Article
Fast Casual 2009: Five hits and a miss
The economy, social media and a nationwide food-system upgrade round out a year filled with ups and downs.
December 21, 2009 by Valerie Killifer — senior editor, NetWorld Alliance
Despite the economic crunch, restaurant operators put their creative minds to work in 2009 and discovered new ways to reach discerning consumers. While the economy put a damper on same-store sales and unit growth, it didn't break fast casual operators' sprits.
Here's a look at the top five best (and one worst) things about 2009.
1. Fro-yo frenzy
Red Mango and Pinkberry exploded onto the dining scene in 2008, and further capitalized on consumers' fro-yo frenzy in 2009. In addition to Red Mango and Pinkberry, brands such as FreshBerry, U-Swirl and Spoon Me opened units across theU.S. and even intoCanada
"It started in the 1980s as a healthy alternative to ice cream. Now it's an even healthier alternative of what it used to be," Maria Caranfa, director of Mintel Menu Insights, said. "And it's meeting consumer demand."
While some bloggers are already questioning if the fro-yo bubble has busted, brand developers are still banking on its success. Toward the end of 2009, Red Mango rolled out an expanded unit portfolio that will let franchisees open stand-alone, co-branded or kiosk-style units. Meanwhile, Beautiful Brands International announced the signing of a 50-unit development deal inNorth Carolina.
2. Better burgers
Chains such as Five Guys, Smashburger and Mooyah revolutionized the way consumers viewed the hamburger in 2009 by offering guests more than a burger and a bun. The use of higher-quality beef and an increase in customization opportunities drew consumers to the hamburger sub-category even more.
"American consumers take their burgers seriously. It may be one area of foodservice where they are less willing to cut back, despite the current economic environment," Darren Tristano, EVP at Technomic, saidd. "They expect to pay more for a higher quality, better burger, and are willing to do so because the value proposition is heightened."
And during a year where consumers were seeking value more than ever, the better burger reigned supreme.
3. Food safety upgrade
In 2008, salmonella-contaminated jalapenos were the produce at fault for the food-safety breach, an incident that shined a national spotlight on foodborne illness and supply-chain management.
The outbreak helped prompt the White House to initiate a food-safety upgrade. In March, President Barack Obama put together a coalition led by Vice President Joe Biden to advise the administration on how to upgrade the food safety system for the 21st century.
The Food Safety Working Group recommended a new, public health-focused approach to food safety based on three principles: prioritizing prevention, strengthening surveillance and enforcement and improving response and recovery. The principles have been designed to help alleviate salmonella contamination and strengthen standards to protect the safety of eggs, poultry and turkey.
4. Social media
There was hardly a marketing plan in 2009 that didn't mention the words "social media campaign" somewhere on the list. Facebook and Twitter received national attention in 2009 as brands were forced to find creative solutions to attract and retain a new kind of consumer.
The sites were used to create an emotional connection with guests when, if used correctly, they extended an emotional experience beyond the restaurant's four walls.
Brands that took their social media campaigns to new heights included Red Mango and Kogi Korean BBQ.
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For example, Red Mango announced the launch of its probiotic iced tea line through Facebook while Kogi capitalized on its Twitter page to direct consumers to its food truck — launching a food truck craze in the process.
5. The Fast CasualAlliance
Who knew that a small group of passionate fast casual operators would lead an industry charge that helped change the structure of the National Restaurant Association?
The powerhouse association has decided to bring the FCA — founded by Fastcasual.com publisherPaul Barron — under its umbrella with the formation of the Fast Casual Alliance – an NRA Industry Council, the first council of its kind for the NRA. The council was announced Sept. 15 and the transition is expected to take two years to complete.
"As one of the attendees of the first Fast Casual Summit and each year following 2006, and as a member of the board of directors, I have seen first hand the impact of this segment, and how it really has changed the way people eat," said Linda Duke, CEO of Duke Marketing and secretary of the FCA. "To have the Fast Casual Alliance chosen by the NRA as the ‘model' for future restaurant industry councils is such an honor and is a testament to how hot this segment has become."
Belly flop
When Quiznos launched its $4 Toasty Torpedo sandwich line in 2009, the company found a way to offer consumers a quality sandwich at an affordable price. But it ran into trouble when it used an oven with a sexy male voice to "seduce" a Quiznos employee. Parents were outraged, and bloggers compared the spot to scaled-down homosexual pornography. Quiznos defended the appropriateness of the ad.
"We developed our new ads to be consistent with the Quiznos brand and to get people excited about our new Toasty Torpedoes," said Rebecca Steinfort, chief marketing officer for Quiznos, to Wikinew.com, a news and information Web site affiliated with Wikipedia.com. "Some of the ads are edgy and provocative, but they're well within the confines of the Quiznos brand character."
Yet to be seen: whether consumers will bite. Figuratively speaking, of course.
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