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Contents
OVERVIEW............................................................................................................................................................................................7

      What you need to know ................................................................................................................................................8
      Products covered in this Report....................................................................................................................................8

EXECUTIVE SUMMARY....................................................................................................................................................................9

      The market..................................................................................................................................................................10
             Figure 1: UK burger bar market, value sales and forecast, 2011-21................................................................................................................10
             Figure 2: UK chicken bar market, value sales and forecast, 2011-21...............................................................................................................11
      Companies and brands............................................................................................................................................... 11
      The consumer ............................................................................................................................................................ 11
             Figure 3: Fast food outlet usage, by type, July 2016........................................................................................................................................12
             Figure 4: Attitudes towards fast food restaurants, July 2016 ...........................................................................................................................12
             Figure 5: Fast food menu enticements, July 2016............................................................................................................................................13
             Figure 6: Interest in healthier alternatives at fast food restaurants, July 2016.................................................................................................13
      Freshly made burgers is top expectation from gourmet burger venues......................................................................13
             Figure 7: Expectations from gourmet burger venues, July 2016......................................................................................................................14
      What we think..............................................................................................................................................................14

ISSUES & INSIGHTS......................................................................................................................................................................... 15

      Customisation can help venues engage older age groups.........................................................................................16
      More scope for healthier options on fast food menus.................................................................................................16
      Speed of service is a key enticement, yet table service appeals widely.....................................................................17

THE MARKET..................................................................................................................................................................................... 18
  What you need to know...............................................................................................................................19
      Burger and chicken market is in growth......................................................................................................................19
      Activity from brands needed to offset decline in core users........................................................................................19
      Eating out remains a key discretionary spending area ...............................................................................................19
      Falling Pound could have an impact on food prices....................................................................................................19
      Further rises in National Living Wage pose a challenge.............................................................................................19
      FSA’s pink meat burger guidelines offer clarity to gourmet burger sector .................................................................. 19
  Segment performance, market size and forecast......................................................................................20
      Both burger and chicken bars are in growth but under pressure................................................................................20
             Figure 8: UK chicken and burger bar market, value sales, 2011-21.................................................................................................................20
      Demographic changes and consumer confidence could temper market growth......................................................... 20
             Figure 9: UK chicken and burger bar market, value sales and forecast, 2011-21............................................................................................21
      Concerted efforts by brands to innovate can help to boost the burger sector............................................................. 21
             Figure 10: UK burger bar market, value sales, 2011-21...................................................................................................................................21
             Figure 11: UK burger bar market, value sales and forecast, 2011-21...............................................................................................................21
      Chicken bar operators innovate to stay competitive....................................................................................................22
             Figure 12: UK chicken bar market, value sales, 2011-21.................................................................................................................................22
             Figure 13: UK chicken bar market, value sales and forecast, 2011-21.............................................................................................................22
      Forecast methodology.................................................................................................................................................22
  Market drivers...............................................................................................................................................23
      Eating out remains a key discretionary spending area but consumer confidence has been shaken ..................... 23
             Figure 14: Consumer spending priorities (after bills) – Dining out, November 2009-July 2016........................................................................23
      Falling Pound and rising costs head concerns for operators .....................................................................................23
      FSA’s pink meat burger guidelines offer clarity to gourmet burger sector .................................................................. 24
      The rise in obesity puts chicken shops under scrutiny................................................................................................24
      Fast food chains urged to limit use of antibiotics in meat and poultry ........................................................................24

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      Core user group set for stunted growth.......................................................................................................................25
             Figure 15: Trends in the age structure of the UK population, 2011-16 and 2016-21........................................................................................25

KEY PLAYERS..................................................................................................................................................................................... 26
  What you need to know...............................................................................................................................27
      McDonald’s retains an unassailable lead by store and usage numbers.....................................................................27
      KFC reports ambitious growth plans...........................................................................................................................27
      Burger King focuses on a few high-impact areas........................................................................................................27
      Gourmet venues beef up the burger market...............................................................................................................27
      Rice boxes strengthen KFC’s offering in lunch space.................................................................................................27
      Nando’s blurs boundaries with beef dishes and Fino platter.......................................................................................27
      McDonald’s aims to dispel myths about product quality..............................................................................................27
      KFC celebrates 50 years in the UK.............................................................................................................................27
      Reconfiguring in-store formats to improve customer experience................................................................................27
  Market share.................................................................................................................................................28
      McDonald’s retains an unassailable lead by store and usage numbers.....................................................................28
             Figure 16: Selected leading burger and chicken restaurant chains, by outlet numbers, 2013-16....................................................................28
             Figure 17: Selected leading burger and chicken restaurant chains, frequency of use, July 2016....................................................................28
      Burger King focuses on a few high-impact areas................................................................................................................... 29
      KFC reports ambitious growth plans...........................................................................................................................29
      Gourmet venues beef up the burger market...............................................................................................................29
             Figure 18: Selected ‘better’/’gourmet’ burger operators in the UK market and planned/reported outlet expansion,
             July 2015 and July 2016...................................................................................................................................................................................30
      Premium chicken restaurants remain niche ...............................................................................................................30
             Figure 19: Selected chicken bar operators in the UK market and planned/reported/projected outlet expansion, July 2016............................30

  Launch activity and innovation...................................................................................................................31
      McDonald’s launches table service and Signature Collection range...........................................................................31
      Rice boxes strengthen KFC’s offering in lunch space.................................................................................................31
      Fast food operators create “zones” in store formats...................................................................................................31
      Burger King granted permission to sell alcohol...........................................................................................................31
      GBK launches supermarket range..............................................................................................................................32
      Nando’s blurs boundaries with beef dishes and Fino platter.......................................................................................32
  Advertising and marketing activity.............................................................................................................33
      McDonald’s builds brand trust and immerses into VR.................................................................................................33
             Figure 20: Recorded above-the-line, online display and direct mail total advertising expenditure, by selected chicken and
             burger bar operators, 2012-16..........................................................................................................................................................................33
      Burger King targets young adults through social media and cinema..........................................................................34
      KFC celebrates 50 years in the UK.............................................................................................................................34
             Figure 21: Selected chicken and burger bar brands’ social media presence, 2016.........................................................................................34
      Nando’s ramps up festival tie-ups in sponsorship drive..............................................................................................35
      Nielsen Ad Intel coverage............................................................................................................................................35
  Brand research.............................................................................................................................................36
      What you need to know...............................................................................................................................................36
      Brand map...................................................................................................................................................................36
             Figure 22: Attitudes towards and usage of selected restaurant brands, July 2016..........................................................................................36
             Figure 23: Key metrics for selected restaurant brands, July 2016....................................................................................................................36
             Figure 24: Attitudes, by brand, July 2016.........................................................................................................................................................37
             Figure 25: Brand personality – Macro image, July 2016..................................................................................................................................37
             Figure 26: Brand personality – Micro image, July 2016....................................................................................................................................38
      Brand analysis.............................................................................................................................................................38
             Figure 27: User profile of Byron, July 2016.......................................................................................................................................................38
             Figure 28: User profile of Nando’s, July 2016...................................................................................................................................................39
             Figure 29: User profile of KFC, July 2016.........................................................................................................................................................39
             Figure 30: User profile of McDonald’s, July 2016.............................................................................................................................................40
             Figure 31: User profile of Burger King, July 2016.............................................................................................................................................40

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THE CONSUMER.............................................................................................................................................................................. 41
  What you need know....................................................................................................................................42
      Nearly three in four Brits eat at fast food restaurants..................................................................................................42
      Scope for lighter and grab-and-go meals to prompt more frequent visits................................................................... 42
      Visiting fast food venues is seen as a treat by most ..................................................................................................42
      Quick service only reason to visit fast food venues for half of users...........................................................................42
      Freshly made burgers is top expectation from gourmet burger venues......................................................................42
      Customisable dishes appeal at fast food chains.........................................................................................................42
      Grilled chicken could help operators appeal to the health-conscious.........................................................................42
  Fast food usage habits................................................................................................................................43
      Nearly three in four Brits eat at fast food restaurants..................................................................................................43
             Figure 32: Fast food outlet usage, by type, July 2016......................................................................................................................................43
      A significant group of 35-44s use chicken and burger bars.........................................................................................43
             Figure 33: Usage of any burger outlet and any chicken outlet, by age, July 2016...........................................................................................44

  Frequency of use of fast food outlets........................................................................................................45
      McDonald’s continues to dominate the market…........................................................................................................45
      …gourmet burgers remain niche.................................................................................................................................45
             Figure 34: Frequency of eating in or getting a takeaway from fast food outlets, July 2016..............................................................................45
      Scope for venues to prompt more frequent visits........................................................................................................45
  Attitudes towards fast food restaurants....................................................................................................46
      Visiting fast food venues is seen as a treat by most...................................................................................................46
             Figure 35: Attitudes towards fast food restaurants, July 2016 .........................................................................................................................46
      Quick service only reason to visit fast food venues for half of users...........................................................................46
      Lighter options are in demand by people who grab and go........................................................................................47
  Expectations from gourmet burger venues...............................................................................................48
      Freshly made burgers is top expectation from gourmet burger venues......................................................................48
      Diners expect gourmet venues to offer control over their burgers..............................................................................48
      Table service is widely expected at gourmet venues..................................................................................................48
             Figure 36: Expectations from gourmet burger venues, July 2016....................................................................................................................48

  Fast food menu enticements ......................................................................................................................49
      Customisable dishes could help attract older diners to fast food chains..................................................................... 49
      Flavours from around the world pique diners’ interest................................................................................................49
             Figure 37: Fast food menu enticements, July 2016..........................................................................................................................................49
      Alcoholic beverages interest one in five diners at leading chains...............................................................................49
             Figure 38: Interest in alcoholic beverages at fast food venues, by fast food outlet/restaurant usage, July 2016.............................................50

  Interest in healthier alternatives at fast food restaurants........................................................................51
      Grilled chicken could help operators appeal to the health-conscious.........................................................................51
      Diners are interested in thick and root vegetable fries................................................................................................51
      Offering healthier beverages could add interest to fast food venues..........................................................................51
             Figure 39: Interest in healthier alternatives at fast food restaurants, July 2016...............................................................................................52

APPENDIX.......................................................................................................................................................................................... 53
  Data sources, abbreviations and supporting information........................................................................54
      Abbreviations
      ....................................................................................................................................................................................54
      Consumer research methodology...............................................................................................................................54
  Market size and forecast..............................................................................................................................55
      Forecast Methodology.................................................................................................................................................55
             Figure 40: UK chicken and burger bar market, value sales and forecast, 2011-21..........................................................................................55
             Figure 41: UK burger bar market, value sales and forecast, 2011-21..............................................................................................................56
             Figure 42: UK chicken bar market, value sales and forecast, 2011-21.............................................................................................................56

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 Advertising and marketing activity.............................................................................................................57
            Figure 43: Advertising expenditure by selected chicken and burger bar operators, by media type, 2014-16..................................................57

RESEARCH METHODOLOGY...................................................................................................................................................... 58
 UK Research Methodology..........................................................................................................................59
     Sampling and weighting..............................................................................................................................................59
     Face to Face Surveys ................................................................................................................................................59
     Brand & Social Media Research.................................................................................................................................61
     Trade research............................................................................................................................................................61
     Desk research.............................................................................................................................................................61
     Statistical Forecasting.................................................................................................................................................61
     The Mintel fan chart.....................................................................................................................................................62

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OVERVIEW

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                                8

What you need to know                                                   Products covered in this Report

The burger and chicken bar market is in growth but looks set to         Chicken and burger bars are a clearly defined sector of the
come under pressure, as the population of its 16-34-year-old core       fast food market. They are largely characterised by the way the
users is forecast to decline. The top end of the market also faces      leading brands operate so that, in the same way a McDonald’s
intense competition as a raft of non-specialist venues such as          outlet typifies the burger market, a KFC outlet typifies the chicken
pubs feature ‘gourmet burgers’ on their menus.                          market. The way the market has been changing means that
                                                                        although the core product defines these outlets, they also tend to
Plans for ongoing store revamps and menu updates should                 offer other food types. This is particularly the case for burger bars,
continue to support the segment. Category blurring such as              which also offer chicken and vegetarian options.
serving fresh fruit smoothies and barista-style coffee, should
also help create more occasions for diners to visit fast food           Although chicken/burger bars are often characterised by the
restaurants. Continued focus on communicating the quality of            takeaway nature of the food, a significant proportion also offer an
their products and ingredients looks much needed, given that            eat-in facility. In many leisure and retail park locations a drive-
many diners still see the food as processed. However, speed             through facility accompanies the main restaurant. Home delivery
of service is also of essence seen by many diners as the only           is not well established in this market.
reason to use a fast food venue.
                                                                        The main meal items are served hot, usually from a counter, with
                                                                        the emphasis on speed of service and consistency of product.
                                                                        The format of each brand is typically standardised, with the
                                                                        consumer being able to expect the same offering and standards
                                                                        throughout the country.

                                                                        Although small in number by comparison, some outlets in this
                                                                        market such as Nando’s offer a more sophisticated eat-in facility
                                                                        including table service where this is the prime focus of their offer.

                                                                        For the purposes of this Report, Mintel has excluded sales of
                                                                        drinks from the market size. Similarly, sales of chicken and burger
                                                                        meals through other outlets, such as pubs and cafés, are not
                                                                        included.

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EXECUTIVE
SUMMARY

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                           10

BURGER AND CHICKEN RESTAURANTS WILL COME UNDER PRESSURE AS THE POPULATION OF 16-34S DECLINES.
OPERATORS ARE BRANCHING OUT INTO GOURMET CONCEPTS TO KEEP THEIR BRANDS FRESH AND INNOVATIVE.
THERE IS SCOPE FOR RESTAURANTS TO EXPLORE BOTH HIGH-SPEED AND LEISURE EXPERIENCES AS A SELLING
POINT.

                                                                                                 Trish Caddy, Foodservice Analyst

The market                                    Burger restaurants                             create more occasions for diners to visit
                                                                                             fast food restaurants. Plans for ongoing
The chicken and burger bar market has         The previous robust growth in the burger       store revamps and menu updates should
enjoyed robust growth in the past five        bar market is expected to slow to 3.3%         continue to support the segment.
years. Much of this has come against          in 2016, seeing sales reach £3.3 billion.
a background of falling real incomes,         Going forward, Mintel expects ongoing          While the expansion plans of various
the market benefiting from its value-for-     momentum in the market, forecast to grow       prominent operators in the gourmet burger
money positioning and its ability to meet     by 18% over 2016-21.                           bar segment bode well for continued
the demand for convenience. Growth                                                           growth of the segment, the operators’
is expected to slow to 3.4% in 2016,          A focus on high-quality ingredients and        tendency to target the same catchment
as uncertainty around the Brexit vote         transparency in food production can            areas tempers the impact of their expansion.
dampens consumer confidence.                  help fast food brands build consumer           Meanwhile, the segment continues to face
                                              trust while category blurring should also      pressure from non-specialists.
While the forecast decline in 16-34-year-
olds – a core user group – will put           FIGURE 1: UK BURGER BAR MARKET, VALUE SALES AND FORECAST, 2011-21
pressure on the market, this should be
offset to some extent by the predicted
growth in the number of children, with
families also core users. As such, the
market value is expected to maintain its
previous growth of 18% over 2016-21,
though activity from leading operators
will play a key role in the fortunes of the
market, as discussed below.

Burger bars continue to dominate the
market, with just over double the value
sales of chicken outlets. That the two
largest brands – McDonald’s and Burger
King – combined have nearly twice the
number of outlets as the leading chicken
bar operator – KFC – fuels this dynamic.      Source: Mintel

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                           11

Chicken restaurants                              FIGURE 2: UK CHICKEN BAR MARKET, VALUE SALES AND FORECAST, 2011-21

Growth in the chicken market is expected to
slow to 3.7% in 2016, seeing sales stand at
£1.55 billion. Tangible growth is expected to
continue, with the market forecast to grow by
19% from 2016-21.

Chicken bar operators are innovating to stay
competitive; menu expansion and new store
formats are expected to help bolster sales
in the segment. However, media coverage
is raising awareness of obesity, with fried
chicken shops having faced scrutiny for
their purported role in this in London, though
this is yet to attract any regulatory steps.
It remains to be seen whether premium
chicken bars can add momentum to the
market and improve perceptions, many of
these focusing on high-welfare ingredients       Source: Mintel
and healthier cooking methods.

Companies and brands                             KFC reports ambitious growth                    entry of new ones. A number of the players
                                                 plans                                           have also announced ambitious plans going
McDonald’s retains an unassailable                                                               forward. However, gourmet burgers have
lead by store and usage numbers                  KFC UK enjoyed a boost in visibility            now become a menu staple across many
                                                 from a BBC documentary in 2015, menu            non-specialist outlets, posing competition to
McDonald’s remains the leading player in the     expansion and the rollout of a new              the specialists.
market by a wide margin. It described 2015       restaurant design launched in 2014 also
as a “strong year of growth”, highlighting       boosting its performance. New rice box          The consumer
its store revamp programme, NPD (New             meals in 2015 formed part of a concerted
Product Development) and the continuing          push by KFC into the lunch market and to        Nearly three in four Brits eat at
strong performance of its McCafé range.          provide greater choice and healthier options    fast food restaurants
                                                 in the UK. The chain targets a faster pace
Looking to drive trust in its product quality,   of growth going forward, planning to grow       Signalling the established place of fast
McDonald’s Good to Know campaign in              its store portfolio from 880 to 1,000 by 2020   food on Britons’ menus, nearly three in four
autumn 2015 drew attention to the quality        and expansion of its food and drink offering.   people visited these outlets in the three
of its products, including footage from the                                                      months to July 2016. Burger outlets remain
factories producing these. The brand has         Gourmet venues beef up the                      more widely used than chicken venues,
kept up activity in 2016, extending the          burger market                                   helped by the expansive store presence
Signature Collection premium range and                                                           of leading players McDonald’s and Burger
“successful” table service trial launched in     The gourmet burger bar segment has been         King. Core users include men, those in
late 2015 to more stores and continuing          growing rapidly in recent years, thanks to      households earning £25,000 or more, 16-
store revamps.                                   expansion of established operators and the      34s and parents of under-13s.

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                                              12

Scope for venues to prompt more                FIGURE 3: FAST FOOD OUTLET USAGE, BY TYPE, JULY 2016
frequent visits
                                               “Which, if any, of the following fast food outlets/restaurants have you eaten in or
Few diners visit any of the fast food          bought a takeaway from in the last 3 months? Please select all that apply.”
restaurants on a weekly basis. This
highlights the key role of initiatives like
McDonald’s and Burger King’s menu
expansion into gourmet coffees and iced
drinks to boost footfall by creating more
occasions to visit.

Lighter meals should also encourage
diners to eat at a fast food venue for lunch
(see section Attitudes towards Fast Food
Restaurants). A greater focus on portability
should also unlock new custom as a
greater variety of grab-and-go one-pot
meals (ie a meal served in one container)
would entice many diners to use a fast
food venue more (see section Attitudes
towards Fast Food Restaurants).

Visiting fast food venues is seen
as a treat by most

That more than half of diners see eating
at a fast food venue as a treat suggests
creating a sense of treating oneself when
visiting a fast food outlet should give        Base: 2,000 internet users aged 16+
operators an edge this market. Providing       * includes McDonald’s, Burger King, Gourmet burger bar (eg Gourmet Burger Kitchen, Haché), Other burger outlet
table service can help to drive a treat        (eg Wimpy)
image, as four out of five diners who see      ** includes KFC, Nando’s, Rotisserie chicken restaurant (eg Chicken Shop), Other chicken outlet (eg Southern
eating at a fast food venue as a treat also    Fried Chicken, Chicken Cottage, Favourite Fried Chicken)
agree that having food delivered to their      Source: Lightspeed GMI/Mintel
table would entice them to eat there more.

That many diners see quick service as the      FIGURE 4: ATTITUDES TOWARDS FAST FOOD RESTAURANTS, JULY 2016
only reason to eat at a fast food venue
suggests that operators that can speed         “To what extent do you agree or disagree with each of the following statements?
up service should enjoy an edge over           Please select one per statement.”
competitors. However, this also suggests
that fast food venues face a threat from
the growth of fast service formats in other
sectors.

Communicating the quality and “real food”
credentials of their ingredients looks to
remain much needed in the chicken and
burger bar market, as many diners see the
food as feeling processed and the majority
deem high-quality ingredients as more
important than the amount of calories.

Customisable dishes could help
attract older diners to fast food
chains

41% of diners would be interested in the       Base: 1,440 internet users aged 16+ who have eaten in/ordered a takeaway from a fast food outlet/restaurant
option to customise their dishes from a        Source: Lightspeed GMI/Mintel

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                                              13

fast food venue. Interest peaks among           FIGURE 5: FAST FOOD MENU ENTICEMENTS, JULY 2016
diners aged 45-64, also the most likely to
expect customisation from gourmet burger        “Which, if any, of the following would you be most interested in seeing on the
venues. Certain chicken dishes such as          menu at a fast food restaurant (eg McDonald’s, KFC etc)? Please select up to
wings can offer venues more flexibility         5.”
when it comes to customising, the high
interest suggesting that exploring these
could give them an edge.

Interest in dishes with flavours from
around the world in fast food restaurants
bodes well for the market’s ability to tap
into changing flavour trends. Flavoured
condiments – as seen at for example GBK,
suggests a route for mainstream operators
to flexibly integrate current flavour trends
to existing menus.

Grilled chicken could help
operators appeal to the health-
conscious

While the flagbearers of healthy dishes,
such as salads, have established a limited      Base: 1,440 internet users aged 16+ who have eaten in/ordered a takeaway from a fast food outlet/restaurant
presence on menus at chicken and burger         ^ shown to 1,380 internet users aged 18+ that have eaten in/ordered a takeaway from a fast food outlet/restaurant
bars, they have tended to gain limited          Source: Lightspeed GMI/Mintel
traction here. However, various better-
for-you options more aligned with the
traditional offerings at these venues do        FIGURE 6: INTEREST IN HEALTHIER ALTERNATIVES AT FAST FOOD
resonate with diners.                           RESTAURANTS, JULY 2016

For example, 46% of fast food diners            “Which, if any, of the following healthier alternatives (which may or may not cur-
would be interested in trying grilled chicken   rently exist) would you be interested in trying at a fast food restaurant? Please
at these venues as a healthier option.          select up to 5.”
Interest peaks among women aged 45-64
at 51%, suggesting grilled chicken dishes
could help to appeal to this low-usage
group.

Freshly made burgers is top
expectation from gourmet burger
venues

That gourmet burger venues are expected
to serve freshly made burgers by 71% of
Brits is perhaps unsurprising, as this offers
a tangible difference to the ready-made
burgers of fast food venues. McDonald’s
new premium Signature Range,
offering burgers made to order, thus
ticks the single biggest box on gourmet
associations.

Gourmet burger restaurants are also
widely expected to give diners the option
to customise their burger order. Another
marked difference to the traditional fast
food format, the strength of sentiment          Base: 1,440 internet users aged 16+ who have eaten in/ordered a takeaway from a fast food outlet/restaurant
suggests that gourmet venues could mine         Source: Lightspeed GMI/Mintel

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                                                14

this aspect more actively as a selling point,   FIGURE 7: EXPECTATIONS FROM GOURMET BURGER VENUES, JULY 2016
this not being widely latched on currently.
                                                “In your opinion, what would you expect from a gourmet burger venue compared
Related to the same, almost half of Brits       to a standard fast food venue? Please select up to 5.”
expect a gourmet burger venue to give
them a choice on how their burger is
cooked, making the FSA’s new guidelines
on venues serving burgers pink particularly
welcome for the segment.

What we think

The burger and chicken bar market is
in growth but looks set to come under
pressure, as the population of its
16-34-year-old core users is forecast to
decline. Onus is on operators to continue
to innovate through store and menu design
to retain usage among this cohort as they
move into the 35-44 bracket. This impact
should be partly offset by the predicted
growth in the number of kids, parents
being another core user group.                  Base: 2,000 internet users aged 16+
                                                * includes choice of how the burger is cooked (eg medium rare), customisable burgers (eg select the bread, meat,
The steps taken by McDonald’s to offer          toppings)
table service and the new store formats         ** includes information about which cuts of meat were used (eg loin, shoulder), detailed information on where
unveiled by KFC and Burger King are             ingredients come from (eg the farmer supplying meat)
helping the brands upscale the dining           *** base: 1,930 internet users aged 18+
experience, which should help expand            Source: Lightspeed GMI/Mintel
their appeal. Their better coffee offering
and wider range of healthier choices            diners still see the food as processed.                    The gourmet burger trend continues,
should also help to bolster the relevance of    However, speed of service is also of                       adding value and interest to the burger
these venues among older age groups.            essence seen by many diners as the only                    market, but the segment faces intense
                                                reason to use a fast food venue. This also                 competition as a raft of non-specialist
Continued focus on communicating the            suggesting puts fast food venues under                     venues such as pubs feature ‘gourmet
quality of their products and ingredients       pressure from the growth of fast service                   burgers’ on their menus.
looks much needed, given that many              formats in other sectors.

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ISSUES &
INSIGHTS

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                  16

Customisation can help venues           The facts
engage older age groups
                                        • The 16-34 age group is projected to decline by 0.4% from 2016-21.

                                        • The number of 35-64s is projected to grow by 3% from 2016-21.

                                        • 41% of diners would be interested in the option to customise their dishes from a fast
                                          food venue, interest peaking among diners aged 45-64.

                                        • 39% of 35-44-year-old fast food diners state that having the food delivered to their
                                          table in a fast food restaurant would entice them to eat there more.

                                        • 51% of 35-44-year-old fast food diners state that lighter meal options would
                                          encourage them to eat at a fast food venue for lunch.

                                        • 70% of over-45s have bought hot drinks out of home.

                                        The implications

                                        16-34s are often highlighted as the key audience and core users of chicken and burger
                                        bars. However, stunted growth is forecast for this age group up to 2021, which should
                                        urge fast food operators to focus on retaining usage among this cohort as they move into
                                        the 35-44 bracket. Promisingly for the market, although usage declines among this age
                                        group, it only falls sharply among the over-45s.

                                        But more importantly, there is scope to engage with 35-44s. Better coffee offerings and
                                        a wider range of healthier choices should help to bolster the relevance of these venues
                                        among older age groups.

                                        The steps taken by McDonald’s to offer table service and the new store formats unveiled
                                        by KFC and Burger King are helping the brands upscale the dining experience, which
                                        should help expand their appeal.

                                        Fast food brands that allow diners to personalise their food can capture older diners’
                                        attention. Certain chicken dishes that allow for easy application of different flavour
                                        sauces or glazes can offer venues more flexibility when it comes to customising the dish,
                                        the high interest suggesting that exploring these could give them an edge in the fast food
                                        market.

More scope for healthier options        The facts
on fast food menus
                                        • 64% of women (vs 53% of men) try to eat healthily all or most of the time.

                                        • 46% of fast food diners would be interested in trying grilled chicken at these venues.
                                          Interest peaks among women aged 45-64 at 51%.

                                        • 49% of fast food diners state that lighter meal options would encourage them to eat at
                                          a fast food venue for lunch.

                                        • 38% of chicken and burger bar users would be interested in thick fries as a healthier
                                          option; 30% would be interested in root vegetable fries.

                                        • 29% of diners would be interested in fruit-based smoothies at fast food venues as a
                                          healthier option.

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BURGER AND CHICKEN RESTAURANTS, UK - AUGUST 2016                                                                                    17

                                        The implications

                                        The foodservice market remains under public scrutiny for its health credentials. The
                                        perception that food at fast food venues isn’t good for you is the main barrier to using
                                        these. As most people are looking to eat healthily all or most of the time, fast food
                                        operators can look to win favour by helping individuals make good choices when dining
                                        out.

                                        While the flagbearers of healthy dishes, such as salads, have established a limited
                                        presence on menus at chicken and burger bars, they have tended to gain limited traction
                                        here. However, various better-for-you options more aligned with the traditional offerings
                                        at these venues do resonate with diners. For example, KFC’s strategy towards healthier
                                        meals led to the launch of its rice box range featuring chicken on a bed of steamed rice.
                                        Grilled chicken could also help operators appeal to health-conscious diners.

                                        Fries are long established as a burger accompaniment, their fat and salt content
                                        attracting scrutiny over the years. While operators have made improvements here,
                                        moving beyond skinny fries to healthier options can offer another means to address the
                                        health theme. Meanwhile high-fibre bun options stand out as an easy win, such bread
                                        already being well established in the retail channel. This includes various high-fibre white
                                        breads from leading bakers, offering a “stealth health” solution, improving the nutrition
                                        credentials without impacting the taste.

                                        When it comes to healthier beverages, McDonald’s has made inroads here, such as with
                                        its Berry Burst Smoothie, introduced in the UK in 2015. The drink is freshly prepared with
                                        fruit juice and yogurt and blended with ice.

Speed of service is a key               The facts
enticement, yet table service
appeals widely                          • Half of diners see quick service as the only reason to eat at a fast food venue, rising to
                                          three in five among diners aged 16-24.

                                        • 39% of fast food diners would be likely to use pre-ordering before getting to a fast food
                                          venue, if available.

                                        • 37% of fast food diners say that having the food delivered to their table in a fast food
                                          restaurant would entice them to eat there more. This rises to 50% among 16-24s.

                                        The implications

                                        That quick service is the only reason to eat at a fast food venue for half of diners
                                        suggests that operators that can speed up service should enjoy an edge over their
                                        competitors.

                                        For example, McDonald’s Experience of the Future store format invites customers
                                        to order and pay by touchpad and collect their order by number. Where the two-step
                                        process reduces the perceived waiting time, it should appeal to those focused on speed
                                        of service.

                                        Consumers’ desire for fast-paced dining may explain the interest in pre-ordering food and
                                        drink ahead of arrival at fast food venues, cutting out queuing time and waiting for the
                                        order to be completed. Though such initiatives remain rare in this market, they have been
                                        explored elsewhere, the interest here suggesting they afford further attention.

                                        While self-ordering kiosks may pose a potential threat to traditional service, the
                                        experience of being waited on by a real-live person is an integral part of dining out as
                                        a leisure experience. Perhaps surprisingly, table service appeals in particular to diners
                                        aged 16-24. Where operators can converge technology with traditional table service to
                                        manage costs and ensure speedy service, they can hope to engage this group.

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