Article
QSRs rely on rollouts
Chains introduce new menu items to maintain — and increase — traffic.
March 31, 2008
QSRs are rolling out a number of menu changes as they look for ways to boost business in a sagging economy. As each dollar becomes more precious to the consumer, restaurants are hoping novel items and expanded offerings will encourage customers to continue opening their pocketbooks.
"Consumers want options in everything they do, and restaurant menus are no exception," said Annika Stensson, manager of media relations for the National Restaurant Association. "In the current economy, maintaining sales volume is pretty high on the list of challenges, so every customer walking in the door is valuable."
Breakfast was a major battleground for market share in 2007 and promises to be in 2008 as well. Industry analysis suggests that the breakfast market is poised for continued growth as it remains the meal with the highest at-home consumption and thus has the most converts still to gain. "Sixty-one percent of quick-service operators said the breakfast daypart represents a larger proportion of their total sales than it did two years ago," Stensson said.
Burger King will continue its pursuit of the breakfast market this spring with the addition of its new Cheesy Bacon BK Wrapper, the chain's unique take on the breakfast burrito, according to Jonathan Muhtar, senior director of product marketing for Burger King.
"The industry has seen a lot of success with the breakfast burrito," Muhtar said. "Customers want breakfast in a portable fashion, and they'll get that with the new BK Wrapper."
In March, Jack in the Box rolled out Jack's Cinnamon Roll. The bite-sized pastry, which sells for $1.59, will be available all day. According to media relations manger Kathleen Anthony, the chain is also working on smoothies and iced coffee, due to launch later this spring.
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Value menus, with a selection of items selling for a dollar or less, have become standard as operators cater to budget-minded consumers. Lately, though, QSRs are working to grab market share from the casual-dining segment as diners cut back on spending.
McDonald's is rolling out specialty coffee beverages including mocha, latte, and cappuccino blends in an effort to grab a share of the market once dominated by Starbucks. The company credited an 8.3 percent increase in comparable-store sales in February in part to its premium roast coffee.
And launching this spring at Burger King is the Steakhouse Burger and Loaded Steakhouse Burger. The Steakhouse burger is made of Angus beef and topped with crispy onion straws and A.1. Steak Sauce while the loaded version includes a baked potato spread complete with bacon and cheese. The suggested price of the Loaded Steakhouse burger is $4.19.
"This is the kind of burger you would find at an upscale casual dinner restaurant at the convenience and value of fast food," Muhtar said.
