Restaurant Trade Area Research

http://www.scootaboutkneescooters.com/images/prices-slashed.gif

Well, that is a little of an exaggeration perhaps - but what they have done is get the new lower price point in front of the public AND have brought clarity in pricing to the pizza category - mediums now start at 8.00 with up to three toppings. —- Along a related front - amazingly, we travel thru yet another summer without one major FF chain matching McDonald’s 1.00 Iced Tea prices. Amazing.

Now, you know RTAR loves surveys and especially the results of surveys - like this one - Cracker Barrel Receives Top Ratings in National Independent Consumer Study - http://www.restaurantnews.com/cracker-barrel-receives-top-ratings-in-national-independent-consumer-study/ - not only that Cracker Barrel won 31 of 50 rated attributes.

And, in another study - US Restaurant Count Down by 5,204 From Last Year, Reports NPD - that is about 1% of all restaurants and the first decline since the study began in 1976 - The new normal settles in.

Here’s a new Carl’s Jr. & Hardee’s product sure to grab some headlines - The 12 Inch BURGER - http://www.usatoday.com/money/industries/food/2010-07-16-footlong16_ST_N.htm 

More new products - WENDY’S Upscales Salads - http://www.restaurantnews.com/wendys-introduces-new-line-of-premium-salads/ - will upscale price diminish results?

More links tomorrow.

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

The new price of `free’ continues within the fast food category - this week - I’m aware of a dayparted Sonic free Root Beer Float and a free donut at Dunkin Donuts (with purchase) and I’m pretty sure I saw a coupon for an Arby’s `weekparted’ free Kids meal (on weekends with purchase). To be honest, I think there was at least one more.

Well, at least the new FREE involves some targeting. Targeting families to get into a weekend Arby’s visit - good idea. Targeting the sweet tooth by Sonic in the evening (this promo was after 8PM) - creating that `float, at night, in the summer idea - and also making this FREE promotion FREE - good idea. Dunkin Donuts getting some free trial by coffee users - good idea.

Also newsworthy on the `re-pricing’ of fast food restaurant visits is McDonald’s (at least locally) going 1.00 for all sizes of any soft drink (a la carte) (until Sept.30th) - NOT just the sweet tea. Smart - something I suggested all chains should consider in prior posts about how to deal with the `new’ normal in restaurant usage.

And, that new normal continues to make it a rough go as these links indicate:

Fast-Food Chains In For Job-Loss Pain - http://money.cnn.com/news/newsfeeds/articles/djf500/200906031622DOWJONESDJONLINE000812_FORTUNE5.htm

Same store sale figures - Not good news for some - down as much as 8% for Arby’s - Qdoba’s down;  BK, Wendy’s, Jack In The Box slightly up. http://www.mediabuyerplanner.com/entry/41524/burger-king-promotes-value/

http://www.rttnews.com/Content/BreakingNews.aspx?Node=B1&Id=947907%20&Category=Breaking%20News

Don’t leave before visiting my Squidoo site - where I explain some of the services I offer www.squidoo.com/tradeareasureys - thanks.