Restaurant Trade Area Research

Winners of the various categories are: 

Healthy Food - Subway - Mega Chain; Jason’s Deli - Large Chain

Coffee - Starbucks, Dunkin Donuts, McDonalds

Best Burger - Five Guys, In-N-Out Burger, Wendy’s

Best Fries - McDonald’s, In-N-Out Burger, Five Guys

Best Milkshake - Dairy Queen

Best Value - McDonald’s, Panera Bread

Best Drive-Thru - McDonalds

Most Popular - Subway

More details at this link - http://www.restaurantnews.com/zagat-fast-food-survey-rates-136-major-dining-chains-from-breakfast-to-burgers-dessert-to-drive-thrus/

Today’s headline is in honor of the entry of Subway into the breakfast daypart nationwide. To me, most likely to be `hurt’ would be the `Morning Bakery’ type places (Atlanta Bread Company, Panera Bread, etc) as they also are `walk-in’ - non biscuit - 7AM opening type of places. Subway’s entry also makes it harder for other FF restaurants that are not heavily in the breakfast daypart to start up - such as Wendy’s, Arby’s, some Chicken chains - even a fast casual like Moe’s.

Some Restaurant Links in the news:

Wendy’s/Arby’s Group, Inc. Q4 2009 Earnings Call Transcript - Interesting - bottom line Arby’s still way off for 2009 compared to 2008 (9%) — much more. http://seekingalpha.com/article/191999-wendys-arbys-group-inc-q4-2009-earnings-call-transcript?page=1

http://www.fastcompany.com/magazine/143/next-tech-happy-hour.html -Social Network Rockets Houlihan Restaurants’ Profits - Interesting read.

Battle For Breakfast Diners Intensifying - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124241 Premium coffee’s - all day breakfasts - coming soon.

Here’s a great example of competition in a down economy - Where a Meal Can Cost a Fortune, 99¢ Pizza Catches On - http://www.nytimes.com/2010/03/16/nyregion/16pizza.html 

Eateries emphasize bar areas, happy hours to lure customers amid recession - http://www.orlandosentinel.com/business/os-alcohol-sales-restaurants-20100313,0,4791182.story

Fish survives fall from sky, lands outside sushi bar - Here’s a fun link for you all - http://weblogs.sun-sentinel.com/news/specials/weirdflorida/blog/2010/04/fish_survives_fall_from_sky_la_1.html

Great news for Five Guys Burgers - http://www.portfolio.com/views/blogs/daily-brief/2010/03/25/five-guys-burgers-and-fries-tops-growth-charts - Fastest growing 2009.

More on my services at www.squidoo.com/tradeareasurveys - thanks for visiting today - please bookmark.

Considering that `calorie count on menu board’ is the sidebar category of mine that is the most clicked - this move does not surprise me. Can it really hurt? Isn’t there a way to move customers to higher profit items too? - http://www.cnbc.com/id/35801022 - From the article - “Scott Davis, Panera’s chief concept officer, said posting the information at stores operated in areas where it is mandated has had no impact on the company’s sales. Instead, people shifted their orders to healthier picks, with many selecting the company’s You Pick Two option, which offers smaller portion sizes”

Restaurant Chains Tap the Power of Music - Live entertainment - anything to make your location unique and a destination point - will be needed occasionally in `the new normal’. http://www.chainleader.com/article/452270-Restaurant_Chains_Tap_the_Power_of_Music.php

Thanks for visiting today - have a look around my sidebar —>

(image source - http://www.toptenreviews.com/i/rev/scrn/large/2757-fast-food-calorie-counter5.jpg)

One of the few available ways to increase sales is to increase the size of the eating party - here (perhaps you have seen the ads featuring Bo Bice) Moe’s smartly does just that. Indeed, by targeting a `workday’ Moe’s is even encouraging the development of the `office workers luncheon `date” (no romance required). And, by establishing work pairs eating out together - it will surely `happen’ on non-2-1 days too. Excellent idea.

More links to - including:

Vowel Sounds Influence Consumers’ Price Perceptions - http://www.cnbc.com/id/34919366 

10 Worst Sandwiches in America - http://health.yahoo.com/experts/eatthis/43781/10-worst-sandwiches-in-america/ - A list you don’t want to be on - such as FF chains - Arby’s, Panera, Red Robin, Subway, Blimpie, Quizno’s.

Unemployment Takes a Bite Out of Breakfast - http://www.aolnews.com/money/article/unemployment-takes-a-bite-out-of-breakfast/19367237 - Down 4% — even 8% off breakfast sandwiches at 7-11.

http://www.slashfood.com/2010/02/23/burger-king-unveils-secret-weapon-for-new-steakhouse-xt-burger/ BK goes huge. 7 oz Burger - new broilers.

http://restaurantnews.com/short-orders-news-bites-from-across-the-web-022510/ Just showing off that last weeks post was carried by restaurantnews.com - cool.

Hungry for Returns? Try Wendy’s/Arby’s Group - http://seekingalpha.com/article/185953-hungry-for-returns-try-wendy-s-arby-s-group

Return soon for more.

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