Fast Food: A Category at a Crossroads

Strategy shake-ups in the biggest global markets

Fast food is at a crossroads in both China and the US, two of the category’s largest and most important markets. In the former, the market is maturing - along with its consumers -and leaders are being forced to rethink their existing strategies. Likewise in the US, consumers are pulling back from the previous year’s dependence on all things premium, suggesting operators need to return to value-orientated basics to win back their loyalty.

All dayparts, all markets

Daypart expansion remains key, especially in highly competitive markets such as Japan, the US, Western Europe and China. Fast food leaders are turning to occasion-based value platforms in order to draw traffic and compete with lower-priced independent competitors.

Return to value focus

Similarly, traditional fast food is returning to a value focus, emphasising low-priced meal deals and snacking items even in the wealthiest markets. This trend has manifested itself particularly strongly in the US, Australia and developed markets where consumers have shown that despite general dining experience improvements category-wide, they still want very low prices and very high value when it comes to traditional fast food.

Fresh casual, not just fast casual

The positioning of the fast casual movement is simultaneously trending upwards, reaching higher in terms of quality, dining experience and pricing. A new global fast casual trend has emerged, sometimes called “fresh casual”, which has high potential for global growth.

Service innovation

The search for differentiation and higher traffic remains a central focus, and operators are turning to service innovation to squeeze every transaction out of an existing consumer base. Delivery, drive-through and extended hours are growing more popular in a range of regions, including emerging markets where these services are relatively unfamiliar.

New global focus

With growth slowing in China and levelling off in the US, new long-term prospects are rising in prominence, including Latin America, the Gulf States, Southeast Asia and Africa.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment