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FAST CASUAL SETS ITS SITES FOR GROWTH Addressing today’s challenges with customer analytics.

2013 Fast Casual Restaurant Industry Report

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Learn more about the challenges fast casual restaurant operators currently face, and how customer analytics are shaping real estate and marketing strategies for key industry players.

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Page 1: 2013 Fast Casual Restaurant Industry Report

FAST CASUALSETS ITS SITES FOR

GROWTHAddressing today’s challenges

with customer analytics.

Page 2: 2013 Fast Casual Restaurant Industry Report

T H E R E ’ S G R O W T H . A N D T H E N T H E R E ’ S

SMART GROWTH.The Fast Casual sector is poised for growth. But there’s a difference between growth and smart growth. How can you harness the power of market data to tackle your most complex challenges – and see your brightest opportunities?

Optimizing daypart performance. Developing catering, delivery and other business lines. Identifying new markets for growth. Defining franchise territories. Strategic initiatives like these come with big questions. Fortunately, customer analytics provides big answers.

Page 3: 2013 Fast Casual Restaurant Industry Report

challenge No. 1:

BUILD ING DAYPART

SALES.Lunch. Dinner. Breakfast. Snacks. Late night. To really optimize your sales, you need to understand who your customers are in any given time slot. Your 9 am guest is significantly different from your 4 pm guest – and understanding those differences can yield huge results. How do you get a clearer picture of exactly who drives every daypart?

Page 4: 2013 Fast Casual Restaurant Industry Report

the big answer:

P R O F I L E E V E R Y D A Y P A R T.BEGIN WITH YOUR CUSTOMER DATA, combine that with time-stamped data from Visa credit card transactions, and you get the best picture yet of how dayparts vary – and who your customers are at any given time.

See how your morning, lunch, dinner, snack and late night guests vary by DEMOGRAPHIC, INCOME, LIFESTYLE AND DRIVE-TIME.

Improve the success of NEW PRODUCT ROLL-OUTS by understanding what customers really want in each daypart.

Integrate your understanding of your core daypart customers with your SITE LOCATION STRATEGY to ensure optimum success of new locations.

Hit the right customers with the RIGHT MARKETING MESSAGES by segmenting your email and direct mail databases by daypart.

Page 5: 2013 Fast Casual Restaurant Industry Report

THERE’S NEVER A BAD

TIME TO BUILD

SALES.

Industry Overview:

Dayparts like breakfast and snacks are becoming increasingly lucrative for Fast Casual restaurants. In fact, 31% of Fast Casual restaurants now offer breakfast. And, while only 6% of overall restaurant visits occur during off-peak hours, a hefty 13% of Millennials visit during “snack” hours.

Page 6: 2013 Fast Casual Restaurant Industry Report

challenge No. 2:

BUILDING YOURCATER ING & DEL IVERY

BUS INESS.In recent years, even as consumers reduced their restaurant spending, the industry experienced growth in catering sales. In 2012, catering sales hit $43.4 billion in the U.S. – with nearly a third of it sourced from QSR and Fast Casual chains. Fast Casual chains expect catering to grow by an additional 12% in the coming year. How can your company stake out its place at the table?

Page 7: 2013 Fast Casual Restaurant Industry Report

the big answer:

IMPROVE YOUR ODDSWITH B2B DATA.CUSTOMER ANALYTICS provides you with the insights to create a marketing strategy to

build your catering and delivery business.

Analyze your past and existing catering customers, and create a profile

that enables you to target HIGH-VALUE PROSPECTS.

ENHANCE AND EXPAND your catering database by targeting your best prospects in the most promising SIC and NAICS codes.

Forecast catering revenues for SPECIFIC TRADE AREAS based on proximity to your core B2B customers.

Equip your marketing teams with the data they need to IMPROVE ROI for catering, delivery and to-go initiatives.

$

Page 8: 2013 Fast Casual Restaurant Industry Report

BUXTON DELIVERSTHE GOODS FORJASON’S DELI.

Customer Testimonial:

“Catering has always represented a significant percentage of our business and is growing…. Our analytics are driving investment results in customer acquisition, retention and growth. Buxton’s tools and data have opened a new analytic door for us. What we are able to measure is improving with these tools.”– Lee Greer, Chief Strategy Officer, Jason’s Deli

Page 9: 2013 Fast Casual Restaurant Industry Report

challenge No. 3:

IDENTIFYING NEW

MARKETS

FOR GROWTH.Robust growth is expected for the Fast Casual sector in the coming years. But the largest slice of the pie will go to the brands that understand exactly who their best customers are and have the analytic tools needed to pinpoint locations that put them in close proximity. How can you and your franchisees spot the most promising sites for expansion?

Page 10: 2013 Fast Casual Restaurant Industry Report

the big answer:

USE ANALYTICS TO GUIDE YOURREAL ESTATE DECISION.EVEN IN A PERFECT WORLD, some locations will provide greater opportunity and ROI

than others. Using your existing customer data, VISA transaction data, and powerful

analytic tools to build predictive models to forecast the potential of any given location

gives you the insights you need to make solid site selection decisions.

Compare specific locations within any given trade area, and

PINPOINT the ones that are likely to provide the highest ROI.

See the true potential of your brand by revealing your

“SATURATION POINT” for any city, region, or even across

the entire U.S.

Offer valuable, informed decision support to your franchisees

based on QUANTIFIABLE MARKET DATA.

Compare various markets, regions and states, and identify

which ones should be your HIGHEST PRIORITIES.

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Page 11: 2013 Fast Casual Restaurant Industry Report

ROLLING TOWARDTHE FUTURE.On the TV show “Shark Tank,” sushi Fast Casual chain How Do You Roll? accepted a deal to fund significant growth. It was great news – but it created an urgent need for a real estate strategy. “Buxton gives us a granular view of our customer to help us make smarter real estate decisions,” says CEO / co-founder Yuen Yung. With Buxton’s help, the chain will be able to pinpoint opportunities on a national scale so they can expand quickly – and wisely.

Case Study:

Page 12: 2013 Fast Casual Restaurant Industry Report

challenge No. 4:

DEFINING FRANCHISE TERRITORIESAND MARKETPENETRATION.

Some things are absolutely critical to your success: Attracting new franchisees. Keeping existing franchisees happy. Determining how many locations a given market can support. And staking out protected territories to keep your company and franchise stores from competing with each other. How can you do all of this quickly and effectively?

Page 13: 2013 Fast Casual Restaurant Industry Report

the big answer:

KEEP FRANCHISEES HAPPYWITH SOLID MARKET DATA.When it comes to positioning franchisees for success, nothing beats the power of

INSIGHTFUL CUSTOMER ANALYTICS.

Help existing franchisees grow in the MOST PROFITABLE way possible by verifying and evaluating their prospective expansion sites.

Maintain strong, positive FRANCHISEE RELATIONSHIPS by ensuring that their sales are not cannibalized by company stores or competing franchisees.

Make a stronger appeal to new franchisees by demonstrating that you’ve conducted a thorough validation process to determine the

OPPORTUNITY of a trade area, and the number of stores any trade area can support.

Take a more ORGANIZED approach to growth by pinpointing the cities, regions or trade areas that represent the best potential for future expansion.

$

Page 14: 2013 Fast Casual Restaurant Industry Report

Client Insight:

FIREHOUSE SUBS IS A

HEROTO ITS FRANCHISEES.“We have plans to open 2,000 restaurants by the year 2020. When franchisees bring potential sites to us to evaluate, we use customer analytics to make sure the location is in the right part of the trade area. We evaluate where concentrations of core customers are, and make sure the location is properly positioned within the trade area.”– John Namey, VP of Real Estate ServicesFirehouse Subs

Page 15: 2013 Fast Casual Restaurant Industry Report

N O T J U S T A N S W E R S ,

BIG ANSWERS.

BUXTON IS A BIG

ANSWERSCOMPANYWe show you exactly who your best customers are, where you can find more of them, and what the value of those customers is to your business.

Buxton puts big answers right at your fingertips. With SCOUT Touch, you can get the answers you need any time, anywhere. See exactly what Buxton analytics can do for you, click here to request a demonstration today.

817.332.3681 [email protected] BUXTONCO.COM

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