Even though the restaurant industry sees distinctions between fast-food and fast-casual concepts - two different types of limited-service restaurants -those lines are starting to blur for consumers, who note fewer distinctions between the two segments in areas like overall value, friendly service, craveability and menu variety.
Limited-Service Restaurants Must Evolve to Compete in a Take-Share MarketEven though the restaurant industry sees distinctions between fast-food and fast-casual concepts - two different types of limited-service restaurants -those lines are starting to blur for consumers, who note fewer distinctions between the two segments in areas like overall value, friendly service, craveability and menu variety. With increasing competition, limited-service concepts that cater to a variety of needs and occasions will likely be the most successful.
Consumers report that convenient delivery or ordering services, such as call-ahead or online ordering, could encourage them to patronize limited-service restaurants more often. Beyond convenience, 53 percent of fast-casual consumers expect an upscale, relaxing atmosphere, and 17 percent (up from 12 percent in 2012) will go elsewhere if this is not offered.
[View related infographic: Spotlight on Limited-Service Restaurants]
"Limited-service restaurants will need to compete for visitation by focusing on their convenience platforms, amenities and ambiance in addition to the quality of their ingredients," said Darren Tristano, Executive Vice President of Technomic, Inc. "Fast-food concepts in particular can differentiate themselves and better compete with fast-casual concepts by adding loyalty programs, free Wi-Fi, or enhancing their ambiance."
To help foodservice executives understand the latest behaviors, preferences and attitudes of consumers regarding the limited-service restaurant industry, Technomic has published an update of its Future of LSR: Fast-Food & Fast-Casual Restaurant Consumer Trend Report. Interesting findings include:
Menu Insights—utilizes Technomic's exclusive MenuMonitor data to reveal menu-development trends for key menu categories at Top 500 fast-food and fast-casual restaurant chains.
Consumer Insights—analyzes consumer behavior, attitudes and preferences toward fast-food and fast-casual restaurants, based on findings from a nationally representative survey of 1,500 U.S. consumers.
Competitive Insights—examines consumer perceptions of attributes important to limited service, such as affordability and speed of service, at many of the fast-food and fast-casual chains tracked by Technomic's Consumer Brand Metrics (CBM) program.
Outlook: Trends to Watch—explores emerging menu, concept and consumer trends that are poised to impact concept, menu and marketing developments at limited-service restaurants in the future.
Profiles—appendices feature in-depth concept and menu profiles for 10 trendsetting limited-service restaurant brands known for offering unique, quality menu items.
Technomic publishes a complete library of consumer trend reports. To learn more, please visit Technomic.com or contact one of the individuals listed below.
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