Table of Contents
Scope and Themes
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- What you need to know
- Definition
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- Figure 1: QSR companies comprising market size, by segment, 2009
- Changes to 2009 QSR market size
- Data sources
- Sales data
- Mintel Menu Insights
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The challenge of a recession
- QSRs continue growth
- Competitors are going for the bulls-eye
- Burger restaurants dominate QSR sales
- Influential demographics
- QSR chain profiles
- Brand focus: Jack in the Box’s maverick mentality
- Advertising and promotion activity
- Menu innovation stepping it up
- Health on the menu—a long way to go
- Technology expectations
- Where consumers go to eat
- How consumers use fast food
- Fast food and the Hispanic consumer
- QSRs and the quintessential child consumer
- How consumers make the choice between QSRs
Insights and Opportunities
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- Key points
- Embrace health for “real”
- Analyze the competition: fast casual doing fresh right
- Eliminate the veto factor
- Good news—there’s money in health
- Hey burger guys, where’s the family meal deal?
Inspire Insights
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- Premium and Cutthroat
- What's it about?
- What we’ve seen
- A funny thing happened on the way to recession
- A funny thing happened on the way through the recession
- But will a (not-so-) funny thing happen after the recession?
Market Size and Forecast
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- Key points
- Trading down to QSR
- Rising retail prices suggest underlying traffic issues
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- Figure 2: Average price per entrée, by restaurant segment, 2007, 2008, and 2009
- Time is of the essence—future QSR sales potential
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- Figure 3: Total U.S. QSR sales and forecast, at current prices, 2004-12
- Figure 4: Total U.S. QSR sales and forecast, at inflation-adjusted prices, 2004-12
Competitive Context
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- The quest for the dining out dollar
- Casual restaurants not going down without a fight
- Family/midscale not giving in during breakfast
- Coffeehouses and donut shops branching out
- Fast casual trumps QSRs from a fresh/health perspective
- Can QSRs compete with a premium platform?
- Value remains an essential component to the QSR competitive strategy
Segment Performance
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- Overview
- Burgers, burgers everywhere…
- … but not at other QSRs
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- Figure 5: U.S. sales of leading QSR chains, by “food” segment, 2006-08
Segment Performance—Burger Restaurants
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- Key points
- The war is on
- Going for the unexpected
- Dropping the price bomb
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- Figure 6: U.S. sales of leading burger QSR chains, 2006 and 2008
Segment Performance—Sandwich Restaurants
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- Key points
- Striking the balance between QSR and fast casual
- Maintaining the QSR value mentality
- Health via freshness
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- Figure 7: U.S. sales of leading sandwich QSR chains, 2006 and 2008
Segment Performance—Chicken Restaurants
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- Key points
- Finding a niche
- Chick-fil-A: the original chicken sandwich
- El Pollo Loco: ethnic menu inspiration
- Bojangles: Differentiating by daypart
- KFC: Rebranding for health
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- Figure 8: U.S. sales of leading chicken QSR chains, 2006 and 2008
Segment Performance—Mexican Restaurants
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- Key points
- Strategic value pricing
- Taco Bell remains focused on value
- Del Taco—made to order, customizable
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- Figure 9: U.S. sales of leading mexican QSR chains, 2006 and 2008
Segment Performance—“Other” Restaurants
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- Key points
- Ethnic cuisine fuels growth
- Unit expansion driven by demand for ethnic flavors
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- Figure 10: U.S. sales of leading “other” QSR chains, 2006 and 2008
Market Drivers
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- Restaurant industry recession continues, but the bottom may be in sight
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- Figure 11: Restaurant Performance Index, current situation, and expectations, May 2007-May 2009
- Consumer confidence undermines willingness to spend at restaurants
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- Figure 12: Consumer Sentiment Index, by quarter, 2001-09
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- Figure 13: QSR restaurant spend compared to last year, by selected demographics, May 2009
- Recession reshapes the family dynamic
- Increasing number of potential child diners in the U.S.
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- Figure 14: Population by age, 2004-14
- Fewer jobs for teens means less spending
- Hispanics—the essential QSR patron
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- Figure 15: Child population (0-12), by ethnicity/race, 2004-14
- Appealing to Hispanics
Restaurant Analysis: McDonald’s
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- Continued success
- Targeting adults: Premium beverages
- Losing traction with Hispanics
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- Figure 16: McDonald’s usage, by race/ethnicity, October 2007-December 2008
- McDonald’s and kids: The power of the brand
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- Figure 17: Children’s self-reporting restaurant usage, by restaurant, by age, March 2009
Restaurant Analysis: Burger King
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- Growth momentum
- BK’s future focus
- Remaining focused on young males
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- Figure 18: Burger King usage, by selected demographics, October 2007-December 2008
Restaurant Analysis: Wendy’s
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- Attempting a rebound
- Menu changes
- Future focus
- Premium brand quality attracts select demographics
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- Figure 19: Wendy’s usage, by select demographics, October 2007-December 2008
Restaurant Analysis: Taco Bell
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- Marketing the trifecta: Value; freshness; bold flavors
- Focused on value
- Associating with freshness
- Signature bold flavors
- Taco Bell—a hot spot for young consumers
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- Figure 20: Taco Bell’s usage, select demographics, October 2007-December 2008
Restaurant Analysis: Sonic
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- Keeping up with the Joneses
- Playing to its strengths
- What’s in store for the future
- Southern regional footprint creates strong consumer base
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- Figure 21: Sonic’s usage, by region, October 2007-December 2008
Restaurant Analysis: Chick-fil-A
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- Cultivating loyalty
- Chick-fil-A core consumer—30-something, Southern, and high income
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- Figure 22: Chick-fil-A’s usage, by select demographics, October 2007-December 2008
Restaurant Brand Qualities: Jack in the Box Study
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- Sales performance
- Remaining true to its reputation as a “menu maverick”
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- Figure 23: Jack in the Box’s usage, by age, May 2009
- Updating Jack
- Reimaging its stores for modern appeal
- New logo goes casual
- Marketing mania: Capitalizing on Jack
- A brand for Hispanics
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- Figure 24: Jack in the Box’s usage, by Hispanic origin, May 2009
Advertising and Promotion
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- Overview
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- Figure 25: Top ten QSR advertisers, 2007 and 2008
- Promoting quality
- Spinning value
- Marketing the value menu
- Discount deals
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- Figure 30: Popeyes television ad, Feed 4 for $4, February 2009
- Providing the “economical” answer
- Pushing the boundaries
- Burger King
- CKE Restaurants: Hardee’s and Carl’s Jr.
- Quizno’s
Innovations and Innovators: Menu Innovation
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- Key points
- The QSR food menu—move towards unique and premium fast food
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- Figure 32: Top 5 cuisine types, top quick service restaurants, 2007, 2008, and 2009
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- Figure 33: Interest in trying burgers made with Angus beef, by gender, May 2009
- Breakfast: A point of differentiation
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- Figure 34: Interest in trying all-day breakfast, by age, May 2009
- The QSR beverage menu—focus on premium beverages
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- Figure 35: Non-alcoholic beverage types, top quick service restaurants, Q2 2007-Q2 2009
- Tea
- Coffee
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- Figure 36: Interest in trying selected beverage options, by gender, May 2009
- Blurring the line between shakes, smoothies and frozen beverages
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- Figure 37: Interest in trying selected beverage options, by gender, May 2009
Innovation and Innovators: Health on the Menu
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- Key points
- Health: Consumers’ perceptions
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- Figure 38: Consumer diet self-perceptions, degree of healthfulness, May 2009
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- Figure 39: Importance of eating healthfully, degree of importance, May 2009
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- Figure 40: Restaurant segment usage, by diet healthfulness, May 2009*
- Defining health
- Is health on the menu all smoke and mirrors?
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- Figure 41: Top quick service restaurant menu items, by nutritional claim, Q2 2008-Q2 2009
- Making legitimate statements regarding health on the menu
Innovation and Innovators: Technology
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- Key points
- Using technology to enhance convenience
- Online ordering
- Mobile messaging
- Interest in on-site internet access
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- Figure 42: Interest in trying new options, 2007, 2008 and 2009
Restaurant Usage Overview
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- Key points
- Restaurant usage
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- Figure 43: Restaurant usage in last year, by selected demographics, May 2009
- Restaurant usage, by segment
- Demographic analysis
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- Figure 44: Usage of restaurant segments in past three months, by gender, May 2009
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- Figure 45: Usage of restaurant segments in past three months, by selected HH income groups, May 2009
- Addendum: Consumer question explanation
QSR Restaurant Usage and Usage Frequency
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- Key points
- Overview
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- Figure 46: QSR usage and usage frequency, by restaurant, May 2009
- Demographic analysis
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- Figure 47: QSR usage and usage frequency, top ten restaurants, by gender, May 2009
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- Figure 48: QSR usage and usage frequency, top ten restaurants, by HH income, May 2009
QSR Restaurant Usage—Race and Ethnicity
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- Key points
- QSR usage by race/ethnicity
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- Figure 49: Top 10 QSR usage, by race/ethnicity, October 2007-December 2008
- Acculturated versus non-acculturated Hispanics
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- Figure 50: Top ten QSR Hispanic usage, by degree of English spoken in home, October 2007-December 2008
QSR Usage and Kids
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- Key points
- How often kids go to fast food restaurants with parents
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- Figure 51: Likelihood of children going with parents to fast food restaurants, by gender, May 2009
- Kids’ and teens’ usage of specific fast food restaurants in past month
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- Figure 52: Children’s self-reporting restaurant usage, by restaurant, by age, March 2009
- Teen and kid usage of fast food restaurants by daypart
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- Figure 53: Teen use of fast food restaurants, by daypart and race/ethnicity, October 2007-December 2008
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- Figure 54: Kids’ use of family restaurant/steakhouses and fast food restaurants, by daypart and race/ethnicity, October 2007-December 2008
QSR Attitudes and Kids
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- Key points
- Overview
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- Figure 55: Kids’ attitudes toward fast food, by gender, May 2009
QSR Restaurant Selection Factors
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- Key points
- Historical trends
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- Figure 56: Reasons for selecting a QSR, 2007, 2008, and 2009
- Demographic analysis
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- Figure 57: “Important” reasons for selecting a QSR, by gender, May 2009
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- Figure 58: “Important” reasons for selecting a QSR, by age, May 2009
Cluster Analysis
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- Statics
- Who they are
- Opportunity
- Dynamos
- Who they are
- Opportunity
- Dealers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 59: QSR clusters, May 2009
- Figure 60: Important limited service characteristics, by quick service restaurant clusters, May 2009
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- Figure 61: QSR restaurant spend compared to last year, by QSR clusters, May 2009
- Figure 62: Interest in trying new options, by QSR clusters, May 2009
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- Figure 63: Interest in trying new options II, by QSR clusters, May 2009
- Figure 64: Reasons for selecting a QSR, by QSR clusters, May 2009
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- Figure 65: Restaurant segment visits, by QSR clusters, May 2009
- Cluster demographics
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- Figure 66: QSR clusters, by gender, May 2009
- Figure 67: QSR clusters, by age, May 2009
- Figure 68: QSR clusters, by HH income, May 2009
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- Figure 69: QSR clusters, by race, May 2009
- Figure 70: QSR clusters, by Hispanic origin, May 2009
- Cluster methodology
Appendix: Additional Consumer Tables
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- Parents of kids aged 1-5
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- Figure 71: Parents of kids aged 1-5 dining out attitudes and behaviors, by gender, March 2009
- Parents of kids aged 6-11
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- Figure 72: Parents of kids aged 6-11 dining out attitudes and behaviors, by gender, March 2009
- Parents of kids aged 12-17
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- Figure 73: Parents of kids aged 12-17 dining out attitudes and behaviors, by gender, March 2009
Appendix: Trade Associations
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