News

Consumers see little difference between QSR, fast casual concepts

June 17, 2014

While fast casual may be the darling of the restaurant industry these days – posting an 11-percent sales increase in 2013 – consumers may not see a big difference between the rapidly growing segment and the more traditional quick-service segment.

New research from Technomic, for example, said the lines between QSR and fast casual are blurring, particularly when it comes to value, service, menu variety and craveability. The research firm said any limited-service concept that caters to a “variety of needs and occasions” will likely be the most successful. This includes meeting the demands for delivery or online ordering – services that are starting to be provided by concepts from all over the limited-service spectrum, including Panera, Burger King, Taco Bell, Chipotle and more.

"Limited-service restaurants will need to compete for visitation by focusing on their convenience platforms, amenities and ambiance in addition to the quality of their ingredients," Technomic’s EVP Darren Tristano said in a news release. "Fast food concepts in particular can differentiate themselves and better compete with fast casual concepts by adding loyalty programs, free WiFi, or enhancing their ambiance."

Many of the larger QSR brands are beginning to do just that to keep pace. Dunkin’ Donuts began adding free WiFi in 2012. Burger King just teamed up with AT&T’s Wi-Fi services for all of its U.S. restaurants. Even Krispy Kreme has jumped on board for those who want to surf the news while enjoying their morning doughnut and coffee.

And mobile/loyalty are a frontrunners for story of the year for both QSRs and fast casuals. In the past month alone, Dickey's Barbecue and Schlotzksy's both announced loyalty initiatives. While undergoing its comprehensive brand transformation, Wendy’s has started referring to itself as “a fast casual quality experience at fast food prices,” and is focusing heavily on its digital presence, with mobile couponing, loyalty, geotargeting, mobile ordering and payments in the pipeline. Jersey Mike’s also recently launched a mobile app that includes both ordering and loyalty capabilities.

The future of limited service

The lines are expected to blur between the two limited-service segments. Although more-than-once-weekly patronage is more frequent at QSRs than fast casuals, 39 to 19 percent, Technomic’s recently published “Future of LSR: Fast-Food & Fast-Casual Restaurant Consumer Trend Report” shows pretty similar stats between the two; moreso than in the past:

• Sixty-four percent of consumers report visiting QSRs at least weekly, and 40 percent patronize fast casuals as often.
• Delivery occasions have increased slightly at LSRs. Further, more than a quarter expect QSR (30 percent) and fast casual (28 percent) delivery, while similar proportions say this service could encourage patronage.
• Half of fast casual customers (53 percent) say that healthy options are important, and 63 percent even expect them. Fast casual users are slightly more willing than QSR users to pay more for better-for-you items.

At the end of the day, however, the consumer may not know the difference and is just looking for good food at a good value.

“We’re in the industry and we talk a lot about quick-service and fast casual and the subtle differences between the two of them. But the customer doesn’t know the difference and I don’t know if they care,” Jersey Mike’s CMO Rich Hope said during a recent interview. “They really just want a fresh product and a good experience.”