Britvic-SDR-Foodservice-v17 FV - Flipbook - Page 31
Foodservice category overview
Foodservice deep dive
Foodservice data tables
Quick service restaurants (QSR) – that’s traditional
branded, contemporary branded and independent
fast-food operators, street food outlets, high street
bakeries, sandwich shops and similar – are expected
to see greatest growth over coming years, stealing
share from full-service restaurants, which are
challenged by outlet decline and greater exposure
to rising costs, staff shortages and dampened
consumer spending18.
Nevertheless, fast food hasn’t been immune to the
effects of the cost-of-living crisis. In value terms,
QSR has lost the most share – a decline of 0.7%
pts19 – partly because cash-strapped families are
trading down to retail to make savings (supermarkets
have cashed in by increasing ranges of “fakeaway”
products20), but also due to fast food operators
keeping a tighter lid on price rises. To attract
shoppers trading down from pubs and full-service
restaurants and compete with fast food’s new
generation, players are ramping up quality cues.
See McDonald’s March 2024 announcement of its
most “signi昀椀cant menu changes” in decades as an
example.21 The changes included the introduction
of freshly toasted, brioche-style buns, crunchier
lettuce and the addition of onions to the beef patties
while they are cooking for added 昀氀avour. Patties are
also seared at hotter temperatures to create juicier
burgers with gooier cheese, says McDonald’s.
This makes sense, given that many are migrating
from pricier establishments – where buns aren’t buns
if they’re anything but brioche – in response to the
squeeze on their 昀椀nances.18 Stiffening competition
from operators such as Flat Iron, which specialises
in steak at affordable prices, and decadent burger
chains such as Fat Hippo also means fast food’s
leading players need to up their game.
Soft drinks and alternatives to alcohol are not an
afterthought for fast food’s newcomers. Indeed,
some are putting their soft drinks offerings front and
centre of their menus and marketing. Karak Chaii, for
example, now operates around 25 drinks-昀椀rst outlets
across the UK19, selling a range of its signature
昀氀avoured chai drinks (hot or cold), mango and guava
coolers and dessert noodle drinks.
18 Lumina UK Restaurant Market Report Nov 2023
19 CGA by Nielsen, Foodservice & Licensed Report, QSR, Value Sales, Categories Britvic De昀椀ned, MAT 31.12.23
20 https://www.thegrocer.co.uk/asda/asda-unveils-four-fancy-fakeaway-ready-meal-ranges/684475.article - https://www.thegrocer.co.uk/aldi/aldis-fakeaway-mcdonaldsdupes-vs-the-real-thing/679790.article
21 https://www.thesun.co.uk/money/26576112/mcdonalds-huge-changes-burgers-menu-big-mac-cheeseburger/#:~:text=The%20changes%20will%20be%20rolled,way%20
they%20sear%20beef%20patties.
FOODSERvICE CaTEgORy OvERvIEW
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