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The American Fast Food Frenzy July 2016

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The American Fast Food Frenzy July 2016 The American Fast Food Frenzy July 2016 Lovin’ It: The American Fast Food Frenzy | Page 1 LOVIN’ IT: THE AMERICAN FAST FOOD FRENZY Fast-food restaurants are a staple of American life, and the Quick Service Restaurant (“QSR”) industry generated over $200 billion in revenue from over 200,000 establishments around the country in 2015.* Given the importance of the QSR industry to the economy and its continual presence in the lives of most Americans, we wanted to explore consumer opinion and behavior when it comes to dining on the go. The findings in this report are derived from a survey of 1,104 American adults aged 18+ who have eaten fast food in the past year, representing approximately 75% of the US population. SOME OF THE KEY FINDINGS INCLUDE: • More than half (54%) of those who eat fast food do so at least once per week. • Nearly as many fast food eaters prefer fast casual (e.g. Panera Bread & Chipotle, 46%) restaurants to traditional fast-food restaurants (e.g. McDonalds & KFC, 54%). • Taste (40%) & location (20%) are the most common reasons to choose a fast-food restaurant. • Lunch (51%) is the most popular fast food meal. • Burgers (30%) and pizza (20%) are the most popular fast food options. • Having healthy options on the menu plays a major role in choosing fast-food restaurants for a large segment (39%) of fast food consumers. • Consumers show limited loyalty to fast-food restaurants (29%), but loyal customers visit their favorite fast-food restaurants with greater frequency (67% visit at least once per week) than non-loyal consumers (47%) • Email and social media are effective marketing channels for increasing consumer loyalty and driving visits. 34% of those surveyed indicated that receiving emails from a QSR made them much more likely to visit and 44% of those who engage with QSR brands on social media said that it had a similar effect. We hope that you will enjoy the report and welcome your feedback! –The Fluent Research Team [email protected] * IBISWorld, Fast food Restaurants in the US: Market Research Report, May 2016 Lovin’ It: The American Fast Food Frenzy | Page 2 FAST FOOD IS A PART OF THE FABRIC OF AMERICA Over half of Americans who eat fast food do so at least once per week. A majority (56%) of those who eat fast food at least once per week do so more than once per week. The median meal price is just over $7.50 per meal. ABOUT HOW OFTEN DO YOU EAT AT FAST-FOOD HOW MUCH DO YOU TYPICALLY PAY FOR A RESTAURANTS? FAST-FOOD MEAL? 12% 35% At least once 34% a year 30% 25% 26% 54% 20% At least once a week 15% 16% 34% 13% At least once 10% 11% a month 5% 0 UNDER $5 $5 TO $7.49 $7.50 TO $9.99 $10 TO $14.99 $15 OR MORE ABOUT HOW MANY DAYS A WEEK DO YOU EAT AT FAST-FOOD RESTAURANTS? Among respondents who eat fast food at least once a week 45% 40% 44% 35% 30% 25% 24% 20% 15% 16% 16% 10% 5% 0 0-1 2 3 4+ Lovin’ It: The American Fast Food Frenzy | Page 3 AMERICANS TYPICALLY CHOOSE FAST-FOOD RESTAURANTS BASED ON TASTE & LOCATION Americans most often consider taste the most important reason for visiting a fast-food restaurant, followed by location. Fast food consumers now prefer fast casual restaurants (46%) nearly as much as traditional fast-food restaurants (54%). WHAT IS MOST IMPORTANT TO YOU WHEN DO YOU PREFER TO EAT AT TRADITIONAL EATING AT A FAST-FOOD RESTAURANT? FAST-FOOD RESTAURANTS (e.g. McDonalds & KFC) OR NEWER FAST CASUAL RESTAURANTS TASTE 40% (e.g. Panera Bread & Chipotle)? LOCATION 20% CLEANLINESS 12% HEALTHY 10% 46% 54% OPTIONS Fast casual Traditional fast food SERVICE 9% VALUE 9% 0 10% 20% 30% 40% ON-THE-GO AMERICANS PREFER PICK UP FROM THE DRIVE-THRU Nearly 2 in 3 (63%) American fast food eaters prefer to take out from fast-food restaurants and a majority (56%) prefer to use the drive-thru window. DO YOU PREFER TO EAT-IN OR TAKE OUT FROM DO YOU PREFER TO ORDER INSIDE OR USE FAST FOOD RESTAURANT? THE DRIVE THRU WINDOW AT FAST-FOOD RESTAURANTS? 37% Eat-in 44% 56% 63% Use the drive Take out Order in thru window Lovin’ It: The American Fast Food Frenzy | Page 4 LUNCH IS THE TOP FAST-FOOD MEAL; ALL-DAY BREAKFAST IS POPULAR TOO Just over half of fast food eaters (51%) say lunch is the meal they eat most often. Similarly, all-day breakfast is popular with consumers as just over half (51%) prefer fast-food restaurants who serve all-day breakfast (51%). WHAT MEAL DO YOU EAT AT A FAST-FOOD DO YOU PREFER FAST-FOOD RESTAURANTS THAT RESTAURANT MOST OFTEN? SERVE ALL-DAY BREAKFAST? 4% - Snack 17% Breakfast 29% Dinner 51% 49% 51% Lunch No Yes BURGERS & PIZZA DOMINATE; ALCOHOL, NOT SO MUCH Burgers (30%) and pizza (20%) are the top two fast food meals of choice in the United States. In contrast, alcoholic drinks are not so popular at fast-food restaurants. Only about 1 in 4 (27%) fast food eaters report ever drinking alcohol at a fast- food restaurant and only 1 in 10 report ordering it regularly. WHAT DO YOU EAT MOST OFTEN AT FAST-FOOD HAVE YOU PURCHASED ALCOHOLIC DRINKS AT A RESTAURANTS? FAST-FOOD RESTAURANT? BURGERS 30% 10% Yes, purchase PIZZA 20% regularly CHICKEN 13% 17% Yes, purchased SANDWICHES 11% 73% before SALADS 9% No BREAKFAST ITEMS 6% DONUTS 1% SOMETHING ELSE 10% 0 10% 20% 30% Lovin’ It: The American Fast Food Frenzy | Page 5 HEALTHY OPTIONS ARE IMPORTANT TO MANY CONSUMERS Having healthy options on the menu plays a major role in choosing a fast-food restaurant for nearly 2 in 5 (39%) consumers and at least a minor role for another 2 in 5 (43%). 42% say they prefer to eat at fast-food restaurants that use non-GMO ingredients. HOW MUCH OF A ROLE DOES HAVING HEALTHY DO YOU PREFER TO EAT AT FAST-FOOD OPTIONS ON THE MENU PLAY IN CHOOSING A RESTAURANTS WHICH DO NOT USE INGREDIENTS FAST-FOOD RESTAURANT? FROM GENETICALLY MODIFIED CROPS? 50% 40% 43% 39% 30% 58% Don’t care 20% 17% 42% 10% Prefer Non-GMO 0 MAJOR MINOR NO ROLE ROLE ROLE SOCIAL RESPONSIBILITY CONCERNS MANY CONSUMERS 2 in 5 American fast food consumers say a restaurant’s publicly stated views influence whether they will eat at a fast-food restaurant. Similarly, nearly half do not think it is appropriate for restaurants to offer toys as part of children’s meals to incentivize visitation as some cities have experimented with banning such toys in children’s meals. WOULD A RESTAURANT’S PUBLICLY STATED DO YOU THINK IT IS APPROPRIATE FOR FAST- VIEWS ON SOCIAL ISSUES INFLUENCE WHETHER FOOD RESTAURANTS TO OFFER TOYS AS PART OF YOU WILL EAT THERE? MEALS FOR CHILDREN? 60% 45% 40% No 55% No Yes Yes Lovin’ It: The American Fast Food Frenzy | Page 6 MOBILE APPS HAVE BEGUN TO PERMEATE THE FAST FOOD LANDSCAPE Consumers are starting to adopt mobile apps in notable numbers and the ones that are downloading them typically have used the apps to order food. About 1 in 4 (26%) fast food eaters have downloaded a mobile app for a fast-food restaurant and a majority of app downloaders (56%) have used them to order food. HAVE YOU DOWNLOADED A MOBILE APP FROM A IF YES: HAVE YOU USED THE APP TO ORDER FAST-FOOD RESTAURANT? FOOD? 74% 26% 44% 56% No Yes No Yes EMAIL AND SOCIAL MEDIA DRIVE SALES DESPITE LIMITED REACH Fast-food restaurants are only reaching a limited number of consumers with email (24%) and social media (15%). However, these channels prove to be effective in promoting return visits amongst those consumers that they do reach as nearly 3 in 4 (73%) who receive emails and 9 in 10 who follow restaurants on social media say it makes them more likely to visit the restaurants. DO YOU REGULARLY RECEIVE EMAILS FROM ANY DO YOU FOLLOW ANY FAST-FOOD RESTAURANTS ON FAST-FOOD RESTAURANTS? SOCIAL MEDIA? 76% 24% 85% 15% No Yes No Yes IF YES: DO THESE EMAILS MAKE YOU MORE LIKELY TO IF YES: DOES FOLLOWING THESE RESTAURANTS ON VISIT THESE RESTAURANTS? SOCIAL MEDIA MAKE YOU MORE LIKELY TO VISIT THESE RESTAURANTS? 34% 39% 27% 44% 45% 12% Yes, much more likely Yes, somewhat more likely No Lovin’ It: The American Fast Food Frenzy | Page 7 CONSUMERS SHOW LIMITED LOYALTY TO FAST-FOOD RESTAURANTS Fewer than 1 in 3 American fast food eaters consider themselves loyal to any fast-food restaurant. Those who do consider themselves loyal visit their favorite restaurant far more frequently than non-loyal customers: While 2 in 3 (67%) self- proclaimed loyal customers visit their favorite fast-food restaurant at least once per week, fewer than half (47%) of non- loyal customers do so. DO YOU CONSIDER YOURSELF LOYAL TO ANY FAST-FOOD CHAINS? 29% 71% Yes No ABOUT HOW OFTEN DO YOU VISIT YOUR FAVORITE FAST-FOOD RESTAURANT? 40% All Loyal 30% 37% Not Loyal 35% 35% 30% 20% 18% 18% 18% 17% 17% 16% 10% 17% 13% 4% 12% 12% 0 MORE THAN ONCE PER WEEK MORE THAN ONCE PER LESS THAN ONCE ONCE PER WEEK ONCE PER MONTH PER MONTH MONTH SURVEY METHODOLOGY The survey conducted for this Fluent report was conducted online within the United States by on June 16, 2016 among 1,104 adults (aged 18 and up) who eat at fast food restaurant at least once per year.
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