Sixty-one percent of consumers said they would patronize quick-serve restaurants more frequently if they offered smaller-sized portions for lower prices, according to the National Restaurant Association’s 2009 Restaurant Industry Forecast. Additionally, 56 percent said they would increase frequency at quick-serve restaurants if operators offered more convenient takeout options.
According to Technomic’s 2007 Snacking Category Report, only 23 percent of consumers surveyed think restaurants do a good job of providing foods they would eat as snacks. When asked where they buy snacks, supermarkets came out on top, followed by convenience stores, vending machines, and finally quick-serve restaurants.
Yet consumers indicated that almost any menu item can be considered a snack, and what many would consider a full meal others might consider a snack.
One take-away from the report that directly speaks to limited-service is the need to incorporate more grab-and-go items. Many bakery-type operators already do, says Sara Monnette, Technomic’s consumer research manager, who wrote the report and suggests that operators offer a separate line or counter designated for snackers.
To put restaurants more top-of-mind for snacking occasions, Monnette notes the importance of labeling food as snack items, as McDonald’s does with its Snack Wraps and as KFC does with its Snackers. She also suggests including a “snack” section on the menuboard.
Technomic’s research also indicates that consumers eat different types of snacks depending on the time of day. In the morning, they select more healthful items. Therefore, Monnette suggests changing the snack options according to the daypart.
And most quick-service side items could be viewed and purchased as snacks if restaurants did a better job of positioning them that way, she says.
The quick-serve segment also needs to look at the role of beverages in snacks, says the NPD Group’s Riggs.
“C-stores do a better job with beverages, as in the Big Gulp and Slurpee. They are very large sizes, very well priced,” she says.
Riggs says that historically, in tough economic times, consumers stop at a drive-thru for their sandwich and then drive to a convenience store for a beverage because of the value opportunity.
Beyond looking at better-priced large beverages, restaurants have to go back and take advantage of the products they have and develop line extensions—portable items that can be eaten on the run.
Riggs cautions, however, that restaurants need to watch that consumers aren’t just taking advantage of the dollar value menus and trading down from lunch to snacks at the expense of the core dayparts.
That’s something Taco John’s International is mindful of. The 425-unit chain views snacks as a core-strategy growth opportunity, rather than a limited-time sales boost.
The chain’s daily ticket average increased by 30 cents during the October introduction of its new snack lineup. “That was clearly incremental add-on sales,” says Chief Operations Officer David Schuh. “For the current guest, this provides a different eating opportunity.”
The new line—Buffalo Chicken Snackaritos, Ranch Chicken Snackaritos, Chips & Queso, and Cini-Sopapilla Bites—includes snacks similar to those commonly found in c-stores.
“Convenience stores clearly are doing a better job with broader choices today than 10 years ago. But the key thing that motivates us is that most of them don’t have drive-thrus. Our focus is to make any of these snack items just as convenient for drive-thrus as eat-ins.
“We have the advantage,” Schuh says.