APT SVP Mark D’Agostino talks about how the APT Index can map retail and restaurant activity down to the micro-geography level.
APT VP Marek Polonski discusses how leading convenience retailers are leveraging in-market tests to optimize fuel pricing, through initiatives such as increasing the spread between regular and premium grades.
How can apparel retailers understand their customers across all channels? APT SVP Will Weidman discusses in this video
We’ve written in the past about the questionable economics of daily deals for restaurants. However, a recent article in QSR Magazine suggests that some operators are still using Groupon and other daily deal sites to encourage new business at some locations. For example, Smashburger recently launched a $6 for $12 deal, meaning that the Denver-based burger chain will receive $3 for the same food that would have normally garnered $12.
Two things about this promotion are worth noting:
- First, Smashburger is only running this promotion in areas where they have relatively low brand awareness, so it is likely that the chain is driving more incremental visits in those locations than they would have if they launched the promotion chain-wide.
- Second, Smashburger notes that customers redeeming the deal come in groups and thus have larger overall checks than those customers not redeeming the coupon. While this statistic is seemingly good news, it is difficult to know whether customers redeeming the deal would have had larger checks anyway.
For restaurants with low brand awareness, daily deals have a chance of being profitable by generating incremental trials that may lead to full-priced future visits. But restaurant chain operators need to test these promotions first to understand if redeemed deals are actually generating incremental trips and larger transactions, or if that behavior would have occurred anyway. Fortunately, Smashburger has an opportunity to do such causal analysis since they have only offered the Groupon in some locations.
A recent NPR article reports that Bank of America recently decreased drive-through teller services in some locations. This reduction in drive-through services is another example of the changing nature of the bank branch. In the article, APT SVP Will Weidman comments on this trend. Click here to read the article.