Table of Contents
Executive Summary
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- The market
- Burger restaurants
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- Figure 1: UK burger bar market, value sales and forecast, 2010-20
- Chicken restaurants
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- Figure 2: UK chicken bar market, value sales and forecast, 2010-20
- Companies, brands and innovation
- Burger King enters the home delivery market and launches new store design
- McDonald’s introduces touchscreen technology and trials table service
- KFC rolls out new store format
- The consumer
- Two thirds of Brits eat at fast food restaurants
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- Figure 3: Fast food outlet/restaurant usage, May 2015
- A tenth of 16-34s have switched from fast food to gourmet burger restaurants
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- Figure 4: Eating behaviours at fast food restaurants, May 2015
- Meat quality is of most concern to older consumers
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- Figure 5: Concerns around eating at fast food restaurants, May 2015
- Thicker meat patties garner widest diner interest
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- Figure 6: Chicken/burger bar menu enticements, May 2015
- Scope for chicken thigh to be used more widely
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- Figure 7: Attitudes towards chicken and burger restaurants, May 2015
- McDonald’s is seen as most child-friendly of selected foodservice brands
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- Figure 8: Correspondence analysis of qualities associated with selected fast food venues, May 2015
- What we think
Issues and Insights
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- Operators must do more to engage their slower-growing core user group
- The facts
- The implications
- Digital technology may help operators to improve speed of service
- The facts
- The implications
- More scope for chicken thigh on fast food menus
- The facts
- The implications
The Market – What You Need to Know
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- Growth of core 15-34-year-old user group forecast to slow down
- Increase in real incomes not necessarily a good thing for fast food
- National Living Wage introduced
- Slower growth forecast for the total burger and chicken bar market
- Continued expansion of ‘better burger’ restaurants will boost value of burger market
- Non-specialists threaten to encroach on chicken operators’ heartland
- McDonald’s and KFC implement changes
Segment Performance, Market Size and Forecast
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- Burger and chicken market is in rude health
- Healthy but tempered market growth expected in 2015-20
- Category blurring should continue to benefit the market
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- Figure 9: UK chicken and burger bar market, value sales, 2010-20
- Figure 10: UK chicken and burger bar market, value sales and forecast, 2010-20
- Continued expansion of ‘better burger’ restaurants should boost the value of the burger sector
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- Figure 11: UK burger bar market, value sales, 2010-20
- Figure 12: UK burger bar market, value sales and forecast, 2010-20
- Chicken continues to benefit from strong value-for-money perceptions
- Leading chicken operators innovate
- Chicken bar segment under pressure from other foodservice sectors
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- Figure 13: UK chicken bar market, value sales, 2010-20
- Figure 14: UK chicken bar market, value sales and forecast, 2010-20
Market Drivers
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- Dining out is a key discretionary spending area but consumers’ frugal mentality remains
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- Figure 15: Consumer spending priorities (after bills) – dining out, November 2009-April 2015
- National Living Wage is set to be introduced in the UK in 2016
- The medium-rare burger debate
- Core user group set for stunted growth
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- Figure 16: Trends in the age structure of the UK population, 2010-15 and 2015-20
Key Players – What You Need to Know
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- Burger/chicken restaurant operators further blur the boundaries
- Burger King launches home delivery
- Operators look to pulled pork/chicken for inspiration
- KFC expands menus into new areas
- McDonald’s ranks top for trust amongst selected fast food restaurants
- Burger King unveils new outlet design
Market Share
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- McDonald’s retains an unassailable lead by store numbers
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- Figure 17: Selected leading burger and chicken restaurant chains, by outlet numbers, 2012-15
- McDonald’s UK reports “positive” performance despite global woes
- McDonald’s plays up the social aspect of its restaurants
- McDonald’s looks to modern technology to boost appeal
- KFC Q2 2015 sales rise 6%
- KFC’s store design should increase its competitiveness
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- Figure 18: KFC’s store redesign, Bracknell store, November 2014
- Burger King introduces home delivery
- New store design unveiled for Burger King
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- Figure 19: Burger King’s store redesign, Paris store, August 2015
- Figure 20: Burger King’s store redesign, Paris store, August 2015
- Gourmet burger restaurants continue their march on London and beyond
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- Figure 21: Selected ‘better’/’gourmet’ burger operators in the UK market and planned/reported/projected outlet expansion, July 2015
Launch Activity and Innovation
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- Burger King UK trials home delivery service
- KFC launches Toasted Burritos
- Fast food operators look to American food trends
- Fast food operators upgrade their cold drinks ranges for summer 2015
Brand Research
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- What you need to know
- Brand map
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- Figure 22: Attitudes towards and usage of selected restaurant brands, June 2015
- Key brand metrics
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- Figure 23: Key metrics for selected restaurant brands, June 2015
- Brand attitudes: GBK’s different proposition is thought of as worth paying more for
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- Figure 24: Attitudes, by brand, June 2015
- Brand personality: Chicken Cottage has the most negative associations
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- Figure 25: Brand personality – macro image, June 2015
- Big brands are noted for tradition, family-friendliness and convenience
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- Figure 26: Brand personality – micro image, June 2015
- Brand analysis
- Gourmet Burger Kitchen has lots of potential to grow its customer base
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- Figure 27: User profile of Gourmet Burger Kitchen, June 2015
- KFC ranks highest for recommendation
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- Figure 28: User profile of KFC, June 2015
- McDonald’s continues to benefit from ubiquitous presence and uniform experience
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- Figure 29: User profile of McDonald’s, June 2015
- Burger King may be falling behind McDonald’s and faces new competition too
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- Figure 30: User profile of Burger King, June 2015
- Chicken Cottage falls down on awareness and lacks in association with positive traits
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- Figure 31: User profile of Chicken Cottage, June 2015
The Consumer – What You Need to Know
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- Two thirds of Brits eat at fast food restaurants
- 16-34s are key users of fast food restaurants
- More users limit fast food consumption due to concerns over healthiness than order healthier dishes
- Meat quality is the top concern amongst users
- Animal welfare is still a major concern despite efforts to reassure diners
- Thicker meat patties garner widest diner interest
- Less than half of consumers view service in selected fast food venues as speedy
Fast Food Usage Habits
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- Two thirds of Brits eat at fast food restaurants
- Younger consumers more likely to use any fast food restaurant
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- Figure 32: Usage of any fast food outlet/restaurant, by age, May 2015
- McDonald’s continues to dominate the market
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- Figure 33: Fast food outlet/restaurant usage, May 2015
Eating Behaviours at Fast Food Restaurants
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- 16-34s, fast food core users, are an area of concern for mainstream operators
- More users have limited the amount of fast food they eat than have ordered healthier dishes
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- Figure 34: Eating behaviours at fast food restaurants, May 2015
User Concerns over Fast Food
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- Further reassurance over meat quality could help attract older diners
- Animal welfare
- A significant minority of users are concerned over the health of fast food
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- Figure 35: Concerns around eating at fast food restaurants, May 2015
Chicken/Burger Bar Menu Enticements
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- Thicker meat patties garner widest diner interest
- One in four fast food users are interested in burgers made from unusual meats
- Fish/shellfish could help operators appeal to older diners
- One in four diners are interested in a greater selection of burger toppings
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- Figure 36: Chicken/burger bar menu enticements, May 2015
Attitudes towards Fast Food Outlets
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- Letting diners design their own sauces could add interest to eat-in venues
- Scope for wider use of chicken thigh on fast food menus
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- Figure 37: Attitudes towards chicken and burger restaurants, May 2015
Qualities Associated with Selected Fast Food Operators
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- Just one in four consumers view service in KFC as speedy
- McDonald’s seen as the most child-friendly of the selected operators
- McDonald’s seeks to address preconceptions over what’s in its burgers
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- Figure 38: Correspondence analysis of qualities associated with selected fast food venues, May 2015
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- Figure 39: Qualities associated with selected fast food venues, May 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research
Appendix – Market Drivers
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- UK population age structure
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- Figure 40: Trends in the age structure of the UK population, 2010-20
Appendix – Segment Performance, Market Size and Forecast
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- Forecast methodology
- Best- and worst-case forecasts
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- Figure 41: UK burger and chicken bar market, value sales, best- and worst-case forecast, 2015-20
- Burger bar market
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- Figure 42: UK burger bar market, value sales, best- and worst-case forecast, 2015-20
- Chicken bar market
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- Figure 43: UK chicken bar market, value sales, best- and worst-case forecast, 2015-20
Appendix – Market Share
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- Historic financial performance of selected leading fast food operators
- McDonald’s
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- Figure 44: Key financials for McDonald’s Restaurants Limited, 2009-13
- KFC
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- Figure 45: Key financials for Kentucky Fried Chicken (Great Britain) Limited, 2007/08-2012/13
- Nando’s
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- Figure 46: Key financials for Nando’s Chickenland Limited, 2008/09-2013/14
- Wimpy
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- Figure 47: Key financials for Wimpy Restaurants Group Ltd, 2009/10-2013/14
Appendix – Brand Research
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- Advertising expenditure
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- Figure 48: Recorded above-the-line, online display and direct mail total advertising expenditure on selected fast food brands, 2011-15
- Nielsen Media Research – methodology
- Brand map
Appendix – Qualities Associated with Selected Fast Food Operators
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- Correspondence analysis
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