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PIZZA - CUSTOMER PROFILE

Originally published in Pizza Today

A customer profile, if properly conducted, is literally a picture of your customers. The more that you know about your customers, the easier it is to pick good locations. Now you may say: "I know my customers, I don't need to do any of this." Well, let's see how much you really know.
How do you develop a customer profile? You interview a representative sample of your customers. Right away you are getting nervous. "Interview my customers! That is a whole lot of mickey mouse". Right? Not really! It can be very simple. First, however, let's look at the important elements and then review what to do.

CUSTOMER PROFILE

What is a customer profile? Here are some items that are often included in a customer profile. They don't all have to be included; however they can be. Won't it be too long? No, not if the right physical situation exists (space at the entrance), and the interviewer knows what she is doing. Notice the SHE; that is because women usually make better interviewers than men. Simply stated, most people find women more acceptable when being interviewed.

- How often do my customers patronize my place?
-When did they make the decision?
-Who made the decision?
-Why do they come to my shop or order my Pizza?
-How many minutes did it take them to get here?

FOOD COURT - AVAILABLE TABLES CAP SALES; FOOD COURT SEATING: DOES YOUR MALL HAVE ENOUGH?

Originally published in the Carlsonreport, July, 1991

Many successful shopping center food courts have inadequate seating. While it can be overlooked somewhat in downtown food courts because of strong take-out business, it cannot be ignored in suburban malls. Seating to food courts is like parking to shopping centers. When you don't have it, you lose customers and sales. The total number of seats, however, is not the most important factor. Instead, the number of available tables with seating is the critical element. An occupied table, even if three seats are unoccupied, is not available seating. People prefer to sit alone or with friends and rarely share a table with strangers.

How do you determine your food court's table and seating situation? Follow these steps, designed to identify the needs in your food court, rather than relying on industry averages. Each food court has its own personality and, therefore, it must be addressed individually.

1. Count the number of tables and seats in your food court. Classify them by types of tables (i.e., moveable or fixed "twos", "fours", etc.) This is important because often the seating has changed somewhat since the food court was originally designed. You may find the numbers have changed since the food court was built.

Food Courts - the Food Operator's Perspective

Carlson Report Newsletter, 1992

Much has been said and written about food courts from the shopping center developer and individual food tenant point of view. However, little has been written about collective concerns and the pros and cons of food courts. As a consultant to shopping center developers, retailers, and restaurants, I am uniquely qualified to respond to this topic. Additionally, I set up the original Kentucky Fried Chicken development department in the latter 60s. Finally, I have recently written a book entitled, Restaurant and Fast Food Site Selection which will be published by John Wiley & Sons by the end of the year. The book reflects my over 33 years addressing food location opportunities and problems. From both the developer/owner and food operator's perspective, food courts have not been a panacea.

It is important to understand that food courts were established, not to help the fast food industry, but rather to address the shopping center industry's desire to add fast food facilities to shopping centers. Developers and owners did not want to provide the space to individual operators to which they were accustom. Common seating was the answer. Furthermore, the objective was to capture more rent, and hopefully, overage percentage rentals. In some cases, they succeeded, while in others, they failed.

WHY FOOD COURTS GIVE MANY FRANCHISE OPERATORS INDIGESTION - FRANCHISE OPERATOR VERSUS FOOD COURT MANAGEMENT

Published in the Carolsonreport,March 1993

There is an old axiom in the food business that says that strong sales cure all. However, there are times when that is not entirely true. In the last several years, declining customer traffic and frugal shoppers have put this axiom to the test. Surprisingly, few have been tested more than the franchisee of a major franchise food company. Nationally known franchise units, with instant recognition, appear to be excellent for food courts. What you may not know is that flat or declining sales affect them more than the other non-franchise units, even if they have high sales levels. Many of our franchise clients are frustrated with food courts, while our mall clients are upset with franchise operator's menu changes. What is the cause of this deteriorating relationship?

THE PRINCIPLES OF RESTAURANT SITE SELECTION

Florida Restaurant Association Newsletter - 1996
Over the years of reviewing and selecting restaurant locations, it has became obvious that the industry needed a set of guidelines regarding location selection. Formulated over the last 25 years, these guidelines are included in my book entitled, Restaurant & Fast Food Site Selection, published by John Wiley & Son.  To select good locations, one needs to be aware of the following:
 
KNOW YOUR CONCEPT AND OPERATION
 
A food operator cannot successfully expand unless he or she knows their operation.  Knowing one’s food service operation means fully understanding food and labor costs, controllable and uncontrollable expenses, and profitability.  If that is not under control, and the unit is not profitable, expansion is probably not the solution.
 
KNOW YOUR CUSTOMER
 

THE PRINCIPLES OF PIZZA RESTAURANT LOCATION SELECTION

Over the years of reviewing and selecting restaurant locations, it has became obvious that the industry needed a generalized set of guidelines regarding location selection. Thus, in 1992, my book entitled, Restaurant & Fast Food Site Selection, was published.  Interestingly, there is a feeling in many parts of the country that dining is a very personal thing, and therefore taste can overcome a secondary location. Perhaps that sometimes occurs, however, in my experience, it is very rare.  In fact, the exact opposite is usually true, namely taste cannot overcome a poor location, and thus failure is usually eminent.
 
The locational principles for pizza units vary somewhat from other types of food operations because there are so many different type of pizza locations. Locations include: dining, pick-up, a combination of dining and pick-up, delivery and a combination of all of the above. Also, there is gourmet, thin crust, thick crust, deep dish, pizza by the slice, pasta dishes, take & bake and numerous others.  Nevertheless, in studying them all, I have established some important considerations which an operator who is thinking of expanding needs to think about in selecting possible locations.
 
 1. KNOW YOUR CONCEPT AND OPERATION
 

THE IMPORTANCE OF LOCATION

Have you ever heard someone say that. Are they still in business? Perhaps some are; however I would bet that more are not. It is hard for many in the pizza business to understand that locations are as important as the product, and in many cases, more important. Naturally, the product has to be acceptable, or you won't need a location. Nonetheless, without adequate locations, one is starting from a negative position. Most often, it is a short or long term death knell.
 
For over 30 years, I have been evaluating and selecting restaurant and fast food locations throughout the world. The primary conclusion that I can draw is that there is no substitute for a good location. Good food, quality pizza, superb promotion, fast service and competitive pricing are extremely important, but rarely will those factors overcome a poor location. Exceptions, of course, do exist. For example, a pizza operation oriented primarily to delivery usually does not need a primary location.
 

10 RULES FOR FOOD COURTS

Originally published in CARLSONREPORT, June, 1988, Vol. VII, No. 6

Over time, I've reviewed and evaluated both good and bad food courts and food operations for the shopping center industry and independent and chain food operators. In addition, I have been an expert advisor and witness in legal actions regarding food courts. Lastly, I have written a book entitled Restaurant and Fast Food Site Selection which includes a chapter on malls and food courts. Here are a few of my current opinions on the subject.

1. Food courts need pedestrian traffic; they often cannot create sufficient action by themselves. Food courts should be placed where people will logically congregate or certainly pass.

2. Food courts are generative, but in an unusual way. They usually generate the majority of their traffic during normal dining periods, when the body's computer signals its time for chow. Thus, food courts should not be looked at as a generator for a wing of a shopping center or mall. While they will generate traffic at their peak periods, they usually will not generate much traffic during their non-peak periods. Remember, a considerable amount of food court sales come from "impulse" decision making.

TO MARKET, TO MARKET

Originally published in Pizza Today, August 1988

Getting necessary marketing information and data entails the the use of four primary elements. The first is knowing what to get, the second knowing where to get it, the third getting it, and the fourth knowing what to do with it once you've got it.

Collecting and evaluating data needs to be done within the context of the previous Site Selection articles found in Pizza Today. These include: Understanding the Importance of Location, Recognizing the Principles of Location Selection, Knowing Your Customer Profile, Understanding Your Trading Area, Recognizing Different Types of Locations, and Understanding the Need for Accurate Demographic Data.

What to Get

Most food operators recognize the factors that affect the sales potential of a location including population, income, employment, competition, accessibility, and other factors. Where to get the information can be perplexing. The Reference Table included presents a list of the items, usually available, that can help in evaluating market opportunities. Often, it is not necessary to obtain and study all of the items listed. Instead, they represent sources for different types of data, which can be helpful in deciding what is beneficial to you in your own situation. Let's look at the key elements.

TYPES OF PIZZA LOCATIONS

In pursuit of the magic site selection formula, one must recognize that there are numerous types of locations. Moreover, each type usually has a different set of trade area characteristics, requiring modification of site selection criteria. This is one of the reason why many computer models don't work, and why many real estate site location people make mistakes. Additionally, today it seems that pizza is being sold or delivered from every fast food operation, store and restaurant. Why are some so much more successful than others? Let's examine the differing types of locations that I have identified over the last three decades.

DOWNTOWNS

In a sense, downtown areas are "where it all started". Downtown was the original market place, the major activity area, the initial concentration of people and the major employment center. Many changes have occurred in downtowns throughout North America; some for the better; but sometimes for the worse. Downtown locations must be approached, evaluated and selected with caution. If done correctly, some big winners can be found.

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