Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations & Terms
- Abbreviations
- Terms
Executive Summary
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- Led by McDonald’s, market grows year-in, year-out
- Burger segment grows but loses share to sandwich segment
- Sandwich chains retain room for growth despite aggressive expansion
- New product introductions focus on bread, breakfast and chicken
- Marketing is dichotomous: health obsession and its backlash
- Age and ethnicity determine frequency of QSR attendance
- Asian expansion serves as model for ethnic food branding
- Forecast favors continued growth from sandwiches and Mexican concepts
Market Drivers
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- Time and money constraints make fast food desirable
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- Figure 1: Relationship of QSR visitation frequency to lifestyle, May 2004-May 2005
- The unhealthy option
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- Figure 2: Relationship of QSR visitation frequency to concern about nutrition, May 2004-May 2005
- Budgetary constraints drive sales
- Convenience trend
- Burger chains recover from price wars and introduce new products
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- Figure 3: Graph: Growth of unit price of McDonald’s Big Mac sandwich and growth in sales per McDonald’s unit, 2000-05 (est)
- Low franchise fees and health trend drive explosive sandwich segment growth at the expense of burgers
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- Figure 4: Graph: Number of U.S. units and average sales per unit for subway, 1999-2004
- Figure 5: Graph: Number of U.S. units and average sales per unit for Quiznos, 2001-04
- Shift from “low-carb” to “right carbs”
- Demographics
- Impact of age on QSR
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- Figure 6: U.S. population by age, 2000-10
- Figure 7: Attitudes towards fast food, by age, May 2004-May 2005
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- Figure 8: Graph: Attitudes towards nutrition and fast food by age, May 2004-May 2005
- The impact of children on QSR
- The differing impact of race/ethnicity on fast food
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- Figure 9: U.S. population, by race and Hispanic origin, 2000-10
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- Figure 11: Attitudes towards fast foods and fast food restaurant visits, by race/ethnicity, May 2004-May 2005
- The impact of gender on QSR
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- Figure 12: Attitudes towards eating, nutrition and fast food, by gender, May 2004-May 2005
Market Size & Trends
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- Market size
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- Figure 13: Retail sales of QSRs at current and constant prices, 2000-05
- Figure 14: Graph: Retail sales of QSRs at current and constant prices, 2000-05
- Trends in food
- Healthy foods (and backlash)
- Chicken
- Premium and fresh offerings
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- Figure 15: Menu Insight’s list of marketing claims of fresh and crispy menu items (on lunch/dinner menus), Q1-Q4 2005
- Figure 16: Menu Insights list of premium marketing claims as a fpercentage of all offerings (on lunch/dinner menus), Q4 2005
- Premium breads
- Breakfast
- 99-cent meals
Market Segmentation
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- Introduction
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- Figure 17: Domestic QSR sales, by restaurant type, 2003 & 2005
- Figure 18: Graph: Domestic QSR sales, by restaurant type, 2005
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- Figure 19: Graph: Indexed growth by market segment, 2000-05
- Burgers & Beef
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- Figure 20: Domestic sales of quick service burger restaurants, at current and constant prices, 2000-05
- Chicken
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- Figure 21: Domestic sales of quick-service chicken restaurants, at current and constant prices, 2000-05
- Sandwiches
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- Figure 22: Domestic sales of quick-service sandwich restaurants at current and constant prices, 2000-05
- Mexican
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- Figure 23: Domestic sales of quick-service Mexican restaurants at current and constant prices, 2000-05
- Other
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- Figure 24: Domestic sales of all other QSRs, at current and constant prices, 2000-05
Supply Structure
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- Introduction
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- Figure 25: U.S. sales of leading QSR chains, 2002 and 2004
- Figure 26: Graph: U.S. sales of Top 6 QSR chains, 2005 (est)
- Burger and beef chains
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- Figure 27: New premium offerings by beef and burger chains, 2004 and 2005
- McDonald’s
- Burger King
- Wendy’s
- Arby’s
- Sonic Drive-In
- Sandwiches
- Subway
- Quiznos
- Chicken
- KFC
- Chick-fil-A
- Popeye’s
- Church’s Chicken
- Mexican
- Taco Bell
- Del Taco
- Other
- Long John Silver’s
- Captain D’s
- Panda Express
Advertising & Promotion
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- Introduction
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- Figure 28: Graph: Ad expenditures of leading QSR chain in dollars and as percentage of sales, 2004
- Campaigns
- McDonald’s
- Burger King
- Wendy’s
- KFC
- Taco Bell
- Subway
The Consumer
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- Introduction
- Who visits fast food restaurants and how often
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- Figure 29: Incidence and frequency of fast food restaurant visits, May 2004-May 2005
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- Figure 30: Incidence and frequency of fast food restaurant visits, by age, May 2004-May 2005
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- Figure 31: Incidence and frequency of fast food restaurant visits, by household income, May 2004-May 2005
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- Figure 33: Incidence and frequency of fast food restaurant visits, by geographic region, May 2004-May 2005
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- Figure 34: Incidence and frequency of fast food restaurant visits, by number of people in the household, May 2004-May 2005
- Popularity of different types of fast food
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- Figure 35: Types of fast food restaurants visited, by age, May 2004-May 2005
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- Figure 36: Types of fast food restaurants visited, by household income, May 2004-May 2005
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- Figure 37: Types of fast food restaurants visited, by race/ethnicity, May 2004-May 2005
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- Figure 38: Types of fast food restaurants visited by frequency of QSR visits, May 2004-May 2005
- Which meal is eaten at fast food restaurants
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- Figure 39: Meals eaten at fast food restaurants, by age, May 2004-May 2005
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- Figure 40: Meals eaten at fast food restaurants, by race/ethnicity, May 2004-May 2005
- With whom fast food restaurants are visited
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- Figure 41: With whom fast food restaurants are visited, by gender, May 2004-May 2005
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- Figure 42: With whom fast food restaurants are visited, by age, May 2004-May 2005
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- Figure 43: With whom fast food restaurants are visited, by race/ethnicity, May 2004-May 2005
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- Figure 44: With whom fast food restaurants are visited, by presence of children in the household, May 2004-May 2005
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- Figure 45: With whom fast food restaurants are visited, by meal, May 2004-May 2005
- Brand appeal to specific demographics
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- Figure 46: Most visited fast food chains, May 2004-May 2005
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- Figure 47: Indexed visits to selected fast food chains, by age, May 2004-May 2005
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- Figure 48: Indexed visits to selected fast food chains, by race/ethnicity, May 2004-May 2005
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- Figure 49: Indexed visits to selected fast food chains, by household income, May 2004-May 2005
- Lifestyle, health, diet, and visits to QSRs
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- Figure 50: Frequency of QSR visits by opinions regarding eating, nutrition and lifestyle, May 2004-May 2005
- Where fast food is eaten
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- Figure 51: Method of food ordering and place of consumption, by age, November 2005
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- Figure 52: Method of food ordering and place of consumption, by geographic region, November 2005
- Cohort analysis
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- Figure 53: Cohort descriptors for relevant qsr usage extrapolations
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- Figure 54: Attitudes towards fast food and average number of visits by cohort, May 2004-May 2005
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- Figure 55: Attitudes towards fast food and average number of visits by cohort, May 2004-May 2005
- Teens and fast food
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- Figure 56: Incidence and frequency of fast food restaurant visits, by teens, May 2004-May 2005
- Popularity of different types of fast food among teens
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- Figure 57: Types of fast food restaurants visited by teens, by age and gender, May 2004-May 2005
- How often teens eat fast food
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- Figure 58: Frequency of fast food visits by teens, by age and gender, May 2004-May 2005
- Whom teens eat with
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- Figure 59: With whom fast food restaurants are visited by teens, by age and gender, May 2004-May 2005
- Kids and fast food
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- Figure 60: Fast food restaurant visits by kids, May 2004-May 2005
- Kids’ favorite fast food chain
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- Figure 61: Kids’ favorite fast food restaurants, by race/ethnicity, May 2004-May 2005
- Parents’ attitudes towards kids and fast food
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- Figure 62: Attitudes towards kids and fast food, by gender of parent, November 2005
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- Figure 63: Attitudes towards kids and fast food, by age of parent, November 2005
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- Figure 64: Attitudes towards kids and fast food by geographic region, November 2005
- Attitudes of QSR users vs. non-QSR users
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- Figure 65: Attitudes towards health and dining, by frequency of QSR usage, November 2005
- Menu preferences
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- Figure 66: Attitudes towards menu preferences, by frequency of QSR usage, November 2005
- Reasons for fast food chain loyalty
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- Figure 67: Reasons a favorite fast food restaurant is preferred, by age, November 2005
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- Figure 68: Reasons a favorite fast food restaurant is preferred, by household income, November 2005
- Summary
Future and Forecast
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- Future trends
- The aging population
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- Figure 69: U.S. population projections, by age, 2005-10
- Differentiation through backlash
- Sandwich chain growth stabilizes
- Fast Asian foods on the rise
- Increased focus on packaging and easy to consume menu-items
- Frozen food offerings from QSR concepts
- Market forecast
- Quick-service restaurants
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- Figure 70: Forecast of total U.S. sales of quick-service restaurants, at current and constant prices, 2005-10
- Figure 71: Forecast of total U.S. sales of quick-service restaurants, at current and constant prices, 2005-10*
- Quick-service burger restaurants
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- Figure 72: Forecast of U.S. sales of quick-service burger restaurants, at current and constant prices, 2005-10
- Figure 73: Forecast of U.S. sales of quick-service burger restaurants, at current and constant prices, 2005-10*
- Quick-service chicken restaurants
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- Figure 74: Forecast of U.S. sales of quick-service chicken restaurants, at current and constant prices, 2005-10
- Figure 75: Forecast of U.S. sales of quick-service chicken restaurants, at current and constant prices, 2005-10*
- Quick-service sandwich restaurants
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- Figure 76: Forecast of U.S. sales of quick-service sandwich restaurants, at current and constant prices, 2005-10
- Figure 77: Forecast of U.S. sales of quick-service sandwich restaurants, at current and constant prices, 2005-10*
- Quick-service Mexican restaurants
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- Figure 78: Forecast of U.S. sales of quick-service Mexican restaurants, at current and constant prices, 2005-10
- Figure 79: Forecast of U.S. sales of quick-service Mexican restaurants, at current and constant prices, 2005-10*
- Other quick-service restaurants
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- Figure 80: Forecast of U.S. sales of other quick-service restaurants, at current and constant prices, 2005-10
- Figure 81: Forecast of U.S. sales of other quick-service restaurants, at current and constant prices, 2005-10*
- Forecast Factors
Appendix: Trade Associations
Appendix: Simmons cohorts
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- Figure 82: Married couples cohorts
- Figure 83: Single women cohorts
- Figure 84: Single men cohorts
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