Success: 3 Golden Rules

What is the secret of success of fast food?

First principle: it is good! Second principle: it is cheap! The third principle: a large portion!

In the sixties fast food’s marketers came up with the easiest way to attract additional customers. Well, they enlarged portions.The method has aroused the interest of Ray Kroc, President McDonald's. He hired one of the leading marketing whizzes and after the short observations he stated that the portions need to be considerably larger. The CEO was sceptical from the beginning, but it turned out that the cost of extending the portion twice is equal to approximately five cents (!!).

McDonald's firstly has done test in restaurants located in Chicago, where for a month was watching their customers. Research has shown that people do not like order seconds, they want to eat at once so they appreciate the larger portions. In the end, larger, slightly more expensive portions were introduced in all restaurants. And this resulted in a twofold increase in turnover.

Three simple and properly promoted marketing tricks, with the proper support media, guaranteed fast food restaurant stable position in today's uncertain market. There were protests, documents and films about the dangers of such food ... and nothing. Their position is not eroded. However, there is nothing surprising - the basis for their success is the combination of master of economics and marketing.

And as we have shown in another article, people love fast food just for it. - good, cheap and large portion.

N.B.

references: http://manager.money.pl/strategie/marketing_i_sprzedaz/artykul/fast;foody;na;sukces;pracowaly;od;poczatku;ubieglego;wieku,218,0,1352666.html

http://sztukasmaku.wordpress.com/2008/05/19/jak-zmienialy-sie-nasze-porcje-w-ciagu-ostatnich-20-lat/

Food truck! They are taking over the streets!

They’ve been around for a while now. How many of us have been getting hot dogs on the streets between two business meetings or hamburgers before rushing into the subway? It’s literally an eating habit that has been in American culture for decades.

So what changed? The food truck business is booming all over the country and is starting to threaten the traditional fast food chains.

This phenomenon started back in the beginning of the 2000s at the start of economic recession, a time when people were mostly looking to preserve their purchasing power by buying inexpensive food.

In this atmosphere, the business of fast food trucks thrived. Less expensive and more practical than having an actual restaurant, they took over the streets and started to change their very essence: going from inexpensive low quality food to diverse high quality gourmet food.

Korean-Mexican, American-Chinese, French-to-go, fruity ice cream, dating meal to-go or even dog food! Creativity is going through the roof and the customer is indubitably the winner.

Diversification and creativity are not enough though, everybody know that. You need to find a way to advertise yourself and to connect with your customers. I guess you know where I’m going with this: Social Media obviously. It was THE real game changer regarding brand loyalty for the food truck business.

Consumers are looking for interaction rather than being hassle by advertising. In this context, they are very receptive to the food truck communication strategy that is to share very basic information such as location or changes in the menu.

Food truck owners also engage in a real dialogue with them through retweet, replies and comments. It’s actually one of the most important aspects of their marketing strategy because creating a connection with the consumer, sharing the story and giving them insights make them feel important and raise their level of involvement. A good fan base will help business owners to advertise through retweet, positive comments on rating sites (like Yelp, extremely popular in the US right now) and word-of-mouth. To make it simple, if they like you they will want to share it with everybody they now.

Bottom line, the game is quite simple here: If you are any good, you’ll eventually get the attention of the so called KOL (key opinion leader) like popular food critics who will trigger a massive amount of new followers and fans.  

So we have great-diversified food, creativity, interaction through social media… What do we miss?

Well, even in 2013, a food truck needs to keep the fundamentals in mind: human contact, simplicity and fun!

Here is a video of the “Food Truck Phenomenon” in LA that could be helpful to complete my thoughts:

PS: I'll be back soon with another post on food trucks. This time we'll talk about the reaction of fast food chains.

G.H.

Mc Donald's goes green!

We used to think that junk food is bad for health and for everything. In an other hand "going green " is a real big trend today. 

Mc Donald is working on it's brand image to make it better by using this trend.

Mc Donald is one of the Greenest companies in AMERICA!

This company is really involved in sustainability. In 2010 the Corporate Responsibility Magazine ranked McDonald in the 100 Best corporate Citizens.

McDonald’s packaging and food come from sustainable sources. Their sustainable chain is ruled by what they call « 3E’s » Ethics, Environment & Economics.

Ethics:  Mc Donald buy their products from producers who respect their employees’ wealth and safety, but also suppliers who as a good treatment with animals.

Environment : McDonald’s packaging policy (design, manufacture & distribution) tries to reduce the impact on the environment. They also started to implement dustbin with « Waste separator » in order to recycle wastes. 

Economics: McDonalds is engaged in a fair trade policy with affordable prices for everyone, moreover in 2009 their contribution in the EU GDP has been 9, 5 billion euros.

Moreover, this global company has now opened « Green Restaurant » who consumes approximately 40% less water thanks to low flow plumber, and 30% less in energy use thanks to their green roof, polarized windows and fluorescent lamps.

http://www.aboutmcdonalds.com/mcd/sustainability.html

C.L

Take a careful look: success and failure

Healthy food does not pay to the restaurant, which is mainly associated with hamburgers and fries.

As shown in the article, the key to success may be a different approach to the well-known fast food. Restaurants should input into menu more vegetables and fruits; Customers should know where the meat comes from. This strategy succeeded in the case of Chipotle, but as experience shows not for everyone gives the desired results.

The campaign to promote McDonald's as a place where you can find a healthy meal did not bring the expected results. The goal was good, but it turned out that the sale of salads, which were promoted as a healthy alternative to burgers, accounts for only 2-3 percent of turnover of U.S. restaurants. Therefore decided that the restaurant marketing campaigns in the United States will promote just burgers and chicken sandwiches. It will only pay attention to the presence of vegetables and lettuce in the "healthy" McWraps sandwiches.

Why in the case of McDonald's campaign has not been successful? Restaurant authorities claim that the majority of Americans associate McDonald's primarily with hamburger and chips, not the salad.

However, under pressure to provide healthier meals, McDonald’s announced recently that is going to change its menu in 20 of the company’s largest markets. "It will take three years or more to put them into place in about half the restaurants in those markets, and the remainder may not have the changes until 2020."- said McDonald's authorities.

N.B.

references:
http://www.biztok.pl/Dlaczego-McDonald-s-zrezygnowal-ze-zdrowych-dan-Oto-9-prawdziwych-powodow-s8297
Spurclock M., Życie w fast foodzie- co czeka McCzłowieka, Gliwice, 2007

Strategy: Honest fast food

In general, fast food does not have a good reputation. So what can restaurants do to be successful on the market? Is there a way to surprise and convince the client? What to do to stand out from the others?

In United State, to the surprise of many, people know what the healthy fast food means. Company called “Chipotle” just started selling the truth. Company was opened in 1993 in Colorado and currently has more than 860 restaurants.

Chipotle skillfully is using social commitment in building a strong brand. Its target group are mainly people born in the 80's and 90's until 1996. Studies show that they understand and support the principles of sustainable development and are willing to choose products of companies which use them.

In United State, Chipotle is a true leader of responsibility on the quick service restaurant market. The company prides itself on the fact that the meat is sourced from traditional breeding, which does not apply antibiotics, and the animals are free-range.

The company has decided to play on the emotions. Chipotle created an advertising spot. It is an animated story of a pig farmer who once decided his usual farm converted into a productive enterprise. But in the end he realises that it is not good either for him or for people or animals and returns to the traditional breeding.

Advertising hit the emotions of Americans. After emission the Chipotle Mexican Grill recorded increase in sales by 11 percent. And there is no indication that the trend is going to stop.

N.B

references:
http://www.chipotle.com/en-US/Default.aspx?type=default
http://mobilemarketing.pl/aplikacja-%E2%80%9Echipotle-ordering%E2%80%9D-pobrana-700tys-razy/