Fast-food finesse
A tasty triumph over inflation
Quick service restaurants (QSRs) like Burger King and McDonald's are experiencing a remarkable surge in their share of the consumer's dining preferences. This shift is underlined by a substantial 30% increase in value growth in 2023 compared to 2019. While inflation has played a small role in the value numbers for meals, QSRs have strategically refrained from imposing hefty price hikes, contributing to their success.
Inflation proof? No. Inflation friendly, it seems so.
Globally, QSRs have become a staple for consumers, with 8 out of 10 people opting for their offerings. What's intriguing is that consumers are increasingly diversifying their QSR experiences across different channels. An impressive 80% of buyers are now combining various approaches, including eat-in, collection, and delivery, to enjoy their favourite QSR offerings.
Globally, QSRs have become a staple for consumers, with 8 out of 10 people opting for their offerings
This surge in QSR popularity occurs within a broader context of shifting consumption trends. Younger demographics are choosing to dine out daily, breaking away from the traditional association of dining out with night-time activities. Additionally, there's a noticeable decline in the consumption of desserts and beverages in the out-of-home setting, signifying evolving consumer preferences.
In essence, QSRs have not only weathered the challenges posed by inflation but have emerged as key players in the contemporary dining landscape. Their ability to offer affordable yet satisfying dining experiences across multiple channels has solidified their position in the evolving world of Foodservice.
Many have also expanded loyalty initiatives to compel even more repeat visits, either in-store or online.
But the QSRs haven’t stopped with consumer engagement. Store openings and market expansions are central to some of the growth we’ve identified. This trend reflects the changing dynamics of consumer behaviour, where convenience, affordability, and diverse options are paramount in their dining choices. Greggs' focus on new store openings and upselling strategies, along with Popeyes' expansion of its fast-food market share in Spain, exemplify the industry's response to changing preferences.
Greggs has significantly broadened its shopper base over the last four years, with a concerted effort to open new store locations across the UK. In 2023, the company attracted 23 million shoppers, an 8.3% increase compared to 2019.
Greggs has diversified its menu offerings, introducing a range of premium items, including Crispy Chicken Ciabatta Rolls and new wraps.
Greggs' strategic moves have translated into robust financial growth. The company reported a total spend of £1.21 billion in 2023, reflecting a substantial 15.8% increase compared to 2019.
Popeyes, an American fast-food chain known for its fried chicken, achieved remarkable success in Spain, a market where fried chicken has not traditionally been a popular choice in the QSR sector. Despite its relative newcomer status, Popeyes managed to reach 5% of the Spanish population, making significant strides in a market dominated by larger players like McDonald's, which has a reach of 30%.
Popeyes' success in Spain can be attributed to its innovative approach. The company not only entered the market but also managed to create a new habit among buyers, effectively generating value for the market.
Burger King in France has been making notable strides in the fast-food market. Their expansion strategy has yielded impressive results, with a substantial 5.3 percentage point increase in penetration compared to 2020.
One of the key success factors has been their ability to attract a younger demographic. Burger King experienced a remarkable 7.4 percentage point growth in penetration among individuals under the age of 35. This significant increase in popularity among younger consumers is a testament to their brand's appeal and strategic choices.
Furthermore, Burger King's commitment to growth is evident in its expansion efforts. They added a substantial number of new restaurants, with an impressive increase of 150 new locations compared to 2020. This expansion not only broadens their physical presence but also reinforces their brand's accessibility to consumers.
In addition to expanding its reach and attracting a younger audience, Burger King in France has adapted to changing consumer preferences. They have introduced a range of vegan options, acknowledging the growing demand for plant-based alternatives. This menu diversification reflects their commitment to staying relevant and catering to evolving tastes.
McDonald's in Brazil has undergone a successful transformation by strategically targeting new moments of the day, particularly emphasising the importance of snack time and introducing more affordable products and coffee offerings. This approach has yielded impressive results, including a notable increase in the number of new buyers.
One of the key demographics that saw significant growth was Gen X, with a remarkable 2.8 percentage point increase in penetration. This indicates that McDonald's in Brazil has successfully resonated with this age group, likely through their tailored menu offerings and related marketing strategies.
Another noteworthy achievement is the substantial 5.8 percentage point growth among female consumers. This signifies McDonald's ability to attract and retain female customers through menu diversification and a focus on their preferences.
While flavour remains a primary motivation for consumers to choose McDonald's, the emphasis on convenience has gained prominence. The search for lower prices and quicker service agility has become a compelling factor for new buyers. McDonald's in Brazil has responded effectively to this demand, aligning their offerings with consumer expectations.
[UK, FR, ES, BR + ID, PT since 2023]
3 years data with Omnichannel value
In&Out Channels: Hiper, Super, Convenience Store, Traditional, Impulse, Restaurants (QSR vs FSR), Bars and Coffee Shops, Bakeries
Platforms: Eat-In, Collected, Delivered
[UK, FR, ES, PT, CN, TH, IN, ID, SK, BR, MX]
Who: Age / SEL / Region
When: Moment, day, people present
How: Ordering method, promotions
Why: Reasons for using
What: Ranking of dishes
