Restaurant Trade Area Research

11. October 2010

Omaha Eaters Drive To Avoid New Tax At Restaurants

Looking for revenue anywhere they can get it in this new normal - politicians in Omaha put a 2.5% tax on restaurant diners - forcing them to drive to other communities to avoid the tax.  http://www.ketv.com/r/25247993/detail.html

New Chicken Taco at Church’s Chickent - http://www.restaurantnews.com/churchs-chicken-on-the-go-with-the-new-crispy-chicken-taco/ - nice brand extension here for `on-the-go’ targeting too (did I see a burrito now offered at Hardee’s in Woodstock Ga?).

Wingstop Reaches 29 Consecutive Quarters of Positive Comp Store Sales  - http://www.restaurantnews.com/wingstop-reaches-29-consecutive-quarters-of-positive-comp-store-sales/

Will Arby’s and Wendy’s increase prices? - http://www.walletpop.com/blog/2010/10/01/are-wendys-and-arbys-going-to-beef-up-menu-prices/ – kinda a strange article to me as any beef price increases would certainly hit everyone.

Speaking of beef - Regional Chains Feed Hunger For Burgers - http://www.msnbc.msn.com/id/38420989/ns/business-local_business/

From the in-case you missed it file - McDonald’s sss up 4.9% in August - http://www.restaurantnews.com/mcdonalds-posts-strong-global-comparable-sales-august-up-4-9/

More about my services at www.squidoo.com/tradeareasurveys

4. October 2010

Ultra Affluent Hugely Increase Fast Food Spending

Those who charge 7,000 or more a month to credit cards and who meet a specified income level - increase quick service usage by 24% - three times the rate of other demographics. From the link:

“Subconsciously, I think I’m saving money by spending less on food, but my spending somewhere else must be going up, because the amount on my credit card is not going down,” Gutsell said to the WSJ, as he ate an Extra Value Meal at a McDonald’s.  - http://eatdrinkandbe.org/article/index.fast-food-rich-people-015

Yes, this is how screwed up the new normal is.

In other news about McDonald’s and the new normal - McDonald’s May Drop Health Plan - http://online.wsj.com/article/SB10001424052748703431604575522413101063070.html

20 New Items and a re-designed menu is what IHOP positions to re-invigorate customer base - http://www.restaurantnews.com/ihop-serves-up-new-menu-full-of-innovative-choices-to-satisfy-any-craving/ - (come to think of it - while it’s been years since I choose IHOP - it did have a confusing overwhelming menu).

Jack In The Box closes 40 company stores - http://www.forbes.com/2010/09/29/jack-in-the-box-to-close-40-restaurants-marketnewsvideo.html - the new normal does not bode well for turnarounds.

Creamy premium MilkShakes tested at Checkers - http://www.restaurantnews.com/checkers-brings-a-cold-wave-to-sunny-south-florida/ joining the growing trend in top of the line shakes.

Please visit my sidebar for more great links and products. Thanks.

28. September 2010

KFC Uses Coed Buns To Advertise Bunless Sandwich

KFC Ad on Coed Butt

One must pat KFC on the back for this inexpensive marketing move - pay a few coeds to advertise your bunless sandwich - targeted at males - on the buns (backsides, butts, buttocks) of pretty college coeds. Is `anything fried’ becoming a male dominated target demo? As the link says `a head turning’ idea - http://www.restaurantnews.com/kfc-places-double-down-ads-on-the-backsides-of-sweat-pants-worn-by-college-co-eds/

At this link - http://www.slashfood.com/2010/09/23/vegans-cheer-dennys-new-burger/?icid=main%7Chtmlws-main-w%7Cdl3%7Csec3_lnk1%7C172876 - you can read another winner from Denny’s (after their AARP success) - here  - heading in the opposite direction to the Double Down of KFC - is Denny’s new Vegan Burger - picking up on the new `health’ positioning and burger trends in one product. Also, burgers are a strong lunch product often times.

Two Subway new products reviewed - http://www.slashfood.com/2010/09/21/subways-fiery-turkey-jalapeno-and-steak-and-cheese-subs-reviewed/?icid=main%7Chtmlws-main-w%7Cdl8%7Csec3_lnk3%7C172053

Here is a real fun read - On Colonel Sanders’ 120th Birthday, Survey Reveals Young Americans Unclear If KFC Founder Was Real Person - http://www.restaurantnews.com/on-colonel-sanders-120th-birthday-survey-reveals-young-americans-unclear-if-kfc-founder-was-real-person/ - don’t miss this and what can happen to icons and brand images.

My YouTube Channel which has free 2010 Top Of Mind Research about Restaurant Brands - http://www.youtube.com/my_videos?feature=mhum

20. September 2010

Quick Restaurant Thoughts And Links

It’s scant data but this website is once again in the Alexa Rankings - http://www.alexa.com/siteinfo/restauranttradearearesearch.com# - the stats from 1&1 my host would indicate a growing readership too.

So, I have now seen the TV ad campaign for the new Burger King Breakfast menu —– to me —– OK, but, strange IMO. I mean, ONLY MEN marching in the street? (I noted the various types of men from office to laborer to `funny’ still in bathrobe man.) I thought BK wanted to slowly move to less emphasis on ONLY the male target. The commercial also left me wondering what these products were that I only had a few seconds to view all together.

Recently got two very different coupons via the mail for Honeybaked Ham and CiCi’s. HH offered a 6.99 combo and CiCi’s offered a 3.99 adult buffet. Now my first statement is that CiCi’s hasn’t offered this price point for quite sometime, and, became famous for it when the chain was in full expansion mode prior to the new normal. Except for the fact that the coupon was only for one person (why not make it for more than one on the same coupon) - it was a very compelling reason `to return’ to having CiCi’s be part of the mix of restaurants used. Whereas, my first thought about HH was - WTH? — What is the NORMAL price if this is the `value’ they now are offering (and in the same plaza as a Subway with a 3.99 daily deal)? And, who in the world is this coupon trying to compete with - O’Charley’s?

I’ve also caught sight of the fact that the Woodstock Steak and Shake - in addition to meeting the new afternoon dayparting of drink prices (like Sonic) - to attract some of those `convenience store’ types — they now offer the same 2-1 deal from 2AM to 4AM — very cool.

And, here’s a new technology that even mentions usage by Fast Food Chains - Bump Uses License Plate Image Recognition to Text Fellow Drivers  - Includes this statement:

Fast food restaurants, for example, could use the technology to offer personalized menus to drive-thru customers, as based on their previous selections

http://www.switched.com/2010/09/16/bump-uses-license-plate-image-recognition-to-text-fellow-drivers/?icid=main%7Chtmlws-main-w%7Cdl5%7Csec3_lnk2%7C171298

8. September 2010

Burger King Introduces 9 New Breakfast Items

BK goes directly after the only daypart still expanding in visits - Breakfast; with upscale type items, a 4.29 full breakfast platter, AND 1.00 value items too. Did I mention pancakes?

Ads begin 9-13 and info will be positioned broadly for the next 11 weeks. http://www.restaurantnews.com/burger-king-rolls-out-new-breakfast-menu/ more details at the link.

Here’s the story of a chain that has largely gotten the whole `new normal’ right - Taco Bell - Taco Bell CMO David Ovens Sees Hot Opportunities - http://www.brandweek.com/bw/content_display/news-and-features/direct/e3ic193b6eacf48409b5f5a56dbec655408 good coverage of his marketing strategies in this interview.

New To This Blog? http://restauranttradearearesearch.com/important-posts-of-2009/

http://restauranttradearearesearch.com/important-posts-in-2008/

3. September 2010

Burger King Sold For $3.26 Billion To Private Investors

With banks lending most of the money - the #2 Burger chain is sold -blaming focus on the 18-35 year old male as one positioning problem with the brand - http://www.npr.org/blogs/thetwo-way/2010/09/02/129604272/burger-king-sold-for-3-26-billion-to-private-investors - here’s to hoping the BK `King’ Character is safe.

Hardee’s develops for the only increasing segment of visitors - breakfast - and focuses on having the product `mobile’ for users - Hardee’s Makes a Breakfast Classic Portable with New Country Fried Steak ‘N’ Gravy Biscuit - http://www.restaurantnewsrelease.com/hardees-makes-a-breakfast-classic-portable-with-new-country-fried-steak-n-gravy-biscuit/853611/ - still, is GRAVY on a biscuit - really `mobile’?

Meanwhile - instead of pursuing the `Gravy’ crowd at breakfast - Ruby Tuesday’s is going Healthier and Lower Calorie at Lunch - Ruby Tuesday Highlights More Healthy Options on New Menu - http://www.restaurantnews.com/ruby-tuesday-highlights-more-healthy-options-on-new-menu/ - the salad bar allows RT’s to have more of a positioning in this area compared to a Chili’s, etc.

More about my services here - www.squidoo.com/tradeareasurveys - have a safe Labor Day Weekend.

18. August 2010

Fast Food Trading Up To Catch Customers Trading Down

The evidence is starting to pile up about one response to the new normal is that Fast Food brands should enhance the  restaurant experience available - almost regardless of price point - because in large part it is aimed at those `trading down’ from the sit-down and tip waitress at lunch segment - and at the already existing non-tip fast casual (such as a Five Guys).

Examples include Wendy’s new redone Premium Salads priced at around 6.00 - and the large variety of `Angus’ Big Burgers available at most of the major chains now. (Can Buffalo Burgers be far away?) It would also include the upscaling of Milkshakes at Chick-Fil-A and Hardee’s - to the recent bone-in BBQ of Burger King - to the upscaling, at least perception wise, to many McDonald offerings such as the yogurt choices and coffee.

These new positionings, which often include a dash of health perceptions mixed with a sprinkle of indulgence, can be fairly and profitably priced within the fast food price points compared to fast casual and especially when compared to ANY RESTAURANT THAT DEPENDS ON TIPS FOR ITS EMPLOYEES. As today’s customer, in the new normal, is no longer disregarding any `additional charges’ as frivolous.

Indeed, when today’s restaurant using customer sees a Chili’s ad about the Burgers choices (with fries) starting at 5.99 - they know that - even getting water (the continuing trade-down) - that with tax their bill will be pushing 6.50 - which with tip (can you really tip under a dollar in a sit-down environment with table cloths) would be another buck (or two to not look cheap) - making the 5.99 advertised price point, more like 7.50+ and they are still drinking water. (The 1.79 and up prices on drinks at these places do them no help perceptually either). Indeed, throw in the drink, tax, (and now a two dollar tip) and you are talking 10.00 nearly - for the cheapest 5.99 advertised price point.

And, perceptions like that - add up to Fast Food brands having some opportunity for brand extensions with good profit price points. Doing this, while retaining the `value’ and yes - even the `dollarish’ price points too. (Dollarish (things under 1.49) would be a fun positioning.)

Lastly, since the new normal could be here for years and years, expect this trend in Fast Food brands to be a continuing process as brands find profitable brand extensions once thought of as not possible or too out of character for FF. Does this mean `value sized portions’ of something as exotic as `Prime Rib’ - before you say impossible - remember, this is the new normal. Crabcakes anyone?

Here’s some thoughts of a 50 year old multi time a day FF eater - http://www.youtube.com/watch?v=T2H_pEFuSSo - and more about my services is right here www.squidoo.com/tradeareasurveys too.

16. August 2010

With Down Sales, KFC Franchisees Are Squawking

With second quarter sales off 7% - more and more franchisees are not confident with the new emphasis on sandwiches and grilled chicken - one decades long franchisee even said this: “Roger Eaton and his company don’t give a rat’s ass,” - http://www.businessweek.com/magazine/content/10_34/b4192019553596.htm?chan=magazine+channel_news+-+companies+%2B+industries much more detail at the link.

And KFC isn’t the only big name with continued lower secondquarter sales as Arby’s is once again off 7.4% and Wendy’s is off 1.7% http://www.restaurantnews.com/wendys-arbys-group-reports-2nd-quarter-2010-results/ - that said, Wendy’s/Arby’s plans expansion abroad with duel branded stores - http://www.ajc.com/business/wendys-arbys-to-open-588791.html

Meanwhile, while some chains go overseas for expansion - Chick-Fil-A plans to go into urban USA locations - http://www.ajc.com/business/chick-fil-a-plans-589960.html

And, speaking of GOING into new areas - New food-truck trend rolls into Akron - Vehicles promote fresh, unique fare, pose competition to eateries - http://www.ohio.com/news/top_stories/100353574.html making existing restaurants uneasy.

And, speaking of being uneasy in the restaurant business - Restaurants seek recipe for economic sustenance - So, with the fear of the unknown come new marketing strategies, including lots of social media and some creative pricing packages. Restaurants are also learning the value of truly connecting to the community they call home and making sure their new and regular customers are given top-notch food, delivered with a smile. - http://mddailyrecord.com/2010/08/05/restaurants-seek-recipe-for-economic-sustenance/ the bad news, of course, is that the `new normal’ is quickly becoming the new reality.

More down sales from O’Charley’s too - same-store sales at O’Charley’s company-operated restaurants declined by 7.9 percent - http://www.restaurantnews.com/ocharleys-inc-reports-results-for-the-second-quarter-of-2010/

More about my services at www.squidoo.com/tradeareasurveys

6. August 2010

Ruby Tuesday’s Recipe for Survival Is New Menu, Look

When the term `survival’ is used concerning any restaurant chain - it is not good news - especially when trying to change the positioning to more upscale in the new normal. But, that is exactly what RT is trying to do to create some positioning difference from competitors such as  Applebees, T.G.I. Friday’s and Chili’s. Read more of the strategy here - http://www.theledger.com/article/20100722/NEWS/7225054/1001

And, as you the restaurant owner knows that the new normal means - US Restaurant Count Down by 5,204 From Last Year, Reports NPD - http://www.restaurantnews.com/us-restaurant-count-down-by-5204-from-last-year-reports-npd/ 

McDonald’s, once again, is heads and tails above the rest in effectively following the trend to fresh and fruit - Customers Go Bananas for McDonald’s New McCafé Real Fruit Smoothies - http://www.restaurantnewsrelease.com/customers-go-bananas-for-mcdonalds-new-mccafe-real-fruit-smoothies/852184/

Or, you can take this approach to new products - being outrageous - KFC’s Double Down fails to take off http://money.cnn.com/2010/07/14/news/companies/kfc_double_down/index.htm?source=yahoo_quote

Here’s another story on Wendy’s going upscale with their salads (and upscale in price) - http://www.walletpop.com/blog/2010/07/09/wendys-upgrading-salads-but-it-will-cost-you/

And, Ruby Tuesday’s is not the only casual restaurant hoping to advance in the new normal - Can O’Charley’s find a recipe for success? - http://www.dnj.com/article/DN/20100704/BUSINESS01/7040332/1088/BUSINESS/Can+O+Charley+s+find+a+recipe+for+success

More Soon.

7. July 2010

Domino’s Uses Authentic Food Photography in New Marketing Efforts

Filed under: Domino's Pizza, free wi-fi, Starbucks, new products — Rick Phillips @ 16:13

In the new normal - everyone is tired of the endless `marketing’ and pitching of products that do not live up to expectations - especially visually. But now, Domino’s Pizza has gone the extra step in advertising their product - showing THE REAL THING. Honesty, a worthwhile, unique attribute in advertising and enough to make this stand out - http://www.restaurantnews.com/dominos-puts-authentic-food-photography-in-marketing-picture/ 

Starbucks - FREE WI-FI - and more coming - Later this fall, Starbucks plans to introduce the Starbucks Digital Network, in partnership with Yahoo!. This new online experience, currently planned for U.S. company-operated stores, will offer customers free, unrestricted access to a collection of paid sites and services, exclusive content and previews, free downloads and local community news. - http://www.restaurantnews.com/starbucks-turns-on-free-wi-fi-for-customers-july-1st/

Being connected - Being Real - in the new normal.

22. June 2010

Hardee’s Introduces Hand-Breaded Chicken Tenders

Hardee’s continues its move to offering a more upscale `handmade’ product for its customers (one suggested by a franchisee who was having success with it in another restaurant he owned) - http://www.restaurantnews.com/hardees-introduces-hand-breaded-chicken-tenders/

In other research - Breakfast Accounts for Nearly 60% of U.S. Restaurant Industry Traffic Growth Over the Past Five Years - http://www.restaurantnews.com/breakfast-accounts-for-nearly-60-of-u-s-restaurant-industry-traffic-growth-over-the-past-five-years/ being a player in all dayparts is becoming needed in the new normal.

Since you are here - look around before you go - http://restauranttradearearesearch.com/important-posts-of-2009/

3. June 2010

KFC Could Learn Something About Itself and Marketing if It Listened to Consumers

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.

19. April 2010

McDonald’s - Consultant Says Chain Wants To Be Like Starbucks

As I mentioned in one of my first blog posts in this blog - http://restauranttradearearesearch.com/2008/08/17/mcdonalds-perception-change/ – competitors better realize the time is now if not last week to fear the FF giant. Talk about having all the right tools, and understanding that research, and understanding a customer base - it will only get tougher if you do not have the arches in front of your store. What are YOU doing about understanding your customer base?

Anyway - this `new idea’ is to make McDonald’s more `leisurely’ — absolutely could work too IMO. http://www.chicagotribune.com/business/ct-biz-0413-mcdonalds-makeover–20100412,0,2749029.story

In other news - Colonel Punishment - The significance of the KFC Double Down - the takeaway from this post is that it all ISN’T price price price in 2010 as the manner to create a buzz. That said, this product has already been panned. http://money.cnn.com/2010/04/15/news/companies/kfc_double_down.fortune/index.htm 

And, Firehouse Subs grabs some good PR with this Firehouse Subs Launches “Chip In” Program - http://restaurantnews.com/firehouse-subs-launches-chip-in-program/

Thanks for visiting today - in the sidebar you can see the most important posts of 2008 and 2009 - I exclude ones with links and just put the ones with `my articles’ - so give it a look. Thanks.

9. April 2010

Restaurant chains roll out small portions at small prices

In what only makes sense in the New Normal - offering the same food in smaller portions and prices - can only be a win win for operators (as long as profit margin in maintained). Includes chains such as California Pizza Kitchen - http://www.usatoday.com/money/industries/food/2010-03-30-smallplates30_ST_N.htm and Cheesecake Factory.

Working on a major post for the weekend - checkback - I’d love you to bookmark and make Restaurant Trade Area Research a frequent stop in your internet surfing.

8. April 2010

Subway Breakfast Sandwiches Reviewed

And, this first review is not too positive with grades from C+ to F for each of the first standard sandwich offerings. Seems the reviewer had very salt sensitive buds (as it seems anyone ready to write a negative food impression has to have) and hated the mouth favorite, a `Steak-Um’s’ similar choice. Interestingly, the reviewer tried NONE of the sandwiches custom made - (strange as wouldn’t nearly all of those that walk in custom make these?). http://www.slashfood.com/2010/04/05/subway-breakfast-sandwiches-reviewed/?

Seems Burgerville is having strong success with various online strategies - worth a browse here - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124407

Here’s a pretty deep thought and science experiment as to what happens when folks view a Fast Food Sign - Simply the logo. Seems it makes them read faster, seeks ways to save time and other effects. Really shows how deep our impressions can be and affect behaviour. http://www.parentcentral.ca/parent/healthzone/mindmood/article/786836–how-a-fast-food-sign-changes-your-day

In this era of the new normal - where your restaurant brand in staking out a price point or points — comes this NEW level of price positioning - Denny’s has gone to promoting FOUR price value points http://restaurantnews.com/dennys-redefines-the-value-menu/ - see the full offerings at 2,4,6,and 8 dollars here.

KFC is about to introduce a new SUPER sandwich sure to raise the eyebrows of many - great picture of this TWO patty sandwich with NO bun. http://www.cnbc.com/id/36191290 I wonder what the demos on this sandwich would be? (Who Eats What menu research is always very interesting - something that YOU can do at your restaurant too via my services as part of the MarketView.)

Find out more about the MarketView here - www.squidoo.com/tradeareasurveys — I also have some current restaurant links at that site too.

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