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QUICK SERVICE VS. FAST CASUAL What Consumers Want and How Your Restaurant Can Deliver It to Them

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QUICK SERVICE VS. FAST CASUAL What Consumers Want and How Your Restaurant Can Deliver It to Them QUICK SERVICE VS. FAST CASUAL What consumers want and how your restaurant can deliver it to them. What’s next in QSR & Fast Casual dining? In a country that put fast food on the map over 75 years ago, there’s a thirst among consumers and the industry to uncover “what’s next.” And there’s good news for everyone: while fast still rules the day in both Quick Service Restaurants (QSRs) and Fast Casual establishments, menu options are getting fresher every day. Old favorites are finding newer, healthier friends. (Would you like an apple instead of fries in your Happy Meal?) Ethnic-themed QSRs are joining the ranks of burger joints. (Choolah Indian BBQ, anyone?) And customizable Fast Casual options are becoming the new “family” meal. Consumers are happy with the results and showing it with increased traffic and dining dollars. While QSRs and Fast Casual restaurants will never compete with fine dining in terms of experience, these establishments still hold high appeal and play an important and growing role in consumers’ lives. There’s also a big difference in consumer expectations between QSRs and Fast Casual restaurants. QSRs must now compete with the fresher and perceived healthier options of their Fast Casual counterparts while Fast Casual chains try to match the convenience and speed of QSRs. Convenience, menu consistency, quality, and healthier food: consumers are demanding it all. The good news for the industry? When consumers get the better choices they’re after, these food decisions are quick to turn into lifestyle choices. Read on to learn more about consumers’ motivations, how they define “value,” what they want out of Fast Casual restaurants and QSRs, and the top trends in limited-service dining. QSRs must now compete with the fresher and perceived healthier options of their Fast Casual counterparts while Fast Casual chains try to match the convenience and speed of QSRs. NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 2 CHAPTER 1: QSR VS. FAST CASUAL: A SNAPSHOT CHAPTER 1: QSR VS. FAST CASUAL: A SNAPSHOT Why Consumers Choose You – And Why They Don’t While QSRs and Fast Casual establishments often draw in the same consumer in terms of demographics, both establishments have their niche in a consumer’s life. What a person chooses depends mostly on how much time they have, For the same reasons consumers choose a Fast Casual restaurant or who they’re with, and what they want in terms of an experience. QSRs QSR, they often choose not to go to one or the other. Sometimes, the are ideal when people are under a time crunch and dining solo; Fast Fast Casual diner wants to have someone bring them their food, refill Casual establishments are preferred for a shared sit-down meal in their drink, and just take care of them; they don’t want to “self serve” a nice environment. It’s also perceived to offer a healthier meal at a and they’ll choose an FSR, even if it’s more expensive. better price than a Full Service Restaurant (FSR), where they have to take tip into consideration. Consumers avoid QSRs because they believe the food isn’t as healthy – and they have a heightened awareness of their overall wellness. They Although the individual reasons for choosing a QSR or Fast Casual know that QSRs are now offering healthier options, but they also see restaurant vary, the reasons a consumer chooses away from that these choices are priced higher and are not of better quality. home (AFH) options are the same for both QSRs and Fast Casual establishments1. REASONS FOR AVOIDING2 QSR FAST CASUAL REASONS FOR CHOOSING WHICH FACTORS DO CONSUMERS SAY ARE 26% 24% BARRIERS TO DINING OUT? HAVE NO TIME TO COOK FEEL AFH IS EASIER THAN COOKING AT HOME 30% 43% 14% 10% PROCESSED FOOD NOT AFFORDABLE WENT OUT TO CELEBRATE THINK AFH FOOD TASTES BETTER 30% 30% LACK OF HEALTHY OPTIONS LACK OF DEALS 29% 20% LOW QUALITY SERVICE NOT GREAT MORE LIKELY TO VISIT IF: • Offer healthier value menu • Give discounts for frequent options and combo meals visits • Offer value menu options 1 Datassentials, CPP 2015 Segment Drive 2 Datassenials, CPP 2013-2014 Segment Overview NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 4 CHAPTER 1: QSR VS. FAST CASUAL: A SNAPSHOT Overall, diners at both types of restaurants want their food and beverages to be fresh. What this means at each restaurant, however, is a little different: DEFINING “FRESH” QSR FAST CASUAL Consumers expect (and demand) a lot of choices, but Consumers believe that a smaller menu want those choices to be served hot or cold, and taste means the ingredients are more seasonal “just made.” and fresh. NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 5 CHAPTER 2: MOTIVATIONS CHAPTER 2: MOTIVATIONS Diving Deeper Into Personal Motivators: Getting Traffic In The Door When you see a group of coworkers enjoying coffee at your restaurant in the a.m., you assume that the clean environment, fresh brew, and overall experience brought them in your door. But there’s often more going on behind the scenes in the consumers’ lives. As trends come and go, these personal motivators often stay the same and tend to drive consumers to dine at both Fast Casual restaurants and QSRs. REASONS FOR VISITING You’re out anyway...why not grab a bite? Often, life’s unplanned circumstances draw consumers to Fast Casual or QSR dining. QSR FAST CASUAL TOP 5 MOTIVATORS FOR EATING OUT: “I GO BECAUSE I’M CRAVING SOMETHING SPECIFIC.” 1. No time to cook 2. Enjoy the experience 3. Already out 4. It’s easier 64% 68% 5. Craving something particular AGREE AGREE Restaurant owners and operators can only influence 2 of the 5 top “I LIKE/APPRECIATE/DESIRE THE CONSISTENCY.” motivators: consumers’ experiences and their cravings. Focusing on customer service, consistency of product, and key menu offerings gives you a competitive edge. 86% 78% AGREE AGREE APPLICATION “I LIKE/WANT INNOVATIVE FOODS.” SATISFY THEIR CRAVINGS: WHERE TO FOCUS YOUR TIME AND MONEY. While you can’t control how often consumers will be out and about, you can control what drives them into your establishment. 14% 22% Cravings are largely based on menu options, consistency, and quality. AGREE AGREE Experience involves a variety of factors including food/beverage, customer service, and environment/atmosphere. • Offer consistency. Make a few select items on your menu more When consumers want to try something new, they consistent with semi-scratch or premade options. For example, use premade barbecue sauce on a grilled chicken sandwich or serve generally scale up to fine dining or check out a trendy protein-enhanced breakfast drinks. option at the local food truck. • Make impulse buying easier. Offer real rewards programs that pay off like a free meal or $5 off for every $50 you spend. Make the deal attainable and worth pursuing. • Be the “go-to” solution: Make useful suggestions/options that accommodate why consumers visit a QSR or Fast Casual restaurant. For instance, create family meals to-go that working parents can pre-order and pick up on the way home. 1 Datassentials, CPP 2015 NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 7 CHAPTER 3: VALUE CHAPTER 3: VALUE Creating Maximum Consumer Value: The Overall Equation Do you think value equals price? Cost is often just one factor in a consumer’s perception of value. There are many variables that come into play – from the way food looks to the smile that accompanies its delivery to the feeling the consumer has in your restaurant. When creating a sense of value for the consumer, it’s often just as important to deliver a good experience as it is to avoid a bad one. VALUE DRIVERS GIVE ME WHAT I WANT AVOID WHAT I DON’T LIKE LEAVE CONSUMERS The value equation includes several tangible Consumers will often consider a restaurant PLEASANTLY SURPRISED... items that can set your restaurant apart: a poor value if they encounter any of these turn-offs: When looking at how to elevate the value of your establishment, consider a few “hidden motivators” that often leave consumers happier. These drive 47% 57% 40% your value higher and can motivate people to revisit your establishment GREAT SERVICE NOT CLEAN INCONSISTENT QUALITY over the competition: • Choices for the entire group • Offers top brands 41% 52% 20% • Good ambience GREAT FOOD & BEVERAGE CHOICES UNFRIENDLY SERVICE UNHEALTHY FOOD • Ability to customize 35% 42% 17% HIGH QUALITY INGREDIENTS SERVICE IS TOO SLOW NOT ENOUGH VARIETY/ BORING MENU TOP EXPECTATIONS BY RESTAURANT TYPE APPLICATION QSR FAST CASUAL ADD MORE VALUE TO EVERYTHING YOU OFFER: • Consider customizable beverages. Provide snappy service WHILE CONSUMERS IDENTIFY DIFFERENT EXPECTATIONS without limiting yourself to a soda dispenser. Beverage equipment OF A QSR OVER A FAST CASUAL RESTAURANT, for flavored iced tea, infused waters, and specialty coffee offers a CUSTOMER SERVICE REMAINS KEY. variety of customizable options without compromising speed and service. • Include your team. Ask your team to work with you to develop 45% 44% service standards. Having input on process and protocol helps employees feel a sense of ownership, which motivates and can FOOD DELIVERED FAST HIGH QUALITY FOOD & BEVERAGE positively impact results. • Feature healthier options prominently on your menu. Even if repeat visitors are driven by cravings for traditional menu items, 37% 42% they will be happy to know they have choices, especially when they want to experiment with something new. For a quick way to spice HIGH QUALITY INGREDIENTS GOOD SERVICE up your sandwiches or side dishes, use Nestlé® Tribe Hummus, which comes in a variety of flavors and is free of cholesterol, 14% 22% hydrogenated oils, and high fructose corn syrup.
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