Fast food marketing—3 ways to win back price-sensitive diners

If the cheeseburger is the hallmark of American food, our biggest contribution to culinary culture is the fast food restaurant. In “Drive-Thru Dreams,” journalist Adam Candler puts it this way: “There are no inherited rites in America, but if one were to come close, it would involve mainlining sodium beneath the comforting fluorescence of an anonymous fast-food dining room or beneath the dome light of a car.” Quick-service and fast food restaurants are ubiquitous; there are more than 200,000 in the $278 billion industry. From McDonald’s to Taco Bell to Starbucks to Peet’s, these establishments are woven into our lives. Most Americans (52%) order from quick-service restaurants at least once per week, according to a recent Harris Poll survey. Another 25% do so at least once a month. See all of Ad Age’s 40 Under 40 honorees here Yet fast food is faltering. Traffic to quick-service restaurants fell in the first half of this year as quickly rising prices took the luster off the Golden Arches and other fast food symbols. A Five Guys receipt showing one diner’s meal costing $24 went viral in the spring, illustrating the extent to which complaints about fast food prices resonate with Americans. Our survey bore this out, with 81% of respondents saying their orders cost more compared to a year ago, with half of that group saying prices are “much higher.” (The overwhelming majority of Americans—80% according to our recent poll—believe that fast food ought to cost between $5 and $15.) Little wonder that 45% of respondents told us that they are eating out less across the board than they were a year ago. How can the industry get its special sauce back and ensure that this slow-down is a blip rather than a sign of things to come? We polled more than 1,000 consumers to find out, and here is their advice for fast food marketers: Understand your core audience Virtually everyone in the country eats fast food with regularity. But dig deeper and a distinct quick-service customer profile emerges: Frequent diners —those ordering at least once per week—are younger: 65% of those aged 18-34 fall into this category, but only 37% of Americans 55 and older. People of color (59%) order more fast food than white diners (48%). Men (58%) order fast food more frequently than women (48%). What would cause consumers to order fast food more frequently? Lower prices, discounts and larger portions. Understand fast food’s appeal Those who order from quick-service restaurants, even just once a year, do so because it’s a treat for themselves or someone else (46%) or convenience and saving money (45%). So, to maintain or expand their market share, restaurants should make the event easy, inexpensive and pleasurable. With only about 1 in 5 customers eating in the restaurant, fast feeders looking to increase in-restaurant traffic should invest in the most important aspects, according to the poll: Cleanliness (cited by 69% of respondents), service quality (63%) and speed (56%). While cleanliness topped the list for those 28 and older, it was fourth among Gen Zers (44%) behind service quality, speed and atmosphere (47%). Understand the bottom line Roughly 1 in 3 Americans say that quick-service restaurants offer affordable meal options—an alarmingly small number for a business whose existence is built on affordability. Not to mention that most Americans (52%) say that fast food ought to cost less than other types of restaurants and that 36% of Americans (including 47% of millennials) say that price is the most important factor when they eat out. Blend it all together and you’ve got an indigestible mess. The recipe for righting the fast food industry is remarkably simple: bring prices under control. The industry should own the niche that it created and be affordable, easy and pleasurable. That could mean lowering prices or just offering more discounts and promotions. Many wars have been waged among fast food brands, from breakfast to the chicken sandwich craze. The latest front should have the industry returning to its roots: affordability. Super Bowl commercials Tracking the latest brand and agency plans Click here

Fast food marketing—3 ways to win back price-sensitive diners

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