QSR Insights: Burger King Adds Non-Traditional Burgers to Menu

Beef, chicken and pork consumption in the United States has been declining for the past 20 years, and one QSR in particular is responding to the trend.

This week, Burger King unveiled its new spring 2013 menu. Two of the items include non-traditional burgers: turkey and veggie.

According to the Huffington Post, BK is serving a “fire-grilled” turkey burger and MorningStar veggie burgers.

Though, not all of Burger King’s 2013 additions are geared toward consumers who are trying to be healthier. Burger King has also included the Bacon Cheddar Stuffed Burger, a slew of chipotle items including a Chipotle Whopper, Chipotle Jr. Whopper and a Chipotle Tendercrisp Chicken sandwich, which can also be a wrap.

With these new, seasonal additions to the menu, Burger King can expect a reaction from new and loyal fans alike. It seems that a traditional QSR like BK is finally in line with current food trends.

Burger King has set a new precedent with the turkey and veggie Burgers. The partnership with MorningStar Farms is especially great PR for the brand and now aligning itself with other healthy QSR’s such as Subway. In past years Burger King has featured a Veggie Burger on the menu in select markets, but the MorningStar Farms burger patty is a first.

It will be interesting to see if other fast food giants follow Burger King’s seasonal shift toward alternative burgers rather than the same old salad and iced tea.

Photo credit: Wikimedia Commons

2013 QSR Trends and Insights

Trends toward healthy and exotic foods will continue in 2013.This year, health and healthy are expected to continue to be top of mind for consumers, and menu innovation from main dishes to beverages will drive the CPG category. A recent article from QSR Magazine discusses predictions for the top food trends in 2013:

  1. Going Local – Customers increasingly view “local” as a positive attribute. Local sourcing is a “macro trend that will maintain its momentum,” this year, says Joy Dubost, a registered dietician and director of nutrition and healthy living for the National Restaurant Association.
  2. Healthy kids’ meals – Healthy and creative kids’ meals will continue to make an impression on the industry. These efforts aren’t just appealing to parents—kids are becoming more comfortable with healthier food choices as well. Suggestions include substituting grilling for frying and introducing options that kids can relate to.
  3. Economic struggles – Although quick-service restaurants have been climbing out of the recession, operators will have to continue to work to overcome barriers, says Bonnie Riggs, restaurant industry analyst for market research from NPD Group. Chicken is predicted to have an increased presence on the menus because its price is projected to remain stable.
  4. Snacks as meals – Around-the -clock eating is becoming more common and customers are demanding smaller and flexible portions to accommodate these habits. Many QSRs have already moved toward snack options, e.g. McDonald’s Spicy Chicken McBites LTO, KFC’s Chicken Little sandwiches, and Sonic’s Cheesecake Bites.
  5. More fruits and veggies – QSRs are moving past potatoes for french fries or tomatoes and lettuce on a burger with fruits and veggies taking on a starring role. Options like spinach, broccoli, edamame, mushrooms are available at salad chains like Freshii and Tossed, and are likely to show up on a wider range of menus this year.
  6. Gluten-free options – Thirty percent of all adults say they are cutting back and trying to avoid gluten and these people are looking for more dining out options. It doesn’t appear to be a trend, but more of a long-standing desire and it will be wise for restaurants to adapt their offerings.
  7. Trickle-up trends – Traditionally food trends start in fine dining and end up in quick service, but now that trend is reversing. “Fast casual will be the way of the world this year,” says Andrew Freeman, founder of Andrew Freeman & Co. He believes limited-service brands will be leaders in new menu items during 2013.
  8. Ethnic foods – Exploration beyond Chinese food has led to a desire for Thai and Vietnamese, just as those who favor Mexican have moved toward the flavors of South America. As the customers’ palates continues to broaden, restaurants will need to expand menu offerings that play on these flavor desires.
  9. Innovative beverages – Fruit and vegetable juices are showing strength. Fun, new drinks are worth looking into, whether alcoholic or non-alcoholic. Starbucks has expanded its Evolution Fresh bottled juices beyond West Coast markets, and they intend to add standalone Evolution Fresh stores that offer made-to-order juices.
  10. Evolving around health care – The Patient Protection and Affordable Care Act will take full effect in 2014, which means operators will have additional paperwork and higher costs associated with day-to-day operations. This year, the industry will likely face more consumer and legislative pressure to make changes to the size of beverages and add calorie counts on menu boards.

What is your take on these trend predictions? Do you see any other emerging trends that are worth noting in 2013?

Photo credit: Arvind Grover

QSR Insights: No Holiday Is Too Small

SandwichesIf it weren’t for an 18th century English nobleman who requested his lunch meat be placed between two slices of bread so his hands wouldn’t get greasy while playing cards, we wouldn’t have the beloved sandwich.

Today, sandwiches are a go-to meal option with hundreds of varieties and combinations. They are enjoyed worldwide and have become considerably more sophisticated than the average bologna sandwich.

National Sandwich Day is celebrated in many different ways each November 3rd, but each way pays respect to this worldwide favorite!

This year, Subway celebrated the quirky holiday by showcasing their global sandwich flavors across their worldwide footprint. The popular sandwich maker is known for adapting menu items to local customs, religious traditions and food preferences. According to The Daily Meal, in Japan Subway featured a duck pastrami sandwich with sweet orange sauce, and in Sweden they served Skagenröra, a mix of shrimp, mayonnaise, lemon, herbs and spices.

Sonic Drive-In used the holiday to unveil their limited-time Asiago Caesar Chicken Sandwich and improved Classic Chicken Sandwich. The drive-in franchise took it a step further and created a YouTube video that shows how these two sandwiches were developed and prepared, allowing their customers to see behind the scenes lends to further engagement with the brand.

Some restaurants celebrated National Sandwich Day with a friendly face-off to decide who makes the best sandwich. In Boston, three restaurants, Chez Henri, Roxy’s Gourmet Grilled Cheese, and All Star Sandwich Bar, went head-to-head to compete for the best sandwich title.  They competed in a three-course meal; each entrée was a unique sandwich with sophisticated flavor profiles.

It’s important for QSRs to take advantage of the smaller holidays that pay respect to items your customers are already enjoying. Whether it’s National Sandwich Day, National Hoagie Day (May 5), or National Cheese Lover’s Day (January 20), customers enjoy celebrating—so help give them a reason to visit your restaurant to do it!

Photo credit: U.S. Department of Agriculture

QSR Insights: What’s Old is New Again With Heritage Brands

Ball Canning reinvented themselves for a new generation.Heritage brands aren’t born. To turn a once iconic brand into a heritage brand, it first has to stand the test of time. But to survive long term in the minds and hearts of consumers, a brand must have forged emotional connections with its audience. Not surprisingly, many heritage brands revolve around an experience, even if the brand is ultimately selling a product. That experience becomes nostalgia when memories are made and stories shared, especially across generations.

But heritage brands can’t coast on their glory days forever. So how do those with history stay relevant or reinvent themselves after time away from the spotlight? It’s a delicate balance of embracing what made them successful, and adapting to today’s realities.

QSRs can learn from other brands that are doing it well:

  • Disney Parks – Current stars like Will Ferrell, Russell Brand and Queen Latifah are transformed to portray iconic characters in the Disney Dream Portraits series by legendary photographer Annie Leibovitz. This is a great example of giving a modern spin to classic brand elements.
  • Coca-Cola- During holiday seasons filled with nostalgia, Coke’s classic animated polar bear TV spots have been making repeat performances each year since 1993. During the 2012 Superbowl, the “Polar Bowl” streamed live via social media and featured real-time reactions to the game by the two bears—one rooting for the Patriots and the other for the Giants. They even reacted to the Super Bowl ads, including thoses for rival Pepsi.
  • Ball Canning – Ball reinvented itself by appealing to a new audience—not the canners of yesterday, but today’s modern young mother seeking a bit of domesticity in a chaotic stage of life. Ball took advantage of current technology and created new ways for an old tradition to be learned and passed on.
  • Old Spice – Sure, being associated with smelling like your grandfather isn’t the most compelling reason to buy deodorant or body wash but it’s one you might remember. But the Old Spice Guy campaigns have reinvigorated sales for a basic product that has been around for decades.
The key is for heritage brands to modernize appealing brand elements to reach new generations and revive the nostalgia of their long-time consumers.
Photo credit: jeffreyw

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QSR Insights: Papa Murphy’s Missed Dough Opportunity

PizzaWhile some stand firm on one end or the other, many of us have a love-hate relationship with cooking. I’m one that bounces around. When I have time, I love it. It’s therapeutic. But when I’m exhausted from a long day at the office, well, I’m not a huge fan.

The other night I decided to cook but with a little help from my friends at Papa Murphy’s. My husband and I were in the mood for pizza, but I wanted to put my own spin on it.

So I went into the new Papa Murphy’s location down the street and ordered a large deLITE size dough—a sign I was leaning towards the more loving end of my relationship with cooking.

After placing my order, the young guy behind the counter looked a little confused and turned to the lady next to him for guidance. She immediately stepped in to explain they don’t sell just the dough. Stunned, I jumped in to let her know that I’ve been buying the dough for years at the other location a few miles away.  The nice lady proceeded to tell me that she was from corporate, and that other store was going against policy.

As I turned for the door in complete disappointment, I started to wonder about the motivation behind their corporate policy.  Do they think their role as America’s pizza provider will diminish if they sell the dough?

I say au contraire. Restaurants, from quick serves to fine dining, that can satisfy a variety of needs and allow me to have flexibility depending on what’s going on in my life are the ones that are irreplaceable. I still go to Papa Murphy’s for those times when I’m having a more “hate” relationship with cooking, to truly just “Take ‘N’ Bake.” So why turn down the opportunity to play a part in my culinary adventure when I’m in the cooking mood?

Embrace how you fit into your customers’ lives, don’t try to control it.  You might uncover new opportunities. Papa Murphy’s could become an even bigger hero for families who want to make their Friday night extra special by creating their pizza together. By supplying the dough and a few pointers on mastering pizza making, Papa Murphy’s still remains the true pizza artist but allows for their customers to co-create.

Any healthy relationship evolves over time. So the next time your customer wants you to play a slightly different role than normal, think twice before turning them down. Otherwise, they might replace you.

Photo credit: Jessy Rone

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QSR Insights: Franchisee Satisfaction Matters

In QSR, many brands operate with a model that’s dependent on franchisees to successfully execute national or corporate marketing efforts. But from time to time, franchisors launch new campaigns and one or more of negative outcomes occurs.

The corporate effort drives traffic in-store but:

  1. Traffic is below franchisee expectations.
  2. Low margins on the advertised item don’t lead to a bigger basket which may reflect challenges in upsell/cross-sell of the advertised item.
  3. The promotion doesn’t build consumer loyalty and the immediate sales increase isn’t sustainable long-term.

There’s natural tension built into a “conflict relationship” as each party is required to adopt their perspective:

  • Franchisors are responsible for looking at the brand from a macro level.
  • Franchisees are responsible for looking for the brand at a micro level.

According to Michael Seid at MSA Worldwide, “conflict can occur because the parties don’t always have the same goals.”  Further, from time to time, the products advertised aren’t as successful as planned or the advertising doesn’t connect with consumers.

The opportunity then is to develop an ongoing, robust discussion with franchisees.  This allows them to be aware of the plan even if they may not agree.

Seid says Arby’s “met this challenge” when they worked to launch the Market Fresh Sandwich line. Even though they struggled for a time, an open dialogue with franchisees about the operational problems ultimately led to solutions that made the effort successful for both parties.

Five secrets to having success in conflict situations:

  1. Treat the franchisees with respect.
  2. Listen objectively to their concerns.
  3. Talk to them even if you disagree.
  4. Form a Franchise Advisory Council (FAC) and engage them in both macro level and micro level discussions.
  5. Seek ideas that will drive traffic and build brand loyalty when possible.

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QSR Insights: Bringing Breakfast Back to QSR

Breakfast options at Arby's

Mornings are a chaotic time. The alarm is going off. You snoozed a few extra times, and now you’re running late for work. Grabbing breakfast as you run out the door or swinging by the gas station becomes a normal routine.

So how do you encourage your prospective customers to change their routines and head to a QSR instead? Marc Halperin from QSR Magazine believes it’s possible and has three suggestions to make it a reality:

  1. Seek out the fun and novel. Provide menu options that are transportable, handheld, neat and versatile, with both sweet and savory possibilities. Eating in the car can be messy and a hassle, so including menu options that overcome these barriers will help drive morning foot traffic.
  2. Shoot for utter uniqueness. Oatmeal and smoothies have become the norm on breakfast menus, so how do you build on this? One idea is to include a line of oat or grain based beverages flavored with chocolate or coffee, offering something savory and delicious. Unique options pique customers’ curiosity so they’re willing to put in the extra effort to visit your store.
  3. Think in terms of lifestyle shifts. Breakfast is moving toward becoming a two-part process rather than a single, short event. Morning snacking is becoming more prevalent. Creating options that allow customers to eat something now and take something for later would help capitalize on this morning trend.

These three suggestions further emphasize the opportunity that Mintel discusses in their Breakfast Foods report from September 2012. According to the study, the breakfast market remained strong during the recession and is predicted to continue to grow. In fact, 57% of people Mintel surveyed view breakfast as more important than lunch and dinner.

Breakfast is evolving. How will your business evolve with it?

Photo credit: Joe Wolf

QSR Insights: Quality With A Cause

Chipotle burritoA few days ago, in a matter of hours, Chipotle stock took a tumble to the tune of 6.5 percent. What could cause such a sudden loss in the otherwise stellar valuation and track record of the restaurant industry darling?

A viral video of Chipotle employees misbehaving in the kitchen?

A nationwide shortage of tortillas?

Neither.

Chipotle stock, in the delightful words of The New York Times, fell faster than a lead burrito because of the words of one man, cult financial guru and hedge fund manager David Einhorn.

Einhorn called the company overvalued – and in a macrocosm of self-fulfilling prophecies, investors proceeded to sell, sell, sell at a pace more than four times the stock’s average daily trading volume.

Now, I do not profess to be anything close to a Wall Street savant. I know enough of investing to know that mutual funds rarely outperform index funds in the long run. I also know the stock market, as proven by Mr. Einhorn, is basically a giant mood ring worn by the nation as a whole.

But it was one of Einhorn’s justifications for his bearish take on Chipotle stock that struck a nerve in me in particular. Taco Bell and its new ‘Cantina Bell’ upscale menu, he reasoned, would soon enough lure customers away from Chipotle and its higher-priced offerings.

It smacked of a certain arrogance to the reasoning behind why people eat where they eat. Sure, price plays a large and sometimes deciding factor. But so, too, does quality. And to Chipotle’s credit, quality has evolved to mean much more than taste.

Chipotle embraces and communicates quality as well as any national chain by fusing it with causes that reach well beyond consumers’ taste buds. The company sums its philosophy up with three words: Food with Integrity. It means “finding the very best ingredients raised with respect for the animals, the environment and the farmers.”

In 2011, the company enlisted a London filmmaker to create an emotional stop-motion video packaging up those principles to the tune of a custom Coldplay cover recorded by country music legend and Farm Aid President Willie Nelson. The video debuted on YouTube and after racking up millions of views was repurposed into a Chipotle ad that aired during the 2012 Grammys.

The emotions the video elicits in people are exactly the reason why, in my opinion, Einhorn oversimplified the perceived threat to Chipotle by Taco Bell’s ‘Cantina Bell’ menu. Taco Bell may now be focused on quality, but Chipotle is focused on quality with a cause.

It reminds me of an old Barkley PR (now Crossroads) belief relating to companies and causes: When you stand for something greater than your bottom line, people stand with you.

Chipotle has made what it stands for the forefront of its marketing communication – and consumers recognize it. It’s why I believe they and I will continue to choose Chipotle over Taco Bell when in the mood for quick and quality Mexican food.

Unless it’s after 10 p.m. and alcohol is in the equation. In that situation, all bets are off.

Photo credit: Dion Hinchcliffe

QSR Insights: What Every Retailer Can Learn From McDonald’s

Winning!Imagine for a minute that you were the CMO of any fast food chain other than McD.  The industry leader has just announced that they are going to start putting calorie labels on all their menus. What do you do now?

Well, first off you start trying to explain to the rest of your senior management why you’re behind the eight ball. And then, you all start working on a plan to catch up. Of course, you never can really catch up because you have lost the opportunity to lead.

By being first, McDonald’s was able to plan. Not only plan the announcement with all the attendant hoopla in the press, but also think about their menu strategy going forward. For example, is it possible they are ready to introduce some new menu items that are better calorie choices that they’ve been quietly testing? It’s not only possible, my guess is it’s probable. And while you’re trying to guess what they’re up to, don’t you think they may have also been looking at ingredient alternatives that will lower the calorie count of some of their current offerings. Being first is huge!

At Barkley, we think it’s critical for our clients to lead—to be first! And, to that end, we are involved in a lot more than their advertising. We work together with our clients to find the next big idea—the next game changer—that will let them be the leader in the minds of their customers and prospects even if they’re not the biggest in their category.

And when it comes to market leadership, we don’t think of it in terms of share. We believe that the definition of a market leader is THE ABILITY TO PUNISH YOUR COMPETITORS!

Let us have the opportunity to show you how we can work with you to be the true “market leader.”

Photo credit: Judy Rybarczyk

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QSR Insights: SONIC Sponsorship Helps Students Learn Tech

MINDDRIVE SONIC sponsorshipThis summer, SONIC Drive-In sponsored MINDDRIVE’s Coast-to-Coast 2012 event. The non-profit organization works with at-risk urban high school students in Kansas City, Mo. Through hands-on learning techniques and the help of a dedicated group of professional mentors, MINDDRIVE students built an electric car and drove it from San Diego to Jacksonville, Fla. in June.

As part of its sponsorship, SONIC provided pit stops for the traveling party at drive-ins along the route. The stops offered MINDDRIVE the opportunity to refuel with SONIC drinks and food in addition to a place to recharge the electric car.

After coordinating the pit stops with SONIC’s field team and local drive-in franchisees and managers, PR agency Crossroads capitalized on the sponsorship and drive-in pit stops to highlight SONIC and the brand’s long-standing education commitment to local media and connect the drive-ins with their local communities. Through 16 SONIC pit stops along Interstate 10, Crossroads was able to maximize the national sponsorship by localizing the story and driving traffic on-lot.

The campaign resulted in 16 news stories and 2.5 million impressions, engaged SONIC’s social media community through Facebook posts and tweets, and energized local drive-in crewmembers to become more involved in SONIC’s commitment to education.

Visit the Crossroads blog for full post with video and photo gallery.

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