Unhappy Meal Options: Consumers Losing Taste For Fast Food
A new study conducted by New York-based brand and customer loyalty and engagement consultancy, Brand Keys has shown that demographics and associated core values of generational cohorts explain critical factors initiating failure of fast food brands to increase same-store sales and profits and driving the success (and concomitant increase in visitation – and profits) of fast-casual brands.
The 3,000-consumer study examined attitudes and behaviors of 1,000 consumers in each of three generational cohorts – Baby Boomers, Gen X, and Millennials – as regards fast food and fast-casual restaurants. The sample was drawn and balanced from the 9 U.S. Census regions and examined major National brands.
If you have any doubts as regards the difficulties fast food brands have been having over the recent couple of years, you only have to look at recently reported same-store sales of the big guys, McDonald’s, Burger King, and Taco Bell to see the shift that’s taking place. The declines reported by the big-3 correlate very highly with the downward loyalty shifts we saw in our January 2014 Customer Loyalty Engagement Index, with fast food brands losing loyalty. And as loyalty is a leading-indicator of profitability, it isn’t surprising that fast food visitation and associated profitability is down too. QED.