Black Consumers and Quick Service Restaurants - US - July 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The insights
Black consumers motivated to dine at QSRs for different reasons
Figure 1: Black quick service restaurant dining segments, February 2019
QSR chain preferences tied to location and meal occasions
Figure 2: Restaurant type visitation, total vs Black, February 2019
Black diners are interested in the novelty and convenience of online ordering
Figure 3: QSR innovations – Technology, February 2019
QSRs can compete on food quality and taste
Figure 4: Key drivers of satisfaction with visitation satisfaction, February 2019
Value meals are priced just right
Figure 5: Price of menu items – Value meal – Optimal and threshold prices, February 2019
QSRs are good for an occasional quick and tasty bite to eat
Figure 6: Attitudes toward QSRs, February 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Black consumers eat at QSRs more often than the general market
Burger chains are the most visited, but chicken chains are strong contenders
Few diners use mobile apps, but adoption poised to grow
Black consumers spend less money per dining out occasion
THE BLACK POPULATION BY THE NUMBERS
There are 44 million Black people in the US
Figure 7: US population by race and Hispanic origin, 2019
MARKET PERSPECTIVE
Black consumers visit fast food restaurants more often
Figure 8: Median fast food restaurant visits in the past 30 days, total and Black, October 2017-November 2018
Dinner and lunch dominate restaurant visits, but Black consumers go all day
Figure 9: Fast food restaurant visits, by meal occasion and gender, total and Black, October 2017-November 2018
Black diners typically eat with others, but also like to indulge alone
Figure 10: Fast food restaurant visits, by accompaniment, total and Black, October 2017-November 2018
McDonald’s tops Black diners’ list
Figure 11: Top 15 fast food and drive-in restaurants, total vs Black, October 2017-November 2018
Restaurant app usage is in the nascent stage
Figure 12: Restaurant app usage in the past 30 days, total vs Black, October 2017-November 2018
MARKET FACTORS 
Black males outnumber females until they reach middle age
Figure 13: Black population, by gender and age, 2019
Black and single with no children households on the rise
Figure 14: Households by detailed type, total and Black, 2008 and 2018
Nearly one third of Black households include children
Figure 15: Households with related children, by race and Hispanic origin of householder, 2018
Black consumers spend less than the general market on food away from home
Figure 16: Average household annual spending on food away from home, total and Black, 2007-17
KEY TRENDS – WHAT YOU NEED TO KNOW 
Restaurant tech innovation shows promise among Black diners
Plant-based meat options of little interest to Black diners
Black diners want to know that QSRs care about their community
WHAT’S WORKING?
Black diners lean into restaurant tech innovation
Figure 17: QSR innovations – Technology, February 2019
McDonald’s creates outreach specifically to Black Millennials
WHAT’S STRUGGLING?
Black diners have a trust gap with vegetarian and vegan options at QSRs
WHAT’S NEXT?
Corporate practices matter when aligned with diner’s interests
The “Fight for $15” organization may impact Black workers and diners
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most Black consumers visit QSRs on a regular basis
Black diners more likely to visit the top three QSR chain types
Proximity is the main driver of QSR visits
Premium, natural ingredient menu items most appealing innovation
Black diners are equally satisfied with QSR locations and food
Current menu prices are just right
QSRs are just fine to eat at – on occasion
BLACK QUICK SERVICE RESTAURANT DINING SEGMENTS
Nearly all Black diners eat fast food, but meal occasions vary
Figure 18: Black quick service restaurant dining segments, February 2019
Power Fast Food Diners visit QSRs for a quick, easy meal
Figure 19: Power fast food diner segment, February 2019
Clean(er) Fast Food Diners visit infrequently due to lack of healthy choices
Figure 20: Clean(er) fast food diner segment, February 2019
Everyday Fast Food Diners like QSRs for what they deliver . . . indulgent fast food at a good value
Figure 21: Everyday fast food diner segment, February 2019
Utility Fast Food Diners eat at QSRs if they have no other option
Figure 22: Utility fast food diner segment, February 2019
RESTAURANT TYPE VISITATION
Burger chains most visited, but pizza and chicken chains preferred
Figure 23: Restaurant type visitation, total vs Black, February 2019
Black Gen Z and Millennials less likely to dine out
Figure 24: Restaurant type visitation, by total vs Black generations, February 2019
Heavy QSR diners most likely to eat anywhere away from home
Figure 25: Restaurant type visitation, by Black quick service restaurant dining segments, February 2019
QSRs offer convenient meal occasions for parents
Figure 26: Restaurant visitation, by parental status, February 2019
QSR VISITATION DRIVERS
QSRs offer easily accessible, inexpensive fare
Figure 27: QSR visitation drivers, total vs Black, February 2019
Black moms treat their kids . . . and themselves to QSR food
Figure 28: QSR visitation drivers, total moms vs Black moms, February 2019
QSRs basics are appealing to Black diners
Figure 29: QSR visitation drivers by Black quick service restaurant dining segments, February 2019
Married parents seek convenience, single parents want budget menu options
Figure 30: QSR visitation drivers, by marital and parental status, February 2019
QSR INNOVATIONS
Better food tops Black diners’ list
Figure 31: QSR innovations, February 2019
Women gravitate toward menu and tech innovation, men stick to tech
Figure 32: QSR innovations, by gender and age, February 2019
Premium items are important for most, but healthier options – not so much
Figure 33: QSR innovations, by Black quick service restaurant dining segments, February 2019
VISITATION SATISFACTION
Black diners are satisfied with QSRs
Figure 34: Visitation satisfaction, February 2019
Black diners return to QSRs because the food tastes good
Methodology
Figure 35: Key drivers of visitation satisfaction, February 2019
Frequent QSR diners visit for the easily accessible food, but forego service
Figure 36: Visitation satisfaction, by Black quick service restaurant dining segments, February 2019
MENU PRICE SENSITIVITY
Reasonable meal prices and product deliver value to Black diners
Methodology
Figure 37: Menu price sensitivity – average of value meal and premium meat item, February 2019
A $10 value meal loses its value
Figure 38: Price of menu items – Value meal – Threshold prices, February 2019
QSR premium entrée items on par with fast casual
Figure 39: Price of menu items – Premium meat item – Threshold prices, February 2019
Budget-conscious diners willing to treat themselves to a QSR meal
Figure 40: Menu price sensitivity, by self-reported financial situation, February 2019
ATTITUDES TOWARD QSRS 
QSR food is fine for what it is – easily accessible, inexpensive fare
Figure 41: Attitudes toward QSRs – February 2019
Fast food is an occasional indulgence, but some feel guilty afterward
Figure 42: Attitudes toward QSRs – The food, by Black quick service restaurant dining segments, February 2019
Diners see . . . and react to QSRs’ attempt to compete with other restaurants
Figure 43: Attitudes toward QSRs – Competition, by Black quick service restaurant dining segments, February 2019
Black diners expect QSRs to reflect their values
Figure 44: Attitudes toward QSRs – Service, by Black quick service restaurant dining segments, February 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER 
Figure 45: Median fast food restaurant visits, total and Black, October 2017-November 2018
Figure 46: Fast food restaurant visits, by meal occasion and gender, total and Black, October 2017-November 2018
Figure 47: Fast food restaurant visits, by accompaniment, total and Black, October 2017-November 2018
Figure 48: Top 30 fast food and drive-in restaurants, total vs Black, October 2017-November 2018
Figure 49: Restaurant app usage in the past 30 days, total vs Black, October 2017-November 2018