Insights Success World’s Post

𝐒𝐮𝐛𝐰𝐚𝐲® 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬 𝐰𝐢𝐭𝐡 𝐏𝐞𝐩𝐬𝐢𝐂𝐨 𝐢𝐧 𝐭𝐡𝐞 𝐔.𝐒. Subway®, one of the world’s largest restaurant brands, announced a 10-year partnership with PepsiCo to supply beverages in US outlets starting January 1, 2025. Read More: https://bityl.co/OrrY #Subway #PepsiCo #SubwayPartner #partnership #partnerwithus #news #NewsUpdate #BusinessNews #newsdaily #USNews

“As many restaurant companies prepare to report their second-quarter results, investors are expecting to hear that diners are visiting their locations less frequently and that sales have turned sluggish, with few exceptions such as Chipotle. In the hopes of lifting their results for next quarter, chains such as McDonald’s, Taco Bell, Burger King and Wendy’s have unveiled or revived meal deals with a $5 price tag.” “Fast food typically fares better than the broader industry during economic downturns. But the last several years of price hikes have led many consumers to conclude that fast food just is not a good deal anymore. More than 60% of respondents to a recent LendingTree survey said they have cut back their fast-food spending because it is too expensive.” “Runaway menu prices have scared off many fast-food customers, including those in the low-income bracket who make up a sizable chunk of the sector’s customer base. Sensing diners’ fast-food backlash, players such as Brinker International’s Chili’s have used their marketing to highlight their own value relative to the cost of a fast-food meal. Casual-dining chains have taken some market share from the fast-food sector, Darden Restaurants CEO Rick Cardenas said in June.” “Generally, fast-food chains tend to focus their discounts and value meals on the first quarter, when consumers are trying to save their dollars after the holiday season and stick to New Year’s resolutions. As temperatures rise, so do restaurant sales, and operators usually do not need to rely on deals to bring in customers.” “But this summer is different. Fast-food chains need discounts to fuel traffic — and sales growth.” “Without convincing customers to add a milkshake or another entrée to their order, the discounts ding profits and become unsustainable in the long run. That is a big worry for investors who are already skeptical that chains will not see the traffic bump they are hoping for.” “Investors are not the only ones skeptical about the promotions — so are franchisees, who often push back against discounts because they hurt their profits.” “Coke CEO James Quincey said on Tuesday’s earnings call that the beverage giant has seen weaker away-from-home sales in the U.S. as quick-service restaurants struggle. To boost demand, Coke is partnering with food-service customers to market food and drink combo meals, according to Quincey.” “The promotion is bringing customers back to its restaurants, according to both executives and foot traffic data. June 25, the launch day of McDonald’s $5 meal, drew 8% more visits than the average Tuesday in 2024 so far, according to a report from Placer.ai. The pattern repeated in the following days as the chain exceeded year-to-date daily visit averages. Placer.ai also found that discounts helped drive traffic to Buffalo Wild Wings, Starbucks and Chili’s.” - Amelia Lucas

Consumer spending at restaurants grew 5% in 2023 compared to 4% growth in 2022, according to data shared by Circana in a Monday press release.  Industry sales in 2023 exceeded 2019 sales by 12%, even though traffic is 8% below its pre-pandemic levels. Traffic grew 1% last year compared to 2022. Circana predicts that the restaurant industry will see 1% traffic growth this year. The top 50 restaurant chains have seen their sales grow relative to the overall industry, Circana found. Aggregate consumer spending rose 7% and reached $313 billion, compared to a 2% dollar growth seen at all other restaurants in 2023.

This thought-provoking article highlights a significant trend: restaurants are contending with increased competition from grocers and c-stores. The landscape is evolving as consumers explore diverse dining options beyond traditional restaurant settings.   At Revelry, we’re dedicated to deepening our understanding of these trends to better serve our clients. With a focus on strategic insights and collaboration, we’re here to help navigate this changing landscape together.   Let’s engage in meaningful discussions about how your brand can adapt and thrive amidst these shifts.   Read the full article - link below.   #FoodserviceIndustry #MarketingInsights #StrategicAdaptation #CollaborativeApproach

Is McDonald's new beverage line a bold move or a bitter blend? ☕ In our latest editorial, QBR Editor Lauren MacDonald delves into McDonald’s bold venture into the specialty beverage market with the launch of CosMc’s. This strategic move, aimed at challenging beverage giants like Starbucks and Dunkin’ Donuts, showcases McDonald’s intent to diversify its revenue streams and enhance its brand power. MacDonald examines the implications of CosMc’s introduction, assessing its potential to attract a new demographic and integrate seamlessly into consumers’ daily routines. Through a critical analysis, she explores whether CosMc’s signifies a refreshing innovation in McDonald’s portfolio or if it represents a leap of faith into a fiercely competitive arena. This editorial offers a comprehensive look at CosMc’s journey, from its inception to its market positioning, highlighting the challenges and opportunities that lie ahead for McDonald’s in redefining its legacy within the quick-service restaurant industry https://lnkd.in/gjrzPA4e

As the fast-food industry battles shrinking foot traffic and rising costs, major chains like McDonald’s and Wendy’s are leveraging strategic price bundles to attract value-conscious consumers. Yet, with McDonald’s reporting a decline in sales growth and Wendy’s exploring dynamic pricing, the sustainability of such promotions remains in question. Restaurants must balance enticing deals with profitability, considering new menu innovations and loyalty programs to sustain customer interest. As Modern Retail analysts suggest, the challenge lies in finding a pricing model that maintains customer appeal while managing operational costs in an increasingly competitive market.    Our Take 💭 Things move at a fast pace in casual dining and quick services restaurants. That is the point: readily available value-priced meals, often grab and go, chosen from menus are reliable and appealing, and experiences that breed loyalty and repeat visits. And it is far from easy!   Restaurant brands need to be nimble to reach, engage and compete for customers, bringing them back to the table through promotions, new menu items and even the announcement of new locations or regional expansion. In an increasingly competitive market, where and how you allocate media spend is an exercise that needs to be as responsive and effective as you are.   Measuring and optimizing marketing performance is essential to achieving equilibrium in the operations of your business. Finding the right partner to help you achieve it should be the easy part. To learn more about how we can support your media scenario planning, contact us today at info@in4ins.com.   Read the full article, “Fast-food chains like McDonald’s & Wendy’s are locked in a price war” on Modern Retail: https://lnkd.in/emvu6GFT

Similar to McDonald's opening their CosMc's concept, Taco Bell is testing a beverage-forward concept. This quote from Alicia Kelso in Nation's Restaurant News says it all: "Taco Bell’s Live Más Café test comes as the conversation surrounding specialty beverages picks up significantly, thanks in large part to McDonald’s launch of its CosMc’s concept late last year, as well as the staggering growth of concepts such as Dutch Bros, 7 Brew, Biggby’s, Scooter’s, and more. According to Technomic Ignite data, the roughly 20 coffee chains occupying the data firm’s Top 500 for 2023 added nearly 1,400 cumulative locations last year, outpacing every other menu category. Coffee chains aren't alone in their meteoric growth. Other beverage concepts like Swig and Smoothie King also had a strong 2023 with that momentum continuing in 2024." Operators who aren't prioritizing their beverage menu right now are leaving money on the table. This category is seeing meteoric growth with no end in sight. #beveragemenumatters #beveragemenu #beveragetrends #foodservice

Circana just unveiled our highly anticipated U.S. Restaurant Ranking Report! 🍽️🎉 This report explores evolving consumer habits, performance trends, and industry leaders in a year marked by resilience and adaptation. Here are some key insights: 📈 Despite challenges, the U.S. restaurant industry saw a 5% increase in consumer spending in 2023, surpassing pre-pandemic levels by 12%! 🚀 Fast casual #restaurants emerged as stars of the show, with a staggering 9% spending growth. 🌅 Morning meals and snack dayparts saw significant growth, driving the success of the #QSR snack channel. 🏆 The top 50 U.S. restaurants, representing just 24% of all locations, command a whopping 61% share of industry spending! Click below to dive deeper into the rankings and discover notable newcomers and climbers in the U.S. #restaurantindustry! https://lnkd.in/eUGJsy5J

The restaurant industry is poised for a transformative period as it approaches 2025. Major players like McDonald’s and Starbucks are actively working to enhance their operations and adapt to the evolving market landscape. Despite facing significant challenges, these companies are committed to improving their performance and meeting the changing needs of consumers. The outlook for […]

The restaurant industry is poised for a transformative period as it approaches 2025. Major players like McDonald’s and Starbucks are actively working to enhance their operations and adapt to the evolving market landscape. Despite facing significant challenges, these companies are committed to improving their performance and meeting the changing needs of consumers. The outlook for […]