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Where to Find an Almost-Free Lunch
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 We've all read the stories. Americans are cutting back. We are tightening our belts in this tough economy. One thing this means is that more of us are preparing and eating meals at home.
But our schedules remain busier than ever. June Cleaver-style family dinners seven days a week aren't a reality for most American families, regardless of how badly we need to be more financially responsible. So where does that leave the restaurant industry?
All told, the National Restaurant Association expects a 1 percent sales decline across the country in 2009. Because when Americans do eat out these days, more of us are heading to fast-food or so-called fast-casual establishments.
As evidence, value-conscious consumers helped McDonald's Corp. buck the industry-wide downward trend and post 6.9 percent same-store sales growth in April despite the bleak economy.
The response from some of the biggest brands on the American restaurant landscape has varied. Though some companies are playing it safe and sticking to their strengths, most are looking to take risks, branch out and break new ground for their brands. Pizza Hut pushing pasta? Morton's selling $5 burgers. As Bruce Horovitz reported recently in USA Today, that's only the tip of the iceberg.
But fear not, American consumers. Strategic shifts such as KFC's foray into grilled chicken are backed by plenty of market research. That's right… these chains know what you want to eat before you've even realized it. Or at least an army of MBAs thinks they do.
One thing the business-school crowd definitely has gotten right is that we all want more for less. Regardless of the economic conditions. As Lauren Shepherd of the Associated Press notes in her recent article on this topic, the "magic mark" for meal pricing ranges from $5 - $10 depending on the level of service included.
So as you might have guessed, a variety of $5 - $10 deals are cropping up at restaurant chains from coast to coast -- and most are accompanied by a corresponding ad blitz. Here's a look at 10 value-priced restaurant promotions currently in effect, along with some other interesting offers dotting the map.
Quiznos: $4 Torpedo Sandwiches
Quiznos CEO Rich Schaden told AP's Shepherd that the company's sales are up double-digits and store traffic has increased by 30 percent, thanks largely to its new line of $4 sandwiches. But although you can leave most of your money at home to snag one of these toasted subs, you may also need to leave most of your appetite at the door as well; Quiznos' Torpedo sandwiches are prepared on super-skinny baguette bread and offer a much smaller portion than its standard fare.
T.G.I. Friday's: Salads and Sandwiches
Though the company's limited-time $5 promotion ended on May 31, Friday's, a unit of Carlson Restaurants Worldwide Inc., continues to offer nine new salads and sandwiches priced between $6 and $11. If you can get past the fact that the same meal would have cost you half the price a few weeks ago, the price point still seems like a decent deal for a meal-sized salad or a sandwich/side combo.
Chili's: 10 Under $7
Aptly termed by Nation's Restaurant News as a "two-pronged marketing attack," Brinker International's Chili's Bar & Grill restaurants are offering 10 deals for under $7, plus a not-so-subtle message that its flavors are bigger and bolder than the competition's. Among the items on Chili's "10 Under $7" menu: fire-grilled quesadillas, chicken tacos and the now-ubiquitous chain-restaurant offering of dual bite-sized sandwiches (chicken or beef).
Subway: $5 Footlong Sandwiches
Sandwich-chain Subway rose to prominence over the past decade as a healthier alternative to fast-food burger chains. But health-consciousness often comes at an up-front price. In an effort to satisfy both health- and value-conscious consumers, the restaurant has added the once "limited-time" $5 footlong sandwiches offer to its Every Day Value Menu as it continues its assault on Americans' eardrums with the accompanying TV commercials.
McDonald's: Dollar Menu, McCafe Coffees
McDonald's is making a huge marketing push this summer into premium coffee, hoping to commoditize the beverage and capitalize on consumers' waning appetite for pricey Starbucks offerings. But the real key to its success is its well-known Dollar Menu, which still allows hungry Americans to get "a lot for a little," as one of its current TV ads reminds us.
Starbucks: $3.95 Breakfast Pairings
Well-known for its premium (read: expensive) coffee drinks and the "atmosphere" that it bakes into all of its prices, Starbucks Corp. is trying a different tack these days. Though some would say the strategy plays right into the hands of its now-stronger competition from McDonald's (and others might wonder why any company would tie its future to scones), Starbucks recently rolled out "breakfast pairings" of coffee plus sandwich/oatmeal/pastry for $3.95.
Taco Bell: .79/.89/.99 and Volcano Menus
Taco Bell, a unit of successful fast-food conglomerate Yum Brands Inc., breaks through the $1 barrier with its Value Menu of items priced anywhere from 79 cents to 99 cents; new value-priced items include the chicken burrito and chicken soft taco, each at 89 cents. The taco chain also recently launched its Volcano menu's spicy taco and burrito through a series of un-funny TV ads.
Wendy's: 99-cent Sandwiches, Frosty Coffee Treats
Fresh on the heels of its 3conomics campaign that directly targeted the recession-conscious crowd with its focus on value-priced 99-cent sandwiches, Wendy's International Inc. has put a new twist on the coffee wars with its Coffee Toffee Twisted Frosty (try saying that three times, fast) and Frosty-cino frozen beverages. The fast-food chain also continues to offer its popular everyday Super Value Menu.
Domino's: Toasted Subs, Bread Bowl Pasta
Rather than double-down and increase its huge, decades-long bet on pizza, Domino's Pizza Inc. has responded to the recession with several new product lines, including toasted sandwiches and pasta-filled bread bowls. The subs can be yours for $5 apiece when packaged with other sandwiches or medium pizzas; bread bowl prices start at $5.99. According to a Dow Jones Newswires report, sales of the pasta bowls have thus far "exceeded the company's initial projections."
Golden Corral: $10 'Dinner Cruise'
Golden Corral has been ramping up its TV advertising amid the struggling economy, touting its 7-Day Dinner Cruise priced at "around $10" in mildly amusing commercials. The company's restaurants offer a different dinner centerpiece each day of the week, such as "seafood extravaganza" on Mondays to "beef lover's" on Saturdays. The best thing about a buffet in a tight economy: You're free to control just how much "value" the meal delivers.
These 10 deals are a boon to consumers at a time when Americans need cheap eats more than ever. And outside of promotions gone awry like KFC's public-relations nightmare surrounding its grilled-chicken giveaway, they also provide a nice boost to customer satisfaction for the big companies behind them.
But there's a third side to the story. For an interesting take on the cost of running these promotions -- and how much of that burden is carried by the American small-business owners who operate on the front lines of franchising -- check out Diana Ransom's piece from SmartMoney.com where she asks the question, Can They Really Make Money Off the Dollar Menu? The answer may surprise you...
What do you think of this latest batch of restaurant "value" deals? Do these establishments earn your business on those rare occasions when you eat out? Sound off here.
Message Edited by Anthony_Catalano on 06-02-2009 03:55 PM
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