Feeling lost?
Why not try these options:
  • Search
  • Browse
or
Call us on

Quick Service Restaurants - US - September 2011

Quick Service Restaurants - US - September 2011

The recession pushed the restaurant industry into negative growth in 2008 and the two years that followed, according to National Restaurant Association (NRA) data. Positive growth is expected for this year, but restaurants are only slowly regaining their previous strength.

But for quick-service restaurants, the story has been brighter. Sales reached $178.8 billion in 2011, up from $153.6 billion in 2006 for a compound annual growth rate (CAGR) of 3.1% (1.1% at inflation-adjusted prices). From 2012-16, Mintel expects sales to continue their upward climb to surpass $215 billion in 2016.

Consumers show deep uneasiness about the future as economic indicators rise and fall. Consumer confidence, as measured by the Conference Board, declined in May 2011, dipped further in June, and improved slightly in July. Unemployment stood at 9.1% in July 2011, compared with 5.8% just three years earlier, in July 2008. Not just the unemployed, but also the underemployed and the employed-but-worried are watching their spending on nonessentials, such as dining out.


£2,534.48

This report builds on the analysis presented in Mintel’s Quick Service Restaurants—U.S., August 2010, August 2009, June 2008, May 2007, January 2006, and May 2004 reports.

This report examines quick-service (or fast-food) commercial chain dining in the U.S. QSRs are a form of limited-service restaurant (LSR) that provide inexpensive food and quick service, defined by the absence of table service.

Typically, food is ordered and paid for at the counter or drive-thru window at the time of ordering, prior to eating, and is either eaten on the premises or taken out. Typical check sizes for this segment are $8 or less.


Scope and Themes


What you need to know


Definition


Data sources


Sales data

Mintel/Menu Insights

Consumer survey data

Advertising clips

Abbreviations and terms


Abbreviations

Terms

Executive Summary


Restaurants are recovering slowly from the recession


QSR usage remains very strong, although some customers have reduced their spending


QSRs face a new challenge from the rising popularity of mobile food trucks and carts


Consumers use QSRs all day, and often stick with their favorite foods


Recession effect lingers: Dollar/value menus remain important draws for QSRs


The ongoing obesity epidemic has nutritionists and legislators seeking changes in QSR menus


Kids and teens learn to love QSRs in the company of their parents


Insights and Opportunities


Consumers are open to but are not demanding healthier foods from QSRs


Figure 1: Consumer attitudes toward healthier fast food, by gender, October 2009-December 2010

QSRs can make effective use of new nutrition-labeling rules’ “LTO exemption”


Figure 2: Reasons for spending more at fast-food restaurants, by gender, June 2011

QSRs have additional opportunities to build breakfast sales


Figure 3: Eating attitudes and influences, by gender, October 2009-December 2010

There are opportunities to mine on the QSR beverage menu


Inspire Insights


Inspire Trend: “A Simple Balance for Health”


Inspire Trend: “Let’s Make a Deal”


Market Size and Forecast


Key points


Fast food is on a bright path


Figure 4: U.S. sales at quick-service restaurants, at current prices, 2006-16

Figure 5: U.S. sales at quick-service restaurants, at inflation-adjusted prices, 2006-16

Fan chart forecast


Figure 6: Fan chart of market value for quick-service restaurants, at current prices, 2006-16

Figure 7: Best- and worst-case forecast for quick-service restaurants, at current prices, 2011-16

Market Drivers


Key points


Recession, recovery and resilience


Figure 8: Adjusted foodservice and drinking place sales, January 2008-July 2011

A disappointing performance


Figure 9: NRA Performance Indices, January 2009-July 2011

Confidence is a rare commodity


Figure 10: University of Michigan Consumer Sentiment Index, March 2007-August 2011

Repossessed dreams


Figure 11: Unemployment and underemployment rates, January 2007-July 2011

Less money to spend


Figure 12: Real Personal Disposable Income, January 2007-May 2011

Supply and demand


Figure 13: Consumer spending on food away from home and food at home, 1950-2010

The obesity crisis shines a brighter light on QSRs


Figure 14: Trends in overweight, obesity, and extreme obesity among U.S. adults aged 20-74 years old, 1988-2008

Figure 15: Health/diet habits, by gender, October 2009-December 2010

Obesity and transparency


Ownership changes add to the uncertainty


Figure 16: Quick-service restaurant brand acquisitions, 2006-11

Competitive Context


Key points


Keep on truckin’


Convenience stores are catching up


Daily-deal discounting trims QSRs’ price advantage


Segment Analysis


Key points


Hamburger


Figure 17: Fast-food restaurant brands used for breakfast, lunch, and dinner, by hamburger outlets, June 2011

Sub/sandwich


Figure 18: Fast-food restaurant brands used for breakfast, lunch, and dinner, by sub/sandwich units, June 2011

Chicken


Figure 19: Fast-food restaurant brands used for breakfast, lunch, and dinner, by chicken units, June 2011

Mexican and other


Figure 20: Fast-food restaurant brands used for breakfast, lunch, and dinner, by Mexican and other units, June 2011

Leading Companies


Key points


McDonald’s


Overview

Figure 21: Use of McDonald’s for breakfast, lunch, and dinner, June 2011

Brand positioning

Analyzing the customer base

Figure 22: McDonald’s patronage, by gender, October 2009-December 2010

Figure 23: McDonald’s patronage, by age, October 2009-December 2010

Figure 24: McDonald’s patronage, by household income, October 2009-December 2010

Figure 25: McDonald’s patronage, by race, October 2009-December 2010

Figure 26: McDonald’s patronage, by region, October 2009-December 2010

On the menu

Jack in the Box


Overview

Figure 27: Fast-food restaurant brands used for breakfast, lunch, and dinner, June 2011

Brand positioning

Analyzing the customer base

Figure 28: Jack in the Box patronage, by gender, October 2009-December 2010

Figure 29: Jack in the Box patronage, by age, October 2009-December 2010

Figure 30: Jack in the Box patronage, by annual household income, October 2009-December 2010

Figure 31: Jack in the Box patronage, by race/Hispanic origin, October 2009-December 2010

Figure 32: Jack in the Box patronage, by region, October 2009-December 2010

On the menu

Chick-fil-A


Overview

Figure 33: Fast-food restaurant brands used for breakfast, lunch, and dinner, June 2011

Brand positioning

Analyzing the customer base

Figure 34: Chick-fil-A patronage, by gender, October 2009-December 2010

Figure 35: Chick-fil-A patronage, by age, October 2009-December 2010

Figure 36: Chick-fil-A patronage, by annual household income, October 2009-December 2010

Figure 37: Chick-fil-A patronage, by race, October 2009-December 2010

Figure 38: Chick-fil-A patronage, by region, October 2009-December 2010

On the menu

Marketing Strategies


Key points


Figure 39: Top 10 advertising categories: Full year 2010 vs. Full year 2009

Television Hooks


Quality first

Figure 40: McDonald’s Quarter Pounder with Cheese TV ad, 2011

Figure 41: Subway’s Fresh Fit menu TV ad, 2011

Selling on price

Figure 42: Church’s Chicken “Serving the food you love...” TV ad, 2011

Combine quality and price

Figure 43: KFC “A cook in every restaurant” TV ad, 2011

“Buy local” is trendy

Figure 44: Culver’s “100% Midwest beef” TV ad, 2011

Rapid fire

Figure 45: Captain D’s “Flavored un leashed” TV ad, 2011

Social media


Taco Bell learns the hard way

QSRs out in front

Figure 46: Percentage of restaurateurs likely to use social-media tools in the next two years, 2010

McDonald’s leads

Figure 47: McDonalds.com monthly visitors, December 2010-June 2011

Wendy’s success with old and new media

Figure 48: Wendy’s email marketing, August 2011

Coupons


Figure 49: Behaviors regarding fast-food restaurants, by annual household income, June 2011

Wendy’s email coupons

Figure 50: Wendy’s email with coupon, July 2011

Arby’s combines old and new product

Figure 51: Arby’s new-product announcement with free offer, June 2011

Chick-fil-A lets consumers in on a deal

Figure 52: Chick-fil-A couponed announcement of upcoming product, January 2011

Tuning in all the channels


Figure 53: Still from Carl’s Jr. TV commercial with Kim Kardashian, December 2009

Menu Insights Analysis—The QSR Menu


Key points


Top QSR menu item sections


Figure 54: Top 10 QSR menu item sections, by incidence, Q2 2009-Q2 2011

Figure 55: Top 10 QSR menu item sections, by incidence and average price, Q2 2009-Q2 2011

Menu item dishes


Figure 56: Top 10 QSR menu item dishes, by incidence, Q2 2009-Q2 2011

Figure 57: Top 10 QSR menu item dishes, by incidence and average price, Q2 2009-Q2 2011

Menu Insights Analysis—Marketing the QSR Menu


Key points


Menu ingredient marketing claims


Figure 58: Top 10 QSR menu ingredient marketing claims, by incidence, Q2 2009-Q2 2011

Menu nutritional boasts


Figure 59: Top 10 QSR menu ingredient nutritional marketing claims, by incidence, Q2 2009-Q2 2011

Menu Insights Analysis—The Beverage Menu


Key points


Top beverage types


Figure 60: Top 10 beverage types on QSR menus, by incidence, Q2 2009-Q2 2011

Beverage price trends


Figure 61: Top 10 beverage types on QSR menus, by incidence and average price, Q2 2009-Q2 2011

Menu Insights Analysis—The Kids’ Menu


Key points


Top kids’ menu items


Figure 62: Top 10 menu items on kids’ menus at QSR restaurants, by incidence, Q2 2009-Q2 2011

Kids’ menu price points


Figure 63: Top 10 menu items on kids’ menus at QSR restaurants, by incidence and price, Q2 2009-Q2 2011

Quick-Service Restaurant Usage and Usage Frequency


Key points


Who goes there?


Figure 64: Fast-food restaurant patronage, by gender, October 2009-December 2010

Figure 65: Fast-food restaurant patronage, by age, October 2009-December 2010

What’s the frequency?


Figure 66: Fast-food restaurant visits, by gender, October 2009-December 2010

Figure 67: Fast-food restaurant visits, by age, October 2009-December 2010

Where are we going?


Figure 68: Ten most frequently visited fast-food restaurants, by gender, October 2009-December 2010

Figure 69: Fast-food restaurant brands used for breakfast, lunch, and dinner, June 2011

Family gatherings

Figure 70: Fast-food restaurant visits, by household size, October 2009-December 2010

Figure 71: Fast-food restaurants visits, by region, October 2009-December 2010

Keeping company

Figure 72: Restaurant visits, October 2009-December 2010

Consumer Behavior and Attitudes Within Quick-Service Restaurants


Key points


Fast food purchasing behaviors


Figure 73: Behaviors regarding fast-food restaurants, by gender and number of children in the household, June 2011

Figure 74: Behaviors regarding fast-food restaurants, by age, June 2011

Menu item purchase behaviors


Figure 75: Quick-serve ordering behaviors, by gender and age, June 2011

Attitudes toward fast-food restaurants


Figure 76: Attitudes toward fast-food restaurants, by gender and number of children in the household, June 2011

Figure 77: Attitudes toward fast-food restaurants, by age, June 2011

Eating attitudes and influences


Figure 78: Eating attitudes and influences, by gender, October 2009-December 2010

Health and diet habits


Figure 79: Health/Diet habits, by gender, October 2009-December 2010

Fast-food wish lists


Figure 80: Items consumers desire to see more of at fast-food restaurants, by gender and age, June 2011

Quick Service Selection Factors


Key points


The determinants of choice


Figure 81: Food and beverage reasons for choosing specific quick-serve restaurants, by gender and age, June 2011

Figure 82: Food and beverage reasons for choosing specific quick-serve restaurants, by annual household income, June 2011

Figure 83: Food and beverage reasons for choosing specific quick-serve restaurants, by number of children in the household, June 2011

Spending Considerations and the Role of the Dollar/Value Menu


Key points


Spending thoughts


Figure 84: Spending at fast-food restaurants compared to last year, June 2011

Figure 85: Reasons for spending more at fast-food restaurants, by gender, household income and household size, June 2011

Dollar/value menu purchases


Figure 86: Dollar/value menu purchases, by age, June 2011

Figure 87: Dollar/value menu purchases, by number of children in the household and by region, June 2011

Figure 88: Dollar/value menu purchase behaviors, by gender and by number of children in the household, June 2011

Figure 89: Dollar/value menu purchase behaviors, by age, June 2011

Value and experience motivations


Figure 90: Value and experience reasons for choosing specific quick-serve restaurants, by gender and age, June 2011

Figure 91: Value and experience reasons for choosing specific quick-serve restaurants, by number of children in the household, June 2011

Race and Hispanic Origin


Key points


Fast-food usage behaviors


Figure 92: Behaviors regarding fast-food restaurants, by race and Hispanic origin, June 2011

Attitudes toward fast-food restaurants


Figure 93: Attitudes toward fast-food restaurants, by race and Hispanic origin, June 2011

Fast-food wish list


Figure 94: Items consumers desire to see more of at fast-food restaurants, by race and Hispanic origin, June 2011

Dollar/value menu purchases


Figure 95: Dollar/value menu purchases, by race and Hispanic origin, June 2011

Kid and Teen Quick-Service Restaurant Usage


Key points


Teen fast-food habits


Figure 96: Teens’ visits to fast-food restaurants, by gender and age, October 2009–December 2010

Figure 97: Restaurant visits, October 2009–December 2010

Figure 98: Teens’ attitudes regarding food and eating out, by gender and age, October 2009-December 2010

Kids’ cravings for fast food


Figure 99: Kids’ restaurant visits, by gender and age, October 2009-December 2010

Figure 100: Restaurants child visited in the last month, by gender and age, October 2009-December 2010

Figure 101: Child's favorite restaurant, by gender and age, October 2009-December 2010

Figure 102: Child's favorite restaurant reasons, by gender and age, October 2009-December 2010

Cluster Analysis


Infrequent, Unhealthy, and Unchanged


Demographics

Characteristics

Opportunity

Intermediate Cynics


Demographics

Characteristics

Opportunity

Frequent Value-Seekers


Demographics

Characteristics

Opportunity

Cluster characteristic tables


Figure 103: Quick-service restaurant clusters, June 2011

Figure 104: Breakfast daypart usage percentage, by quick-service restaurant clusters, June 2011

Figure 105: Breakfast daypart usage mean, by quick-service restaurant clusters, June 2011

Figure 106: Lunch daypart usage percentage, by quick-service restaurant clusters, June 2011

Figure 107: Lunch daypart usage mean, by quick-service restaurant clusters, June 2011

Figure 108: Dinner daypart usage percentage, by quick-service restaurant clusters, June 2011

Figure 109: Dinner daypart usage mean, by quick-service restaurant clusters, June 2011

Figure 110: All three meals usage mean, by quick-service restaurant clusters, June 2011

Figure 111: Important attributes in QSR by quick-service restaurant clusters, June 2011

Figure 112: Items consumers desire to see more of at fast-food restaurants by quick-service restaurant clusters, June 2011

Figure 113: Spending at fast-food restaurants compared to last year by quick-service restaurant clusters, June 2011

Figure 114: Behaviors regarding fast-food restaurants by quick-service restaurant clusters, June 2011

Cluster demographic tables


Figure 115: Quick-service restaurant clusters, by gender, June 2011

Figure 116: Quick-service restaurant clusters, by age, June 2011

Figure 117: Quick-service restaurant clusters, by household income, June 2011

Figure 118: Quick-service restaurant clusters, by race, June 2011

Figure 119: Quick-service restaurant clusters, by Hispanic origin, June 2011

Cluster methodology


Custom Groups—Light, Medium, and Heavy Users


Figure 120: Reasons for choosing specific quick-serve restaurants, by usage, June 2011

Figure 121: Items consumers desire to see more of at fast-food restaurants, by usage, June 2011

Figure 122: Spending at fast-food restaurants compared to last year, by usage, June 2011

Figure 123: Behaviors regarding fast-food restaurants, by usage, June 2011

Figure 124: Quick Serve ordering behaviors, by usage, June 2011

Figure 125: Dollar/value menu purchase behaviors, by usage, June 2011

Appendix—Trade Associations


  • ABP Corporation
  • AFC Enterprises Inc.
  • American Dietetic Association (ADA)
  • Applebee's International Inc.
  • Arby's Restaurant Group
  • Auntie Anne's, Inc.
  • Blimpie International Inc.
  • Bloomberg L.P.
  • Bojangles Restaurants, Inc.
  • Bruegger's Enterprises Inc.
  • Bureau of Economic Analysis
  • Burger King Corporation
  • California Pizza Kitchen Inc.
  • Captain D's Inc.
  • Caribou Coffee Company Inc.
  • Carvel Corporation
  • Centers for Disease Control and Prevention
  • Checkers Drive-In Restaurants Inc.
  • Church's Chicken
  • Cinnabon, Inc.
  • CKE Restaurants Inc.
  • Coca-Cola Company (The) (USA)
  • Cold Stone Creamery
  • Culver Franchising System, Inc.
  • Darden Restaurants Inc.
  • Del Taco, Inc.
  • Denny's Corporation
  • Domino's Pizza LLB
  • Dunkin' Brands
  • Einstein Noah Restaurant Group Inc.
  • El Pollo Loco Holdings, Inc.
  • Facebook, Inc.
  • Fazoli's Restaurants, Inc.
  • Flickr
  • Food and Drug Administration
  • Food Distributors International
  • Food Marketing Institute
  • Foursquare
  • GE Capital
  • Groupon, Inc.
  • Hardee's Food Systems, Inc.
  • In-N-Out Burgers, Inc.
  • International Food Information Council Foundation (IFIC)
  • International Food Service Executives Association (IFSEA)
  • International Foodservice Distributors Association (IFDA)
  • International Foodservice Manufacturers Association (IFMA)
  • International Franchise Association (IFA)
  • Jamba Juice Company
  • Kahala Corp.
  • Kantar Media
  • KFC Corporation
  • Long John Silver's Inc.
  • Los Angeles Times
  • McDonald's U.S.A.
  • MidOcean Partners
  • Moe's Southwest Grill, LLC
  • National Broadcasting Company, Inc. (NBC)
  • National Council of Chain Restaurants (NCCR)
  • National Restaurant Association (NRA)
  • National Retail Federation (NRF)
  • Newman's Own Inc.
  • Organic Trade Association
  • P.F. Chang's China Bistro Inc.
  • Panda Restaurant Group Inc.
  • Panera Bread Company
  • Papa John's International, Inc.
  • Papa Murphy's International Inc.
  • Pepsi-Cola North America
  • Pizza Hut Inc
  • Planet Smoothie Franchises LLC
  • Potbelly Sandwich Works
  • Produce Marketing Association
  • Qdoba Restaurant Corporation
  • Reuters Group PLC
  • Rubio's Restaurants Inc.
  • Sbarro, Inc
  • Schlotzsky's Inc.
  • Sheetz, Inc
  • Smashburger Master LLC
  • Sonic Corp.
  • Starbucks Corporation
  • Subway
  • Sun Capital Partners, Inc.
  • Taco Bell Corp.
  • Taco John's International, Inc.
  • The Conference Board
  • The Krystal Company
  • The New York Times Company
  • The Quiznos Master LLC
  • The Wendy's Company
  • Turner Broadcasting System, Inc.
  • Twitter, Inc.
  • U.S. Bureau of Labor Statistics
  • U.S. Bureau of the Census
  • U.S. Department of Agriculture
  • University of Michigan, The
  • US Department of Commerce
  • USA Today
  • Whataburger Restaurants LP
  • White Castle System, Inc.
  • Wingstop Restaurants, Inc.
  • Yelp Inc.
  • YouTube, Inc.
  • Yum! Brands Inc.
Registered office :

Mintel Group Ltd.
11 Pilgrim Street, London, EC4V 6RN
Registered in England: Number 1475918.

Geolocation by www.maxmind.com