Author: Mintel Group Ltd.
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Quick Service Restaurants - US - August 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Mintel Menu Insights
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market size
Figure 1: Total U.S. retail sales of quick service restaurants, at current prices, 2008-18
Market drivers
Opportunities
Marketing strategies
Menu analysis
Figure 2: Segment breakdown of food menu items at restaurants, by incidence, Q1 2010-13
Figure 3: Menu breakdown of food menu items at quick service restaurants, by incidence, Q1 2010-13
The consumer
Figure 4: Drivers for quick service restaurant visits, by gender, May 2013
Figure 5: Desired improvements for quick service restaurants, by gender, May 2013
What we think
ISSUES AND INSIGHTS
Quick serves compete on price, even as costs rise
The issues
The implications
Quick serves answer to the threat of fast casuals
The issues
The implications
Capitalizing on the aspects of QSR that consumers value most
The issues
The implications
INNOVATORS AND INNOVATIONS – PRICING
Pricing strategies
Dollar and Value Menus
Limited time offers
INNOVATORS AND INNOVATIONS – FAST CASUALIZATION
Better-For-You alternatives are attractive to consumers
Customization creates upscale items at low cost
Gourmet items for sophisticated consumers
Salads and wraps highlight fresh ingredients
Upscale breads, upscale image
Remodeling
Transparency
INNOVATORS AND INNOVATIONS: CORE COMPETENCIES
Standing out during breakfast
Kids’ offerings: Healthful and fun
Late night daypart
Menu variety appeals to consumers
Co-branding taps into the familiar
Crowdsourcing reaches core consumers
LTO beverages help drive interest
ENTICING CONSUMERS WITH TECHNOLOGY
Real-world applications
Décor makes consumers more comfortable
TREND APPLICATIONS
Trend: Minimize Me
Trend: Experience Is All
Mintel Futures: Access Anything, Anywhere
MARKET SIZE AND FORECAST
Key points
Market size insight
Quick service restaurant sales and forecast
Figure 6: Total U.S. retail sales of quick service restaurants, at current prices, 2008-18
Figure 7: Total U.S. retail sales of quick service restaurants, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 8: Total U.S. retail sales of quick service restaurants, at current prices, 2008-18
MARKET DRIVERS
Economic indicators
Rising commodity prices
Government legislation
Cultural diversity
Millennials drive usage
Childhood obesity and diabetes
COMPETITIVE CONTEXT
Grocery stores
Food trucks, kiosks and walk-ups
Convenience stores
Fast casual restaurants
Full-service restaurants
MARKETING STRATEGIES
Overview of the brand landscape
Television advertisements
Arby’s
Burger King
McDonald’s
Subway
Taco Bell
Wendy’s
Crowdsourcing – the power of consumer feedback
Interactive marketing
Sweepstakes and contests
In-store games
Co-branding tie-ins
Endorsements and sponsorships
Causes and charitable programs
Local community involvement
MENU ANALYSIS – FOOD ITEMS
Segment overview
Figure 9: Segment breakdown of food menu items at restaurants, by incidence, Q1 2010-13
Menu section
Figure 10: Menu breakdown of food menu items at quick service restaurants, by incidence, Q1 2010-13
Menu items
Figure 11: Top 10 food menu items at quick service restaurants, by incidence, Q1 2010-13
Marketing claims
Figure 12: Top 10 marketing claims for food menu items at quick service restaurants, by incidence, Q1 2010-13
Nutritional claims
Figure 13: Top 10 nutritional claims for food menu items at quick service restaurants, by incidence, Q1 2010-13
Geographical claims
Figure 14: Top 10 geographical claims for food menu items at quick service restaurants, by incidence, Q1 2010-13
Kids’ menu items
Figure 15: Top 10 kids’ menu items at quick service restaurants, by incidence, Q1 2010-13
MENU ANALYSIS – DRINK ITEMS
Segment overview
Figure 16: Segment breakdown of beverage menu items at restaurants, by incidence, Q1 2010-13
Menu items
Figure 17: Top 10 beverage menu items at quick service restaurants, by incidence, Q1 2010-13
Marketing claims
Figure 18: Top 10 marketing claims for drink items at quick service restaurants, by incidence, Q1 2010-13
Nutritional claims
Figure 19: Top 10 nutritional claims for menu items at quick service restaurants, by incidence, Q1 2010-13
QUICK SERVICE RESTAURANT USAGE AND DAYPARTS
Key points
Burger concepts are consistently popular throughout all dayparts
Figure 20: Quick service restaurant usage and dayparts, May 2013
Men are more likely to visit most quick serve types compared to women
Figure 21: Any quick service restaurant usage and dayparts, by gender, May 2013
Figure 22: Any daypart usage, by gender, May 2013
Young consumers more likely to visit most QSR types and dayparts
Figure 23: Any quick service restaurant usage and dayparts, by age, May 2013
Figure 24: Any daypart usage, by age, May 2013
Middle class visit Mexican and Asian quick serves more than other groups
Figure 25: Any quick service restaurant usage and dayparts, by household income, May 2013
Blacks visit chicken concepts more than any other group, while Asians choose Asian, beverage and snack QSRs
Figure 26: Any quick service restaurant usage and dayparts, by race, May 2013
Figure 27: Any daypart usage, by race, May 2013
Hispanics more likely than non-Hispanics to use every QSR type
Figure 28: Any quick service restaurant usage and dayparts, by Hispanic origin, May 2013
Figure 29: Any daypart usage, by Hispanic origin, May 2013
Regional differences emerge in QSR type and daypart preferred
Figure 30: Any quick service restaurant usage and dayparts, by region, May 2013
Figure 31: Any daypart usage, by region, May 2013
CHANGES IN BEHAVIOR AT QUICK SERVICE RESTAURANTS
Key points
Consumers are restricting spending by cooking at home and using deals
Figure 32: Changes in behavior at quick service restaurants, May 2013
Women are more budget-conscious but seek healthful, upscale items
Figure 33: Changes in behavior at quick service restaurants (more), by gender, May 2013
Millennials are significant, but trade up to fast casual the most
Figure 34: Changes in behavior at quick service restaurants (more), by age, May 2013
Hispanics are looking for increased value in terms of price and quality
Figure 35: Changes in behavior at quick service restaurants (more), by Hispanic origin, May 2013
DRIVERS FOR QUICK SERVICE RESTAURANTS
Key points
Consumers most interested in on-the-go consumption and drive-thrus
Figure 36: Drivers for quick service restaurant visits, by gender, May 2013
Young consumers find low prices and snack items to be most important
Figure 37: Drivers for quick service restaurant visits, by age, May 2013
Low-income consumers are willing to sacrifice speed for low prices
Figure 38: Drivers for quick service restaurant visits, by household income, May 2013
Blacks seek craveable items, while Asians look for affordable combo meals
Figure 39: Drivers for quick service restaurant visits, by race/Hispanic origin, May 2013
Hispanics are more likely to seek affordable combo meals at quick serves
Figure 40: Drivers for quick service restaurant visits, by race/Hispanic origin, May 2013
DESIRED IMPROVEMENTS FOR QUICK SERVICE RESTAURANTS
Key points
Consumers seek items with lower calories and higher amounts of produce
Figure 41: Desired improvements for quick service restaurants, by gender, May 2013
Young consumers want customized smoothies and juices, while older consumers desire smaller items at lower prices
Figure 42: Desired improvements for quick service restaurants, by age, May 2013
Low-income consumers seek smoothies and juices, while affluent consumers want healthful items that are low in calories
Figure 43: Desired improvements for quick service restaurants, by household income, May 2013
Whites and Asians seek healthier items in terms of calories and ingredients
Figure 44: Desired improvements for quick service restaurants, by race/Hispanic origin, May 2013
Hispanics desire a greater variety of breakfast and coffee selections
Figure 45: Desired improvements for quick service restaurants, by race/Hispanic origin, May 2013
CONSUMER BEHAVIOR AT QUICK SERVICE RESTAURANTS
Key points
Consumers order the same things using to-go or drive-thrus
Figure 46: Consumer behavior at quick service restaurants, by gender, May 2013
Young consumers price sensitive, but seek customization; older consumers most likely to order coffee and breakfast
Figure 47: Consumer behavior at quick service restaurants, by age, May 2013
Low-income consumers visit QSRs due to price and order off dollar menu, middle class use drive-thru, and affluent desire customization
Figure 48: Consumer behavior at quick service restaurants, by household income, May 2013
Blacks use drive-thrus and eat in transit; Asians buy coffee and breakfast
Figure 49: Consumer behavior at quick service restaurants, by race/Hispanic origin, May 2013
Hispanics buy food and drink at breakfast, choosing QSRs over sit-downs
Figure 50: Consumer behavior at quick service restaurants, by race/Hispanic origin, May 2013
Northeasterners like breakfast; Midwesterners create dollar menu meals
Figure 51: Consumer behavior at quick service restaurants, by region, May 2013
CONSUMER ATTITUDES TOWARD QUICK SERVICE RESTAURANTS
Key points
Women want upscale, healthful items; men want a better dine-in experience
Figure 52: Consumer attitudes toward quick service restaurants (any agree), by gender, May 2013
Young consumers are looking for healthful items and dine-in ambience
Figure 53: Consumer attitudes toward quick service restaurants (any agree), by age, May 2013
Hispanics view freshness and healthiness as separate food qualities
Figure 54: Consumer attitudes toward quick service restaurants (any agree), by Hispanic origin, May 2013
Westerners see QSRs as cheap; Northeasterners see QSRs as unhealthful
Figure 55: Consumer attitudes toward quick service restaurants (any agree), by region, May 2013
CLUSTER ANALYSIS
Super Users
Demographics
Characteristics
Opportunity
Fancy Pants
Demographics
Characteristics
Opportunity
Budget Bills
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 56: Target clusters, May 2013
Figure 57: Any quick service restaurant usage and dayparts, by target clusters, May 2013
Figure 58: Any daypart usage, by target clusters, May 2013
Figure 59: Changes in behavior at quick service restaurants (more), by target clusters, May 2013
Figure 60: Changes in behavior at quick service restaurants (more), by target clusters, May 2013
Figure 61: Drivers for quick service restaurant visits, by target clusters, May 2013
Figure 62: Desired improvements for quick service restaurants, by target clusters, May 2013
Figure 63: Consumer behavior at quick service restaurants, by target clusters, May 2013
Figure 64: Consumer attitudes toward quick service restaurants (any agree), by target clusters, May 2013
Cluster demographic tables
Figure 65: Target clusters, by demographic, May 2013
Cluster methodology
APPENDIX – ADDITIONAL TABLES
Figure 66: Any daypart usage, by household income, May 2013
Figure 67: Changes in behavior at quick service restaurants (more), by household income, May 2013
Figure 68: Changes in behavior at quick service restaurants (more), by race, May 2013
Figure 69: Changes in behavior at quick service restaurants (more), by region, May 2013
Figure 70: Drivers for quick service restaurant visits, by region, May 2013
Figure 71: Desired improvements for quick service restaurants, by region, May 2013
Figure 72: Consumer attitudes toward quick service restaurants (any agree), by household income, May 2013
Figure 73: Consumer attitudes toward quick service restaurants (any agree), by race, May 2013
APPENDIX – MARKET DRIVERS
Consumer confidence
Figure 74: University of Michigan’s Index of Consumer Sentiment (ICS), 2007-13
Unemployment
Figure 75: U.S. unemployment rate, by month, 2002-13
Figure 76: U.S. unemployment and underemployment rates, 2007-13
Figure 77: Number of employed civilians in U.S., in thousands, 2007-13
Food cost pressures
Figure 78: Changes in USDA Food Price Indexes, 2011 through June 25, 2013
Obesity
Figure 79: American adults by weight category as determined by body mass index (BMI), 2008-June 20, 2013
Childhood and teen obesity – highest in decades
Figure 80: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
Racial, ethnic population growth
Figure 81: U.S. population by race and Hispanic origin, 2008, 2013, and 2018
Figure 82: Households with children, by race and Hispanic origin of householder, 2012
Shifting U.S. demographics
Figure 83: U.S. population, by age, 2008-18
Figure 84: U.S. households, by presence of own children, 2002-12
APPENDIX – TRADE ASSOCIATIONS

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