Archive for Economy

No Shock; Just Comfort

Even though there are some signs that indicate we may slowly be emerging from under the dark economic cloud that has reshaped so much of our country, the reality is that consumers have changed their buying habits. We are different, and the hope is we will have learned something that has stickiness.

There is nothing surprising to hear that comfort foods are still the rage. Why not? Well, maybe a little salmonella scare here and there, but peanut butter and  jelly top many lists. There’s protein and multiple beneficial ingredients, and the price is right. It does not mean we deviate from our brand purchasing, but that in some instances we are more careful. Some studies indicate that in cautious times we are less likely to experiment with a new brand, even a much less costly alternative, and stay with an old friend. M&M’s plain chocolate candy was one strong, popular purchasing indicator from this survey of almost 25,000 consumers.

Candy, of course, is about the reward. Why take a chance on something you’re not certain will provide the boost you need? Hershey’s Kisses, Reese’s Peanut Butter Cups, and Hershey’s Milk Chocolate Bars all scored high. Wonder what this says for all the new Dark Chocolates which every company seems to be touting?

Across the aisles in the packaged meat case, bologna is a major winner. Some attribute its recent and continual spike in sales to a return to the foods of our childhood. They worked then and seem to be playing a similar comfort role. Definitely will need to talk healthy foods. Don’t even want to know how to make bologna!product_logo_reeses

If Mom served what we considered old-fashioned foods such as peanut butter and jelly or bologna sandwiches, we hear the message. It worked then; it works now.

Grocers clearly recognize the new patterns. We see it everywhere. The Wegman family just discussed how shoppers have changed than they were a year ago. The company’s direct price-cutting actions, which greatly impacted their already slim profit margins, earned them new customers and a different approach to marketing their stores. It seems to be working.

Will we return to the shoppers of yesteryear, as in last year?

I hope not. I hope we are smarter now.

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The Shelves Are Alive

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Yes, it’s true. Grocery stores, convenience marts, and even big box retailers have devoted sizable shelf space to 100-calorie boxes of whatevers. If you can make it fattening, the companies seem to say, we can also make it available in a lower calorie count.

Whether it’s chips, cookies, crackers, or candy, the 100-calorie boxes beckon. You name it, and it is probably available in mini-packs. BTW, they’re perfect for lunch boxes, desk drawer indulgences, and road trips. No one, not even Little Debbie Snacks, wants to be left out of the marketing game.

Not all is sweet news. Maybe we are using more paper and increasing our environmental threshold. Or, just maybe, we are overeating. Can you just have one? Personally, I think the gimmick gave you permission to overindulge. It’s just 100-calories, you convincingly said to yourself, as you grabbed a couple bags of Oreos. Sad news there, they didn’t have the filling that made you covet the product in the first place! Then along came Oreo Minicakesters–got ya! They solved that complaint!

Multiple bags. Hmm. Opposite of the original weight-loss approach; rather a weight-gain strategy that seemed to gain hold! 

Not just overeating, but maybe you’re not just adding to your waist but to your budget, too. They are hardly the economical way to shop in this cash-conscious environment. Phil Lempert, who calls himself the Supermarket Guru, has been questioning their longevity. He is quick to point out that Ziploc makes a snack bag size, a perfect container for your own variation of mini-snacks.

If you like nuts, a few of those, please. Add a few raisins, and a piece or two of your favorite dried fruit and you have a personalized trail mix. A million possible examples.

Smart marketing. For those who remain clueless, there’s even a cookbook!

Seriously.

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They Keep On Coming

mini_dessert_tnI love the promos that have a short time window. As if they know something no one else knows. Like we are just giving you a 2-week boost because we know things will be better in 3! Ha! Doesn’t work like that.

Yes, there is a little optimism in the air. You can see it with the increased crowds at neighborhood places. You can follow it with people taking an extra day for a long weekend. It is summer after all, and everyone seems to be enjoying the extra hours of daylight by being outside and doing more.

So in the promo world, let me entice you one more time. After all, Two-Buck Chuck may be more popular than expense account meals!

The half-off bottle wine promo for The Palm has been extended until the end of August. No surprise.

Denny’s had an amazingly successful breakfast promo this spring. Now for the month of June, it’s an all-day everyday value slam. Whaddya think–maybe longer?

Happy Hours have returned to their roots–not just lower priced drinks but many with respectable food choices. In Washington DC one of the better buys for an after-work respite is at Vidalia’s. Definitely worth the stop.

Consumer Reports just rated over 100 chain restaurants and listed the good deals and what to look for. There’s even some room for negotiation. Some of the restaurants rated highest for exceptional value include: Black-eyed Pea, Sonny’s Real Pit BBQ, Azteca Mexican Restaurant, Cheddar’s Casual Cafe, and First Watch. Buffalo Wild Wings Grill & Bar, Joe’s Crab Shack, and Friendly’s did not have such positive feedback!

Don’t forget the usual suspects that give out coupons; they’re still actively working for your restaurant dollars.

Opportunities exist. Take some time.

Help yourself and the economy through the bright lights of summer.

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Love the Subtle Changes

zoom-1224899351-8466We’ve talked a lot about coupons and the importance of coupon giveaways in this economically challenging environment. Now, here’s a fun one: Balducci’s.

This high-end grocery/gourmet market on the East Coast has had its share of trouble including shutting down the original brand name in New York City. Some of the stores were kept open and the barrage of coupons began: daily deals, on-sale items and a weekly flyer. All of this, as with most coupon savings whether grocery or restaurant, come to those willing to receive email–not so hard–truly worth it.

Then there was the $5 off $25 coupon–a true local favorite. Have had neighbors come by and ask if I were using mine or if they could have it. Now, I’ll probably have to disconnect my door bell as they just introduced a lower spending amount and $5 off–coupon reads $5 off $20. You do the math–you can save $5 in your Balducci’s spending and literally receive a $10 savings. That translates into having only to spend $20 not $25–so $5 there and $5 off the new lower spending promotion. Stick with me–this gets interesting.

They are definitely trying to get a message out–help us stay in business–not a bad plan if they lowered all prices. Just think of how that equation would work: People would enter the store and shop because there would be noticeable savings and then they would receive a double reward: Lower prices and $5 off!

They hear something howling outside the remaining stores; now they just need to open the doors to savings a little wider.

It’s possible that it can work.

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Graciousness Works–Try It

LMT3Sometimes the line “no good deed goes unpunished” summarizes an event most accurately.  Take a recent example: You find an error on your dining out bill. Don’t get excited, it’s not an overcharge. Rather, it’s the opposite. You find the server forgot to include the wine on the bill.

These are tough economic times, but that is irrelevant. You never forget that the right thing to do is to bring it to his attention so he can graciously thank you for finding the error and helping him. 

That’s the dream world. The reality more often than not is the following response: Oh.

Not a thank you. Not a recognition of error. No appreciation for honesty. Actually it’s more complicated than that: It’s a response without a hint of responsibility, forget the appreciation angle. Potentially, he has everything to gain as in a higher tab should improve his numbers and his tip. Duh. 

I’m not sure restaurants can teach this skill.

I can. It’s quite simple: Graciously, thank the customer and be appreciative of the fact that their attitude is a whole lot better than yours! This is one of those times you want someone in the back room monitoring the staff so they can figure out how much money they’re losing from forgetfulness or just overall carelessness.

It’s OK to admit a mistake. 

It’s not OK to be casually dismissive.

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Still Ugly–Not the Bag, Silly

6a00d834515f0569e200e54febb9d18833-800wiNo matter how cheery we try to sound, people are realistically worried about the future and high costs. A recent survey from Technomic, the Chicago monitoring folks, showed that consumer sentiment is still way down. Translation: large numbers of consumers plan to increase purchases of store brand grocers and take advantage of coupons and discounts. Their research finds consumers unlikely to increase food spending anytime soon.

Some of the changes are obvious, in matters we’ve discussed such as consumers downscaling coffee purchases, and companies meeting them half way with lower prices and coupons.  

On the good news front: Target just announced that they see more of the future in food items and plan to add more fresh food and produce to remodeled or new stores. That’s great because their food prices are already impressive. Fill up the extra aisles!

Toys ‘R’ Us just added foods to some of its stores, like a mini store within the greater wonderland! That just makes shopping with young people in a toy store even more of a challenge–snack food and toys–may help their bottom line but up my pain threshold!

The anxiety coefficient still hits the nerve cycle. We are still looking for buys and bargains. Look at the various dollar stores–they’re getting a new type of customer looking for food products and overall savings. In turn, their bottom line is looking up!

We eat. it’s about food, baby, and how we can find prices that make it work.We need the boost. Pile on the opportunities.

Change the sentiment.

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A Cupcake On Every Corner

Yes, it’s true. We have a major sweet tooth. That’s “we,” the diner, the consumer, the purchaser. I always get a good LOL when someone comes East and discovers the bounty of sweet shops, and I’m not talking ice cream or gelato. The fact that we can support free-standing cupcake shops says a lot about the current state of the economy or maybe tells us about how dentists are faring.

Many would say that Magnolia Bakery in New York’s West Village is the industry leader. OK, many would say other places, but I think the trend to cupcake heaven may parallel this NYC business as it expanded out of the West Village and moved throughout Manhattan. Sure they sell cakes and other sweets, but they are a cupcake haven or is that heaven!

Another New York enterprise has sprinkled itself throughout the city and even opened stores in Los Angeles. The humble bakery has become a cupcake destination with more attention on this circular dream than on the once popular chocolate chip cookies. Do you see free-standing cookie shops, no, the attention is on the cupcake.

In Washington DC there have been so-called cupcake wars–whose is better? Which frosting really takes the cake. You know the drill. Cities each have their favorites. Why not!

I’ve been to weddings without wedding cake but large, elaborate delicious cupcake trees. Birthday parties without sheet cakes, but colorful, large sprinkle-laden cupcakes. Not just caterers and professional bakers, but the home cook is out scouring for larger cupcake pans. The mini seems to have vanished in favor of the calorie-laden object of food desire.

Personal preference always wins out, but cupcakeno matter what, we are the winners in finding a delicious haven from bad news. If you want to study human behavior, get in line, and yes, there are lines at all these shops as the sweet smell of success floats around the corner or engages those in the anticipatory line.

Frosting, baby, that’s the key.

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Is it the Chef OR Is it the Food?

Good question. The answer has changed as we have changed. We have truly changed. OK, maybe not everybody but plenty of people recognize that the world of before (as in a year or so ago) is gone and may be gone for ever and with it the habits of frivolity. The belief was that it was never going to end. The good times would keep on rolling and restaurants would open on every corner paralleling the Starbucks mentality. The belief was simple: build it and they will come.

Wrong.

That world is over. Permanently over? I doubt it, but over. Whoever we are now is so different from who we were. We are a little more conscious of our dollar, a litle less forgiving of attitude and poor service and so much more interested in quality, in value–the total package.

Bragging rights used to include: “I ate at so and so’s new spot” (insert big name national talent). Now it is a little more questionable who is bragging about what. The whole bravura concept may be over. Are you going for the big name or for the food, the product, the value?

When you hear a chef on a nationally syndicated radio program say that customers will figure out that it’s about the quality and not the fancy name, you know you are hearing the real thing. Michael Landrum is one chef who gets it. He is not a big name national player, but he has fired up the Washington DC restaurant universe with four restaurants and his commitment to open another quality product in a section of town that was starving for quality and non fast food chain answers. He has lowered some steak prices, offered his burger menu at the bar of one of his full service restaurants and fills his dining rooms with guests who appreciate his commitment to quality.

At the same time chefs on the radio show were talking about the challenges facing them today, it became official that the new W Hotel (W Washington DC) which whotelopens this summer near the White House (the former Hotel Washington) would have big name talent–Jean-Georges Vongerichten. Maybe that announcement is a true compliment to the city’s climb up the epicurean ladder. Maybe; maybe not. Of course, it’s exciting about Jean-Georges bringing his branded steakhouse to the city, but how many fancy cuts of steak can we support? Landrum does steak well (or rare, if you prefer), and does it at an affordable price point for beautifully hand-cut meats.

When the New York Times writes about so-called lesser beef cuts, and the food critic writes about restaurants that have reconfigured their space and their menus to accommodate the new diner, then we have further validation about the dining scene. The message  translates simply into a new world order with a focus on quality.

We cannot return to those old days, no matter how fond the memories are. We need to respect our new world and make it work for us.

Those who get it will get us.

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They Just Keep On Coming

Everytime you think you’ve scratched the surface of promotions, a winner lands on your plate. Yesterday we talked about promotions that get extended whether it is because they are so popular or that restaurants are afraid no one will come without an incentive. What started as a stimulus has become a way of life.

One category that has been receiving a lot of attention is wine. First we talked the American public into the health advantages of a glass of wine and turned them into wine drinkers. Then we raised the price of a restaurant glass of wine to over $10. People complained, but they drank. That was then–before the economy spilled red wine everywhere.

Now the solution is quite simple: Half-price wine nights. They’ve become an expected norm. You can literally dine out any night during the week and find reduced bottles of wine. Why buy a glass when you can buy a bottle at half price and take advantage of wrapping it up for at-home consumption?

That is possible in many states; not all, but enough for others to consider the inherent value. Lawmakers should not  fear that people will stop their car at the side of the road and guzzle the remainder but accept the proven reality that wine sales help a restaurant’s bottom line. Consumers are more likely to buy a bottle, if they know they can cork the unfinished glasses. Yes, it’s true.

Here’s a half-price example that still misses the reality. pg_bottle The Palm has extended its “Wine Down Wednesdays” through May with every bottle in the extensive list half-price. I’m sure they are doing this because they love us OR because they want to see more customers. Let me think. Maybe they should revise their marketing and focus on filling tables by encouraging new guests. Rather than continue to say “drink the $100 bottle for $50.” How about they change their strategy to: Enjoy a $50 bottle for $25. That just might work!

As more customers support half-price wine nights, restaurants will fill more tables.  Restaurants do not need a volume-bound book of wine choices. Customers are happy to go out and get a good deal. With the upside-downside economic news, no wonder lower-priced wine sales are up. Let us enjoy wine at restaurants without the insane mark-up.

We’ll drink to that.

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Strategy, Strategy

Yes, that’s what it takes–a strategy, a plan that helps you get customers. Fine dining and casual dining are starting to step on the toes of the little guy and move into the realm of the fast foodie. I love when I get an announcement that says “due to popular response, our promotion has been continued.” Well that is either true that the response has been overwhelmingly successful or partially true in that the program needs to continue in order to drive business: getting people dining out.

Full-service chains do not want to be left out. T.G. I. Friday’s introduced “The Right Portion, the Right Price” menu with both lunch and dinner entrees from $5.99-9.99. Outback Steakhouse now has 15 items on a specialty menu starting at $9.95 and not exceeding $15. The menu even states the magic phrase, “lower prices.”

Look at The Palm, a very successful high-end restaurant, that has extended its lobster tail and steak dinner for $89. The program continues until April 12 either because it’s been so successful or because every night matters. It’s a lot of food; and a lot of money.

Sullivan’s Steakhouse, with locations throughout the country, has expanded its “affordable dining options.” There’s the John L. Prix Fixe,  a three-course $29 menu available daily until 6P and the Contender, a specialty menu with all items below $25.

This is not the world of a year ago and more problems seem to rear their ugly heads daily. Who else is playing today? Let’s see tonight (March 30) Lettuce Entertain You Restaurants, a major restaurant group headquartered in Chicago with restaurants such as Big Bowl, Mon Ami Gabi, and Wildfire in their nationwide portfolio, is rewarding its frequent diners with triple points. The success of this promotion may prompt a repeat performance as the amount of money a guest spends can immediately be used to take money off the bottom line!

All types of restaurants. All price points.restaurant-table Remember no one is immune. Sign up for email alerts, join frequent dining clubs at your favorite spots, and take advantage of good deals. Promotions are just beginning as spring dining is critical. It’s about more than Mother’s Day.

Keep ‘em coming; we will, too.

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