Chain store opening on our doorstep

[wa_dave]

our sales are still going up and up since this new store opened a week and a half ago. They had flyer (generic for their brand - not specifically for this store) out at the weekend but there doesn’t seem to be any shift away from us, the reverse in facT.
The worrying thing is when can I expect to see a drop off.
It seems that they have gone with a soft opening other than the lame newspaper advert saying grand opening special, which wasn’t all that grand anyway, and the flyer drop.
I can’t believe that they didn’t react to our free pizza give-away at all - no-one outside our shop handing out menus or special deals to counter our activity, no francise mascot (an Eagle) outside our shop, no roadside board waving etc.
Have they under estimated us not expecting an independent to get the draw on them and stiffle their opening? Or maybe they are too greenhorn to know what they are doing (the franchisee, that is)? Maybe they are setting a franchise led strategy to hit us right between the eyes.
The store positioning is poor, signage is small and access restricted.
Maybe they are believing their own publicity and expect people to flock to them using their on-line ordering.
Either way te store is “dead” with little movement of delivery vehicles, minimal orders on the makeline and empty ovens during what is our peak times. Our drivers are checking everytime they pass on a delivery so we are keeping an eye on things.
None the less it is surprisng and maybe even worrying at the lack of activity both in marketing and movement at their store.

Dave

 

[wa_dave]

Now three weeks since the opening and our sales are well up on last year and up on the weeks prior to their opening.
Still no major activity from them. All we are seeing is their franchise’s normal flyer in the letterbox, which we rarely got before.
Apparently one of their staff posted on Facebook on Friday night that they were “slammed - it was mega busy”. Funnily enough we had a Friday night sales back to the peak before the GFC, matching the Fridays since they opened. Again Saturday was big, with Sunday back to average.
Hopefully it continues this way with our sales still going along nicely and them taking what sales they get. I’m off for two weeks holidays in Malaysia from Sunday and am hoping nothing hits while I’m away.
Our first lot of 200 Free Pizz letters went out a week ago the immediate suburb where we are and the next suburb across the road gets delivered from next Monday, so this should keep us rolling nicely, plus our current box top voucher for the 4 weeks is a buy 1 get 2nd one half price and already we have had a fantastic response in the quiet nights.
Our FREE pizza giveaway night recouped the outlay in the first week from new customers who tried for the first time and came back that week as new regulars.
Still waiting for a response from this chain but they are still low lying but it seems they are relying on the group’s heavy TV advertising to do the trick for them.

Dave

 

[system]

I knew it… you going to work on your tan for that upcoming PMQ July centerfold layout you have coming up? :shock: Enjoy the time off… Oh, are you flying or taking the carrier?

 

[wa_dave]

Feedback from a customer tonight about the new chain store. She called me over and said “I have an apology to make to you”. I was dumbfounded thinking what was the problem. She told me she tried the new store last weekend as their advertising looked really good and the prices were so low. She then said that she came to us from another store in the next suburb (now closed down) - that we didn’t rate as competition anyway - on the recommendation of friends, but although our product was great thought we were a bit pricey compared to the chains. Anyway she tried the new store and said the pizzas were so bad she went back and demanded her money back, and said there were other disgruntled customers in the store as well. Another customer overheard this and said they had heard other people complain about the quality of the product. The lady then told me she won’t be going anywhere again because she has found us to be the best and the price is not much different to the cheapies when they add all their hidden extras on.
Hope we hear more of this.
To date we are averaging $1,700 a week more than the same weeks last year since they have opened. We are experiencing unexpected sales increases even though we have had 5 consecutive months of housing interest rate rises (.25% each time) by our Reserve Bank.
And still no sign of major promotion activity from this new store.
Just hope it doesn’t hit while I’m away, buy if it does we have our 2nd burst of Free pizza ltters going out on Monday.

Dave