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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 Contents OVERVIEW............................................................................................................................................................................................7 What you need to know ................................................................................................................................................8 Products covered in this Report....................................................................................................................................8 EXECUTIVE SUMMARY....................................................................................................................................................................9 The market..................................................................................................................................................................10 Figure 1: UK burger bar market, value sales and forecast, 2011-21................................................................................................................10 Figure 2: UK chicken bar market, value sales and forecast, 2011-21...............................................................................................................11 Companies and brands............................................................................................................................................... 11 The consumer ............................................................................................................................................................ 11 Figure 3: Fast food outlet usage, by type, July 2016........................................................................................................................................12 Figure 4: Attitudes towards fast food restaurants, July 2016 ...........................................................................................................................12 Figure 5: Fast food menu enticements, July 2016............................................................................................................................................13 Figure 6: Interest in healthier alternatives at fast food restaurants, July 2016.................................................................................................13 Freshly made burgers is top expectation from gourmet burger venues......................................................................13 Figure 7: Expectations from gourmet burger venues, July 2016......................................................................................................................14 What we think..............................................................................................................................................................14 ISSUES & INSIGHTS......................................................................................................................................................................... 15 Customisation can help venues engage older age groups.........................................................................................16 More scope for healthier options on fast food menus.................................................................................................16 Speed of service is a key enticement, yet table service appeals widely.....................................................................17 THE MARKET..................................................................................................................................................................................... 18 What you need to know...............................................................................................................................19 Burger and chicken market is in growth......................................................................................................................19 Activity from brands needed to offset decline in core users........................................................................................19 Eating out remains a key discretionary spending area ...............................................................................................19 Falling Pound could have an impact on food prices....................................................................................................19 Further rises in National Living Wage pose a challenge.............................................................................................19 FSA’s pink meat burger guidelines offer clarity to gourmet burger sector .................................................................. 19 Segment performance, market size and forecast......................................................................................20 Both burger and chicken bars are in growth but under pressure................................................................................20 Figure 8: UK chicken and burger bar market, value sales, 2011-21.................................................................................................................20 Demographic changes and consumer confidence could temper market growth......................................................... 20 Figure 9: UK chicken and burger bar market, value sales and forecast, 2011-21............................................................................................21 Concerted efforts by brands to innovate can help to boost the burger sector............................................................. 21 Figure 10: UK burger bar market, value sales, 2011-21...................................................................................................................................21 Figure 11: UK burger bar market, value sales and forecast, 2011-21...............................................................................................................21 Chicken bar operators innovate to stay competitive....................................................................................................22 Figure 12: UK chicken bar market, value sales, 2011-21.................................................................................................................................22 Figure 13: UK chicken bar market, value sales and forecast, 2011-21.............................................................................................................22 Forecast methodology.................................................................................................................................................22 Market drivers...............................................................................................................................................23 Eating out remains a key discretionary spending area but consumer confidence has been shaken ..................... 23 Figure 14: Consumer spending priorities (after bills) – Dining out, November 2009-July 2016........................................................................23 Falling Pound and rising costs head concerns for operators .....................................................................................23 FSA’s pink meat burger guidelines offer clarity to gourmet burger sector .................................................................. 24 The rise in obesity puts chicken shops under scrutiny................................................................................................24 Fast food chains urged to limit use of antibiotics in meat and poultry ........................................................................24 PREVIOUS NEXT © Mintel Group Ltd. 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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 Core user group set for stunted growth.......................................................................................................................25 Figure 15: Trends in the age structure of the UK population, 2011-16 and 2016-21........................................................................................25 KEY PLAYERS..................................................................................................................................................................................... 26 What you need to know...............................................................................................................................27 McDonald’s retains an unassailable lead by store and usage numbers.....................................................................27 KFC reports ambitious growth plans...........................................................................................................................27 Burger King focuses on a few high-impact areas........................................................................................................27 Gourmet venues beef up the burger market...............................................................................................................27 Rice boxes strengthen KFC’s offering in lunch space.................................................................................................27 Nando’s blurs boundaries with beef dishes and Fino platter.......................................................................................27 McDonald’s aims to dispel myths about product quality..............................................................................................27 KFC celebrates 50 years in the UK.............................................................................................................................27 Reconfiguring in-store formats to improve customer experience................................................................................27 Market share.................................................................................................................................................28 McDonald’s retains an unassailable lead by store and usage numbers.....................................................................28 Figure 16: Selected leading burger and chicken restaurant chains, by outlet numbers, 2013-16....................................................................28 Figure 17: Selected leading burger and chicken restaurant chains, frequency of use, July 2016....................................................................28 Burger King focuses on a few high-impact areas................................................................................................................... 29 KFC reports ambitious growth plans...........................................................................................................................29 Gourmet venues beef up the burger market...............................................................................................................29 Figure 18: Selected ‘better’/’gourmet’ burger operators in the UK market and planned/reported outlet expansion, July 2015 and July 2016...................................................................................................................................................................................30 Premium chicken restaurants remain niche ...............................................................................................................30 Figure 19: Selected chicken bar operators in the UK market and planned/reported/projected outlet expansion, July 2016............................30 Launch activity and innovation...................................................................................................................31 McDonald’s launches table service and Signature Collection range...........................................................................31 Rice boxes strengthen KFC’s offering in lunch space.................................................................................................31 Fast food operators create “zones” in store formats...................................................................................................31 Burger King granted permission to sell alcohol...........................................................................................................31 GBK launches supermarket range..............................................................................................................................32 Nando’s blurs boundaries with beef dishes and Fino platter.......................................................................................32 Advertising and marketing activity.............................................................................................................33 McDonald’s builds brand trust and immerses into VR.................................................................................................33 Figure 20: Recorded above-the-line, online display and direct mail total advertising expenditure, by selected chicken and burger bar operators, 2012-16..........................................................................................................................................................................33 Burger King targets young adults through social media and cinema..........................................................................34 KFC celebrates 50 years in the UK.............................................................................................................................34 Figure 21: Selected chicken and burger bar brands’ social media presence, 2016.........................................................................................34 Nando’s ramps up festival tie-ups in sponsorship drive..............................................................................................35 Nielsen Ad Intel coverage............................................................................................................................................35 Brand research.............................................................................................................................................36 What you need to know...............................................................................................................................................36 Brand map...................................................................................................................................................................36 Figure 22: Attitudes towards and usage of selected restaurant brands, July 2016..........................................................................................36 Figure 23: Key metrics for selected restaurant brands, July 2016....................................................................................................................36 Figure 24: Attitudes, by brand, July 2016.........................................................................................................................................................37 Figure 25: Brand personality – Macro image, July 2016..................................................................................................................................37 Figure 26: Brand personality – Micro image, July 2016....................................................................................................................................38 Brand analysis.............................................................................................................................................................38 Figure 27: User profile of Byron, July 2016.......................................................................................................................................................38 Figure 28: User profile of Nando’s, July 2016...................................................................................................................................................39 Figure 29: User profile of KFC, July 2016.........................................................................................................................................................39 Figure 30: User profile of McDonald’s, July 2016.............................................................................................................................................40 Figure 31: User profile of Burger King, July 2016.............................................................................................................................................40 PREVIOUS NEXT © Mintel Group Ltd. 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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 THE CONSUMER.............................................................................................................................................................................. 41 What you need know....................................................................................................................................42 Nearly three in four Brits eat at fast food restaurants..................................................................................................42 Scope for lighter and grab-and-go meals to prompt more frequent visits................................................................... 42 Visiting fast food venues is seen as a treat by most ..................................................................................................42 Quick service only reason to visit fast food venues for half of users...........................................................................42 Freshly made burgers is top expectation from gourmet burger venues......................................................................42 Customisable dishes appeal at fast food chains.........................................................................................................42 Grilled chicken could help operators appeal to the health-conscious.........................................................................42 Fast food usage habits................................................................................................................................43 Nearly three in four Brits eat at fast food restaurants..................................................................................................43 Figure 32: Fast food outlet usage, by type, July 2016......................................................................................................................................43 A significant group of 35-44s use chicken and burger bars.........................................................................................43 Figure 33: Usage of any burger outlet and any chicken outlet, by age, July 2016...........................................................................................44 Frequency of use of fast food outlets........................................................................................................45 McDonald’s continues to dominate the market…........................................................................................................45 …gourmet burgers remain niche.................................................................................................................................45 Figure 34: Frequency of eating in or getting a takeaway from fast food outlets, July 2016..............................................................................45 Scope for venues to prompt more frequent visits........................................................................................................45 Attitudes towards fast food restaurants....................................................................................................46 Visiting fast food venues is seen as a treat by most...................................................................................................46 Figure 35: Attitudes towards fast food restaurants, July 2016 .........................................................................................................................46 Quick service only reason to visit fast food venues for half of users...........................................................................46 Lighter options are in demand by people who grab and go........................................................................................47 Expectations from gourmet burger venues...............................................................................................48 Freshly made burgers is top expectation from gourmet burger venues......................................................................48 Diners expect gourmet venues to offer control over their burgers..............................................................................48 Table service is widely expected at gourmet venues..................................................................................................48 Figure 36: Expectations from gourmet burger venues, July 2016....................................................................................................................48 Fast food menu enticements ......................................................................................................................49 Customisable dishes could help attract older diners to fast food chains..................................................................... 49 Flavours from around the world pique diners’ interest................................................................................................49 Figure 37: Fast food menu enticements, July 2016..........................................................................................................................................49 Alcoholic beverages interest one in five diners at leading chains...............................................................................49 Figure 38: Interest in alcoholic beverages at fast food venues, by fast food outlet/restaurant usage, July 2016.............................................50 Interest in healthier alternatives at fast food restaurants........................................................................51 Grilled chicken could help operators appeal to the health-conscious.........................................................................51 Diners are interested in thick and root vegetable fries................................................................................................51 Offering healthier beverages could add interest to fast food venues..........................................................................51 Figure 39: Interest in healthier alternatives at fast food restaurants, July 2016...............................................................................................52 APPENDIX.......................................................................................................................................................................................... 53 Data sources, abbreviations and supporting information........................................................................54 Abbreviations ....................................................................................................................................................................................54 Consumer research methodology...............................................................................................................................54 Market size and forecast..............................................................................................................................55 Forecast Methodology.................................................................................................................................................55 Figure 40: UK chicken and burger bar market, value sales and forecast, 2011-21..........................................................................................55 Figure 41: UK burger bar market, value sales and forecast, 2011-21..............................................................................................................56 Figure 42: UK chicken bar market, value sales and forecast, 2011-21.............................................................................................................56 PREVIOUS NEXT © Mintel Group Ltd. 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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 Advertising and marketing activity.............................................................................................................57 Figure 43: Advertising expenditure by selected chicken and burger bar operators, by media type, 2014-16..................................................57 RESEARCH METHODOLOGY...................................................................................................................................................... 58 UK Research Methodology..........................................................................................................................59 Sampling and weighting..............................................................................................................................................59 Face to Face Surveys ................................................................................................................................................59 Brand & Social Media Research.................................................................................................................................61 Trade research............................................................................................................................................................61 Desk research.............................................................................................................................................................61 Statistical Forecasting.................................................................................................................................................61 The Mintel fan chart.....................................................................................................................................................62 PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 8 What you need to know Products covered in this Report The burger and chicken bar market is in growth but looks set to Chicken and burger bars are a clearly defined sector of the come under pressure, as the population of its 16-34-year-old core fast food market. They are largely characterised by the way the users is forecast to decline. The top end of the market also faces leading brands operate so that, in the same way a McDonald’s intense competition as a raft of non-specialist venues such as outlet typifies the burger market, a KFC outlet typifies the chicken pubs feature ‘gourmet burgers’ on their menus. market. The way the market has been changing means that although the core product defines these outlets, they also tend to Plans for ongoing store revamps and menu updates should offer other food types. This is particularly the case for burger bars, continue to support the segment. Category blurring such as which also offer chicken and vegetarian options. serving fresh fruit smoothies and barista-style coffee, should also help create more occasions for diners to visit fast food Although chicken/burger bars are often characterised by the restaurants. Continued focus on communicating the quality of takeaway nature of the food, a significant proportion also offer an their products and ingredients looks much needed, given that eat-in facility. In many leisure and retail park locations a drive- many diners still see the food as processed. However, speed through facility accompanies the main restaurant. Home delivery of service is also of essence seen by many diners as the only is not well established in this market. reason to use a fast food venue. The main meal items are served hot, usually from a counter, with the emphasis on speed of service and consistency of product. The format of each brand is typically standardised, with the consumer being able to expect the same offering and standards throughout the country. Although small in number by comparison, some outlets in this market such as Nando’s offer a more sophisticated eat-in facility including table service where this is the prime focus of their offer. For the purposes of this Report, Mintel has excluded sales of drinks from the market size. Similarly, sales of chicken and burger meals through other outlets, such as pubs and cafés, are not included. PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 10 BURGER AND CHICKEN RESTAURANTS WILL COME UNDER PRESSURE AS THE POPULATION OF 16-34S DECLINES. OPERATORS ARE BRANCHING OUT INTO GOURMET CONCEPTS TO KEEP THEIR BRANDS FRESH AND INNOVATIVE. THERE IS SCOPE FOR RESTAURANTS TO EXPLORE BOTH HIGH-SPEED AND LEISURE EXPERIENCES AS A SELLING POINT. Trish Caddy, Foodservice Analyst The market Burger restaurants create more occasions for diners to visit fast food restaurants. Plans for ongoing The chicken and burger bar market has The previous robust growth in the burger store revamps and menu updates should enjoyed robust growth in the past five bar market is expected to slow to 3.3% continue to support the segment. years. Much of this has come against in 2016, seeing sales reach £3.3 billion. a background of falling real incomes, Going forward, Mintel expects ongoing While the expansion plans of various the market benefiting from its value-for- momentum in the market, forecast to grow prominent operators in the gourmet burger money positioning and its ability to meet by 18% over 2016-21. bar segment bode well for continued the demand for convenience. Growth growth of the segment, the operators’ is expected to slow to 3.4% in 2016, A focus on high-quality ingredients and tendency to target the same catchment as uncertainty around the Brexit vote transparency in food production can areas tempers the impact of their expansion. dampens consumer confidence. help fast food brands build consumer Meanwhile, the segment continues to face trust while category blurring should also pressure from non-specialists. While the forecast decline in 16-34-year- olds – a core user group – will put FIGURE 1: UK BURGER BAR MARKET, VALUE SALES AND FORECAST, 2011-21 pressure on the market, this should be offset to some extent by the predicted growth in the number of children, with families also core users. As such, the market value is expected to maintain its previous growth of 18% over 2016-21, though activity from leading operators will play a key role in the fortunes of the market, as discussed below. Burger bars continue to dominate the market, with just over double the value sales of chicken outlets. That the two largest brands – McDonald’s and Burger King – combined have nearly twice the number of outlets as the leading chicken bar operator – KFC – fuels this dynamic. Source: Mintel PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 11 Chicken restaurants FIGURE 2: UK CHICKEN BAR MARKET, VALUE SALES AND FORECAST, 2011-21 Growth in the chicken market is expected to slow to 3.7% in 2016, seeing sales stand at £1.55 billion. Tangible growth is expected to continue, with the market forecast to grow by 19% from 2016-21. Chicken bar operators are innovating to stay competitive; menu expansion and new store formats are expected to help bolster sales in the segment. However, media coverage is raising awareness of obesity, with fried chicken shops having faced scrutiny for their purported role in this in London, though this is yet to attract any regulatory steps. It remains to be seen whether premium chicken bars can add momentum to the market and improve perceptions, many of these focusing on high-welfare ingredients Source: Mintel and healthier cooking methods. Companies and brands KFC reports ambitious growth entry of new ones. A number of the players plans have also announced ambitious plans going McDonald’s retains an unassailable forward. However, gourmet burgers have lead by store and usage numbers KFC UK enjoyed a boost in visibility now become a menu staple across many from a BBC documentary in 2015, menu non-specialist outlets, posing competition to McDonald’s remains the leading player in the expansion and the rollout of a new the specialists. market by a wide margin. It described 2015 restaurant design launched in 2014 also as a “strong year of growth”, highlighting boosting its performance. New rice box The consumer its store revamp programme, NPD (New meals in 2015 formed part of a concerted Product Development) and the continuing push by KFC into the lunch market and to Nearly three in four Brits eat at strong performance of its McCafé range. provide greater choice and healthier options fast food restaurants in the UK. The chain targets a faster pace Looking to drive trust in its product quality, of growth going forward, planning to grow Signalling the established place of fast McDonald’s Good to Know campaign in its store portfolio from 880 to 1,000 by 2020 food on Britons’ menus, nearly three in four autumn 2015 drew attention to the quality and expansion of its food and drink offering. people visited these outlets in the three of its products, including footage from the months to July 2016. Burger outlets remain factories producing these. The brand has Gourmet venues beef up the more widely used than chicken venues, kept up activity in 2016, extending the burger market helped by the expansive store presence Signature Collection premium range and of leading players McDonald’s and Burger “successful” table service trial launched in The gourmet burger bar segment has been King. Core users include men, those in late 2015 to more stores and continuing growing rapidly in recent years, thanks to households earning £25,000 or more, 16- store revamps. expansion of established operators and the 34s and parents of under-13s. PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 12 Scope for venues to prompt more FIGURE 3: FAST FOOD OUTLET USAGE, BY TYPE, JULY 2016 frequent visits “Which, if any, of the following fast food outlets/restaurants have you eaten in or Few diners visit any of the fast food bought a takeaway from in the last 3 months? Please select all that apply.” restaurants on a weekly basis. This highlights the key role of initiatives like McDonald’s and Burger King’s menu expansion into gourmet coffees and iced drinks to boost footfall by creating more occasions to visit. Lighter meals should also encourage diners to eat at a fast food venue for lunch (see section Attitudes towards Fast Food Restaurants). A greater focus on portability should also unlock new custom as a greater variety of grab-and-go one-pot meals (ie a meal served in one container) would entice many diners to use a fast food venue more (see section Attitudes towards Fast Food Restaurants). Visiting fast food venues is seen as a treat by most That more than half of diners see eating at a fast food venue as a treat suggests creating a sense of treating oneself when visiting a fast food outlet should give Base: 2,000 internet users aged 16+ operators an edge this market. Providing * includes McDonald’s, Burger King, Gourmet burger bar (eg Gourmet Burger Kitchen, Haché), Other burger outlet table service can help to drive a treat (eg Wimpy) image, as four out of five diners who see ** includes KFC, Nando’s, Rotisserie chicken restaurant (eg Chicken Shop), Other chicken outlet (eg Southern eating at a fast food venue as a treat also Fried Chicken, Chicken Cottage, Favourite Fried Chicken) agree that having food delivered to their Source: Lightspeed GMI/Mintel table would entice them to eat there more. That many diners see quick service as the FIGURE 4: ATTITUDES TOWARDS FAST FOOD RESTAURANTS, JULY 2016 only reason to eat at a fast food venue suggests that operators that can speed “To what extent do you agree or disagree with each of the following statements? up service should enjoy an edge over Please select one per statement.” competitors. However, this also suggests that fast food venues face a threat from the growth of fast service formats in other sectors. Communicating the quality and “real food” credentials of their ingredients looks to remain much needed in the chicken and burger bar market, as many diners see the food as feeling processed and the majority deem high-quality ingredients as more important than the amount of calories. Customisable dishes could help attract older diners to fast food chains 41% of diners would be interested in the Base: 1,440 internet users aged 16+ who have eaten in/ordered a takeaway from a fast food outlet/restaurant option to customise their dishes from a Source: Lightspeed GMI/Mintel PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 13 fast food venue. Interest peaks among FIGURE 5: FAST FOOD MENU ENTICEMENTS, JULY 2016 diners aged 45-64, also the most likely to expect customisation from gourmet burger “Which, if any, of the following would you be most interested in seeing on the venues. Certain chicken dishes such as menu at a fast food restaurant (eg McDonald’s, KFC etc)? Please select up to wings can offer venues more flexibility 5.” when it comes to customising, the high interest suggesting that exploring these could give them an edge. Interest in dishes with flavours from around the world in fast food restaurants bodes well for the market’s ability to tap into changing flavour trends. Flavoured condiments – as seen at for example GBK, suggests a route for mainstream operators to flexibly integrate current flavour trends to existing menus. Grilled chicken could help operators appeal to the health- conscious While the flagbearers of healthy dishes, such as salads, have established a limited Base: 1,440 internet users aged 16+ who have eaten in/ordered a takeaway from a fast food outlet/restaurant presence on menus at chicken and burger ^ shown to 1,380 internet users aged 18+ that have eaten in/ordered a takeaway from a fast food outlet/restaurant bars, they have tended to gain limited Source: Lightspeed GMI/Mintel traction here. However, various better- for-you options more aligned with the traditional offerings at these venues do FIGURE 6: INTEREST IN HEALTHIER ALTERNATIVES AT FAST FOOD resonate with diners. RESTAURANTS, JULY 2016 For example, 46% of fast food diners “Which, if any, of the following healthier alternatives (which may or may not cur- would be interested in trying grilled chicken rently exist) would you be interested in trying at a fast food restaurant? Please at these venues as a healthier option. select up to 5.” Interest peaks among women aged 45-64 at 51%, suggesting grilled chicken dishes could help to appeal to this low-usage group. Freshly made burgers is top expectation from gourmet burger venues That gourmet burger venues are expected to serve freshly made burgers by 71% of Brits is perhaps unsurprising, as this offers a tangible difference to the ready-made burgers of fast food venues. McDonald’s new premium Signature Range, offering burgers made to order, thus ticks the single biggest box on gourmet associations. Gourmet burger restaurants are also widely expected to give diners the option to customise their burger order. Another marked difference to the traditional fast food format, the strength of sentiment Base: 1,440 internet users aged 16+ who have eaten in/ordered a takeaway from a fast food outlet/restaurant suggests that gourmet venues could mine Source: Lightspeed GMI/Mintel PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 14 this aspect more actively as a selling point, FIGURE 7: EXPECTATIONS FROM GOURMET BURGER VENUES, JULY 2016 this not being widely latched on currently. “In your opinion, what would you expect from a gourmet burger venue compared Related to the same, almost half of Brits to a standard fast food venue? Please select up to 5.” expect a gourmet burger venue to give them a choice on how their burger is cooked, making the FSA’s new guidelines on venues serving burgers pink particularly welcome for the segment. What we think The burger and chicken bar market is in growth but looks set to come under pressure, as the population of its 16-34-year-old core users is forecast to decline. Onus is on operators to continue to innovate through store and menu design to retain usage among this cohort as they move into the 35-44 bracket. This impact should be partly offset by the predicted growth in the number of kids, parents being another core user group. Base: 2,000 internet users aged 16+ * includes choice of how the burger is cooked (eg medium rare), customisable burgers (eg select the bread, meat, The steps taken by McDonald’s to offer toppings) table service and the new store formats ** includes information about which cuts of meat were used (eg loin, shoulder), detailed information on where unveiled by KFC and Burger King are ingredients come from (eg the farmer supplying meat) helping the brands upscale the dining *** base: 1,930 internet users aged 18+ experience, which should help expand Source: Lightspeed GMI/Mintel their appeal. Their better coffee offering and wider range of healthier choices diners still see the food as processed. The gourmet burger trend continues, should also help to bolster the relevance of However, speed of service is also of adding value and interest to the burger these venues among older age groups. essence seen by many diners as the only market, but the segment faces intense reason to use a fast food venue. This also competition as a raft of non-specialist Continued focus on communicating the suggesting puts fast food venues under venues such as pubs feature ‘gourmet quality of their products and ingredients pressure from the growth of fast service burgers’ on their menus. looks much needed, given that many formats in other sectors. PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
ISSUES & INSIGHTS PREVIOUS NEXT
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 16 Customisation can help venues The facts engage older age groups • The 16-34 age group is projected to decline by 0.4% from 2016-21. • The number of 35-64s is projected to grow by 3% from 2016-21. • 41% of diners would be interested in the option to customise their dishes from a fast food venue, interest peaking among diners aged 45-64. • 39% of 35-44-year-old fast food diners state that having the food delivered to their table in a fast food restaurant would entice them to eat there more. • 51% of 35-44-year-old fast food diners state that lighter meal options would encourage them to eat at a fast food venue for lunch. • 70% of over-45s have bought hot drinks out of home. The implications 16-34s are often highlighted as the key audience and core users of chicken and burger bars. However, stunted growth is forecast for this age group up to 2021, which should urge fast food operators to focus on retaining usage among this cohort as they move into the 35-44 bracket. Promisingly for the market, although usage declines among this age group, it only falls sharply among the over-45s. But more importantly, there is scope to engage with 35-44s. Better coffee offerings and a wider range of healthier choices should help to bolster the relevance of these venues among older age groups. The steps taken by McDonald’s to offer table service and the new store formats unveiled by KFC and Burger King are helping the brands upscale the dining experience, which should help expand their appeal. Fast food brands that allow diners to personalise their food can capture older diners’ attention. Certain chicken dishes that allow for easy application of different flavour sauces or glazes can offer venues more flexibility when it comes to customising the dish, the high interest suggesting that exploring these could give them an edge in the fast food market. More scope for healthier options The facts on fast food menus • 64% of women (vs 53% of men) try to eat healthily all or most of the time. • 46% of fast food diners would be interested in trying grilled chicken at these venues. Interest peaks among women aged 45-64 at 51%. • 49% of fast food diners state that lighter meal options would encourage them to eat at a fast food venue for lunch. • 38% of chicken and burger bar users would be interested in thick fries as a healthier option; 30% would be interested in root vegetable fries. • 29% of diners would be interested in fruit-based smoothies at fast food venues as a healthier option. PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016 17 The implications The foodservice market remains under public scrutiny for its health credentials. The perception that food at fast food venues isn’t good for you is the main barrier to using these. As most people are looking to eat healthily all or most of the time, fast food operators can look to win favour by helping individuals make good choices when dining out. While the flagbearers of healthy dishes, such as salads, have established a limited presence on menus at chicken and burger bars, they have tended to gain limited traction here. However, various better-for-you options more aligned with the traditional offerings at these venues do resonate with diners. For example, KFC’s strategy towards healthier meals led to the launch of its rice box range featuring chicken on a bed of steamed rice. Grilled chicken could also help operators appeal to health-conscious diners. Fries are long established as a burger accompaniment, their fat and salt content attracting scrutiny over the years. While operators have made improvements here, moving beyond skinny fries to healthier options can offer another means to address the health theme. Meanwhile high-fibre bun options stand out as an easy win, such bread already being well established in the retail channel. This includes various high-fibre white breads from leading bakers, offering a “stealth health” solution, improving the nutrition credentials without impacting the taste. When it comes to healthier beverages, McDonald’s has made inroads here, such as with its Berry Burst Smoothie, introduced in the UK in 2015. The drink is freshly prepared with fruit juice and yogurt and blended with ice. Speed of service is a key The facts enticement, yet table service appeals widely • Half of diners see quick service as the only reason to eat at a fast food venue, rising to three in five among diners aged 16-24. • 39% of fast food diners would be likely to use pre-ordering before getting to a fast food venue, if available. • 37% of fast food diners say that having the food delivered to their table in a fast food restaurant would entice them to eat there more. This rises to 50% among 16-24s. The implications That quick service is the only reason to eat at a fast food venue for half of diners suggests that operators that can speed up service should enjoy an edge over their competitors. For example, McDonald’s Experience of the Future store format invites customers to order and pay by touchpad and collect their order by number. Where the two-step process reduces the perceived waiting time, it should appeal to those focused on speed of service. Consumers’ desire for fast-paced dining may explain the interest in pre-ordering food and drink ahead of arrival at fast food venues, cutting out queuing time and waiting for the order to be completed. Though such initiatives remain rare in this market, they have been explored elsewhere, the interest here suggesting they afford further attention. While self-ordering kiosks may pose a potential threat to traditional service, the experience of being waited on by a real-live person is an integral part of dining out as a leisure experience. Perhaps surprisingly, table service appeals in particular to diners aged 16-24. Where operators can converge technology with traditional table service to manage costs and ensure speedy service, they can hope to engage this group. PREVIOUS NEXT © Mintel Group Ltd. All rights reserved.
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