Tuesday, May 22, 2012 | Edited by Daniel Moores
Fast-Casual Brands Outpace Restaurant Industry Growth

Sales and unit growth at the country's largest fast-casual chains continue to outpace that for the overall restaurant industry, according to the latest Fast-Casual Top 150 Chain Restaurant Report from Technomic.

The Chicago-based industry research firm found that the 150 largest fast-casual brands combined to grow their sales 8.4 percent to $21.5 billion in 2011, compared with a year earlier. That rate of growth increased from a 6.6-percent gain in 2010.

By comparison, sales grew for the 500 largest restaurant chains across all industry segments by an aggregate 3.5 percent in 2011.

Fast-casual brands expanded their unit counts far more aggressively than the restaurant industry as a whole, Technomic found. In 2011, the 150 largest fast-casual chains had an aggregate unit count growth of 5.2 percent, compared with a 0.7-percent increase for the 500 largest restaurant chains across all segments.

Technomic executive vice president Darren Tristano said fast-casual chains retain their hold on a "sweet spot" for restaurants, with reputations for fast service, fresh food, fair price points, and well-built takeout and catering operations.

"More success in fast casual is (leading) to greater frequency and competition in the segment," he said. "If I'm not going to Chipotle for lunch, I'm going to another fast-casual chain like Five Guys."

Technomic noted that two leaders of different fast-casual segments, Panera Bread and Five Guys Burgers and Fries, stood out with 2011 sales growth of 10.1 percent and 32.8 percent, respectively.

Panera had the most sales in the bakery-café segment with $3.3 billion in 2011, while Five Guys led the "better burger" sector with $950 million in annual sales. Chipotle Mexican Grill's $2.3 billion in sales in 2011 paced the Mexican category, while Panda Express led the Asian segment with $1.5 billion.

Zaxby's, Jason's Deli and Donatos Pizza topped the chicken, sandwich and pizza segments, respectively, with annual sales of $840 million, $525 million and $166 million, respectively.

Tristano said a significant portion of the top chains' sales growth is coming from higher unit counts and traffic, rather than growth in average unit volumes.

"As you increase the number of units, it gets harder to grow the average unit volume," he said. "Look at Subway. It's hard to get that level of volume when you're competing with yourself. Five Guys is doing it through a price increase and likely through traffic. If there were cannibalization, there wouldn't be such a large sales increase."

He pointed out Chipotle as an example of a fast-casual chain that continues to grow same-store sales with smart marketing and a service style that gains efficiency through investments in online ordering.

"If there are 30 people in line at Chipotle at lunch, customers know they'll still get through it in a relatively short time," Tristano said. He added, "Chipotle is the place to get a nearly one-pound burrito for around $6; it is really on par with the type of food and flavor profile, cost, and quantity people are looking for."

(Source: Nation's Restaurant News, 05/15/12)
Memorial Day Becoming More of a Prime Shopping Occasion

According to findings in two America's Research Group surveys -- conducted in late March and in late April -- the number of Americans delaying their shopping to Memorial Day weekend is at an all-time high.

Based on the surveys, shoppers will approach Memorial Day in keeping with a growing trend towards holding off on shopping until "big" holiday weekends.

"This used to be an effect that was the private reserve of 'Black Friday,'" ARG chairman Britt Beemer said. "Beginning with our (October 2011) survey, which showed Americans delaying in record numbers, shoppers have begun using the 'hold-it-until-the-holiday' tactic in a much broader and more significant way."

More than 6% of shoppers in March and 21% in April reported that they are delaying their shopping plans until Memorial Day weekend. Last year, less than 3% of shoppers in March and only 11% of shoppers in April were waiting until Memorial Day.

"This is a major shift in the retail landscape," Beemer said. "Not only are Americans delaying, but they are also making a weekend that was once thought of as the 'start of summer' -- a time to go someplace warmer or to relax or picnic, perhaps -- into one that is akin to Black Friday: a time to clip coupons, look for sales."

Beemer estimated that shopping levels will exceed 35%, compared with 2011. "Those retailers who offer early bird specials and open early on Memorial Day...will see the best sales and the highest spending levels. The closer you come to creating Black Friday, the better your sales will be," Beemer said.

(Source: Drug Store News, 05/17/12)
Hollywood Gets Ready for Summer

Hollywood is hoping that Friday's opening of "Men In Black 3" will kick off a lucrative summer at the box office, a season that got going early with the tremendous success of the superhero action film "The Avengers."

Hollywood's releases have grossed more than $4 billion in the U.S. and Canada so far this year. That's a 15.7% increase over the same period last year. Theater attendance is also up 18.4% over last year. And the industry is on track to exceed the $4.4 billion earned at theaters last summer by at least $500 million, according to box-office analysts.

"Hollywood lives and dies by its summer blockbusters, and this is the best slate of summer films I've seen in years," said Jeff Bock, a box-office analyst at Exhibitor Relations Co.

"The Avengers," released domestically May 4, has taken in $457.1 million to date in North America and nearly $1.2 billion world-wide, and other studios predict that its ability to draw audiences into the theater will keep them coming back in the months ahead for the crop of big-budget films set for release as the temperature rises.

Success isn't guaranteed. The science-fiction action adventure "Battleship," which opened domestically over the weekend, following its international release, stands as the first big-budget action film to challenge "The Avengers" for the box-office crown, yet it grossed a disappointing $25.3 million in its first weekend in North American theaters, according to early estimates.

Given the dominance of "The Avengers," studios are hoping their films continue to find legs in their second and third weeks.

"The marketplace can't be just one movie," said Nikki Rocco, president of distribution at Comcast Corp.'s Universal Pictures, which released "Battleship." "At this time of the year, the multiples on films are better and we'll see what happens."

Because of the disappointing numbers posted by "Battleship," the industry will turn to the third installment of the "Men In Black" series that stars Will Smith and Tommy Lee Jones, opening May 25, the gritty fairy tale adventure "Snow White and the Huntsman" on June 1, and the Ridley Scott-directed science-fiction film "Prometheus," which will hit theaters on June 8, to set the post-"Avengers" standard for the summer.

DreamWorks Animation has its sights on younger moviegoers with the release of "Madagascar 3," also opening on June 8. Walt Disney Co., which released "The Avengers," will look to reclaim box-office success with the June 22 release of "Brave," its newest film from Pixar Animation Studios.

But "The Dark Knight Rises," from Time Warner Inc.'s Warner Bros. Pictures and Legendary Pictures, is the only film expected to pose a serious challenge to "The Avengers" for the top box-office spot this summer. The third and final film in director Christopher Nolan's Batman trilogy is set for release on July 20. The first two films in the series grossed nearly $1.4 billion world-wide.

Studios make roughly 40% of the year's overall box office in the summer, according to box-office analyst Paul Dergarabedian, president of Hollywood.com's box-office division. This year's slate of summer films -- consisting of the usual sequels and franchise films -- are well-positioned to help domestic box office in 2012 to approach $11 billion for the first time in history, he said.

"The lack of originality (in film types) continues, but that's not necessarily a bad thing in the summer," he said.

The more important statistic to watch, said Exhibitor Relations' Mr. Bock, is whether theaters and studios will see an attendance boost. Last summer, attendance stalled at roughly 554 million tickets sold -- a significant drop from the 629 million tickets that were sold during the summer of 2002, when director Sam Raimi's take on "Spider-Man," with Tobey Maguire as the comic book web slinger, and "Star Wars: Episode 2 -- Attack of the Clones," ruled the box office. A new Spider-Man film, "The Amazing Spider-Man," starring Andrew Garfield, hits theaters on July 3.

There are other major titles to round out the summer, including "The Bourne Legacy," the fourth installment in the Jason Bourne spy thriller series, starring Jeremy Renner and set for an Aug. 3 release. That day will also see the return of "Total Recall," as a remake of the 1990 film of the same name hits theaters, this time featuring Colin Farrell and Kate Beckinsale. And the late summer days hold promise for "The Expendables 2," the action film featuring a handful of big-name stars, including Sylvester Stallone, Jean-Claude Van Damme and Bruce Willis, which is set to open on Aug. 17.

(Source: The Wall Street Journal, 05/20/12)

Daily Sales Tip: Don't Try to 'Wing It'

A well-designed and properly rehearsed phone script is a powerful tool for projecting a confident and competent professional image. In addition, a script guarantees that every call is delivered in a consistent and concise manner.

Sales reps that prefer to "wing it" and shoot from the hip, tend to lose focus and are quickly sidetracked down numerous unproductive paths. It's been said that the only thing worse than listening to a salesperson using a phone script, is to listen to one without a script.

Here are some proven tips to help you create a phone script that will keep your appointment calendar full:

1. Write out your entire phone script from hello to goodbye.

2. State your name and organization at the beginning of the call.

3. Timing is everything. Be considerate by asking your prospect if they have a minute to speak with you. If your call is viewed as an interruption, you're dead in the water before you even begin.

If your prospect indicates that it's not a good time for your call, apologize for the interruption and ask them when it would be OK for you to call back.

4. Use a series of open-ended questions to draw your prospect out. Keep in mind when you design your script that your primary goal is not to sell anything, but rather to build rapport, gather information, and make an appointment.

5. People are more comfortable with salespeople who they feel are similar to them. Use your voice to build trust and rapport quickly by "matching and mirroring" your prospect's voice tone, pitch, and pace.

6. Never interrupt your prospect and allow them plenty of time to respond to your questions.

7. Look for opportunities to make an appointment, don't just answer questions. Avoid the temptation to answer all of your prospect's questions over the phone but instead, guide them toward scheduling a face-to-face meeting.

Source: Sales trainer/business motivational speaker John Boe
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