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.

First, let it be said that my usage of nearly ALL of the restaurants has already assumed the `new normal’ of the Great Recession. Regardless of what cheerleading the media may be doing about the economy - most folks are now cautious on discretionary spending - of which, restaurant visits - even to a degree Fast Food restaurant visits - has been impacted. 

 In alphabetical order:

Arby’s - I `responded’ to the ads for the `Roast Burger’ earlier in the year and was not impressed. I refused to respond to the Marry a Goat `humor’  ad campaign and somewhat like the recent 5.01 combo or pricing (the one cent being for Quality).  That said, generally, I perceive that Arby’s as expensive without having coupons from the coupon mail drop a few times a year. Additionally, they  `streamlined’ their `fries’ - dropping my favorite the Homestyle. How can they NOT promote the Jamoca Shake?

Atlanta Bread Company (ABC) - Remodeled nicely. Upgraded to real plates and silverware. Messy to clean up. Can be crowded and slow service. Female favorite. Good soups and combo prices. Mellow atmosphere.

Burger Inn - Local  legend - all fresh cooked. Great breakfast customer base. Friendly people; newspapers available often. Excellent onion rings. Beefy hamburgers. Male favorite.

Burger King - I like the current billboard promotion about the Double Cheeseburger for a buck, real value - but - haven’t gotten it.  I have ordered the Mini burgers more than once however and view that as an excellent addition. Amazingly, the Woodstock BK got rid of Real Sweet Tea years ago (my assumption is that is still the case) and thereby nearly ended my usage — I can’t stand the fake sweet tea out of a machine. Operations should be aware that changing ICONic drinks can have a big effect. — Finally, where is the KING?

Capt. D’s - Perhaps my favorite FF in Woodstock. Quality, Quick, and Quantity with good value pricing. Covers all reasonable price points including lunch specials and on-going `specialities’ that have all prices. Excellent choice of sides. Funny ads earlier in the year comparing to Red Lobster pricing. Friendly greeting and thanking when exiting. Good inside music.

Checkers - Still a viable concept (double drive thru) - chicken wings were a good addition earlier in year - somehow it fits. Catchy phrase “you gotta eat” recognizable for smaller chain levels of advertising. Covers all price points well with a good mix of products. The Woodstock store does Sunday Pricing - good idea - hasn’t ever motivated me for their `down sized’ versions. Could probably `play-up’ the FUN theme a little bit more.

Chick-Fil-A - Woodstock’s Chick-Fil-A is amazingly busy. Overwhelmingly busy whenever they do a promotion like 2-1 for a chicken sandwich or free food giveaway. Excellent quick service regardless of how long the lines are - especially at the drive-thru. (However, I’ve detected a time or two a usage of `workers in India’ taking my orders — I’m not kidding - and, in this time of underemployment in America - that is NOT right to save a few cents that way.) Real Milk Shakes were genius. Consistent quality. Friendly employees. Clean. ————— All that said, the Woodstock inside service in the sit-down area can be horrid and when is Chick-Fil-A gonna get some normal fries? Also, one takes a chance when getting the baked potato.

Dairy Queen -  The standard in Ice Cream desserts from the drive-thru. Haven’t used but really like the new pricing structure in ads 2/3 3/4 4/5.00 - interesting approach. Unfortunately, for me, the food hasn’t broke thru.

Dunkin Donuts - Right on the Strip - I’ve never used location. Certainly they can advertise donuts and donut prices more.  (IF I knew a quick Donut sweet was 99 cents for example - it would come to mind for `dessert’ or breakfast purchase more often. Never seen a place less concerned with establishing a price point understanding. Just how much does a dozen donuts cost?)

Firehouse Subs - Expensive but Excellent. Can be slow. Friendly employees. TV’s to watch. Good real sweet tea. Small, can be crowded.

Five Guys Hamburgers - Tangential to Woodstock in Sandy Plains area — good operation - waiting for a Woodstock Location (several good places available perhaps too).

IHOP - Expensive, right? What specials?

KFC - Closed but not forgotten. Also was one, like BK, to drop sweet tea for a time.

Krystal’s - Krystal `fix’ a must a few times a year. (Canton Road.) Ad’s featuring Crispy Onions on burger looks very compelling. Wi-Fi add - good idea.

McDonald’s - Woodstocks unit re-designs and updates the interiour often - which is nice. Clean. Service can range from excellent to very poor (weekends). Can often find an AJC or USA today in newspaper bin. Separate kids area - thumbs up. Fries can vary in quality. Best FF fish sandwich.

New China Buffet - Lunch value leader. Good quality food. Friendly employees. Priced by the pound to go. Widest variety of food.

O’Charlies - Stopped going shortly after changed menu restricting Prime Rib to Sundays only.

Panda Express - Have never used. Pass by back of lot 3 times a week on way to Walmart.

Po Folks - AKA Folks —> Expesive for what you get.

Ruby Tuesday’s — How could they get rid of German Potato Salad? (pet peeve). Good miniburgers and platter pricing. Easy to split orders. Great salad bar still.

Sonic - I really like their ad’s inside the car with the main guy and his friend and the main guy and his wife. Classic. Best onion rings in Woodstock at FF. To me, tasteless burgers. Fun to use. Daypart pricing on drinks in the afternoon. Fun music playing.

Steak And Shake -  Best Milkshake in Woodstock. Can be very expensive without coupons and very reasonable with coupons. Great variety of sides. Great music inside.

Subway - Good with pricing with coupons. Good quality. Can be SLOW service. GOOD real sweet tea. Fresh. Daily specials a good way to address pricing. Excellent variety of sandwiches.

Taco Bell - Good cheap price positioning. Good Chalupa’s. Good real sweet tea. Good service speed. Good quality overall.

Wendy’s - Huge variety in quality - excellent one time - poorish the next. What the heck happened to the fries - almost tasteless compared to yesteryear. I’m told good salads. Expensiveish compared to McD’s. Baked potato good price/quality.

Thanks for reading - feel free to comment.

Here’s some links also:

KFC Closes Its Doors to Fight Hunger - http://www.slashfood.com/2009/09/30/kfc-closes-its-doors-to-fight-hunger/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.slashfood.com%2F2009%2F09%2F30%2Fkfc-closes-its-doors-to-fight-hunger%2F Community involvemet matters - look at the results of the survey on this page too.

A Real Whopper? NASCAR’s Stewart to take live polygraph test in ad  - http://www.walletpop.com/blog/2009/09/30/a-real-whopper-nascars-stewart-to-take-live-polygraph-test-in//?icid=main|htmlws-main|dl1|link5|http%3A%2F%2Fwww.walletpop.com%2Fblog%2F2009%2F09%2F30%2Fa-real-whopper-nascars-stewart-to-take-live-polygraph-test-in%2F%2F BK, attention grabber again.

Eat, drink, and spend money: Restaurants ply diners with cheap booze - http://www.dailyfinance.com/2009/09/29/eat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b/#continued?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.dailyfinance.com%2F2009%2F09%2F29%2Feat-drink-and-spend-money-restaurants-ply-diners-with-cheap-b%2F%23continued

When you use the MarketView design - part of the findings via our customer base formula - tells the owner, literally, an estimate on `how many’ customers do I have at this unit. Then, when that is combined with the knowledge of what percentage of transactions are with customers in the top two zipcodes for a store — the operator ends up knowing the number of customers that live in a certain zipcode(s).

In the same market I spoke of yesterday - one store had over 11,000 customers who lived in the top two zipcodes to that store; whereas, other stores had less than 5,000 customers in the top two zipcodes. So, once again, in this time of limited marketing dollars - targeting the most customers is good business and smart money.

More restaurant links for you:

http://www.nrn.com/breakingNews.aspx?id=370226 Carl’s Jr. and Hardee’s sales slip in June, July.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ak1s1RK9PVp4 Wendy’s and Arby’s sales off too. This link also talks about how restaurant visits overall were down for the first time since 1981 (shows how my post about spring research `expecting an increase’ was dead on http://restauranttradearearesearch.com/2009/04/19/does-new-restaurant-research-point-to-real-surge-in-confidence-and-more-restaurant-spending-or-not/)

http://www.qsrweb.com/article.php?id=15504&na=1&s=2 Taco Bell about to add breakfast.

http://www.couponcravings.com/2009/08/wednesday-free-fruittea-with-sandwich.html Arby’s `free sandwich’ with drink purchase today.

http://www.bloggingstocks.com/2009/07/06/new-mcdonalds-to-include-recharging-stations-for-electric-cars/?icid=main|htmlws-main|dl5|link6|http%3A%2F%2Fwww.bloggingstocks.com%2F2009%2F07%2F06%2Fnew-mcdonalds-to-include-recharging-stations-for-electric-cars%2F Yep, McDonald’s to offer re-charging for electric cars at some new units.

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.

As far as the Woodstock Georgia fast food market is concerned  - restaurants continue to be under competitive pressures with strong discounting and `new and interesting’ promotions to offset the continued shrinking of customer bases. Indeed, just recently, ABC - the Atlanta Bread Company in Woodstock had a Sunday evening `Murder theater’ (with actors of course) near closing time for which tickets at 10.00 per head were sold. These `patrons’ would have an additional chance to purchase food and dessert from the unit too - for enjoyment when watching the play.

And, the discounting continues at all levels from Waffle Houses 4.99 meals, to 4.00 KFC meals, to 99 cent Dunkin Donut specials, to the buck level at Checkers, Wendy’s and — whatever special Arby’s has going at a various promotion period. In the nearby Sandy Plains/Shallowford area the Boston Market was doing bounce back coupons for buy one meal - get one meal —— that’s up to a 6.99 value — (and one our family took advantage of) and up to 50% off. And, within the past month, Arby’s was giving the `RoastBurger’ away with the purchase of a drink (& Quizno’s also gave away it’s small sandwich.)

Couple all this with promotions from the last posting - many of which are still going on in one form or another (including daypart pricing) - and you have a very sensitive price market the likes of which haven’t been seen in a long long time, if ever. Increasingly, `eating out’ is positioned by the media as the one way that Americans are cutting back and saving money. And, again increasingly, the eating out `habit’ is being broken at some level.

Indeed, the extreme multi times a week users (4+ times a week)  - while usually not  a huge element in most fast foods - is largely gone - as these hardest regulars have become part of the once a week users - generally. And, while most of the two times a week or once a week users have hung on in most circumstances - especially in white collar, lunch oriented restaurants - those users are probably most reduced in the evening timeframes.

Probably most affected frequency wise in customer bases are the occasional once a month type users - who have often fallen into the `never use anymore’ or seldom use category - as consumers tighten up into their most favorite choices. NEW customers, once a mainstay at 3-8% of all fast food customers is again - almost nil. (Why waste precious money on places without a proven track record?)

So, with all this - with restaurants of all kinds closing (which does help others who survive in degrees) - with frequency rates dropping - with price pressures at every turn - the question must be asked if this is the bottom to be endured - or - a new normal? (No one wants to think it could be worse - and indeed - as competition closes - the `replacement effect’ of the `new meal occasions’ to be filled in the local market - will modify - to a degree - further downturns.)

Indeed, if the downturn continues for much longer - say - another year (an overly negative view compared to consensus) - we could see some companies go to a more innovative way of pricing their food products. Perhaps combos will once again reflect a real `savings’ as opposed to an easy way to order in a few words. Perhaps we will see the drive thru priced in a different manner - compared to inside customers. Perhaps drinks will become cheaper at the drive-thru (as no re-fills occur).

Indeed, perhaps we will see `customer loyalty’ cards be set at effective levels - buy two combos get one free - for example —- as opposed to cards that required too many uses to motivate a customer base. Or, even `in-store’ contests to motivate the bigger instore spender - or - targeting the very largest purchasers (only) with a `discount’ on that next purchase (setting the level at transactions in the highest 5% total) - showing recognition of these remaining `special’ customers.

Because, as Dylan said, the times,  they are a changin - and, previous practices and marketing approaches - especially if they all sound the same - may have little useful effect. It may take new approaches and new ideas of consumerism to survive to the other side of the downturn - and - it’s not too early to begin to consider such ideas.

Hello, welcome back to the Restaurant Trade Area Research (RTAR) blog - thanks for stopping for a read. And, as you can see by the title of this post — once again in our depressed economy - where the discretionary dollar is scarce - where one restaurant unit after another closes - price points remain criteria number one for most restaurant chains.

Locally in northern Georgia - Mcdonald’s and Steak and Shake have met the Sonic reduced drink prices in the afternoon - Checkers has finally positioned a dollar menu — and as mentioned before Quizno’s `reduced prices’. And, two more restaurants have bitten the dust in the Woodstock Ga. market - Sonny’s BBQ (unbelievably) and the Woodstock Restaurant (daily buffet) - bringing nearly half a dozen closed up restaurants to Woodstock HWY 92 in the last few years.

But, it doesn’t end there - as the casual sit-downs are firing back on the price front with TGIF’s offering a buy one get one — with that being matched by other competitors like O’Charlies. And:

1-Wendy’s —- 3conmics (99cent choices) 2. Free Pancakes at IHOP tomorrow 3. Denny’s recent free grand slam breakfast 4. Steak and Shake’s recent `free combo’s for a year’ giveaway at local Atlanta locations 5. Fazoli’s - BOGO (buy one - get one) 6. Dunkin Donuts 1.99 breakfast combo 7. Starbucks - Breakfast value meal 3.95 — 8. McDonald’s Specials (like 3.33 for a Big Mac Combo) 9. Ruby Tuesday’s combo’s at 5.99 — Likewise Hooters 5.99

Makes one wonder when some chain will be bold enough in the south to make sweet tea a different price 24 hours a day - like 59 cents with any other purchase.

Finally, seems the burger front may be heating up - first Burger King’s mini’s will put pressure on Krystal’s and Roast Burgers at Arby’s - should compel trial. 

Hello, thanks for returning to my Restaurant Trade Area Research (RTAR) website - I’m back and ready to comment on the utterly new marketing situation all businesses are facing during this economic downturn. This blog decided to `wait’ during the last 10 weeks - rather than comment `daily’ on the possibility of financial meltdown and market disruptions. Knowing that you, a franchisee - knew the real business situation better than the commentators on Tv or in-print.

But, seeing now that 10 weeks after the end of the first cash crisis, that we seem to be facing, again, the solvency of the very banking system — it at least seems prudent to update the on-going strategies being employed with marketing and ad dollars - by various fast food, casual, and sit-down restaurants in 2009 – and that strategy - not surprisingly — has one focus — PRICE. (Ad language for `cost’ — the perception of the consumer.)

As you may know, when we left off in Nov. it was about price too - various price points - and now - we have the same only ratcheted up a degree. I can only comment about the local Atlanta media marketing and local store market close to Woodstock, Ga. That said, I’m pretty sure that each is generally reflective of the nation as a whole.

Perhaps most noteworthy and of immediate concern to the competitive marketplace is Quiznos advertising campaign about `reducing prices’ on food. Period. Not, come in for a reduced price combo or similar deal or bounceback coupon value — no - the actual phrase positioning `reducing prices’. Their local couponing has a 2.00 off any regular sub and buy any sub and get a chips and regular drink FREE. Combine the everyday reduced prices with an additional 2.00 coupon — and the price for loyalty and new trial customers - has just been increased.

And, as you know, - for years - Sonic - has offered reduced drink prices during the afternoon. And, as you know, since Chick-Fil-A  (and Hardee’s) started selling quality milkshakes - those that previously sold shakes (especially Dairy Queen and Steak and Shake) - have probably been under some pressure on a signature item. The response - an aggressive coupon campaign by Steak and Shake and not only that, locally, in Woodstock, Ga at least — reduced price shakes from 2-4 in the afternoon. A very good aggressive response and making true dayparting of pricing a strategy that deserves a second look. (Such as reduced coffee pricing after 4 PM.) Not only that, recently, Steak and Shake had a special of those small burgers that are now favorites of Casual Restaurants too - attack on all fronts.

Fortunately, the above examples are the only ones talking about reducing prices (although - O’Charlies has pushed the casual market with the 7.99 price point advertising - instead of the usual 9.99) and, ultimately,  your customer ticket total. But, all the others are doing the same in their own manner. Here’s just a re-cap:

McDonalds - To soften the price INCREASE for the double cheeseburger from the old price of 99cents to 1.19 - the `old’ price of the double cheeseburger Combo for 2.99 is retained. (Only those cheapies will face that 20 cent increase.)

Wendy’s - Pure price positioning - 3conomics — with the focus on 99 cent choices of only Wendy’s quality and variety. (McDonald’s has countered with ads supporting their  3 - 2.99 combos too.)

Arby’s - From 1.99 Chicken Sandwich choices to 3.99 specific combo choices — low price positionings for Arby’s.

Taco Bell — Ads geared to products BELOW 99 cents each.

Checkers - New `99cent’ offerings.

IHOP - All you can eat pancakes.

Zaxby’s - 5.25 (or about) Combo’s.

About the only ones holding to a non price strategy at the moment are the potentially `low  priced’ Krystal (hard to reduce the price on a burger of that size) and `high quality’ brands - such as Chick-Fil-A. And, Burger King - continues to do what the King does best - be edgy.

The RTAR will get back to regular postings, with weekly links, with more opinions, and more updating  of the sidebar (and more) for this webpage - hope you like the changes to come in 2009. I want to suggest looking at the full 2008 postings of merit by  hitting the link in my sidebar review of 2008.

Continue down the page for much more. See you next week.

Often when I do fast food research we ask customers to give a rating about price or cost of the food. What I’ve found about ratings is that it all depends on what one wants to pay - 4.00 is too high for some and wonderful for others - as is 6.00 or even more (on occasion).

That said, currently, three main price points are the main focus of advertising – 1.00 or less — 2.99 `meals’ —– 5.00 price points. My suggestion to clients of FF stores has always been to `offer’ the various price points to not shut out part of their FF market (for at least part of the year if not always) - specifically those more money conscious  customers in these tough economic times and shrinking trade areas.

Makes one wonder if  `recession combos’  might be a good marketing idea - small fry, smaller main sandwich, small `value’ drink - small price.

BTW - Last months stats were the best yet for this blog - thanks for reading. I hope you continue down this page as there is lots of good info and links. Finally, have you visited my Squidoo site yet at www.squidoo.com/tradeareasurveys ?

Today’s Restaurant Links

`A&W’ Begins Revival In Wisconsin’

http://www.postcrescent.com/article/20081107/APC0701/811070568/1436/APC03

`Fastest Fast Food’

http://www.nbcaugusta.com/news/local/33604619.html Cool test done by TV station at Arby’s Wendy’s, BK, and McDonald’s — drive thru, order number one combo and set the stopwatch. Cool quick read - who do you think won?

`Fast Food Order Accuracy Rising’

http://www.freep.com/article/20081103/BUSINESS07/81102051 Fewer language problems and better qualified workers in economic downturn.

`Fast Food Warpath’

http://www.thisisscunthorpe.co.uk/showbiz/Jamie-Oliver-fast-food-warpath/article-456067-detail/article.html The continuing rise in fast food limitation laws.

If you are a franchisee in a good financial position right now - it might be the RIGHT time to do trade area research. The reason is that with many FF restaurants closing their doors - more and more good real estate is becoming available. But, before one can buy those available locations for your own brand - one must know your trade areas of your units so that you can estimate the potential `attrition’ or cannibalization to your existing units.

Indeed, many of my clients do exactly that - map EVERY store they have in a market and at the same time `ask’  customers to state what they might have done if a new unit was at such and such intersection. Indeed, it is not unusual to `map’ a market with multiple stores and ask about multiple possible new locations too.

Before you think this is cost prohibitive - last year I mapped 14 units in one market and asked about 11 prospective `new units’ within the same market. As you would expect, some of the `new units’ would impact stores greatly and others hardly at all - based on existing trade areas. AND, all 14 stores information - indeed, the whole project was under 30K. That’s right, 14 stores, under 30,000.00 — and with terms spreading the payment over an entire year.

Make sure to go to www.squidoo.com/tradeareasurveys for more info.

Today’s Restaurant Links

`Arby’s and Wendy’s Merger Completed’

http://www.ajc.com/business/content/business/stories/2008/09/29/arbys_wendys_merger.html

`Diners Turning To Grocers For Fast Food’

http://www.jacksonville.com/tu-online/stories/092908/bus_337663841.shtml

`Organic Restaurant Looks To Expand’

http://www.londontopic.ca/article.php?artid=11024 If you are looking for something with upside potential - this might be it.

Just last month in this post http://restauranttradearearesearch.com/2008/08/02/perfect-demographics-perfect-traffic-counts-closed-restaurant/ I talked about the closing of a Backyard Burgers location at the intersection of Sandy Plains Rd and Hwy 92; and now, sadly - more fast food locations have bitten the dust nearby further `up’ (west) on Hwy 92 nearer to Woodstock.

Both went down about the same time last month - a 15 plus years open KFC; and a Zaxby’s which had been open several years. The KFC was in the midst of many fast food competitors - across the street from McDonald’s and Mrs Winners (Fried Chicken) with Capt’.D’s, Dairy Queen, Burger King and Chick Fil-A within eyesight; in addition to other restaurants within a mile such as Arby’s, Subway, Taco Bell, Wendy’s, Checkers and several sit downs such as Ruby Tuesday and O’Charley’s, Po Folks and several long time non brand restaurant choices. Yes, this was and is a developed area.

But, things change, - the Walmart across from KFC moved 2 miles up the road a few years ago replaced by a 4 day a week furniture wholesaler. The drugstore within the KFC retail pad went empty last month — the same retail pad saw a long standing BBQ location Slopes fold  about a year ago.

Our family used the KFC about once a month; usually for dinner - nearly always thru the drive-thru. Usually for the `dinners’ for 2.99-3.99 - buy three of those and you really felt like you got a sackful. Somehow, the drive-thru never backed up.

So, now, the nearest KFC is about 3.7 miles away, (this was about 2.1) and on our way back from Atlanta up Hwy 5. So, instead of using that one twice in last 5 years — I’ll probably bump into the once every six month category - and also eat at  Mrs Winners more often. Reverse attrition to the survivors.

I wonder if the KFC on Canton Rd will `market’ to the closed KFC’s trade area - I wonder if they have done any trade area surveys - to know that info?

The Zaxby’s closing was equally as surprising and it also was a place our family went to about once every 6 week or so. It was located about 3 miles from our home and we used it for evening eat-in meals (you only deal with Zaxby’s drive thru once) - it had good quality. It was NOT located in a highly concentrated fast food strip but did have local competitors. Indeed, a new chain Kayson’s, opened and shortly after the Zaxby’s was history.

The point of this posting is that the competitive environment is tough and getting tougher. Knowing your local trade area via real marketing research is not a luxury anymore. Indeed, if you do your whole market with a MarketView — you may know which `available’ fast food locations fit your market development plan without overlapping your own existing stores penetration. You will be able to do your own `attrition’ estimates based on trade areas.

Please visit www.squidoo.com/tradeareasurveys for more information about how I can help your marketing decisions.

Today’s Restaurant Links

Krystal’s Offers Up `Sonic-like’ Positioning

http://www.prweb.com/releases/2008/09/prweb1289284.htm  Is this `the idea’ that could make Krystal a player?

`Local Restaurant Dishes Out Manners’

http://www.kcsg.com/news/regional/28032164.html  `The Cell-Phone’ reminder. Quick read. Find out who is using `the reminder’.

`California Moves Closer To NYC-Like Menu Law’

http://www.desertdispatch.com/opinion/state_4250___article.html/mandate_menu.html 

`Fast Food Outlaws’

http://www.smh.com.au/news/world/fastfood-outlaws/2008/09/06/1220121599393.html  A less than flattering look at the USA from our friends down-under.

`Changing Lifestyles and Rising Incomes To Affect Restaurant Sales’

http://www.prweb.com/releases/restaurants_pizza/fast_foods_dining/prweb1302024.htm

The above story is about the GLOBAL MARKET and not the changing lifestyles here in America (less eating out, trading down). Nevertheless an in-depth viewpoint to read.

Hello, welcome back - I hope your Labor Day holiday was relaxing - that said, my thoughts go out to previous restaurant clients in Louisiana. Today, I want to spend this paragraph encouraging restaurant owners to `get the big view’ of their real market situation. To understand that NEXT year - with proper information - you can do real local marketing that impacts your units.

How you ask?

By doing my MarketView research for which you can find more info about at www.squidoo.com/tradeareasurveys — or go to the site for contact information for my services. If you call, make sure to ask me about the project I did for a fast food chain last year that involved doing over 10 stores and testing over 12 new site locations within the market - for under 30,000.00.

Now - onward to today’s restaurant links:

When Sonic Comes To Town

http://blogs.wenatcheeworld.com/thay/2008/08/28/sonic-wenatchees-newest-health-food-restaurant/ Just a fun story about a NEW restaurant for this community - Sonic. Covers the insanity of a grand opening, roller-skates, and the dealing with an unfamiliar menu by the consumer. Includes less than glorified pictures of the product served and at 10 bucks nonetheless.

Athens Burgers Opens New Restaurant

http://www.mantecabulletin.com/main.asp?SectionID=28&SubSectionID=58&ArticleID=59128&TM=16382.6 Here’s a newer concept to read about. Interesting combination.

Slow Food Conference

http://www.dallasnews.com/sharedcontent/dws/ent/stories/DN-slowfood_0901gl.ART0.State.Edition1.4da40ac.html More and more stories emphasis is on going local with sources of products. Love the `meet the fisherman’ concept.

Wendy’s Rolls Out Double-Stack Nationwide at 99 Cents

http://sev.prnewswire.com/food-beverages/20080829/CLF006A29082008-1.html  Also, is giving away thousands of double stacks over the next year too - find out how.

Discount Dining

http://www.baltimoresun.com/entertainment/dining/bal-bz.restaurants02sep02,0,3747451.story Covers the story as to how restaurants are responding with lower price points in this economic downturn. Covers the marketing efforts of Boston Market, BJ’s Restaurants and Starbucks to name just a few.

Police Warn about TAKEOVER Robberies

http://www.nrn.com/breakingNews.aspx?id=358002&menu_id=1368  Good advice about this growing concern.

Spying On Suburbia - Eating At Arby’s

http://www.richmondchic.com/index.php/mind-body/article/spying-on-suburbia-a-home-like-arbys/268  Strange to interesting perceptions from this blog about Arby’s — 16.00 for two fast food.

Kiss an Attendent at a Fast Food Restaurant

http://www.latimes.com/theguide/music/la-gd-scavenger1-2008sep1,0,5200506.story Wild scavenger hunt includes wild ideas.

Last year, I personally interviewed several thousand fast food customers (in-store and drive-thru) in a variety of fast food brands for Trade Area Research purposes. (Do you need trade research before expanding your market?) This was normal for me as I have  personally interviewed thousands of fast food customers for dozens of years. And, as you might know, certain questions are nearly standard on questionnaires trying to understand customer behaviour - such as the fast food restaurant that the customer uses `most often’.

In the 1980’s and even into the late 1990’s - when adults answered that question for me — when the answer was McDonald’s - they would immediately offer a `reason’, in an apologetic tone, which invariably was `the kids’. That is not to say that I didn’t hear `they are everywhere’ and `they are cheap’ on occasion. Nevertheless, the interesting thing was that `other brands’ such as Wendy’s or Arby’s or Chick-Fil-A  or others (such as sandwich chains Subway) - most often users ALMOST NEVER offered up `embarrassing’ reasons for their usage of a particular brand most. Only McDonald’s. It was almost a case of doing `marketing’ too well.

Then, McDonald’s focused less on kids and more on product and product quality. I began to hear folks say that they liked a `particular new product’ at McDonald’s that they went for `most often’. Kids, as a reason, was definitely fading quickly (I informed my clients who at first seemed surprised in the early 2000’s — it was the kind of information that only came from literally being on the ground for multiple brands for decades) - the return of McDonald’s was approaching.

The moral - If the biggest can change a negative perception — other brands, most of which have neutral images, can also build a positive one - like McDonald’s has done.

Today’s Restaurant Links

“People are requesting kids premiums that are more socially responsible,”

http://www.ajc.com/business/content/business/stories/2008/08/16/restaurant_toys_educational.html Wendy’s and Chick-Fil-A jump on `Educational’ kids toys. Strong feedback. Three minute read.

Individual Responsibility And Its Enemies

http://www.mtexpress.com/index2.php?ID=2005122089  Bringing ethics into the fast food discussion with force. Shows how `choices’ and having a restaurant business are related. Three minute read.

Parking Mad At McDonald’s

http://icwestlothian.icnetwork.co.uk/courier/news/tm_headline=parking-mad-at-fast-food-chain&method=full&objectid=21526230&siteid=92284-name_page.html After the positive McDonald’s opinion above - here is an example of not respecting the customer. Probably.

Arby’s Expands Savings Potential With Cellfire Mobile Coupons

http://money.cnn.com/news/newsfeeds/articles/prnewswire/200808130900PR_NEWS_USPR_____AQW047.htm Here’s a new coupon niche.

Are Restaurant Stocks A BUY?

http://www.chicagotribune.com/business/yourmoney/chi-ym-restaurants-0817-cpaug17,0,4787885.story Article says yes if you have a longer time horizon of 2-3 years; while detailing how over stocked the trade areas are with restaurants. Predicts store closings. Four minute read.

Many Many more - current links below. Bookmark and return please. Leave a comment if you wish.

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.

Hello store owners and corporate restaurant folk - welcome to the Saturday edition of Restaurant Trade Area Research - the restaurant blog of Rick Phillips  - a market researcher with over three decades of real fast food customer research at the street level (in the stores).

Today’s topic - drive thru operations. —- Over the years, many attributes have been associated with drivers/customers experiences while waiting to purchase your product without leaving their comfort cage (the car). But only one attribute will almost immediately turn away a customer if they have any alternatives for food - the long line before the speaker. Only with previous good experiences with the restaurant at the drive thru (with long lines), will maintain the customer in line for today.

With the drive thru often contributing over 50% in sales - this is not a lecture on the need for speed. And, indeed, many issues related to drive-thru’s will be explored in future postings. So, what this post is imploring in all operators minds is the new reality of 4.00 gas - to the point that the operator realizes that `while idling’ the customer is probably having this thought `what a waste’ (of money, more than time).

Marginal customers to the fast food customer base may be weakened more than usual by drive thru delays - especially those in SUV’s (if you get what I mean). So, this is more a time than ever to get your best crew on the window - don’t idle your drive-thru traffic away.

Now, onto today’s links.

Today’s Restaurant links (July 12th 2008)

Second Q Wendy’s Sales Up

Link - http://www.bizjournals.com/wichita/stories/2008/07/07/daily32.html

Up over 1% at franchisee locations - up at company stores too - after a down first Q.      RTAR - rating - 8 - Being from Ohio many years ago; yeah for Wendy’s. Perhaps the `choice’ of sides attribute helps.

Ruby Tuesday’s Same Store Sales Off for 4th Q

Down over 5% at both company and franchised units this Q. That said, many indicators look good according to the two minute article with quotes from the founder. >>>>>>>>>> RTAR  rating - 5 - No one likes sales to fall significantly at a signature national restaurant (could it be those who loved the German Potato Salad?) - that said, much is sited in the article of importance including the satisfaction scores. So; is it a shrinking total trade area? (Trade area research on stores with prior existing studies done at the store level reveals this information. Indeed, this is the exact information I’ve given to clients on repeats within their markets.) Or, just the competitiveness for the discretionary dollar?

Green Fast Food - Really Here or a Green Dream

Link: http://www.socialfunds.com/news/article.cgi/2529.html  This article is about a 4 minute read. It rehashs alot of the grist of what the environmenalists want out of companies and fast food restaurants inparticular. Styrofoam is the big meanie. However, several hundred have committed to a more aggressive program - this could be for you if you live in a highly committed `green community’ and could aid store usage by limited few - hippy, yuppie, and student oriented trade areas come to mind.     >>>>>>>> RTAR rating - 6 - Just make sure you aren’t the LAST to do this if you are in one of the above stated communities. But, wait, do `environmentalists’ comprise a worthwhile worry or significant market for FF restaurants - not yet. Lastly, however, remember the Karma factor.