Special Report November 09: US Fast-Food Chains
Special Report November 09: US Fast-Food Chains
So far in 2009 we've produced special reports on MLS soccer franchises, US Universities and the sponsors of this year’s Super Bowl. For the last quarter, at a time when numerous industries have been termed “winners” or “losers” of the recession, we focus on a “winner” – fast-food. This sector is benefiting from cost-cutting consumers looking at cheaper alternatives to traditional dining out. Many industries have cut agency rosters in a bid to cope with declining revenues, but this one is experiencing the opposite, with an expanding customer profile and rising profits.
2009 has seen fast-food new customer acquisition at its peak, although the next 12 months represent an altogether new challenge for marketers in the sector – how to retain their new-found clients once a more positive economy starts to take effect on the American consumer’s wallet? Retention schemes have been activated throughout 2009, and these will be enhanced next year, with new menus to meet demand for healthier, higher-end options. Successful schemes have included increased couponing and promotions, from one-day events, to online programs. It’s also one of the few industries that has continued to invest in sports sponsorship while other sectors have been forced to withdraw spend.
Pearlfinders has been interviewing marketers right across the sector, from international chains, to national franchises and regional groups, to gain insights from the top decision-makers on the next key challenges for the industry: retaining those new customers post-recession and continuing to develop the core customer base.
Throughout the conversations a number of themes recur: -
2010 Marketing Spend – Nobody we’ve spoken to expects marketing budget-cuts next year, but a number are looking at shifts in spend allocations from acquisition towards retention
Online – Online engagement is an area that's continuing to see additional investment - Red Robin and Quiznos are expecting to expand their social media strategy next year, having made digital a focus this year, moving away from TV ad-centric approaches
CRM - The industry’s brought in new menus and store design revamps to hold onto newly acquired customers – Panera Bread Director of Brand Marketing told us “customer retention and development is of equal importance”, and it’s recently introduced a loyalty card
Promotions - Promotional offers and discounts have always been key to marketing strategy in this industry. But the credit-crunch has seen fast-food retailers invest more than ever in this area to compete with more formal restaurants that have begun offering coupons and vouchers too
As the US emerges from the recession and disposable incomes begin to increase, the fast-food industry will need to work even harder to keep its value offerings relevant to consumers. Our report identifies and analyzes those key challenges, while the insights direct from the industry’s marketers offer you the opportunity to formulate a highly tailored and informed dialogue with them.