Seeking value in volatilitySeeking value in volatility

Robin Lee Allen

The past few weeks have been no walk in the park. Given the debt-ceiling debacle, the S&P downgrade, the financial crisis in Europe and the stock market’s wild ride, it’s no wonder that consumer sentiment hit a 30-year low in August and that many of us — both as businesspeople and members of the buying public — are bracing for the worst.

Of course, for restaurant operators this economic scenario means that perceived value will continue to reign supreme, and brands that offer lower price points and a differentiated customer experience are best positioned to persevere. Throw in some alcoholic beverages, and well, you just may have something that can draw today’s overly anxious consumer.

In an effort to boost incremental revenue and eliminate the veto vote by potential patrons desiring a cocktail when they dine, several quick-service operators are taking a cue from their fast-casual cousins and testing the sale of beer, wine and other alcoholic beverages.

Beginning on page 1, this issue’s special report examines the operational hurdles of making alcoholic drinks available and the benefits some operators nonetheless are reaping in conducting such tests. Among them is coffee powerhouse Starbucks, which is expanding its plan to become the so-called non-home, non-work “third place” by offering wine, beer and small plates alongside its caffeinated specialties.

The daily deal, another strategy born of economic hardship and Internet ingenuity, also is likely to remain a force as the economy continues to sputter. In Business Intel, which also begins on page 1, we examine how restaurateurs can live with the proliferation of group-buying coupons that some see as a “necessary evil” but others manage to turn to their advantage.

On a lighter note, in Marketing we look into the benefits such businesses as Red Robin, Jamba Juice and Tommy Bahama are enjoying by culling brand ambassadors from among the raving fans in their customer base. And in Food & Beverage we dig into the trend among some chains to showcase seasonal vegetables on their menus.

In the Finance section columnist Steve Rockwell serves up some advice on how to choose an investment banker to help you sell your company. And in Community some of the industry’s most successful entrepreneurs dish on the hard work and relentless tenacity that helped them turn their foodservice dreams into reality, as shared during the recent Winning Ideas from Successful Entrepreneurs, or W.I.S.E., Summit in Chicago. A key takeaway: Control what you can, and never lose sight of your goals. That’s good advice no matter the economic climate, but it’s especially useful at times like these when uncertainty abounds.

On the aforementioned topic of consumer sentiment, you won’t want to miss the upcoming Sept. 5 issue, featuring our inaugural Consumer Picks survey. The report, created in collaboration with WD Partners, will reflect 5,700 consumer responses on 150 restaurant brands and a wide variety of attributes. The report also will include importance rankings, demographic findings and insights into what high-scoring brands are doing right. To be sure, the survey results will be worth noting and keeping.

Meanwhile, seeing that my retirement date has again drifted further away, and it’s increasingly unlikely that I will be attending a midmorning coffee klatch at Starbucks any time soon, I look forward to relaxing there with friends over wine some evening. I think Starbucks and other QSRs could be right: A drink just might be the sort of small, sales-boosting indulgence we’re all going to need.

Robin Lee Allen
Executive editor

Contact Robin Lee Allen at [email protected].