Brandtailers’ Post

The chicken segment is one of the most dynamic and competitive among the large restaurant chains in the U.S. And while Chick-fil-A continues to dominate and Popeyes is taking over second in the rank, there has been significant movement in the rank among other mid-size leading chains over the last ten years.   It goes to show that in the restaurant industry, you can never rest. Leaders are waking up to the realization that if they’re not growing fast they’re dying slowly.   Outgrowing and outsmarting your competitors requires using the power of long-term thinking and a dynamic mix of internal and external talent.   #restaurants #chicken #strategy

Recently CNBC published an article entitled "Every restaurant chain wants to beat Chick-fil-A, but it's stronger than ever.” Considering some of the impressive stats shared about Chick-fil-A, it’s no wonder that competitors have set their sights on the chain. For example, the average non-mall Chick-fil-A location does $8.7M in sales annually which is nearly 2.5 times the annual sales of an average McDonald’s location that has been open for at least a year. Another example, Chick-fil-A’s market share in the chicken fast food category is almost four times the market share of the next largest chain, and is more than the market shares of the next five competitors combined (i.e., Popeyes, KFC, Raising Cane’s, Wingstop, Zaxby). These are amazing business results to say the least. This article makes a lot of great points about Chick-fil-A’s success, but it positions a chicken-centric menu as the secret ingredient of Chick-fil-A’s success, and I think that misses the point. If it was just about the chicken or the size of its footprint, shouldn’t KFC be the chain that everyone is chasing? The secret sauce that fuels Chick-fil-A is Customer Obsession. They have built their reputation on the superior experience they deliver, and that’s what has converted their customers into rabid fans vs. casual consumers. If other chains want to catch up that’s the page they need to take out of the Chick-fil-A playbook. #customerobsession #customerobsessed #customerexperience #cx #chickfila #cnbc

IN 2 MINUTES, I'LL GIVE YOU THE TRUTH ABOUT EVERY RESTAURANT CHAIN WANTS TO BEAT CHICK-FIL-A, BUT IT’S STRONGER THAN EVER Chick-fil-A, founded in 1967, has secured its position as the third-largest U.S. restaurant chain, dominating the chicken fast-food category with an annual average sales of $8.7 million per non-mall franchised location, despite being closed on Sundays. In comparison, McDonald’s, the largest U.S. chain, faces challenges matching Chick-fil-A's unit volumes and customer service reputation. The chicken sandwich wars of 2019 marked a turning point, with Chick-fil-A's market share growing to 45.5% in 2023, while competitors like Popeyes aim to challenge its dominance. Chicken's rising popularity, lower prices, and stable costs contribute to the industry's growth. #chickenfastfood #marketdominance #chickfilasuccess https://buff.ly/3RAyetH

Amid changes in the restaurant industry, there seems to be a decline in “value” menu items, which were once a big draw to many chains and franchises, but not at Happy Joe's 🍕. A reduction in portion size may, or may not, be what's necessary for some brands to keep pace with inflation. But without offering something of real value many restaurants may lose steam when it comes to customer interest and eventually have to close. Restaurants like Happy Joe's 🍕 need to get creative with new menu products that guests still see as a value and not a discount OR a reduction in size to drive guests in. #Restaurant #Leadership #RestaurantBusiness

McDonald’s expects to open nearly 10,000 restaurants over the next four years, a pace of growth that would be unprecedented even for the world’s largest burger chain. Ahead of a day-long event for investors, the Chicago burger giant said Wednesday that it aims to have 50,000 restaurants in operation worldwide by the end of 2027. McDonald’s had 40,275 restaurants at the start of this year. Other national chains are expanding at a rapid clip as well. Starbucks said last month it expects to have 55,000 stores globally by 2030, up from 38,000 today. More details are expected Wednesday during McDonald’s investor event, including where store growth will be concentrated. The company also announced a partnership with Google Cloud, which it said Wednesday will help it accelerate automated services and reduce complexity for its employees. McDonald’s same-store sales rose nearly 9% worldwide in the third quarter, even as U.S. traffic fell slightly. The company is focused on core menu items like Quarter Pounders and fries which, according to McDonald’s, make up 65% of sales systemwide. Burgers with softer, freshly toasted buns, meltier cheese and more Big Mac sauce are coming to U.S. restaurants by the end of 2024 and most other markets by the end of 2025. McDonald’s said chicken sales are now on par with beef, and it plans to bring its McCrispy sandwich to nearly all global markets by 2025. READ ALSO: First McDonald’s in North Island history opens in Port Hardy Source link

Is this big news? McDonald’s already offers chicken sandwiches. Seems to be a sign of an innovation dry spell. I am getting the same feeling from this as when I read that BMW was charging owners to use their seat warmers. A good sign the company as a whole is running out of new ideas. Granted there is only so much they can do as a fast-food restaurant. For example, some time ago, McDonald’s wanted to add a shrimp salad to the menu. After a thorough analysis they discovered they could either start and manage their own shrimp farms or buy nearly half of the annual shrimp production from the seafood industry. This may be a good thing for them and their customers, but time will tell. One measure I use is how long they keep it on the menu. They do offer promotional and seasonal items; McFlurry and McRib. It is when it reaches the menu rotation of Taco Bell you will begin to think they have truly run out of genuine ideas. I suppose this is as good as it gets in the fast-food world but what about your product or service? Toyota changed the new model cycle of every three years. But on the other hand, consumers are not expecting a great deal from their design department. There is a great deal that goes into determining when and how much change is brought to the market:  ·        Frequency of repeat customers ·        Price points ·        Changes in technology ·        Trends ·        What you are solving with your solution Viewing McDonald’s new menu item with these bullets in mind, it may be a hit… for a few months. Does your offering evolve with your customer needs, or do you aim for a pop in sales? #solutions #productlaunch #newproducts

https://lnkd.in/eBzDgiwn Very interesting news that Wendy's is planning on Dynamic Pricing next year, which I believe is a first for a major QSR (Quick Service Restaurant) chain. As PPS Board of Advisors member, Martin Coalson, and others reminded me, Coca-Cola tried this briefly during the 1996 Olympic Games here in Atlanta, and it did not go over well. Customers did not accept the price of a vending machine soft drink increasing in hot temperatures. As we all know, "Culture eats Strategy for Breakfast" (Drucker) and QSRs have decades of Happy Meal / Dollar Menu culture where they have trained the marketplace to expect something very different from Dynamic Pricing. I think that this will be an interesting experiment. Pricing is everywhere... #pricing #pricingstrategy #pricingtraining #pricingstrategies #quickservicerestaurant #revenuemanagement #revenue #profit #profitability #profitablegrowth #restaurant #restaurants #business #businessanalysis #businessstrategy

Lots of buzz today about Papa Johns CEO Rob Lynch getting ready to make the jump to Shake Shack to replace Randy Garutti upon his retirement - mostly, people seem to be surprised by the move. And I can see why, because at a glance, what do QSR pizza and fast-casual burgers really have in common? But Joanna Fantozzi is here with this excellent analysis on why this transition actually makes a lot of sense. Check it out on Nation's Restaurant News.

It's exciting to see how the c-store space continues to evolve, especially where they invest resources when it comes to food service. We're seeing more and more c-store brands come through the Middleby Innovation Kitchen (if you haven't been yet, let me know, we'll get you a tour), or talking to us at events like NACS, National Restaurant Association & Restaurant Facility Management Association about their programs, and how those programs are evolving & expanding. Selling food, especially good food, makes sense and the data proves it: -- Casey's gross margin on prepped #foodandbeverage is around 60%, while margin on fuel is closer to 10% --They're the 5th largest pizza #restaurant in the US, and 75% of their in-store transactions don't involve fuel -- Circle K owner Couche-Tard, has set a target of increasing #food rev by a compound annual rate of 10% over the next 5 years Powerhouse Dynamics The Middleby Corporation #restaurants #retail Jeff McFarland Michelle Fronsee

Interesting news today that Yum! Brands, owner of KFC, Pizza Hut, and Taco Bell, saw a decline in sales for the first time since the pandemic. This could signal a shift in consumer spending habits, with people dining out less often. What do you think is driving this? Is it inflation causing sticker shock, or are preferences changing? Recently, Red Lobster, another seafood restaurant chain, has also been facing financial difficulties. While they haven't declared bankruptcy yet, this highlights the challenges facing the restaurant industry. Maybe the decline in sales faced by Restaurants in the US points to a need for menu innovation, an overhaul of the management structure or promotions to keep up with the competition. I will be glad to receive thoughts on this. #fastfood #restaurants #consumertrends #inflation #yumbrands #kfc #pizzahut #tacobell #redlobster