Table of Contents
Executive Summary
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- Impact of COVID-19 on QSRs
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- Figure 1: Expected impact of COVID-19 on QSR, in short, medium and long-term, 11 September 2020
- The market
- Sharp recovery expected after record decline in market value
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- Figure 2: Forecast value of the UK foodservice market (adjusted for COVID-19 on 19 August 2020), 2015-25
- VAT cut and EOHO scheme
- Companies and brands
- Resurgence of price cuts
- The consumer
- Government’s ‘rule of six’ hits consumer confidence towards eating out
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- Figure 3: Comfort level of going out to eat, 23 July – 11 September 2020
- Some QSR consumers plan to visit less frequently or not at all
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- Figure 4: Changes in QSR eat-in and takeaway/home delivery frequency after lockdown, June 2020
- A new consumer sensibility around COVID-19 has emerged
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- Figure 5: Reasons for eating in less or not at all, June 2020
- The importance of tiered pricing
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- Figure 6: Purchase drivers for QSRs, June 2020
- Menu innovation needs to focus on health and at-home experiences
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- Figure 7: Interest in QSR innovations, June 2020
- Targeting the flexitarian
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- Figure 8: Behaviours regarding QSRs, June 2020
COVID-19 and QSR
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- Impact on the market
- VAT cut and EOHO scheme helped kickstart the foodservice market
- Flexible working practices will redistribute foodservice spend
- Impact on consumers
- ‘Rule of six’ hits consumer confidence towards eating out
- Brand communication needs to focus on COVID-19 fears
- Important to promote quality at a good price
- Impact on companies and brands
- Scope for QSR-branded meal kits
- Scope for QSR-branded crisps
- Resurgence of price cuts
Issues and Insights
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- Balancing technology and the human element
- Pushing the plastic waste agenda forward
- Making plant-based options more accessible
The Market – Key Takeaways
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- Growth restricted by the lasting impact of COVID-19
- Government’s obesity strategy’s impact on QSR
- VAT cut and EOHO scheme helped kickstart the foodservice market
Market Drivers
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- VAT cut and EOHO scheme helped kickstart the foodservice market
- The UK foodservice sector enjoyed the biggest boost in August
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- Figure 9: Venues visited in August, 13 August-4 September 2020
- Most sales in August were assisted by EOHO
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- Figure 10: Usage of Eat Out to Help Out discount scheme in August, 13 August-4 September 2020
- New government measures centres of social distancing
- ‘Rule of six’ comes into effect …
- … and hits confidence over eating out
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- Figure 11: Comfort level of going out to eat, 23 July-11 September 2020
- Government’s obesity strategy’s impact on QSR
- A challenging economy will hurt demand for QSRs
- Learnings from the last recession
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- Figure 12: UK chicken and burger bar market, value sales, 2007-12
- Consumers are still holding up the eating out market
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- Figure 13: Trends in consumer sentiment for the coming year, January-July 2020
- Decline of the workforce
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- Figure 14: Unemployment rate forecast, 2020-2024
- QSRs push the plastic waste agenda forward
- Deepening technological capabilities
- Contact-free services become normal
- NHS Test and Trace data in the hospitality sector
Companies and Brands – Key Takeaways
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- Walkers teams up with restaurant chains
- McDonald’s is well-placed to profit from suburban and rural areas
- Resurgence of price cuts
- Burger King’s Rebel Whopper ads banned
Launch Activity and Innovation
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- Walkers teams up with restaurant chains for Taste Icons crisps range
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- Figure 15: Walkers Taste Icons’ range of restaurant-branded crisps,
- Resurgence of QSR food franchising
- Scope for QSR-branded meal kits
Advertising and Marketing Activity
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- QSRs foster brand awareness among consumers from a young age
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- Figure 16: Advertising expenditure by selected QSRs, 2018-20
- McDonald’s ‘Welcome Back’ captures the joy of its fans
- KFC drops slogan in response to COVID-19
- Burger King’s Rebel Whopper ads banned
- Resurgence of price cuts
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 17: Attitudes towards and usage of selected brands, June 2020
- Key brand metrics
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- Figure 18: Key metrics for selected brands, June 2020
- Brand attitudes: QSRs are not considered to be worth paying more for
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- Figure 19: Attitudes, by brand, June 2020
- Brand personality: most QSRs are seen as fun and accessible
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- Figure 20: Brand personality – macro image, June 2020
- McDonald’s is the most recognisable family brand
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- Figure 21: Brand personality – micro image, June 2020
- Brand analysis
- Greggs stands out as a brand that people trust, is consistently high quality and offers good value
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- Figure 22: User profile of Greggs, June 2020
- Subway thrives as a value chain
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- Figure 23: User profile of Subway, June 2020
- Only 27% trust Pret A Manger
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- Figure 24: User profile of Pret A Manger, June 2020
- McDonald’s outranks the others as a unique and innovative brand
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- Figure 25: User profile of McDonald’s, June 2020
- Time for KFC to change narrative to a healthful and caring one
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- Figure 26: User profile of KFC, June 2020
The Consumer – Key Takeaways
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- Post-COVID-19: two Trend Drivers of growth
- Wellbeing
- Value
- Menu innovation needs to focus on better-for-you choices
- Targeting the flexitarian
Impact of COVID-19 on Consumer Behaviour
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- ‘Rule of six’ hits consumer confidence towards eating out
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- Figure 27: Comfort level of going out to eat, 23 July-1 September 2020
- Make indoors feel safe again
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- Figure 28: Proportion of consumers who feel uncomfortable going to a restaurant/bar indoors, by age group, 3-11 September 2020
- Continue to deliver
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- Figure 29: Spending intent over the next month, 25 June-11 September 2020
Pre-COVID-19 QSR Participation
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- Young Britons are core consumers of QSRs
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- Figure 30: QSR participation before the pandemic, June 2020
- Young families frequently visit QSRs
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- Figure 31: QSR frequency of visits before the pandemic, June 2020
The Impact of QSR Frequency after Lockdown
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- Future QSR takeaway participation far more promising than eating-in
- Full-time workers and older consumers plan to cut back on takeaways
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- Figure 32: Changes in QSR eat-in and takeaway/home delivery frequency after lockdown, June 2020
- Sense and sensibility: a better way to engage diners amid COVID-19
- 1) Prioritising safety
- 2) Prioritising wellbeing
- 3) Make it worthwhile
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- Figure 33: Reasons for eating in less or not at all, June 2020
Purchase Drivers for QSRs
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- Important to promote quality at a good price
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- Figure 34: The amount consumers are willing to spend on a standard meal, June 2020
- 1) Resurgence of tiered pricing
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- Figure 35: Purchase drivers for QSRs, June 2020
- 2) Convenience that centres on quality and assurance
Interest in QSR Innovations
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- Young consumers will adopt QSR innovations
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- Figure 36: Food behaviours, August 2019-September 2020
- Better-for-you menu choices
- Nutritious drinks
- Diet-specific choices
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- Figure 37: Interest in QSR innovations, June 2020
- Choices for customers at home
- Meal kits
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- Figure 38: Pizza in the Post: how to, video by Pizza Pilgrim
- Frozen food
- Packaged snacks
Behaviours towards QSRs
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- Safety first
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- Figure 39: Behaviours regarding QSRs, June 2020
- Targeting the flexitarian
- Plant-based meals will be less expensive
- QSRs will focus on meat-free innovation
- Futurist foodservice
- A focus on waste
- Rise of the machines
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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