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Dec 09
Who’s The Big Winner?!?!??!! While National Restaurant News is reporting an increase in average check, what is looming between the lines? One thing is clear, everyone is hurting. But fiscal constraints aren’t breadlines and the average American still appreciates not cooking or tote-ing leftovers every once in a while. The downshift of restaurant choices is almost tantamount to a caste system. Though no study confirms this (that we have seen at least), one can imagine that the pre-recession casual restaurant patron is now more likely fast casual. Fast casual may be more fast food and so on up and down the line. So while the categories are experiencing slight ups and downs, what we as marketers should understand is how seismically the customer has changed. A new study found that prices at casual dining restaurants have risen over the past year, even though chains continue to promote deals. Nation’s Restaurant News says restaurant chains are promoting deep discounts on entrees in the hopes of increasing the number of diners and selling them items with higher profit margins, such as alcoholic drinks, desserts and side dishes. The average price for lunch at casual chains went up 13%, from $7.14 to $8.07, according to Intellaprice, a Boston restaurant consulting firm. Dinner prices rose 6%, from $12.98 to $13.70. So what’s happening? Perhaps promotions are not as motivating to the suddenly more affluent (mindset at least) customer. If the theory that the demographics within restaurant categories are shifting upwards is right, perhaps we start evaluating the content of marketing. And not just against what your bottom line or national indicators say. Who is in your store and, more importantly, who hasn’t arrived just yet. This requires relationship marketing into which more appropriate content can be placed.The up sell strategy might be better suited for this audience. But promotions might not be the best motivator to initiate the visit. Imagine the result when we really know what is going on out there…..

Who’s The Big Winner?!?!??!!

While National Restaurant News is reporting an increase in average check, what is looming between the lines? One thing is clear, everyone is hurting. But fiscal constraints aren’t breadlines and the average American still appreciates not cooking or tote-ing leftovers every once in a while. The downshift of restaurant choices is almost tantamount to a caste system. Though no study confirms this (that we have seen at least), one can imagine that the pre-recession casual restaurant patron is now more likely fast casual. Fast casual may be more fast food and so on up and down the line. So while the categories are experiencing slight ups and downs, what we as marketers should understand is how seismically the customer has changed.

A new study found that prices at casual dining restaurants have risen over the past year, even though chains continue to promote deals. Nation’s Restaurant News says restaurant chains are promoting deep discounts on entrees in the hopes of increasing the number of diners and selling them items with higher profit margins, such as alcoholic drinks, desserts and side dishes. The average price for lunch at casual chains went up 13%, from $7.14 to $8.07, according to Intellaprice, a Boston restaurant consulting firm. Dinner prices rose 6%, from $12.98 to $13.70.

So what’s happening? Perhaps promotions are not as motivating to the suddenly more affluent (mindset at least) customer. If the theory that the demographics within restaurant categories are shifting upwards is right, perhaps we start evaluating the content of marketing. And not just against what your bottom line or national indicators say. Who is in your store and, more importantly, who hasn’t arrived just yet. This requires relationship marketing into which more appropriate content can be placed.The up sell strategy might be better suited for this audience. But promotions might not be the best motivator to initiate the visit. Imagine the result when we really know what is going on out there…..