Quick Service Restaurants - US - September 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Mintel Menu Insights
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Terms
EXECUTIVE SUMMARY
The market
Figure 1: U.S. foodservice quick service restaurant sales and fan chart forecast, at current prices, 2007-17
Market drivers
Calorie disclosure legislation
Population
Figure 2: Population, by race and Hispanic origin, 2012
Figure 3: Population, by age, 2012
Competitive context
Marketing strategies
Menu trends
Figure 4: Top five food items on QSR menus, Q2 2009-Q2 2012
Quick service selection factors: Value and convenience remain anchors
Figure 5: Quick service selection factors, by gender, May 2012
The dollar menu: A staple…with options
Figure 6: Dollar/Value menu ordering habits, May 2012
What we think
ISSUES IN THE MARKET
Is autonomy a help or a hindrance?
Has the value menu become too cozy for consumers?
Is there room on the menu for smaller appetites?
INSIGHTS AND OPPORTUNITIES
Healthier options becoming the norm
Capturing a mobile, digitally connected society
Getting ready for mobile POS
Social media for two-way communication
Daily deals for on-the-go consumers
Figure 7: Living Social daily deal for Popeyes Chicken
Figure 8: Groupon daily deal for Sonic Drive-In
Store redesign can boost sales, but for a price
TREND APPLICATIONS
Trend: Objectify
Figure 9: Dollar/Value menu behavior, by household income, May 2012
MARKET SIZE AND FORECAST
Key points
Market size insight
Figure 10: Total U.S. retail sales of quick service restaurants, at current prices, 2007-17
Figure 11: Total U.S. retail sales of quick service restaurants, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 12: U.S. foodservice quick service restaurant sales and fan chart forecast, at current prices, 2007-17
MARKET DRIVERS
QSRs lead restaurants in strong year
Commodity costs put pressure on the bottom line
Restaurant performance index stabilizes
Figure 13: Restaurant Performance Index, January 2009-June 2012
Disposable personal income expands
Figure 14: Real disposable personal income, January 2007-July 2012
Consumers remain cautious
Figure 15: Consumer sentiment, March 2007-July 2012
Unemployment inched up
Figure 16: Unemployment and underemployment rates, January 2007-July 2012
Government-mandated calorie disclosure
The changing face of the QSR consumer
Figure 17: Population, by race and Hispanic origin, 2007-17
Younger patrons the most avid QSR consumers
Figure 18: Population, by age, 2007-17
COMPETITIVE CONTEXT
The lines continue to blur between segments and within segments
SELECTED COMPANIES
Burger King
Taco Bell
Popeyes Louisiana Kitchen
MARKETING STRATEGIES
Overview of the brand landscape
Brand Analysis: Taco Bell
Figure 19: Taco Bell television ad, July 2012
Figure 20: Taco Bell website
Figure 21: Taco Bell ad on US Magazine mobile site
Figure 22: Taco Bell mobile site
Figure 23: Taco Bell Cantina Bell QR code
Figure 24: Taco Bell/Chef Lorena Garcia tweets
Brand Analysis: Burger King
Figure 25: Burger King television ad, December 2011
Figure 26: Burger King tweets
Brand Analysis: KFC
Figure 27: KFC television ad, July 2012
Figure 28: KFC tweet
Brand Analysis: McDonald’s
Figure 29: McDonald’s television ad, December 2011
Figure 30: McDonald’s tweets
Brand Analysis: Popeyes Louisiana Kitchen
Figure 31: Popeyes television ad, June 2012
Figure 32: Popeyes tweet
Brand Analysis: Wendy’s
Figure 33: Wendy’s television ad, July 2012
Figure 34: Wendy’s web site
MENU ANALYSIS—QSR FOOD MENUS
QSRs release a flurry of LTOs; chicken dominates
Figure 35: Top 10 food items on QSR menus, by incidence, Q2 2009-Q2 2012
Figure 36: Average price of top 10 food items on QSR menus, by incidence and price, Q2 2009-Q2 2012
Figure 37: Top cooking preparation techniques at QSRs, by incidence, Q2 2009-Q2 2012
MENU ANALYSIS—QSR BEVERAGE MENUS
Leading beverages decline as operators diversify menus
Figure 38: Top 10 beverage items on QSR menus, by incidence, Q2 2009-Q2 2012
Figure 39: Average price of top beverage items on QSR menus, by incidence and price, Q2 2009-Q2 2012
QUICK SERVICE USAGE
Key points
All QSRs used more by men
Figure 40: Quick service restaurant usage, by gender, Q2 2012
Usage drops off among older generations
Figure 41: Quick service restaurant usage, by age, Q2 2012
More affluent more likely to use “other” brands
Figure 42: Quick service restaurant usage, by household income, Q2 2012
QUICK SERVICE SELECTION FACTORS
Key points
Value and convenience trump flavor
Women more apt to opt for dollar menu
Figure 43: Quick service selection factors, by gender, May 2012
Millennials notable for free Wi-Fi and dollar menu
Figure 44: Quick service selection factors, by age, May 2012
CONSUMER QSR WISH LIST
Key points
Dollar/value menu choices top wish list
Healthier dollar menu choices could better target women
Figure 45: Consumer QSR wish list, by gender, May 2012
Expanded beverage programs will help draw younger patrons
Demand for more healthy kids’ meals
Figure 46: Consumer QSR wish list, by age, May 2012
Healthier choices will appeal to the more affluent
Figure 47: Consumer QSR wish list, by household income, May 2012
ATTITUDES TOWARD FAST FOOD
Key points
Menu improvements have not gone unnoticed
However, are women still finding menus too limited?
Figure 48: Attitudes toward fast food, by gender, May 2012
QSRs score high among 25-34s
Figure 49: Attitudes toward fast food, by age, May 2012
CHANGES IN FAST FOOD SPENDING
Key points
Women are spending less on fast food
Figure 50: Changes in fast food spending, by gender, May 2012
Spending by more affluent the steadiest
Figure 51: Changes in fast food spending, by household income, May 2012
Convenient locations drive greater spending
Figure 52: Reasons for spending more on fast food, by gender, May 2012
Convenience and speed of service driving spending by more affluent
Figure 53: Reasons for spending more on fast food, by household income, May 2012
DOLLAR MENU USAGE
Key points
Dollar menu use widespread
Use drops off for older respondents
Figure 54: Dollar/Value menu usage, by age, May 2012
Bundling of dollar menu items most frequent use
Women particularly likely to bundle
Figure 55: Dollar/Value menu ordering habits, by gender, May 2012
Lowest-earning householders order dollar menu options alone
Figure 56: Dollar/Value menu behavior, by household income, May 2012
Dollar menu patrons order cheeseburgers and french fries/onion rings
BFY dollar menu chicken could appeal to women
Figure 57: Dollar/Value menu items ordered, by gender, May 2012
Patrons aged 18-24 order the widest range off dollar menu
Figure 58: Dollar/Value menu items ordered, by age, May 2012
CUSTOM CONSUMER GROUPS
Rewards programs could foster brand loyalty among super fans
Figure 59: Quick service selection factors, by frequency groups, May 2012
Figure 60: Attitudes toward fast food, May 2012
Figure 61: Changes in fast food spending, by frequency groups, May 2012
Figure 62: Dollar/Value menu usage, by frequency groups, May 2012
Figure 63: Dollar/Value menu ordering behavior, by frequency groups, May 2012
Figure 64: Dollar/Value menu items ordered, by frequency groups, May 2012
APPENDIX—TRADE ASSOCIATIONS