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Strategy Briefing

Fast Food Global Overview - Part 1: Value or Premium?

Apr 2017

US$1,325

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About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

In the current landscape, fast food brands need to be “better” in order to survive. Consumers are demanding better food, better experiences, better corporate citizenship and, ultimately, better value for their money. This briefing will examine the search for a balance in value positioning and premiumisation, using four case studies to illustrate how operators are attempting to tackle this challenge.

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

The fast food landscape has irrevocably changed

Long-term growth prospects in fast food have changed. Operators cannot rely on unfettered growth in a few major emerging markets, nor on consistent steady returns in core developed markets. New competitors are emerging, new channels are growing and fighting for fast food share, and consumers themselves are changing their habits in ways that may not necessarily benefit major chains. Operators need to find new ways to succeed within this landscape, adopting a strategic balance of value and premium offerings to maximise appeal and maintain an edge on the competition.

Quality and value are equally important

Quality is now a fundamental priority within fast food. Consumers expect high-quality ingredients and preparation methods, and they want to see that operators are taking steps towards improved quality, even at the lowest price tiers. Consumers want better food, but they want better everything else as well: faster, easier, more convenient, more satisfying and more exciting, all at a value-driven price point.

Effective premiumisation is slow, steady, and on-brand

In order to achieve this balance, fast food operators must find ways to upgrade brands without diluting existing appeal. The key to this strategy is to focus on brand strengths instead of weaknesses, improving them further to maximise appeal for core customers. Operators must improve the ingredients in key menu items, make service as quick, seamless, and efficient as possible, and continually invest in new technology to maintain relevance and maximum accessibility.

Strategy is important, but execution wins

As illustrated by Chick-fil-A, great execution appears to solve most problems. Good food delivered with pleasant service, reasonable speed and dependable accuracy may ultimately provide consumers with the best value, even more so than exciting branding, clever positioning or extra premium amenities.

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Introduction

Scope

Introduction: What to expect from this briefing

Global Overview

Fast food the world’s second-largest foodservice category

A historical view highlights these category growth trends

Burger and Asian fast food lead category by value share

Performance among the top 10 operators is inconsistent

Leading fast casuals are also seeing mixed results

Fast food’s share of global foodservice continues to expand

Growth is concentrated in two regions with very different conditions

Key market performances indicates growth is slowing and settling

Key takeaways: What does this mean for operators?

Premium vs Value in Context

Within this context, even fast casual is facing uncertainties

Not just value, not just premium - but both at the same time

The struggle for premium versus value in four k ey c ase s tudies

Case Study: The Right Path to Premium

Case study: Taco Bell finds the “right” way to do premium

Taco Bell first experimented with fast casual brand spin-offs

After pivoting to Cantina Bell, Taco Bell found its balance

As part of its evolution, Taco Bell added value in other ways as well

Key lessons from Taco Bell’s “Evolution, Not Revolution” strategy

Summary: Taco Bell’s high-value, premiumisation strategy

Case Study: Returning to Value

Case study: Chipotle experiments with a return to value

Chipotle’s Tasty Made may suggest a significant shift

While fast food reaches towards premium, Tasty Made looks to value

Category labels aside, Tasty Made is a simpler attempt at “better”

Case Study: The High Bar for Lifestyle Positioning

Case study: Tender Greens’s new heights in lifestyle positioning

Case study: Tender Greens illustrates new fast casual approach

There is now a very high bar for entry into fast, or “fresh” casual

Case Study: Good Food Above All Else

Case study: Chick-fil-A success proves good food trumps all

Chick-fil-A’s strategy is simple, but very effective

Summary: Chick- fil -A’s simple but effective fast food strategy

Key Lessons

Key takeaways: How find the balance in value versus premium

Why buy this report?

Want to find out more about this report?

Request more information

Megatrends

Strategy Briefing

Fast Food Global Overview - Part 1: Value or Premium?

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

The fast food landscape has irrevocably changed

Quality and value are equally important

Effective premiumisation is slow, steady, and on-brand

Strategy is important, but execution wins

Want to find out more about this report?

Table of Contents

Introduction

Scope

Introduction: What to expect from this briefing

Global Overview

Fast food the world’s second-largest foodservice category

A historical view highlights these category growth trends

Burger and Asian fast food lead category by value share

Performance among the top 10 operators is inconsistent

Leading fast casuals are also seeing mixed results

Fast food’s share of global foodservice continues to expand

Growth is concentrated in two regions with very different conditions

Key market performances indicates growth is slowing and settling

Key takeaways: What does this mean for operators?

Premium vs Value in Context

Within this context, even fast casual is facing uncertainties

Not just value, not just premium - but both at the same time

The struggle for premium versus value in four k ey c ase s tudies

Case Study: The Right Path to Premium

Case study: Taco Bell finds the “right” way to do premium

Taco Bell first experimented with fast casual brand spin-offs

After pivoting to Cantina Bell, Taco Bell found its balance

As part of its evolution, Taco Bell added value in other ways as well

Key lessons from Taco Bell’s “Evolution, Not Revolution” strategy

Summary: Taco Bell’s high-value, premiumisation strategy

Case Study: Returning to Value

Case study: Chipotle experiments with a return to value

Chipotle’s Tasty Made may suggest a significant shift

While fast food reaches towards premium, Tasty Made looks to value

Category labels aside, Tasty Made is a simpler attempt at “better”

Case Study: The High Bar for Lifestyle Positioning

Case study: Tender Greens’s new heights in lifestyle positioning

Case study: Tender Greens illustrates new fast casual approach

There is now a very high bar for entry into fast, or “fresh” casual

Case Study: Good Food Above All Else

Case study: Chick-fil-A success proves good food trumps all

Chick-fil-A’s strategy is simple, but very effective

Summary: Chick- fil -A’s simple but effective fast food strategy

Key Lessons

Key takeaways: How find the balance in value versus premium

Why buy this report?

Want to find out more about this report?

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