Article

Frozen desserts: What fast casuals can learn from QSRs

To win the ice cream fans over, find a niche that your competitors can't.

June 21, 2013

By Daniel Campbell, Research and Development Assistant, Food IQ

Ice Cream. Those two wonderful words can create a Pavlov-like response: Making your mouth water, your mind flood with nostalgia of favorite flavors or experiences, and of course, the medical mystery of lead-foot, ([led-foo t] the sudden heaviness experienced in your right foot as you speed toward your favorite ice cream place to get the flavor of the week). Maybe you're not an ice cream fan, maybe you're a custard kind of guy, perhaps a gelato gal, or even an "I'll-take-it-anyway-I-can-get-it-as-long-as-it's-cold-creamy-and-delicious kind of person." Anyway you spin it, we love our frozen desserts — in a cone, on a stick, in a cup; mixed with candy, plain, topped with a cherry; through a straw, on a spoon, or just licked. We gotta have it, and we want it right now. So what's driving your frozen desserts business? Whether it's unique, decadent, made in-house or branded, how can you increase your frozen dessert sales, without melting away your profits?

So what happens when a company realizes their ice cream may be sub-par? You change it. And that's exactly what Sonic Drive-In and Checkers/Rally's set out to do. One could argue that Ben Cohen and Jerry Greenfield (Ben and Jerry's) laid the stones for others to follow when it comes to flavor experiences and inclusions. But before someone should offer a dish of ice cream loaded with cherries and chocolate, one should start with a great-tasting base. Custard, gelato, hard-packed and soft-serve ice cream all have standard of identities set forth by the U.S. Code of Federal Regulations (CFR). Instead of boring you with what each of those are, let's discuss what those shouldn't be. Most, if not everyone, has had some soft- serve ice cream from either a buffet line or from a chain that didn't emphasize its ice cream menu, and well, let's be honest, the only thing it did for you was give you a brain freeze. Starting off with a good base, one with a higher milk fat percentage and the right balance of sugar and flavor is key. Both Sonic Drive-In and Checkers/Rally's came to that realization. Sonic's realization came in 2010, around the same time the CFR was updated to define 'real ice cream.' It started offering a new ice cream, one that was richer, thicker and creamier. It also upped the ante on the toppings.

Checkers/Rally's was in the same boat. The brand set out to create a more decadent, indulgent dessert menu. Starting with a new ice cream foundation that had more richness, mouth-feel and a difference that people would notice, it also added many real, substantial ingredients but kept the price affordable. The change led to a 5-10 percent increase at each store offering the new dessert versus the control markets. Sonic Drive-In and Checkers/Rally's are just two QSRs that realized to compete in the market they had to offer something to their customers that met frozen dessert cravings. If QSRs can succeed with ice cream, fast casuals should do the same.

So what's the answer for FC? Normally, things in the restaurant industry roll downhill, starting at the fine dining level and moving down to quick service. So, how come it seems as if FC was skipped completely when it comes to indulgent frozen desserts options? According to Mintel, there are only nine FC restaurants that have 'Ice Cream' listed on their menu as a Plate Component or Menu Item Dish. Nine, that's all. Out of those, there are only a few-- Culver's and Redbrick Pizza Café — that could be considered as known for their frozen dessert offerings. Where is everyone else? In the world of inexpensive, indulgent QSR offerings (average $2.79 over the last five quarters), how does FC compete (average of $4.18 over the last 5 five)? A few suggestions perhaps?

Offer something they can't, and make the price point is worth it. For those dessert dollars, not only are you competing with the QSRs of the world, but you're also competing with any local ice cream parlors that are hand crafting, hand-scooping and offering custom toppings that you probably can't do. So, don't offer things found on everyone else's menu. Instead, offer house-made cakes, cookies, or pies that are mixed, or topped by ice cream. Try creating regional favorites and offering LTOs around that. Invest in an ice cream machine, or co-brand with a major ice cream manufacturer. Offering an ACME version of ice cream, when QSRs can offer for less money doesn't make much sense.

Become nostalgic or go local. If it fits your brand, those baby-boomers would love a chance to sit and sip on a hand-scooped, hand-spun, real milk and ice cream milkshake with their honey, just like when they were on their first date. Find a niche that your competitors can't. Start out slow, and work your way up; small investments over time can add to larger profits. Match your mission and your values to an up-and-coming ice cream company, or maybe one that's been around for a while. Maybe there is a local dairy farm that would be willing to sell you some of their dairy; maybe you'll grab the attention of those Millennials and Gen Xers that love local things.

Frozen desserts shouldn't be something that's difficult to offer. Consumers are always looking for the newest flavor crave, freshest baked goods or most indulgent treats. Consumers want to celebrate victories in life, whether big or small, and frozen, decadent, delicious desserts may be just the way to go. You don't have to travel halfway around the world like Marco Polo just to find a recipe; your kitchen is a good first place to start. Menu innovations, consumer attitudes and recipe development are all a part of what creates the next big craze. With a little help, those frozen desserts can become cold hard-packed cash.

Read more about food and beverage trends.

Cover photo: Wikimedia