Table of Contents
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
Back to top