brand wars fast-casual dining vs on-demand delivery final · 2018-12-24 · on-the-go (running...
TRANSCRIPT
BRANDWARS:FAST-CASUALDINING
vs.ON-DEMANDDELIVERY
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WEWONDERED…
WhyareFast-CasualDiningandOn-DemandFoodDeliveryServicessohotrightnow?Howdoconsumersactuallyusethem?Whatdobrandsneedtoknowtodelightcustomersandcapturemarketshare?
EnterBrandWars.Adynamicduel.Arumbleinthetummyjungle.Andinthiscase– lessofafoodfightbetweenFastCasualandDeliverythanafoodfriendship.
WillFast-CasualRestaurantsandOn-DemandDeliveryServicesturnintofoodfrenemies?Readontofindout.
THENEEDFORSPEED…ANDHEALTHYOPTIONS
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PUTTHE‘EAT’INCHEAT
Peoplearebusierthaneveranddon’thavetimetocook.Buttheystillneedtoeat!
68%ofpeopleage15-64hadapaidjobin2015,leadingtothegrowingdemandforquickandconvenientdiningoptions1.Howdoyoueatwellwithnotime?Youhavetocheat.Notthebadkindofcheatinglikethatmathtestin8thgrade– wemeancheatingthelimitsoftime.
Gettingagoodmealfasterisconsumers’favoritenewlifehack.
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HEALTHYMAKESITAVALUEMEAL
Consumers’lackoftimeisasimportantasconcernsabouthealthandnutrition.33%ofchildrenandteensarediningoutsidethehomeonadailybasis1.Thistransitionfromtreattoroutinemeansfastfoodisoftenoutofthequestionasconsumersseekmorehealthconsciousoptions.
Thesilverlining?Theyarelesssensitivetoprice.Convenienthealthyoptionsareoftenworthspendingalittlemore,andmostconsumersarewillingtopayforeaseandspeed.
OK,SOWHYDOTHEYCHOOSE…
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WHYFAST-CASUALDINING?
Weknowthefast-casualrestaurantsectorisbooming.Fast-casualdiningwasthestrongestgrowingsegmentacrossthefoodserviceindustry,growing10.4percentbetween2014and2015,whiletheoverallindustrygrewonly5.7percent2.
Weknowconsumerslikefast.Weknowtheylikecasual.Butwhy?Thefast-casualexperienceisawaytositdownforapropermealwithoutallthepompandcircumstanceofafull-servicerestaurantorthehassleofasinkfullofdirtydishes.Thetimesavingsandrelativeeconomyistheperfectbalanceofcheap,convenientcivilityinamad,madworld.
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WHYFAST-CASUALDINING?
Ichoosetoeatatfast-casualrestaurantswhenIamlookingforaplacetositdown,butdon'thavethetimeforafull-fledgedfullservicerestaurant.
– Male,35to54
Ieatatfast-casualrestaurantsfrequentlybecausethefoodisusuallyprettygood,andit'saffordable.Idon'tfeelawkwardgoingtothembymyself,and
theydon'ttakealotoftime,sothey'regreatwhenI'moutandjustwantaquickmeal.
– Nonbinary,18to34
Fast-casualrestaurantsaregreatforquickmealswhenyouhavethingstodoafterwork,suchasattendingachild'ssportingoracademicevent.Theyarealsogreatwhenyouareontheroadtravelingforbusinesswhenyouneedafast,yet
economicalmeal.
– Female,55+
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WHYON-DEMANDDELIVERY?
Deliveryservicesareanew,butgrowing,partofthefoodindustry.WhileoptionsfordeliverywereoncelimitedtopizzaorChinesefood,theemergenceofon-demandservicesmeanconsumerscannowtakeadvantageofthesamefoodthey’denjoyinrestaurantsofalltypes.Drivenlargelybyappsandothermobiletechnology– andofcoursemillennials3 – thismarketisexpectedtogrowtomorethan$21Bby20254.
SometimesyoujustwanttoNetflixand…relax.Cookingathomerequiresshopping,chopping…notlayingdownonthecouch.Ormaybeyou’reworkinglateandonarollandneedagoodsustenancebreak.On-demanddeliveryistheanswer– aquick,convenientoptionforthosetimesyoujustcan’t(orwon’t!)leaveyourhomeoroffice.Nottomentionthattheseservicesprovideaccesstoadazzlingarrayofcuisines.
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WHYON-DEMANDDELIVERY?
Ifmyfamilyisinahurryandwedon'twanttotakeourkidsoutforalargeordeal,weoftenchooserestaurantssuchasthese.Theyareidealforkids.
– Female,35to54
Lookingforabitetoeatbetweenmeetingsorwhileon-the-go(runningerrands- asopposedtotaking
timeouttostopbackhome).– Male,55+
Lessexpensivethanasitdownrestaurantandabitquicker.Whenyouwantsomethinghigherqualitythanwhatmostfastfoodoffers.Especiallyifyouhavesomeonewithdietarylimitations,itiseasiertocustomizeherethanatafastfoodrestaurant.
– Female,18to34
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WHAT,WHERE…ANDWHO
Sinceoptionsabound,consumerstakeintoaccountmanydifferentthingswhentryingtodecidewhethertovisitafast-casualrestaurantoruseadeliveryservice.Chiefamongthesefactorsaretime,location…andwhoelseisinvolved.
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KUMBAYAAtthesurface,youmightthinkfast-casualrestaurantsandon-demanddeliveryservicescompeteforhungryconsumers– butthatisn’talwaysthecase.
Insomeinstances,consumersuseadeliveryservicetobringthemfoodfromaquick-servicerestaurant.Theywantoptions– bothforthefoodandforhowitgetstothem5.Workingtogethermeansbothfast-casualandon-demanddeliveryhaveopportunitiestogrow.
But,quick-servicerestaurantsanddeliveryserviceshavealotofopportunitytocarveouttheirownconsumernicheaswell.Onthesurface,customerssaytheywantthesamethingsfromboth…butwhatdotheyreallymean?
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SAMECONCEPTS…DIFFERENTMEANINGS
BUSYFamiliesandprofessionalsfittinginaquick
lunchorfastdinner
VARIETYChoicesforalloccasionsandpalates
BUSYProfessionalswithnotimetoleavework,groceryshop,cook
VARIETYLotsofcuisinestochoosefrom
PRICEReasonable,lessthanasit-down
restaurant
PRICEReasonable,premiumforconvenience,upfrontandinclusiveoffees
QUICKFast,calm,efficient
QUICKSeamless,speedy,simple,accurate
HEALTHYFresh,nutritiousandtasty
HEALTHYHighquality
CONVENIENTEfficient,friendlyandprofessionalservice
CONVENIENTWhatIwant,whenIwantit
ON-DEMANDDELIVERYSERVICES
FAST-CASUALDINING
WHOEATS
WHERE?
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SOWHO’SDININGOUT?
Busypeople!Professionalssneakinginaquickworkinglunch.Familiessqueezinginaspeedydinnerwhileshuttlingbetweenactivitiesorerrands.Thesedinersseekaquick,calmrespiteonyetanotherhecticday.Theywanttoeattogetherwhilethey’reonthego.Youdon’thavetobeathometoconnect,and– bonus– thefriendlystafftakecareofalmosteverything.AfewmoreminutestositdownandhearaboutwhowonthespellingbeeisaW-I-N.
Fast-casualdinerswanthighquality,healthyoptionsandavarietyofchoicesthatcanpleaseamultitudeofpalates– whetherit’sfamilywithchildrenofallagesoragroupofcolleaguesclosingadeal.
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SOWHO’SDININGOUT?
Ifmyfamilyisinahurryandwedon'twanttotakeourkidsoutforalargeordeal,weoftenchooserestaurantssuchasthese.Theyareidealforkids.
– Female,35to54
Lookingforabitetoeatbetweenmeetingsorwhileon-the-go(runningerrands- asopposedtotaking
timeouttostopbackhome).– Male,55+
Lessexpensivethanasitdownrestaurantandabitquicker.Whenyouwantsomethinghigherqualitythanwhatmostfastfoodoffers.Especiallyifyouhavesomeonewithdietarylimitations,itiseasiertocustomizeherethanatafastfoodrestaurant.
– Female,18to34
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WHATADINERWANTS…
Theywantfreshandtastyfood– healthyandgood-for-youingredientsthatdon’tsacrificetaste.Theyexpectconvenience.Theexperiencehastobequickandefficient.Employeesmustbefriendlyandprofessionalandabletoassistintakinganorderonlymomentsafterwalkinginthedoor.
Oncetheorderisin,customerswanttoseatthemselvesandenjoyavarietyofcleanandcomfortableseating.Theyalsowanttheirexperiencetobereasonablypriced.Whileitdoesn’thavetobecheap,theywillnotpaythesameamountastheymightatasit-downrestaurant.
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WHATADINERWANTS…
“Qualityfoodthatwasnothighinfats.Ienjoyhealthyfoodsthatappearandtastefresh.Iwouldappreciatearestaurantthatcanoffermehealthychoicesinafastfoodenvironment.”– Male,35to54
“Friendly,fastservicethatallowsmetogetmyfoodinatimelymannersoIcanenjoyitwithoutfeelinglikeIhavetorushbacktoworkorwhereverelsebecauseservicewasbad.”– Female,18-34
“Duringlunch,Ineedtogetthere,getmyorder,eat,andbebackatofficeineither30or60minutes,so,efficiencyishelpful[and]easeofaccessisimportant.”– Female,35-54
“Firstly,Iliketherestauranttobecleanandappealing.Theatmosphereshouldbewarmandwelcoming.Musicshouldn'tbetooloud.Diningshouldbeprivateenoughtoconverseeasilywiththepersonorpeoplewhoyouarewith.And,ofcoursethefoodshouldbeverytastyandnutritious.”– Female,55+
“Goodfoodforagoodvalue.Doesn'tneedtobesupercheapbutdecentprices.”– Female,18-34
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SOWHO’SORDERINGIN?
Professionalstoobusytoleaveworkduringthedayortoobusytogroceryshopandcookintheevenings.Thisworkingcrowdiswillingtopayapremiumfortheconveniencedeliveryservicesprovide.
Whoelse?Predictably,younger,trendycollegestudentsandmillennials,thosewhohavegrownupinanon-demandworldandseethisasanaturalextensionofotherservicesthey’reusedto.Or,maybetheyjustdon’twanttointerruptthatNetflixbingetogetsomethingtoeat.
Regardlessofage,regularusersofdeliveryareseekingvarietyincuisinesandhealthychoices.Theyaretech-savvyandcomfortableusingtheappsthatdrivethisservice.
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SOWHO’SORDERINGIN?
Toobusytostepawayfromameetingorjustdon'twanttodrivetopickupfood.Thesedeliveryservicesseemtobealotquicker,andinsomecasescheaper.
– Male,18to34
WhenIamsupertiredanddon'tfeellikeleavingthehouse.Itmakesiteasybecauseifyouarecravinga
specifickindoffoodIcanorderitandhaveitdeliveredwithoutleavingmycouch.
– Female,18to34
Iwouldsaytheseappsarebestforwhenyoudon'twanttogoout.Youcangetfoodanddrinksdelivereddirectlytoyouathome,work,oratafriend'shouse.They'rereallyconvenientandhavealotofoptionsforplaceswithindeliverydistance.– Female,18to34
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WHATDELIVEREESWANT…(wait,isthatword?)
Theywantaseamlessexperiencethatisquick,easyandultimatelyresultsintastyfood.Thisbeginswiththeorderingprocess,whichshouldbefast,simpleandaccurate.Fromausabilitystandpoint,thismeansapreferenceforappsthatincluderobustfeatures,suchastheabilitytofiltercuisinechoices,repeatpreviousorders,providespecialinstructionsorpre-arrangethetip.
Andaboveall,whenitcomestodelivery,speedmatters.Consumerswanttheirfoodin30minutes,andtheywantittobeashot(orcoldifit’ssomethinglikeasalad)andasfreshasifitwasdeliveredtotheirtableratherthantheirhomeorbusiness.Thedeliverydriverisviewedasextensionoftheexperience,andconsumersexpectdriverstobeasprofessionalandcourteousasstaffinarestaurant.
On-demanddeliverycustomersrecognizetheconvenienceoftheserviceandassucharewillingtopayforit…withinlimits.Thepreferenceisforflatpredictablefees,whichhelpavoidsurprisesatcheckout.
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WHATDELIVEREESWANT…(wait,isthatword?)
“Abletosortbyrating,pricerange,typeofcuisine,andanyotherparametersincludingminimumchargeanddeliverytime.Instantprocessingandpushupdateswhenthefoodactuallygoesoutareagreathelp.Paymentincludesthetip.”– Male,35-54
“Iwouldwantthefoodselectiontobefreshandmade-to-order.Iwouldexpectittotastegoodandbehotandreadytoeatwhenitarrived.”– Female,55+
“Lowerfees!Thereisauserfee,adeliveryfee,andthenyouhavetotipthedriver.Sometimesthatmakesmybilldoublewhattheactualfoodcostsintheend.”– Female,35-54
“Quick,friendly,andhotfood!Thedeliverypersonhasacleanappearanceandiscourteous.”– Female,35-54
“IfI’mhungry,Itypicallywanttoeatrathersoon.Idon’tlikewaiting45minutestoanhourforfooddelivery.Icancookmyownmealinthatamountoftime.Thisisusuallythedeterrentfornotorderingthroughadeliveryservice.”– Male,35-54
ANDHOWDIDWELEARNALLTHIS?
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OURMETHODOLOGY
Ourapproach,Merge,combinesthepowerofhumananalystswithadvancedtextanalyticstouncoverhiddentruths.
Mergeisbasedonthenotionthatwithforethoughtandcarefulexecution,youonlyneedafewquestionstogainimpactfulinsights.UsingThoughtPath,ourproprietarycognitiveframework,wecraftedahandfulofquestionsaboutfast-casualrestaurantsandon-demanddeliveryservicesandaskedthemof600consumerseach.Thefeedbackwasanalyzedfirstviaourtextanalyticstool,thenpassedontoourexperiencedqualitativeanalyststouncovermorenuancedthemesbystudyingfactorssuchasclarityandintensityofthelanguage.Theresults?Adeeperunderstandingofhowconsumersviewanduseeachofthesediningoptionsandwhatittakestocapturemoreshareofthemarket.
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THEQUESTIONS
• Inwhatsituationsorscenarioswouldyouchooseto[eatatafast-casualrestaurant/orderfromafooddeliveryservice]?
• Pleasedescribeyouridealexperience[eatingatafast-casualrestaurant/usingafooddeliveryservice].
• Whattypeofpersondoyouthinkwouldeatatafast-casualrestaurantregularly?
• Whattypeofpersondoyouthinkwoulduseadeliveryservice?
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INTHEKITCHEN
1. https://www.fastcasual.com/news/fast-casual-industry-to-hit-67b-by-2020/
2. https://www.qsrmagazine.com/news/fast-casual-fastest-growing-foodservice-segment-globally
3. https://hbr.org/2016/04/the-on-demand-economy-is-growing-and-not-just-for-the-young-and-wealthy
4. http://www.mckinsey.com/industries/high-tech/our-insights/the-changing-market-for-food-delivery
5. https://www.fastcasual.com/news/study-qsr-only-restaurant-segment-to-see-traffic-growth-in-17/
