2020
9
UK The Future of Quick Service Restaurants Market Report 2020
2020-10-09T04:01:34+01:00
OX989444
2195
125756
[{"name":"Fast Food","url":"https:\/\/store.mintel.com\/industries\/foodservice\/fast-food"}]
Report
en_GB
“As most QSR operators are forced to streamline their business in response to COVID-19, menu innovation needs to focus on healthful choices as well as broadening consumers’ at-home experiences. These…

UK The Future of Quick Service Restaurants Market Report 2020

£ 2,195 (Excl.Tax)

Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the The Future of Quick Service Restaurants: Incl Impact of COVID-19 – UK market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Mintel’s COVID-19 Tracker shows that consumer confidence in eating out is gradually improving, with 42% of Brits saying they would feel comfortable going to an outdoor restaurant/bar as of 3–11 September, compared to 27% at the end of June (on the eve of premises reopening). Whilst it is important for the market to maintain the momentum of August’s eating out participation helped by the government’s ‘Eat Out to Help Out’ (EOHO) scheme, consumers’ “discount mindset” is likely to persist in the face of tighter household budgets and rising unemployment in the UK.

Expert analysis from a specialist in the field

Written by Trish Caddy, a leading analyst in the Foodservice sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

As most QSR operators are forced to streamline their business in response to COVID-19, menu innovation needs to focus on healthful choices as well as broadening consumers’ at-home experiences. These include diet-specific meals as well as meal kits featuring fast food recipes
Trish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Products covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
  2. Executive Summary

    • Impact of COVID-19 on QSRs
      • Figure 1: Expected impact of COVID-19 on QSR, in short, medium and long-term, 11 September 2020
    • The market
    • Sharp recovery expected after record decline in market value
      • Figure 2: Forecast value of the UK foodservice market (adjusted for COVID-19 on 19 August 2020), 2015-25
    • VAT cut and EOHO scheme
    • Companies and brands
    • Resurgence of price cuts
    • The consumer
    • Government’s ‘rule of six’ hits consumer confidence towards eating out
      • Figure 3: Comfort level of going out to eat, 23 July – 11 September 2020
    • Some QSR consumers plan to visit less frequently or not at all
      • Figure 4: Changes in QSR eat-in and takeaway/home delivery frequency after lockdown, June 2020
    • A new consumer sensibility around COVID-19 has emerged
      • Figure 5: Reasons for eating in less or not at all, June 2020
    • The importance of tiered pricing
      • Figure 6: Purchase drivers for QSRs, June 2020
    • Menu innovation needs to focus on health and at-home experiences
      • Figure 7: Interest in QSR innovations, June 2020
    • Targeting the flexitarian
      • Figure 8: Behaviours regarding QSRs, June 2020
  3. COVID-19 and QSR

    • Impact on the market
    • VAT cut and EOHO scheme helped kickstart the foodservice market
    • Flexible working practices will redistribute foodservice spend
    • Impact on consumers
    • ‘Rule of six’ hits consumer confidence towards eating out
    • Brand communication needs to focus on COVID-19 fears
    • Important to promote quality at a good price
    • Impact on companies and brands
    • Scope for QSR-branded meal kits
    • Scope for QSR-branded crisps
    • Resurgence of price cuts
  4. Issues and Insights

    • Balancing technology and the human element
    • Pushing the plastic waste agenda forward
    • Making plant-based options more accessible
  5. The Market – Key Takeaways

    • Growth restricted by the lasting impact of COVID-19
    • Government’s obesity strategy’s impact on QSR
    • VAT cut and EOHO scheme helped kickstart the foodservice market
  6. Market Drivers

    • VAT cut and EOHO scheme helped kickstart the foodservice market
    • The UK foodservice sector enjoyed the biggest boost in August
      • Figure 9: Venues visited in August, 13 August-4 September 2020
    • Most sales in August were assisted by EOHO
      • Figure 10: Usage of Eat Out to Help Out discount scheme in August, 13 August-4 September 2020
    • New government measures centres of social distancing
    • ‘Rule of six’ comes into effect …
    • … and hits confidence over eating out
      • Figure 11: Comfort level of going out to eat, 23 July-11 September 2020
    • Government’s obesity strategy’s impact on QSR
    • A challenging economy will hurt demand for QSRs
    • Learnings from the last recession
      • Figure 12: UK chicken and burger bar market, value sales, 2007-12
    • Consumers are still holding up the eating out market
      • Figure 13: Trends in consumer sentiment for the coming year, January-July 2020
    • Decline of the workforce
      • Figure 14: Unemployment rate forecast, 2020-2024
    • QSRs push the plastic waste agenda forward
    • Deepening technological capabilities
    • Contact-free services become normal
    • NHS Test and Trace data in the hospitality sector
  7. Companies and Brands – Key Takeaways

    • Walkers teams up with restaurant chains
    • McDonald’s is well-placed to profit from suburban and rural areas
    • Resurgence of price cuts
    • Burger King’s Rebel Whopper ads banned
  8. Launch Activity and Innovation

    • Walkers teams up with restaurant chains for Taste Icons crisps range
      • Figure 15: Walkers Taste Icons’ range of restaurant-branded crisps,
    • Resurgence of QSR food franchising
    • Scope for QSR-branded meal kits
  9. Advertising and Marketing Activity

    • QSRs foster brand awareness among consumers from a young age
      • Figure 16: Advertising expenditure by selected QSRs, 2018-20
    • McDonald’s ‘Welcome Back’ captures the joy of its fans
    • KFC drops slogan in response to COVID-19
    • Burger King’s Rebel Whopper ads banned
    • Resurgence of price cuts
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand map
      • Figure 17: Attitudes towards and usage of selected brands, June 2020
    • Key brand metrics
      • Figure 18: Key metrics for selected brands, June 2020
    • Brand attitudes: QSRs are not considered to be worth paying more for
      • Figure 19: Attitudes, by brand, June 2020
    • Brand personality: most QSRs are seen as fun and accessible
      • Figure 20: Brand personality – macro image, June 2020
    • McDonald’s is the most recognisable family brand
      • Figure 21: Brand personality – micro image, June 2020
    • Brand analysis
    • Greggs stands out as a brand that people trust, is consistently high quality and offers good value
      • Figure 22: User profile of Greggs, June 2020
    • Subway thrives as a value chain
      • Figure 23: User profile of Subway, June 2020
    • Only 27% trust Pret A Manger
      • Figure 24: User profile of Pret A Manger, June 2020
    • McDonald’s outranks the others as a unique and innovative brand
      • Figure 25: User profile of McDonald’s, June 2020
    • Time for KFC to change narrative to a healthful and caring one
      • Figure 26: User profile of KFC, June 2020
  11. The Consumer – Key Takeaways

    • Post-COVID-19: two Trend Drivers of growth
    • Wellbeing
    • Value
    • Menu innovation needs to focus on better-for-you choices
    • Targeting the flexitarian
  12. Impact of COVID-19 on Consumer Behaviour

    • ‘Rule of six’ hits consumer confidence towards eating out
      • Figure 27: Comfort level of going out to eat, 23 July-1 September 2020
    • Make indoors feel safe again
      • Figure 28: Proportion of consumers who feel uncomfortable going to a restaurant/bar indoors, by age group, 3-11 September 2020
    • Continue to deliver
      • Figure 29: Spending intent over the next month, 25 June-11 September 2020
  13. Pre-COVID-19 QSR Participation

    • Young Britons are core consumers of QSRs
      • Figure 30: QSR participation before the pandemic, June 2020
    • Young families frequently visit QSRs
      • Figure 31: QSR frequency of visits before the pandemic, June 2020
  14. The Impact of QSR Frequency after Lockdown

    • Future QSR takeaway participation far more promising than eating-in
    • Full-time workers and older consumers plan to cut back on takeaways
      • Figure 32: Changes in QSR eat-in and takeaway/home delivery frequency after lockdown, June 2020
    • Sense and sensibility: a better way to engage diners amid COVID-19
    • 1) Prioritising safety
    • 2) Prioritising wellbeing
    • 3) Make it worthwhile
      • Figure 33: Reasons for eating in less or not at all, June 2020
  15. Purchase Drivers for QSRs

    • Important to promote quality at a good price
      • Figure 34: The amount consumers are willing to spend on a standard meal, June 2020
    • 1) Resurgence of tiered pricing
      • Figure 35: Purchase drivers for QSRs, June 2020
    • 2) Convenience that centres on quality and assurance
  16. Interest in QSR Innovations

    • Young consumers will adopt QSR innovations
      • Figure 36: Food behaviours, August 2019-September 2020
    • Better-for-you menu choices
    • Nutritious drinks
    • Diet-specific choices
      • Figure 37: Interest in QSR innovations, June 2020
    • Choices for customers at home
    • Meal kits
      • Figure 38: Pizza in the Post: how to, video by Pizza Pilgrim
    • Frozen food
    • Packaged snacks
  17. Behaviours towards QSRs

    • Safety first
      • Figure 39: Behaviours regarding QSRs, June 2020
    • Targeting the flexitarian
    • Plant-based meals will be less expensive
    • QSRs will focus on meat-free innovation
    • Futurist foodservice
    • A focus on waste
    • Rise of the machines
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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