Restaurant Trade Area Research

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.

The trend for dayparting and weekparting continues - this time it’s Moe’s with an American Idol ad last night saying `Two For One on Thursdays with purchase of two drinks’ - expect to see even more in 2010 as more and more fast food retailers realize that this is the new normal of the Great Recession.

Forget having a good brand image. Forget about having a good product at a fair value. Forget having excellent store operations or effective advertising. No, the apparent way to customers is giving the food away for free (of which the promotion itself usually results in long service delays and perceptions of poor operations) sometimes without even the need to purchase a drink or side.

Is this the best strategy the chains can come up with? Even in these down times - scrapping along with consumers adjusting their frequency of fast food and overall restaurant usage? And, if one chain every 10 days or so is offering - free - how about a price offer that doesn’t give away the house and all profits?

How about a different tack - say - 79 cent ice cold soft drinks all summer long. Such a tactic would make the reduction `not permanent’; yet would offer real value - even allowing the customer to pay full price for a sandwich without feeling ripped off. Or, do the 79 cent drinks only on weekends to target the more `local’ home customers (and making your business base continue to give some profits during the week).