Page 43 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Food and Drink | Fast Food

Fast Food

Diners pick healthier

options, but customer

trafic remains lat overall

And sometimes a burger will do

Although customer trafic at fast food Menu innovation Wendy’s focused on

restaurants remained lat year-on-year, its core item, the burger, but
sales strengthened for well differentiated presented it in a new way, on a pretzel
brands and the brand value of the bun that drove sales and received a lot
category improved 10 percent after a 5 of social media attention. Wendy’s is
percent increase a year ago.
new this year to the BrandZM fast

food category ranking.
Factors inluencing how often consumers
visited a fast food outlet and the brand Beneits of franchising By shifting to
they selected included price, occasion, mostly franchise operated restaurants,
concern about healthy eating and even Burger King reduced costs and almost
the rise in online shopping, which doubled its net income. Its stock price Top 10 Fast Food

affected the number of people lunching surged and brand value improved
or snacking at shopping malls.
9 percent.
Brand
Brand Value
Value Brand
% Change
Of all the segments of QSR, or quick Improved ambience McDonald’s will
service restaurant business, fast casual have about half of its roughly 35,400 2014 $M Contribution
2014 vs 2013
McDonald's
trafic improved most, according to US units remodeled by the end of 2014. 1
85,706
4
-5%
research reported by industry journal KFC, mostly known for its fried The company also expanded distribution 44% 2 Starbucks 25,779 3
Nation’s Restaurant News. This segment, chicken, opened a fast casual of its Evolution Fresh juices in its own
which includes brands like Chipotle prototype in Louisville, Kentucky, stores and in supermarkets. Starbucks is 3
Subway
21,020
4
26%
Mexican Grill and Panera, met the headquarters of Yum Brands, the introducing Yoghurt made by Danone,
20% 4 KFC 11,910 3
consumer desire for healthier food and a corporate parent also of Pizza Hut under the Evolution Fresh brand. And
comfortable ambiance.
and Taco Bell.
Starbucks also featured cold beverages 5
Pizza Hut
7,535
3
25%
that it calls “handcrafted sodas,” with
Across the fast food category, brands Expanding the day and three lavors – ginger ale, lemon ale and 48%
6 Chipotle 7,372 4
continued to upgrade their locations and spiced root beer – prepared by baristas.
leverage the investment by driving the menu
After testing alcohol and hot food in 7
Tim Hortons
4,050
4
20%
-5% 8 Panera 2,871 5
customer trafic at other meal parts of several cities, Starbucks plans to roll out
the day, especially breakfast and mid- With trafic lat, brands focused on this initiative throughout the US over the 9
Wendy's
2,714
3
New
afternoon snacks, with new offerings and building business throughout the day, next few years.
lots of coffee. The quick service segment, especially at breakfast, but also at 9%
10 Burger King 2,664 2
led by McDonald’s, drew the largest share potential snack times, relecting how McDonald’s added pastries to its
Source: Valuations include data from BrandZM and Bloomberg.
10%
at breakfast.
daily routines have become less breakfast business, a mealtime that it Brand contribution measures the inluence of brand alone on earnings, on a scale of 1 to 5, 5 highest.
regimented around three deined meals, dominates in the US with offerings like
The addition of menu items sometimes leaving more time for grazing.
its “Egg McMufin.” Aiming to break
diluted the clarity of the brand message, a consumer habit and grab share from
however. The McDonald’s share price Consumers typically select their a competitor, Burger King featured

lagged when service slowed as the breakfast stop based on convenience and a similar item, priced at a dollar, with
company attempted to introduce many habit, although a well-priced offer can the line, “It’s not that original, but it’s
new menu items. McDonald’s plans to interrupt ritual. For lunch, people prefer super affordable.”
simplify its offering and invest in kitchen variety and brands attempt to get into
equipment that enables more meal the consumer’s repertoire. Brand leaders The priority of health

customization, a beneit it will market to responded to these dynamics.
customers. These developments Although McDonald’s and Burger King
impacted the category:
Having recently reined its logo to focus added salads to their menus, those items Deinition
on the image of the siren and eliminate
the reference to coffee, Starbucks did not drive signiicant business. When The fast food category includes
broadened the brand offering around the customers go to the burger segment Quick Service Restaurant (QSR)
leaders, they’ve chosen a particular
core brand experience of affordable experience. The larger health message and casual dining brands, which
luxury. To fortify breakfast and build its from burger restaurants is not only vary in customer and menu focus,
snack and lunch business it added baked but mostly compete for the same
goods, sandwiches, salads and soups, about menu items but also about the day parts.
leveraging its 2012 acquisition of La safety and standards of food sourcing
and preparation.
Boulange bakery.

84 BrandZM Top 100 Most Valuable Global Brands 2014
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