Interesting and notable side effect of inflation. When "cheap" options are no longer cheap and the price differential narrows, consumers are opting for higher quality options.
Whole Foods was once viewed as notoriously and prohibitively expensive - "Whole Paycheck" was the joke. Now, as my neighbor here in Manhattan tells me, with mainstream supermarkets jacking up their prices, Whole Foods no longer seems like the expensive option, and the higher quality groceries and experience Whole Foods provides is now viewed as being *worth it*.
We see the same thing happening with Fast Food - restaurants such as McDonald's, Wendy's, and Subway are no longer considered to be super affordable, so consumers are shifting away from them to a higher quality "Fast Casual" Restaurant experience instead.
Our consumer research signaled to us that Fast Casual Restaurants such as Cava (11%), Panera Bread (11%), and Chipotle (18%) are among consumers' favorites and would be leading this FCR boom.
Top reasons consumers choose these as their favorite Fast Casual Restaurant include Customization (42%), High Quality Ingredients (42%), Healthy Menu Options (38%), Quick Service / Efficient Ordering (37%), and Good Value (36%).
Recommendations
Be sure to highlight meal customization, high quality ingredients, healthy menu options, quick & efficient ordering, good value, and clean locations, as these are the attributes that define consumers’ favorite FCRs
Don’t feel like cooking, saves me time, craving a specific food, and want to treat myself are the top motivators for consumers to order food from a FCR. Create content in each of these 4 buckets to be covered for different motivations
Most consumers have a few FCRs they are familiar with but occasionally like to branch out and try something new – this is your moment to convert them
Delicious food, clean location, good value, and fresh, high quality ingredients are the attributes consumers look for when choosing a FCR, so be sure to highlight one or more of these
“Real ingredients, real food” and “Nourishing, delicious meals made from scratch” are strong messages to entice consumers. “We don’t take shortcuts”, ”No compromises”, and fresh, craveable, feel-good are also strongly enticing
Only half of consumers are fully satisfied in the variety of menu options from FCRs they order food from, so there is room to improve upon this and differentiate vs. the competition
Try to highlight Gluten Free, Dairy Free, Low Sugar, and Low Carb menu items to cater to consumers’ most common dietary restrictions
Your mobile app and loyalty program are an important part of your customer experience, and while earning rewards is the top perk, making it easier and faster to order food is close behind. Make sure this is optimized and highlight these perks in your content
Social media content is by far the top approach consumers use to discover new FCRs. Lead with Instagram and then TikTok with content to promote your FCR
Consumers are also very likely to follow your FCR Brand account on social media, so you’ll want to be sure to have a steady stream of new content to regularly engage with them
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