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Quick Service Restaurants - US - May 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Interest in QSR delivery is fairly low
Figure 1: QSR tech use and interest, March 2018
New menu items may only drive minimal traffic
Figure 2: QSR deal/promotion utilization, March 2018
The opportunities
Nearly all consumers visit QSRs
Figure 3: QSR visitation, March 2018
Motivate delivery trial with low fees
Figure 4: QSR delivery motivators, March 2018
Consumers will pay more for premium options
Figure 5: QSR menu item price premium, March 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
QSRs stay ahead of the competition
The QSR kids’ meal changes with the times
QSRs benefit from macroeconomic conditions
MARKET PERSPECTIVE
Fast casual chains fight among themselves
Casual dining chains’ focus on value is a threat to QSRs
QSRs outperform c-stores
Figure 6: C-stores versus QSRs, January 2018
Grocers may take the biggest bite out of QSR market share
MARKET FACTORS 
Will Millennial parents kill the Happy Meal?
Figure 7: Behaviors consumers avoid, April 2017
Economic conditions ideal for QSRs
Figure 8: Consumer sentiment index, January 2007 – December 2017
Figure 9: Median household income, in inflation-adjusted dollars, 2006-16
KEY PLAYERS – WHAT YOU NEED TO KNOW 
QSRs find the special sauce for success
Chains interact with fans on social media and through new products
Some QSRs reinvent themselves
Delivery, sustainability, and buzzworthy LTOs are the future for QSRs
WHAT’S WORKING?
QSRs dominate the restaurant landscape
Cheap eats become the next battle in the value wars
Brands find their voice on social media
Figure 10: Social media engagement rate among QSRs, January 7, 2018-April 6, 2018
Domino’s snags the #1 pizza spot
KFC comes back from the brink
Chicken becomes the trendiest QSR menu item
QSR extend their brand with new products
WHAT’S STRUGGLING?
Subway attempts a turnaround
Figure 11: Subway advertisement, “make it what you want”
Pizza Hut deals with Domino’s; Papa John’s shakes things up
Dunkin’ focuses on their strengths
WHAT’S NEXT?
QSRs bet big on delivery
Packaging goes green
QSRs due for a comeback
McDonald’s gambles on fresh beef
QSR LTOs evolve
Veggie burgers coming to a QSR near you?
Figure 12: TV commercial, “SONIC Signature Slingers ‘Getting Away With IT’ :30 Commercial”
THE CONSUMER – WHAT YOU NEED TO KNOW 
QSR visitation and satisfaction is high
Consumers visit QSRs for a variety of deals
Interest in QSR tech varies
Build sales with premium options
QSR VISITATION
Nine out of 10 consumers eat at QSRs
Figure 13: Restaurant visitation, March 2018
Figure 14: QSR visitation, number of QSR chain types visited, March 2018
iGens/Millennials are core QSR users
Figure 15: QSR visitation, by generation, March 2018
Higher-income HHs have low QSR visitation
Figure 16: QSR visitation, by socioeconomic status, March 2018
Many parents rely on QSRs
Figure 17: QSR visitation, by Millennial parent breaks, March 2018
Figure 18: QSR visitation, by Millennial parent breaks and gender, March 2018
RESTAURANT SATISFACTION
Consumers are satisfied with QSR chains
Figure 19: Restaurant satisfaction, among visitors, March 2018
QSR CUSTOMER DEMOGRAPHIC/PSYCHOGRAPHIC PROFILE
Overview
Moderate/heavy McDonald’s customers
Moderate/heavy Taco Bell customers
Moderate/heavy Chick-fil-A customers
QSR DEAL/PROMOTION UTILIZATION
Classic deals are most common, but new deals can get consumers in the door
Figure 20: QSR deal/promotion utilization, March 2018
Consumers take advantage of many deals
Figure 21: QSR deal/promotion utilization, number of deals/promotions used, March 2018
Bundled meals are a hit with iGens
Figure 22: QSR deal/promotion utilization, top five deals by generation, indexed against all consumers, March 2018
A deal for every consumer type
Figure 23: QSR deal/promotion utilization, by socioeconomic status, March 2018
Motivate Millennial parents with deals
Figure 24: QSR deal/promotion utilization, by Millennial parent breaks, March 2018
Figure 25: QSR deal/promotion utilization, by Millennial parent breaks and gender, March 2018
QSR TECH USE AND INTEREST
Consumers still cool toward QSR delivery
Figure 26: QSR tech use and interest, March 2018
QSR delivery users: demographic profile
Figure 27: QSR third-party delivery users, demographic profile, indexed against all consumers, March 2018
QSR DELIVERY MOTIVATORS 
Consumers want cheap and fast delivery
Figure 28: QSR delivery motivators, March 2018
QSR delivery isn’t for everyone
Figure 29: QSR delivery motivators, by third party delivery use/interest, March 2018
Figure 30: QSR delivery motivators, by generation, March 2018
Millennial parents are an important potential consumer group
Figure 31: QSR delivery motivators, by Millennial parent breaks, March 2018
QSR MENU ITEM INTEREST AND PRICE PREMIUM
High interest in premium, fresh options
Figure 32: QSR menu item interest, March 2018
Figure 33: QSR menu item price premium, March 2018
Fresh beef burgers are universally appealing
Figure 34: QSR menu item interest, by gender and age, March 2018
Figure 35: QSR menu item price premium, would pay $2+, by gender, March 2018
QSR DESIRED IMPROVEMENTS 
QSRs need to find a balance
Figure 36: QSR desired improvements, March 2018
Smart menu changes can attract new consumers
Figure 37: QSR desired improvements, healthy choices, by gender and age, by socioeconomic status, March 2018
Figure 38: QSR desired improvements, by generation, March 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

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