. Splitting the hamburger business with McDonald’s was one thing - 3 way splits - can close a marginal restaurant with poor access to traffic flow.

Looking over potential sites - is a service I’ve provided - find out more about my Trade Area services at www.squidoo.com/tradearearesearch

Today’s Links

Woman Wants To Limit Fast Food Restaurants

http://www.todaystmj4.com/news/local/26152264.html Now that laws have started by activists to limit fast food locations - expect to see your local do gooder getting more and more exposure for such thinking. This is a story about a neighborhood group that says 6 fast foods on a road are enough - too bad for the Church’s Chicken.

Jake Says `Don’t Use The Drive-Thru’

http://poststar.com/wordpress/?p=5836&cat=47    Seeing the miles at zero while sitting at the drive-thru; will bring out the Greens.

The EAT IN Lunch User

http://www.chainleader.com/article/CA6581159.html?industryid=47557 Quarterly survey by Quick - Track; real research and real numbers.

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.

Having done scores and scores of projects in fast food restaurants over decades - I’ve often advised clients to do `operation ratings’ on our questionnaires. This might involve asking respondents (your customers) to rate things like speed of service, cleanliness of the unit, value for the money and so forth. But, the one attribute that when `crossed’ with frequency of usage that stands out is `friendliness of the employees’.

It seems that in this day and age - despite being told by the media we are off in our own world and don’t want to be bothered - that customers react to friendliness MOST. Since the person who interacts with the customer is the main person to project this image — it is imperative to make sure that person has a friendly engaging voice (at the drive thru speaker) and in-person on the cash register - that the person is one of your BEST employees for eye contact and smiling. (Again, a good clear voice is needed).

In future posts, I’ll tell you specific figures for how often a customer uses a restaurant when they rate friendliness an 8 rather than a 10 — once you know, you will act quickly. Don’t wait - do it today.

Today’s Links

NYC Chains Have to Post Calorie Counts

http://www.bloggernews.net/116809   Yep, right next to the product on the menu, in the same font, must be the calorie count. Logic would suggest that some shift in food orders will be the result of such laws. It would also suggest some erosion of usage perhaps by less committed users of your brand.

Calorie Counts on Menu Boards

http://www.chattershmatter.com/2008/07/20/nyc-fast-food-chains-add-calory-counts-to-menu-boards/  Same story, slightly different slant.

Law to Restrict Location of Fast Food Restaurants in LA

http://thepacker.com/icms/_dtaa2/content/wrapper.asp?alink=2008-16452-821.asp&stype=produceconcepts&fb= In South-Central LA - to improve health of youth. Here the hope is that by restricting Fast Food Brands that `other healthier’ choices will open shop.

Based on today’s links - Government involvement in FF seems just another example of our BIG government.