QSR Media UK 2018 E-Magazine by Charlton Media Group

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Taco Bell’s London comeback and their plans for the UK

what’s inside?

arl’s Court and Leicester Square were some of the locations Taco Bell was last seen by Londoners before fully exiting the capital during the nineties. But thanks to a growing consumer demand for Mexican cuisine - the fast food chain, now a stronger brand in the United Kingdom and worldwide, is ready to end its exile. “We constantly get notes on our Facebook pages and all over our [other] social media pages (from customers), asking when Taco Bell is coming to London. We felt like all the stars [and] all the factors have aligned and [that] it is time to be there,” Taco Bell international president Liz Williams exclusively told QSR Media.

Vegan trends operators should know about

2019 food & drink trends

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5 ways to keep ahead in the food-to-go market

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in focus Uber Eats on industry dynamics and how restaurants can use technology to drive sales Using data can help restaurants target underserved markets.

espite intense competition within the food delivery space, Uber Eats UK General Manager Toussaint Wattinne believes their slice of the food delivery pie will only increase. QSR Media learned more about their perspective on the market and their competition.

Food delivery is still growing.

QSR Media: You mentioned shortening delivery times - how do you do this? We do it by breaking up every single point of a delivery period. It starts with making sure that preparation time is reduced as much as possible. From here it’s about making sure that we have the logistics in place to make a courier available when the food is ready and then that we have the most efficient possible route to get the order to the end user. Beyond this, it’s also about making sure the customer is nudged to choose the restaurants closer to them. If they are looking for a specific brand, then of course they should go for it regardless of the distance. However, in cases where people haven’t chosen a specific restaurant making sure that we’re able to steer them to the restaurants that are the closest to them is what we help them to do. We know that doing this makes a difference to customer satisfaction which in turn adds to repeat app usage.

QSR Media: How do you differentiate yourselves from other food delivery companies such as Just Eat and Deliveroo? The first differentiator is benefits of being part of the broader Uber brand. When people use their Uber Eats app, they do so using the same log-in and payment details as they do for Uber cars. By breaking down the barriers between our services, we can increase conversion rates and the speed with which we are making diners out of riders and riders out of diners. This is a huge asset that none of our competitors can match. The second differentiator is on the logistics side. We’ve built the best technology in the market. Given our background, the technology has by necessity been built to be highly efficient, highly reliable and quick at working out the best routes to get meals to customers. For example, in a city like London we deliver in under 23 minutes on average- this is the fastest of any company in this space, and we know that every minute you can shave off a delivery makes a huge difference to overall customer satisfaction. The third differentiator is our ability to support our restaurant partners through data. Because it is a business that is very much led by the food and drink offering; we can offer both quality and choice. This isn’t

Taco Bell...

Aside from a more established Mexican category in the city, Williams believes that they are now able to leverage the best of Taco Bell in terms of its scale and resources in order to ensure the success of their comeback. “We can make London work by picking great locations with good economics. We’ve got the mix of enthusiasm and that consumer demand so it is very attractive for franchise partners,” she added. Through a select group of franchise partners, Taco Bell is starting their

just about having a variety of restaurants on our platform, it’s about using our data and working with our restaurant customers to bring them more business. Typically, this is a major reason why restaurants are excited to work with us.

QSR Media: You also mentioned utilizing your data - how do you do this? For example, we provide insights around what menu items our restaurants could offer in their given areas that are underserved by the market. These sales are highly incremental not only versus in-store sales but also versus London return in Hammersmith, Fulham Broadway and Holborn. “London is such a big diverse city and we found that these three locations really match what we were looking for. They have a lot of the dynamics we look for in sites: great foot traffic, good generators for all day parts via offices, retail, schools and homes.” Remaining thoughtful amid significant opportunity Taco Bell is expected to cross the 30-store mark once the three upcoming sites open before the end of the year. Whilst they see “significant opportunity” in

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We can make London work by picking great locations with good economics

what our competition is able to offer. QSR Media: How many delivery companies do you think there can be in the UK? Food delivery in general is still growing. Within food delivery, online food delivery is still only a portion of this. This means there’s still huge potential for growth. We’re growing fastest within the online category but there is more than enough demand to accommodate a number of providers. I don’t expect it to be a one-player market because restaurants are excited about the opportunity to have more volume coming from multiple partners; they see that having two apps bring you more volume than just one. We are investing heavily into educating the offline food delivery users as well as non-delivery users that have not yet converted. QSR Media: How do you plan to entice more customers to shift from ordering via phone to ordering through your app? You need to be extremely clear on both the rationale and emotional benefit that you’re bringing to the end user. When the convenience is extraordinary and the choice is extraordinary, people typically not only go for the food they want and come to us; they’re excited to use it but because they discover new food once they go into the app. One area we’re investing a lot into is awareness marketing. the city, Williams stresses the value of being thoughtful with the economics of expansion. “Some of the sites that will open up will be a mix in terms of sizes; there will be some that might be smaller than what you would have expected in a typical Taco Bell,” she explained. Despite it being a comeback, Williams says Taco Bell will treat their return as if they are “going to a new market.” Excited, she says the brand hopes to continue refining their innovations and offerings. “We’re excited to bring more Taco Bell to a great city,” she exclaimed.

Do more business with delivery. Join today and get your menu in front of more people. Your dishes, delivered, Uber fast. Get started today at t.uber.com/qsrubereats

in focus Jollibee says UK a ‘key market’ for its global growth The Philippines’ largest fast food chain believes its products have a universal appeal.

ollibee Foods Corporation (JFC), owner of the Philippines’ largest fast food brand, shows no signs of halting its plans for worldwide expansion. Making waves for their tear-jerking marketing videos, family-style appeal, and their signature Chickenjoy, the brand has capitalised on their domestic success by expanding its international reach – especially in territories with established or growing overseas Filipino communities They previously announced their plan to build 500 new stores, including in new markets like the United Kingdom, Malaysia and Indonesia as part of its P12-billion spending plan. Jollibee says they are eyeing to launch 25 UK stores in the next five years, which is half of their planned 50 site openings across Europe. Recently, they opened their first UK store in Earl’s Court that was received with much fanfare. “Europe is a key growth market for us at Jollibee. We opened our first store in Milan last March, and it has been packed with customers,” Ernesto Tanmantiong, CEO of Jollibee Foods Corporation, said. QSR Media spoke to Dennis Flores, president and business head of Jollibee

Jollibee opened its first store in Earl’s Court.

Foods Corporation’s international business in Europe, Middle East, and Asia, who elaborated on their strategy behind the plan to expand in the UK, how the move would fit in their overall international strategy, and how they intend to differentiate themselves in the country’s fast food scene. QSR Media: What were the factors that led to Jollibee’s decision to expand to a new market like the UK? Jollibee considers UK as one the key markets in line with the brand’s global growth. We currently have a strong presence in South East Asia, the Middle East and the US, and we are continuously looking to set foot in new markets as part of our strategic expansion. Opening our first store in the United Kingdom is yet another milestone launch for the brand and will help our presence in the European continent.

to maximize accessibility and best serve all our potential customers. QSR Media: How will Jollibee differentiate itself from its competitors in the UK fast food scene? We put our consumers at the heart of our marketing strategies. Our team carefully studies each new market to make sure that our brand values and Unique Selling Propositions are communicated effectively QSR Media: Who is your target market? Primarily the Filipino community in the UK, but we also expect to attract the locals there. Our products, family culture, and positioning carries a universal appeal and drives the brand’s expansion both locally and overseas.

QSR Media: How big does Jollibee want to get in the UK? We would like to have a significant presence in the UK. We will do this not only by the sheer volume of stores, but strategic selection of the best locations for our stores,

Pizza Hut Delivery discuss their fast casual revamp The global pizza brand targets to open nine stores of this kind in 2018.

argeting to become the fastest growing pizza company in Europe, Pizza Hut Delivery has unveiled its plans to open nine fast casual delivery stores across the UK. Recently opening its flagship site Luton, the brand new concept’s design features a contemporary look and feel, with a modern, bright décor that draws on the business’ American roots. Pizza Hut will also offer customers the flexibility to choose to have their pizza delivered to their home, get it to go or eat in. This is part of the global pizza brand’s ambitions to refurbish the entire delivery estate of over 400 stores under this new design concept, with more stores set to be revamped throughout this year. “Our Delivery business has bold plans to enhance our customer experience, by making it easier and faster to enjoy a better pizza and this new store design will play an important role in helping us to deliver on this ambition. With a vibrant, modern and fun design, we’re putting our customers at the heart of the experience,” Pizza Hut UK general manager

Pizza Hut will also offer customers flexibility to choose to have their pizza delivered, get it to go or eat in.

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Neil Manhas said. QSR Media wanted to know more and spoke to Pizza Hut Delivery about the brand’s strategy behind the revamp and its new design direction.

the ultimate customer experience.

QSR Media: How different does the look of this store compare to a Pizza Hut restaurant? Customers have the flexibility to choose to QSR Media: What is the rationale behind have their pizza delivered to their home, the new look? carry it out for a lunch on the go or – for the We are investing in our delivery Huts in the first time - to eat in, as there will be a small UK, providing a new, contemporary look and number of seats available so customers can feel, with a modern design that aims to deliver enjoy their pizza at their leisure.

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and healthy vegan food trends doing the rounds today. They are known for being able to draw toxins from the body and help with your well-being. Activated charcoal also lowers cholesterol and supports digestive health. Vegan food companies have introduced food trends like charcoal ice-cream and water that are becoming highly popular among the vegan population. Full-fat everything Fat is back in trend. Vegan food products that are high in fat content, such as avocados, coconut, nuts, and seeds instead of processed, are becoming favorites among people. These vegan food products ensure that consumers intake healthy fats, which are not harmful to their body.

Vegan trends operators should know about Once tagged as ‘boring’, veganism has since become a necessary staple in foodservice.

nce tagged as ‘boring’, veganism has since become a necessary staple in foodservice. Cruelty-free meat alternatives, healthy fat foods and edible flowers are some of the vegan-friendly trends that customers should reportedly expect to “see anywhere”, according to Infiniti Research. The market intelligence solutions provider’s latest report explains that the past decade “witnessed a rise” in veganism, with new vegan food trends, ingredients and innovative recipes now available in the marketplace. “Today, vegan food has moved away from being tagged as ‘boring’ to more delicious options. One trip to the market or a retail store is enough to understand the progress that plantbased eating has made, as last year’s vegan food trends have become grocery-store staples now,” Infiniti Research said. Responding to consumers pursuing such options, manufacturers have reportedly become

Vegan food products that are high in fat content are becoming favorites.

“more conscious” while catering to those demands. “For instance, big brand names like Ben & Jerry’s, Breyers, Häagen-Dazs, and Halo Vegan desserts Top have introduced vegan flavors recently.” Below are some of Infiniti Research’s picks of Giving up on desserts and other tasty foods are one thing that gives people second thoughts the vegan food trends this year: about going vegan. But not anymore. As more people realize that desserts can be awesome Meat alternatives without animal products, they have begun Cruelty-free meat alternatives is one of to find substitutes for eggs and dairy in their the vegan food trends that has been going sweet treats. This year, we are guaranteed to see mainstream in recent times. Recently, there has been a huge rise in innovative plant-based a revolution in the field of vegan desserts. You options, including lab-grown meat made from can expect vegan donuts glazed with maple syrup, vanilla icing or filled with delicious jam, cultured animal cells. Last year, we witnessed and many more. an increase in the popularity of meatless burgers such as those from Impossible Foods and Beyond Meat. And now they’re becoming Edible flowers available at restaurants and grocery stores across Vegan food companies have started to incorporate edible flowers in dishes prepared the nation. in the comfort of their own home thanks to vegan foodies showcasing beautifully floral ‘Black food’ trend Activated charcoal is one of the most innovative dishes on social media platforms.

4 top marketing trends for the hospitality industry With consumers now more tech savvy than ever, this shift in behaviour is driving some big changes in the hospitality sector.

Using data to incentivise additional spend will Brand loyalty ensure Building brand loyalty amongst consumers is operators arguably at the top of most company’s agendas aren’t – a sought-after approach, but also often losing out difficult to achieve in such a fast-past and in the long competitive environment. Loyal customers are run. those most likely to open emails and therefore click through to special promotions, leading to increased table bookings and visits. heniz Onen from Fleet Street Communications picks out some top marketing trends and how operators can achieve more with less in the digital era.

Offers and promotions On average, almost 80% of customers say they are influenced by special offers – not really surprising. However, restaurants are starting to

make the most of opportunities to fill empty spaces during quieter spells. Even the most glamourous of venues – Bob Bob Ricard cut prices on its à la carte menu by 25% at lunch from Monday to Thursday, and for Monday dinner as part of a pledge to encourage diners to visit outside of peak hours. Analysing your data can be a massive part of steering these decisions. By using data to incentivise additional spend will ensure operators aren’t losing out in the long run, yet still pulling new and existing customers in. Digital driving sales There’s probably not many restaurants out there who aren’t listed with the likes of OpenTable – a 24/7 reservation platform keeping hungry diners up to speed with their favourite venues. Order and pay apps

are also becoming increasingly popular with customers. They ultimately increase customer engagement plus basket size, encouraging more spend. Many pub chains now offer the options for customers to order beforehand or even via a tablet device from the comfort of their own table. Anything which improves the customer experience and prevents queuing at a crowded bar seems a no-brainer. Get personal Keeping marketing personal can be a tricky task, yet one worth pursuing. There’s nothing worse than receiving impersonal, automated messages – and with a multitude of channels, it can be hard to know who exactly is on the other side. Companies should ensure their messaging really resonates with their audiences, keep it personal and strive to really know their customers’ habits. This will help create a seamless experience.

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in focus Do your menus deliver on their promise? It’s a fact – consumer tastes are changing.

ealthier menu options and premium ingredients are now the new norm and QSRs are investing in meeting consumer demands. But with new experimental menu offerings, there is a risk; with each new idea adding a level of unknown to the supply chain. For example, in the UK the sugar tax on drinks has potential repercussions for QSRs. When a leading-brand QSR engaged with SAI Global to conduct an audit investigating the sugar levels from its suppliers, the results showed that only 80% of the samples taken were meeting the targets they’d set- despite assurances from suppliers that sugar levels were being reduced. Without this audit, the QSR would never have known it was being put at risk of failing to meet guidelines and could result in negative customer feedback if their products did not live up to their promise. “The requirements set

Some are now looking to develop gluten-free menus.

for failing suppliers needed to become more stringent. The suppliers had to work harder to demonstrate that those guidelines were being met,” says David Peacock, Technical Consultant at SAI Global, recalling the aftermath of the audit. “Through our auditing platform, we are able to support the client to ensure that their menu claims were validated and being met, including having actual nutritional levels lab tested.” SAI Global also commented that an increasing number of QSR brands catering to health-conscious consumers are requesting specification management and claims verification. This is amidst the rise of government initiatives to reduce salt, sugar and calorie intake, as well as the growing consumer interest in free-from diets, in particular, gluten free. “A lot of people are committing to a

gluten-free lifestyle through choice rather than due to allergies. Some businesses are now looking to develop gluten-free menus that are then able to account for those requirements,” says Peacock. To ensure clients serve products that meet the QSR brand’s health and wellness standards, SAI Global conducts a comprehensive audit that spans the farm-to-fork chain. Auditors work with suppliers to check on the quality of raw ingredients through sampling. They also coordinate with development chefs in the kitchen to review menus and look at levels of nutrition and implications of allergens. An holistic report is then produced based on the QSR brand’s health and wellness goals. “We bring all of that information together and review with the client from a menu development point of view. So while we’re auditing our clients, if there’s a remit to ensure we’re minimising salt and sugar or we’re looking at the nutritional values of their menu items then we audit them against that too,” says Peacock.

Top QSR concepts not found in the UK From homegrown to contemporary concepts across Asia and the Australia, let’s take a look at some of these QSR concepts and determine what sets them apart

Es Teler 77 In 1987, Sukyatno Nugroho has started the first native Indonesian fast food enterprise with the launching of Es Teler 77 in Indonesia. Following the development of lifestyle trends, in 1994, all Es Teler 77 outlets were moved from kiosks to malls and plazas. After more than three decades, Es Teler 77 continues to expand, serving original recipe, quality Indonesian favorites nationwide, and to its international neighbors.

J. Co Donuts One of Indonesia’s most popular franchise, J.CO Donuts & Coffee is a cafe restaurant chain that specializes in donuts, coffee and

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frozen yogurt. Owned and managed by Johnny Andrean Group, it is the fastest growing donut & coffee chain in Indonesia with more than 450 stores opened since 2006. In terms of international growth, they have been rapidly expanding their store chains throughout South East Asia countries such as Malaysia, Singapore, Philippines, and Hong Kong.

CoCo Fresh Tea and Juice With over a thousand locations worldwide, CoCo now ranks as the biggest tea-based beverage carryout chain brand in the Greater China area. The chain has grown to 800 outlets in China, with other locations scattered across the United States, Thailand, Hong Kong, Malaysia and Indonesia. The three founders - chairman & co-founder Tommy Hung, director Kuo, and director Chen - managed CoCo with professional, qualityoriented and innovative ideals based on the concepts of “Consistency and Continuity.”

Cafe Amazon Launched in 2002 in Thailand by PTT Group, Café Amazon was initially aimed at providing complete experience to customers of PTT stations. It eventually branched out to other areas and countries like Cambodia, Laos, Myanmar, Japan, and recently, the Philippines. Adopting the “Taste of Nature” concept to provide an atmosphere like green oasis, Café Amazon now has more than 1,700 stores in six countries.

Soul Origin Soul Origin is an Australian-owned Franchisor and one of the fastest growing quick service restaurant in the country, with 79 stores across NSW, ACT, Queensland, Victoria and South Australia. Offering a

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Gloria Jean’s Coffees wants to disrupt the UK specialty coffee market Find out why Retail Food Group thinks the country is a ‘perfect fit’.

ustralia-based Retail Food Group (RFG) recently announced its massive expansion plan to open new outlets from its Gloria Jean’s brand in the United Kingdom – with 190 outlets slated to be established within the decade. Taking about their 20-year franchise agreement with Naweed Nasir, RFG international chief executive Mike Gilbert says their first UK site will represent the “Gloria Jean’s of the future,” signifying a major brand renovation. QSR Media spoke to Gilbert, who elaborated on their rationale behind the brand revamp and how they plan to stay in the UK’s speciality coffee market. QSR Media: How long have you been looking to enter the UK market for? Partnering with the right Master [Franchise Partner] to take Gloria Jean’s Coffees (GJC) forward is critical, and we are confident that we have a strong partner in Naweed Nasir. RFG [was] actively seeking a Master

range of convenient and accessible products including wraps, sandwiches, salads, olive oil paninis, seasonal soups, fruit salads, along with world class coffee, Soul Origin makes it easy and appealing for people to eat a balanced and nutritious meal on the go.

Red Rooster Red Rooster offers roast chicken from a 100% Aussie owned and operated brand. The chicken is served with no artificial colours or flavours, no added hormone and no added MSG.

‘Going for a coffee’ is not just a routine for the consumer.

Franchise Partner in the UK for GJC for approximately 18 months, ensuring we find the best fit for our brand. QSR Media: What will Gloria Jean’s bring that is different to the UK market? Our passion for speciality gourmet coffee is second to none. We are across the entire process from working with farmers to creating our own blends and roasting to order in our own roasteries. ‘Going for a coffee’ is truly an experience, and not just a routine for the consumer, and Gloria Jean’s Coffees will deliver on this every step of the way from our coffee to our dine-in or grab-and-go items. All of this is packaged up with a blend of nostalgia and innovation, backed by good old-fashioned service. The store environment is also a critical factor in creating that perfect coffee experience, whether you are making a quick stop or spending time to enjoy the ambience. The UK will be our first Burger Project Burger Project was inspired by the core philosophies and uncompromising ethic that have driven the Rockpool Dining Group for the past three decades. The brand controls its in-house wastage production by using packaging made from natural or recycled materials. 100% of its packaging is compostable.

Gelato Messina Gelato Messina prides itself with its raw and most natural ingredients, devoid of colourings, flavourings, preservatives and pastes. Its dairy flavours have low fat content because they use less cream, and its sorbets are completely fat free, dairy free and full of fruit. Guzman y Gomez Guzman y Gomez serves made-to-order Mexican food using fresh, whole produce and authentic ingredients. Guzman y Gomez

international market to launch a major brand renovation for Gloria Jean’s Coffees, which has a heritage spanning almost 40-years. It is a brand evolution that we have been working on for a couple of years now, to ensure we maintain relevance in a competitive market. The UK is very progressive and knowledgeable when it comes to coffee, so it’s a perfect fit to launch our ‘new brand look’ there. QSR Media: When you look at the UK specialty coffee market- where do you see Gloria Jean’s strengths? Gloria Jean’s coffee is exceptional. Whilst we will be the ‘new kid on the block’ in the UK, we have been sourcing, blending and roasting our own coffee for decades. We take great pride in delivering what we call the ‘Good Cup’: a blend of only the best beans, best equipment, best techniques and as a result, the best coffee. Our menu plays on a sense of nostalgia, bringing mouth-watering favourites to life with a modern twist. There are also some bursts of innovation in the coffee space and we think our British friends will really enjoy a coffee or meal in our new modern coffee outlets.

operates more than 80 taquerias and drive-thrus in Australia, Singapore and Japan. While they have stores in Japan and Singapore, they are ripe for further expansion through Asia.

Photo credit: Jollibee Philippines Facebook Es Teler 77 Facebook J. CO Donuts and Coffee Philippines Facebook CoCo Fresh Tea & Juice - Philippines Facebook Café Amazon Facebook Soul Origin Red Rooster Facebook Burger Project Facebook Gelato Messina Facebook Guzman y Gomez Facebook

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in focus How YO! Sushi is aiming for a bigger share of the food-to-go market The Japanese chain is looking to make their offerings more accessible.

O! Sushi has recently announced that they are piloting food-to-go counters in two Tesco outlets. Kiosks are currently being trialled in the grocery chain’s Sunbury-on-Thames Extra and Bournemouth Extra branches. The move, according to the Japanese chain, is the first time for them to see their products being sold outside their restaurants. Tesco is also said to be “the obvious choice” because of their locations. “Sunbury-on-Thames and Bournemouth were chosen thanks to their locations, which are well-placed to serve many existing and new YO! Customers,” a

We are wellplaced as a global multichannel, multiformat platform.

spokesperson for YO! Sushi told QSR Media. “The partnership with Tesco is only in the pilot stage and YO! is looking forward to receiving feedback from its customers on the offer,” he added. These counters will be serving to-go versions of their classic offerings as well as sharing platters and new items including sushi snack boxes, dessert sushi rolls and their Mini Ninja Kids bento boxes. “While there are some new products such as sushi snack rolls and dessert sushi rolls, customers will recognise many bestsellers which are already sold in YO! restaurants as part of the YO! To Go offer.” YO! Sushi’s CEO Richard Hodgson also said that they have been expanding their food-to-go propositions as they are seeing an increasing demand for food-to-go offerings over the past 18 months. “As consumers continue to look for high quality, fresh, and speedy food options, we are well placed as a global multi-channel, multi-format Japanese food platform to lead in making sushi more accessible, not only via restaurants, but also kiosks and supermarkets,” Hodgson commented.

The food-to-go sector is will continue to grow further, according to IGD, as it is predicted to reach a value of £22.8 billion by 2023. QSRs, cafes, convenience stores, retailers and supermarkets will be contributing to this growth. “While online ordering and delivery is one aspect, perhaps in its current form the online opportunity will only be transformational for a select few. More widely, however, getting into new, different types of locations, including forecourts and other travel locations, is likely to be an increasingly significant route to growth for players in food-to-go,” Gavin Rothwell, IGD head of food-to-go said.

Patisserie Valerie discovers almost £10 million in unreported loans, barely saved from collapse Chairman Luke Johnson provided £20 million in loans to the struggling chain.

atisserie Valerie, whose parent company had initially requested share trading to be suspended due to “significant, and potentially fraudulent” accounting irregularities, had reportedly used up £9.7m on two separate bank credit lines without the knowledge of its board of directors. The Sunday Times first reported that the company overdrafts had been set up with Barclays and HSBC. Previously, Patisserie Valerie chief financial officer Chris Marsh was arrested by the police and subsequently released on bail after being suspended from his role. In an effort to save the chain from collapse, chairman Luke Johnson provided £20 million in loans. The company also said it raised £15.7 million through the issue of new shares valued at 50p each. “The net proceeds of the Placing and funds advanced pursuant to the Loan and the Bridging Loan will primarily be used to fund the Group’s immediate outstanding liabilities, including amounts owed to HM Revenue & Customs, trade creditors, general working

The company also said it raised £15.7 million through the issue of new shares.

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capital purposes and committed capital expenditure,” company said in a trading update dated 12 October. In a previous announcement, the company said that their board was made aware that a petition to wind up Stonebeach Limited, its main trading company, had been filed in court by HM Revenue & Customs due to approximately £1.14 million in unpaid tax. CMC Markets analyst Dave Matthews told QSR Media that the chain would likely go

through further management changes as a result of the crisis. So far, Patisserie Holdings CEO Paul May was replaced by Steve Francis, who completed four successful operational turnarounds since 2005. The board also appointed Nick Perrin as their interim CFO. The Financial Reporting Council has also started investigating accountancy firm Grant Thornton over its auditing of Patisserie Holdings.

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Ringing a bell: top tips in driving customer loyalty With new restaurants opening what seems like every other day and more and more shoppers going online, customer loyalty is becoming increasingly important.

loise Sheppard, Managing Director of Call Systems Technology, has been getting to the heart of what really matters to consumers and offers her top tips on driving customer loyalty in this technological age. Playing your cards right The key to getting a loyalty scheme right is by making sure it’s one customers deem worthwhile without compromising profits. Operators should keep away from schemes that give users a percentage discount every time they dine or shop and instead focus on giving customers an incentive to come back. Loyalty cards are an easy place to start but operators need to be careful: many people don’t want a wallet full of plastic and I would advise investing in an online system for customers who want to participate but don’t

One rude staff member can make a shopper stay away from that store forever.

want the clutter. The reward also needs to be more substantial than earning a free drink or collecting points that don’t ever seem to amount to much. Burger restaurants, for example, could offer diners one free burger for every five that are purchased. Chances are also high that consumers will pay for side orders and drinks when they return to redeem the offer. Building brand identity Presence online and within the local community is an important factor in encouraging customer loyalty. This element becomes more difficult for large restaurant and retail chains to achieve because communication channels such as the website and social media accounts are managed by head offices. Businesses should consider microsites for

Pret A Manger opens its first shop in Germany The sandwich brand has opened its doors at Berlin Central Station.

or the first time ever, Pret A Manger is bringing its fresh food and organic coffees to Germany. In partnership with Station Food, the multi-site has opened at Berlin Central Station (Berlin Hauptbahnhof), offering its signature sandwiches, salads, wraps, baguettes, and organic hot drinks. Pret is expected to provide a selection of breakfast, lunch and evening options using carefully sourced ingredients. “We’re thrilled to announce that we are opening our first shop in Germany at Berlin Central Station, the central hub for all rail traffic in the city. We’ll be serving our freshly prepared food, organic coffees and teas throughout the day, and we’re looking forward to welcoming our new customers to the shop,” Michael Haley,

We feel confident that those who live nearby will enjoy Pret’s fresh food.

Partnerships Director at Pret said in an earlier announcement. “We’ve been fans of the company since day one, so we’re delighted to be collaborating with Pret to open their very first shop in Germany. We feel confident that tourists, rail passengers, local office workers and those who live nearby will enjoy Pret’s fresh food, juices and hot drinks,” Marcus Paul, Managing Director at Station Food, added.

the regions or even for individual outlets, and local social media streams, managed on the ground at each location to notify nearby customers about what matters to them. Independent stores and eateries, including pubs, can more easily ensure they’re active online and encouraging engagement from local customers. Running competitions on social media and advertising events online is a great way to remind people about the business and inspire them to visit again. With so many different store and eatery options available, consumers need these little digital reminders to stay loyal. Serving up quality One of the easiest and most effective ways to drive customer loyalty in both hospitality and retail has nothing to do with the consumer; instead it comes down to quality of service. In restaurants, the difference between an attentive waiter and a lax one can hugely impact the diner’s decision to stay loyal and come back – or to never return again. Likewise in retail, one rude staff member can make a shopper stay away from that store forever. It’s important to ensure the customer’s experience is the number-one priority, because it doesn’t matter how good the food is or how nice the clothes are, if consumers aren’t happy with the service, they’ll vote with their feet. Keeping in touch Most retailers and restaurants accumulate a substantial database of customer details, including birthdays, shopping and eating preferences, email addresses and phone numbers. As long as customers have opted in for marketing purposes, there’s no reason why restaurant operators and retailers shouldn’t be putting this data to work. Businesses should offer discounts around birthdays and anniversaries, or send a more personalised email now and again, showing relevant new dishes or products. Marketing components of CRM systems are designed to automate this process and make it easier to connect with the customer and encourage repeat visits.

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in focus Chilango launches new plant-based menu with under 500 calories Guests can now choose between a Chilango chicken burrito or a vegan roasted sweet potato burrito with a lesser calorie count.

hilango has launched its new plant-based menu that features a myriad of offerings under 500 calories. Offerings include the Sweet Potato burrito, Chilli non-carne as well as Sweet BBQ wedges, roasted sweet potato wedges dipped into vegan BBQ salsa. To complete the five-item menu are the vegan box filled with guacamole,

We’ve noticed there is a huge focus on eating healthier.

chargrilled peppers & onions, black beans, pico de gallo salsa, crisp lettuce on a bed of coriander-lime rice. The ‘Powered by Plants’ menu will complement the existing suite of dishes under 550 calories including Low-carb box and Chicken protein box. “Our guests have been instrumental in helping us develop these new menu

additions,” Chilango co-founder & CEO Eric Partaker said. “We’ve noticed there is a huge focus on eating healthier, more plant-based diets and we wanted to create something packed with flavour to boot. Not only are the new dishes delicious, they are all under 500 calories and totally vegan friendly too.”

Taco Bell on their big European push, looks to format and delivery to give them the edge Brand executives claim it will be a “huge opportunity” to drive consumer growth in the region.

LEON trials allergen awareness initiative Several weeks have now passed since staff began asking customers about their food allergies.

eon is currently trialling an initiative where the staff ask customers about their dietary requirements or food allergies at the counter upon ordering. Following the two incidents related to allergens contained in offerings from Pret A Manger, the chain stressed that communication between the staff and the customer is important. “We are currently piloting a programme in a small number of restaurants but it’s very early days so we don’t have much more to share at this stage,” RebeccaDi Mambro, head of marketing for Leon, told QSR Media. Prior to the trial, Leon also replaced their almond milk with allergen-free oat milk. “It is of the utmost importance to us that we continue to help our guests navigate our menus safely,” she added. Allergen awareness heightened after it was ruled that Pret A Manger’s food labelling failed to warn Natasha EdnanLaperouse, a 15-year-old girl who passed away after eating one of its baguettes that contained sesame. Pret A Manger CEO Clive Schlee vowed for ‘meaningful change’ following the inquest. “The LEON mission has always been to make it easy for everyone to eat and live well.”

ooking to capitalise on the success of other Yum! brands in Europe, Taco Bell is looking to continue their aggressive expansion plans for the region by utilising food delivery for their tech-savvy customer base. “I think it’s a global trend in Europe. That is a major focus and I think we can do it. We can offer something that nobody else is doing – the made to order ability that we have and how we combine unique experiences and innovative products,” Taco Bell’s new general manager for Europe Jorge Torres said in an exclusive interview with QSR Media. Aside from providing easier access to food, Taco Bell says the youthful, social brand also made changes to their operating model – in terms of store formats and the customer experience. “Taco Bell is an experience. It is a social experience and something that you want to share with your friends. Especially in markets that don’t know much about Mexican food, you want to show it off. Here, when you see our food, it’s Instagram-able,” Torres added. “In the U.S., we’re predominantly a drivethru model and in the U.K., we’re more of an in-line. Part of what made us successful this time around is that if you’re not familiar with Taco Bell or the Mexican category, you’re going to have a lot of questions about the food and what it looks like. Unlike in the US, we learned that people want to see what they’re ordering, and our European store format allows them to do that,” Taco bell international president Liz Williams added. Finding the right franchising partners Taco Bell Europe, currently with 85 sites,

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The fan base is one of the biggest assets that we have.

is eyeing seven markets in the continent, including Cyprus, the UK, Finland, Iceland, the Netherlands, Romania and Russia. The brand is targeting 30 new restaurants in Europe this year including 20 in the UK, three in Finland, three in the Netherlands, three in Romania and one in Cyprus. Torres says interest for franchise partners is surging but emphasizes that they are taking their time in finding the right partnerships to execute their plans properly. “I always get a lot of calls from people who are interested in franchising, but it has to be manageable. We want to strengthen where we already have a footprint while expanding to new European markets. There are big markets out there that are very attractive, but we’re evaluating right now where we’re going with the supply chain setup. For growth, we’ve got to make sure the fundamentals are there. We are delivering the convenience and value, and the cult of Taco Bell. But we need to make sure we know how to commercialise regions appropriately, and ensure our supply chain can deliver on our plans”. The brand is also looking to integrate their fan base in their marketing strategy. “The fan base is one of the biggest assets that we have. We’ll definitely be looking to activate that fan base and see how we can make them ambassadors.” Taco Bell says the “sky is the limit” for expanding in Europe but admits location and rent cost are also playing a factor. “It’s a challenging time for everyone. We want to make sure the economics are working out for all. It’s a general take in the industry. We may feel slower, but it’s just because we’re being careful. We want to make sure that this is a long-term success rather not just a one shot growth,” Torres said.

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There’s no better way to highlight the lunch occasion than with an array of cheeses that embrace the Christmas spirit and all the on-trend flavours, whether it’s part of a threecourse meal or tucked in a take-away wrap. 3. Twist on tradition Christmas is the perfect time to mix up the traditional with something new, and the varied and delicious range of pickles and chutneys available make the ideal partner for the country’s festive favourites. New for this year, we’ve created a recipe for a Branston glaze using our Small Chunk Pickle to add a delicious twist to the classic Christmas gammon. Adding a dash of sweet Mizkan, the brand behind Branston and Sarson’s, advises operators on how they can honey to complement our tangy pickle and capitalise on them during the season. a handful of pink peppercorns for a subtle kick, the sticky glaze is the perfect match as hristmas lunch is one of the most Christmas at Christmas, satisfying most festive diners from the meat-eaters to the veggies. It’s also a part of a full Christmas meal, or a ‘leftovers’ anticipated meals of the year for many is the lunchtime staple, catering for the increasing sandwich. The addition of a great chutney people. The array of dishes caters for perfect or an exceptional pickle has the potential to lunch market for out-of-home operators. everyone, from the turkey and ham lovers time to elevate any dish during the festive season Menus that get everyone talking will have to the cheese fiends among us – Christmas mix up the Operators can capitalise on this theme and a cheeseboard to remember, enhanced with brings it all to the table. traditional really have fun with their menu to ensure a selection of pickles and chutneys, from This year, as well as the traditional with favourites, operators can pull in the crowds by something caramelised onion to Dorset Ale and apple. their Christmas goes off with a bang. The Our Annual Cheese Survey revealed that Christmas customer is a hard-won prize and embracing the latest trends to really resonate new. operators need to pull out all the stops to pickle is in fact the nation’s first choice to with consumers and make their menu stand accompany cheese, followed by crackers and attract that festive footfall. With some creative out. All it takes is a few simple but delicious thinking and a few twists on old favourites, then chutney. additions to the range using some quick operators can stand out with a Christmas The lunch crowd is also becoming and easy flavour hacks. Jenny Tran, Brand menu that not only offers traditional fare but increasingly important at Christmas as Manager for Branston Foodservice, offers her also embraces the latest trends, with truly time-poor customers look to cram in their three top tips for operators looking to address something for everyone. socialising at any moment they can spare. the latest food trends this Christmas.

Trends set to soar this Christmas

1. Meat-free movement There’s been an enormous upswing in the move towards a more flexitarian approach to food among the UK public. Operators can’t afford to ignore this increasingly visible trend, with ever more vegetarians and those looking to cut down their meat consumption arriving on the out-of-home scene – and all expecting to find a full range of options. The pressure is even higher at Christmas as consumers dine out numerous times with friends, family and colleagues, and these days, nobody expects to be left out. Some clever twists can make catering to all tastes easy. Think glazed sweet potato, brought to life with a brush of pickle, or a sea bass option cooked to perfection with a sauce built on Mediterranean tomato chutney. Operators who are looking to keep it traditional can also interest the veggie diner with sprouts cooked in caramelised onion chutney and root vegetables roasted with tomato and red pepper relish. 2. Cheese feast Cheese is always one of the star performers

Co-op launches new ‘on the go’ concept store The concept store opened in Manchester’s Piccadilly station.

o-op has opened its first new onthe-go concept store that is aiming to reach shoppers who want to grab breakfast, lunch or dinner to go, IGD has reported. The new site, situated in Manchester Picadilly station, features extended food ranges to appeal to health-conscious consumers, free water taps for customers to refill their own bottles, and self-serve hot soup and porridge counters. The new store is designed for a more convenient, quicker shopping experience. It includes fast self-serve tills and areas within the store are clearly defined by shopping mission as ‘food for now’ and ‘food for later’ for shopper ease and to improve the speed of shop. “Located in areas of high-levels of footfall, these stores will serve timepoor shoppers that need to make quick

purchases. There will always be need for our traditional format stores, however the new concept stores allow us to serve our customers’ direct needs,” said Derek Furnival, Divisional Managing Director at Co-op. Co-op will launch further new ‘On the Go’ concept stores in 2019.

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in focus Food-to-go market up by £2.5 billion since mid-2015: report The NPD Group says foodservice operators can make money from Britons’ “voracious appetite” for eating on the go.

onsumers are increasingly eating pre-prepared food and drink on-the-go, now one of the fastestgrowing areas of Britain’s out-of-home (OOH) foodservice industry according to The NPD Group. Latest research from the market research company says there were 4.4 billion onpremise visits, a drop of -3.5% compared to 5.1 billion food-to-go visits, an increase of +2% for the year ending July 2018. Since July 2015, ‘food-to-go’ visits have increased +4.0% with the market increasing by £2.5 billion. NPD explains that the consumption of food and beverages on the premises represents 42% of the 11.3 billion OOH annual foodservice visits in Britain. Foodto-go, on the other hand, represents around 48%, while delivery covers 6% and drivethru accounts for 4%. This means that over half of Britain’s foodservice industry visits involve consumers carrying food and drink away from the point of purchase or getting other people to carry food and drink to them. “The lion’s share is ‘food-to-go’ and reflects how consumers are trying to save time and money. For many of us, working

Food-togo is an integral part of our lifestyle and underlines how much we are keeping an eye on the clock.

life means rushing to our workplace and then rushing around again during meal breaks,” Dominic Allport, Insights Director with The NPD Group, said. “Food-togo is an integral part of our lifestyle and underlines how much we are keeping an eye on the clock and on our wallets.” Is where we are consuming food changing? The report also mentions that around 20% of visits result in food and beverages consumed back in the workplace, or at school/college. However, 8% of visits see food or drink making it no further than

the car while some 7% eat or drink while walking along the street or sitting in a public space such as a park. Overall, more than 292 million foodservice visits result in food being consumed on public transport. NPD says that this might be the next big trend. “It’s a small total right now (3%) but consumption of food and drink on public transport is growing five times faster than the overall ‘food-to-go’ trend,” NPD said. “There’s no doubt that foodservice operators are grasping the ‘food-to-go’ opportunity by offering increasingly appetizing and healthy options.”

Coffee in a place where soft drinks used to be, Euromonitor says Coffee is now being consumed in “a range of new occasions.”

offee is transforming as a beverage as trends and consumer demands continue to evolve, with global coffee sales expected to surpass the growth of packaged coffee through 2022. Michael Schaefer, global lead for food and beverage at Euromonitor International, explained that this is driven by the premiumisation trend, with consumers now more adventurous as they are shifting from their low-priced instant coffee to other types such as espresso, cappuccino, and cold brew. Foodservice operators, he adds, are adding coffee to their offerings that serves “as a highmargin addition to the menu and as a means of building and reinforcing a premium brand”. “Coffee shops and other foodservice environments, by providing a strong service element, a craft element, have been able to tap into growing consumer demands for quality. Coffee away from home is social, artisanal, fun in a way that packaged coffee producers have found difficult to duplicate at home,” he said. Packaged food and beverage players will continue to invest in coffee shops to have a

Coffee away from home is fun in a way that packaged coffee producers have found difficult to duplicate at home.

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more direct presence in foodservice. “In much the same way that bars and restaurants have long served as a key point of discovery for alcoholic beverages, coffee shops drive new beverage innovation. While packaged beverage manufacturers still vast resources for retail distribution, too many brands are being generated away-from-home to ignore.” Coffee has also been evolving in terms of why people are consuming it. Some drink

coffee for indulgence, a way to replenish energy or for social purposes. “Coffee is also a potent traffic driver in markets with high levels of per capita consumption because it can drive daily trips to coffee shops and other outlets,” he said. “More generally, coffee benefits from a degree of versatility and has continued to move into a range of new occasions previously served by carbonated soft drinks, energy drinks, and others.

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Our growth strategy is simple, organic and it puts customer requirements at the centre of everything. Our expansion plans are not about target numbers in specific time frames, but the contrary. We simply want to open great restaurants in the right locations at the right time, only in places where we believe our food will be truly appreciated. QSR Media: Are there any differences to the typical menu to cater to U.K. tastes? Our UK menu is not a compromised version for the local market. We are bringing our authentic Taiwanese dishes and flavours as we believe that London being a foodie capital of the world wouldn’t accept any less than that.

Din Tai Fung on its way to Covent Garden This is also the restaurant chain’s first foray into Europe.

aiwanese restaurant chain Din Tai Fung announced their London debut in Covent Garden in December 2018, signing a 25-year lease with Aberdeen Standard Investments to open a 250-cover restaurant at 5-6 Henrietta Street. This will be the brand’s first foray into Europe, and is spearheaded by Singaporebased BreadTalk Group Limited’s indirect wholly-owned subsidiary, Taster Food UK Limited, entering into a franchise agreement with Taiwanese and UK partners. They also confirmed that they will open a second London site early next year at Centre Point. QSR Media talked to Xue Feng, UK director of Din Tai Fung, who talked about their upcoming debut, their take on expanding, and how they are different from other Asian brands.

We simply want to open great restaurants in the right locations at the right time.

QSR Media: The opening has been long mooted - why has it taken this length of time to be formally announced?

We simply wanted to make the announcement as close to the opening dates as possible, as we QSR Media: What do Din Tai Fung believe don’t want our guests to have to wait a long time they do differently to their competitors? Din Tai Fung started as a small family business. for their first visits. Although it has grown significantly in recent QSR Media: Why does Din Tai Fung believe years, a big part of its success comes from now is a good time to enter the UK market? keeping the same principles and passion that the founding Yang family always had When it comes to food, the world market for remarkable service and the highest food has changed a lot in the last couple of decades. Nowadays people travel a lot and are quality. Their original recipes have been followed increasingly interested in experiencing local and perfected for almost 50 years, and still cuisines from all over the world during these trips. When back home, they crave those newly require incredible precision and technique in the making. From the very beginning, the Yang discovered authentic, bold flavours. family were adamant about the highest quality Din Tai Fung is very fortunate to have standards at every stage of the food preparation become a food must-try destination across to ensure consistency in every single dish. Asia; we get to cater for numerous travellers, many of which have for a long time been asking Finally, their original flavours can only be achieved by using the best ingredients. us to come to the UK and Europe. Some key ingredients are specially grown or QSR Media: How many sites do they expect produced specifically for Din Tai Fung and to open in the UK and over what time frame? brought from Taiwan to ensure consistent taste.

U.S.-based Slim Chickens to enter Wales The chicken chain teased more openings in 2019.

.S.-brand Slim Chickens is officially making its way to Wales The chicken brand, who partnered with Boparan Restaurant Group, has chosen Cardiff for its second restaurant opening in the UK after following a successful launch of their flagship restaurant in London. The 2,400 sq ft. site, located in St. David’s shopping centre, is scheduled to open before Christmas and is expected to offer seating for 92 diners and create 40 new jobs in the area. “Cardiff is a lively city with a fantastic student population and booming food scene. It was the obvious choice for us to open our first regional restaurant outside of London,” Tom Crowley, CEO of BRG, said in an announcement. “We always knew this brand was a good fit for the UK and Ireland and we are pleased

We always knew this brand was a good fit for the UK and Ireland.

with the speed at which Slim’s has already established itself.” Currently with over 80 outlets in the US, Slim Chickens UK opened its first restaurant off Oxford Street six months ago. “Slim Chickens in London has proved hugely popular with young workers and students, though overall it appeals to a very wide audience,” a spokesperson for the brand told QSR Media. After setting its sights on Cardiff, the brand has confirmed that they are eyeing to roll out the fast-casual restaurant concept to other cities across the UK and Ireland. “There will be more openings over the course of the next year,” the spokesperson added. The Cardiff restaurant is expected to have ordering kiosks, a refillable drinks station, delivery and a click and collect service.

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in focus

Sustainability, convenience among focus of 2019 food and drink trends, study says Consumers are demanding for better quality and service across the sector.

lobal food and drinks trends for 2019 will focus on consumers view on sustainability, healthy-living and demand for convenient solutions, according to a study by Mintel. The study further mentioned that these sectors will affect areas such as formulation, packaging and marketing in the years to come. Consumers are beginning to see sustainability as a product lifecycle where an ingredient goes from “farm to retailer to fork to bin and, ideally, to rebirth as a new plant”. Sustainability efforts in 2019, according to Mintel, will not only involve

Support for more corporate sustainability will grow.

recycling but also recycle packaging and upcycled goods. “In 2019, support of and demand for more corporate sustainability programmes will grow as consumers better understand what’s required to get closer to achieving a truly circular food and drink economy,” Jenny Zegler, associate director of Mintel Food and Drink, said. They are also looking to have a lifestyle that will given them a longer and healthier lifespan. This drives food and drink manufacturers to create product offerings that can address health concerns for people

of all ages about bone, joint, brain and eye health. Lastly, manufacturers have the need to respond to the growing demand for convenience whereas there is a pressuring competition on faster delivery services, individual meal kits being sold at retail and more prepared meals, sides, and sauces that imitates the flavours and formats of those served in restaurants. “Finally, we predict the rising segment of consumers who are often on-the-go, yet want to spend more time at home will increase demand for upscale, ‘speed scratch’ solutions and restaurant-quality, ready-toconsume products,” Zegler continued. “As meal kits and foodservice-inspired beverages lead the way, there will also be more opportunities for brands to develop healthy, flavourful, customisable, and quick premium convenience products for breakfast, lunch, dinner, snacks and dessert occasions.”

This Japanese-inspired concept brands their buns with a readable QR code See how ICHIBUNS aims to “make the wallet industry more exciting and dynamic.”

CHIBUNS has partnered with the mobile payment app Zapper in introducing burger buns that come with a QR code. The QR code will direct you to download the app, where you’ll be able to pay for their signature burgers. “We were looking for a way to make the mobile wallet industry more exciting and dynamic. It’s embracing digital devices in a way that engages with diners,” Benjamin Goldkorn, CEO of ICHIBUNS, said. Those who uses the app for the first time will have £7 off their bill. Using the app again may even give its customers a 50% discount. “Our goal with ICHIBUNS was to be a restaurant experience like no other, and our partnership with Zapper is a great way to achieve this, allowing us to be at the forefront of hospitality innovation by offering much more than just a payment service,” Goldkorn said. “Combining it with our own app also allows us to give something back to our amazing, loyal customers, with discounts and prizes available to win,.” ICHIBUNS also has their own app,

It’s embracing digital devices in a way that engages with diners.

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ICHIPACHINKO, that allows you to play Pachinko as the chain’s solution to “combat in-queue boredom”. Julia Wilkinson, Head of Group Restaurant Strategy at Shaftesbury, comments that ICHIBUNS has been “hugely popular” since its opening last year. “We have no doubt that the introduction of this innovative and edible QR feature will be a big hit with their loyal following. Chinatown London is known as a destination where

the very best of the East meets the West, providing unique East Asian experiences and embracing the new technology trends which shape our visitors lives. We are proud that exciting and pioneering brands like ICHIBUNS call Chinatown London home.” ICHIBUNS is based on London’s Wardour Street and owned by Lord Simon Restaurants UK Ltd., aims to provide an unforgettable Hokkaido-meets-London dining experience.

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Five ways to keep ahead in a changing food-to-go market IGD lists down their learnings in their Food-To-Go 2018 event.

he dynamic food-to-go sector continues to develop and adapt to fast-changing consumer needs, as learned by IGD during their event on food-to-go this month that was attended by retailers, manufacturers and food-to-go specialists from across the UK and Europe. The market company cited five key learnings during the event: 1. Formats are changing fast “Food-to-go makes sense for retailers: margin is higher than on other foods; it fits well with the move to small store strategy; it can be a differentiator against competitors; and it is forecast to grow at twice the rate of grocery retail,” IGD said. However, they said that the pace of innovation in the food-to-go market signifies that “retailers need to act fast to grasp the opportunity that food-to-go offers.” The market research company cited Fresh the Good Food Market from Ireland, Coop Schweiz from Switzerland and Deli De Luca from Norway who re-invented their formats to bring freshly prepared food to the fore whilst and adapted their offering to target new missions and shopper types. “Key to their success has been a focus on quality and freshness, creating in-store theatre and using deep understanding of customer needs to drive the offer. Their message to other retailers is to be prepared to make bold decisions and leave behind preconceptions about what has worked in the past to take full advantage of the huge opportunities offered by food-to-go,” IGD explained. 2. Opportunity for hot food innovation, particularly in the UK Fresh the Good Food Market’s redevelopment of their food-to-go offer also enabled them create a series of hot food ‘stations’ serving freshly made food. IGD explains that this kept customers “coming back day after day.” IGD ShopperVista research shows consumers want more hot foodto-go options. “Whilst this may not be achievable for all small stores, Kepak showed how it has been developing new solutions for retailers that minimises the need for foodservice expertise, but delivers a quality hot food product. Its new Goode & Tucker concept includes products for all day parts and is designed specifically for convenience stores and forecourts wanting to tap into the increased demand for hot graband-go options.” They also mentioned that Co-op identified hot food as a category for future growth, with

Counters can play an important role in creating a better in-store environment.

its new On the Go store featuring porridge and soup stations, as well as a new open plan bakery fixture. “We expect to see initiatives such as these gathering pace and becoming more transformational to stores over the coming year as retailers and food-to-go operators seek to take a share of the untapped hot food-to-go opportunity,” IGD forecasts. 3. The role of experience and how to create it for shoppers IGD observed that the growing need to satisfy consumers’ emotional, as well as functional, needs in their food-to-go offer was a recurring theme. They surmise that counters can play an important role in creating a better instore environment to keep them longer and encourage repeat visits. “A key reason why Sainsbury’s has partnered with Sushi Gourmet to launch fresh sushi counters in over 60 stores is to create a multi-sensory experience. Healthy food-to-go specialists, Pure, has opened up its kitchens to achieve a similar effect. Use of colour is another way – Coop Schweiz’s Coop to go stores, serve smoothies on an ice counter to let the product colour and freshness shine through. Fresh the Good Food Market also uses this extensively in its salad bars, designed to be a feast for the eyes as well as the stomach,” IGD explained.

represents a huge opportunity for those offering food-to-go. However, they stressed that ‘healthy’ can mean different things to different people on different occasions. “One way to ensure you are catering for as broad a variety of healthy eating needs as possible is to allow consumers to personalise their food-to-go,” they said. 5. Location relevance – adapting formats based on the needs of consumers in different locations And lastly, they noticed an uptick in retailers and food-to-go operators segmenting their stores based on consumer needs in different locations, and adapting the in-store food-to-go offer. “In transport hubs, for example, where the consumer base is transient and many are commuters, breakfast and evening snack missions are important to get right, however in city centres catering for workers’ lunch times is key. A one-size fits all strategy is no longer the way forward – delivering the right product and service at peak times requires a close understanding of customer needs and a segmented approach to the food-to-go offer.”

4. Health – catering for different requirements IGD research notes that 31% of consumers would eat out more often if “more healthier options were available”, which they say

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in focus

Pizza Hut Europe aims to have the ‘easiest and richest’ loyalty programme in delivery The UK is the first stop of their Hut Rewards initiative. Looking to get a bigger slice of the delivery pie is Pizza Hut Europe, who recently announced the roll-out of its new loyalty programme, Hut Rewards, across the UK. Aimed to reward loyal pizza fans, Hut Rewards allows customers to earn token-like ‘slices’ that can be redeemed for free food when ordering from Pizza Hut Delivery. A ‘slice’ can be earned for every £10 spent, with rewards given at various milestones. Customers can claim a free side after earning five slices, a medium sized pizza with seven slices, and a free large

We are using technology to redefine every touch point.

pizza with 10 slices. “We’re really excited to have launched Hut Rewards across our Delivery portfolio in the UK, the first market in Europe,” Stephan Croix, Chief Sales and Brand Officer at Pizza Hut Europe, said. “For us, the programme is about celebrating our shared of food and providing a platform for us to say thank you to our loyal customers.” The launch is the latest development in Pizza Hut Europe’s focus on digital, which has included work to enhance its website and online ordering system as well as the creation of a new innovation hub called

Pizza Hut Digital Ventures. Speaking to QSR Media, a spokesperson for Pizza Hut Europe says the programme’s trial phase was met with ‘overwhelmingly positive’ feedback, and wanted to consider what customers want from such initiative. “Our ambition was to make Hut Rewards the easiest and richest loyalty programme in the food delivery segment. That’s why prior to the launch, we carried out three months of intensive research including in-depth interviews with consumers and tests involving multiple iterations of the programme,” the spokesperson said. “What came out strongly from the research was the need for the programme to be easy to understand, sign up for and redeem rewards. It was also crucial to make the rewards attainable, enabling customers to redeem benefits early in their order journey.” At present, Hut Rewards is only available with UK delivery orders placed online or via the Pizza Hut app. The pizza giant, however, is looking to expand the program “according to customer feedback.” Hut Rewards was created in partnership with loyalty specialists Punchh. “By implementing Hut Rewards, Pizza Hut is demonstrating their commitment to building these relationships and building loyalty,” Shyam Rao, CEO of Punchh said. Pizza Hut Europe currently operates more than 1,500 restaurants across 30 countries.

Millennials shifting around £1 billion in spend a year to delivery services The percentage of food orders from online delivery services are also expected to rise next year. Home delivery, veganism and the ongoing rise in technology explain why millennials are reshaping the dining industry, according to a survey by Planday. 20% of the millennials have responded that they are starting to eat out less often as food can be delivered at home while 9% of them also said that they are likely to make restaurant bookings. This is said to have represented a shift of £1 billion a year to food delivery from inrestaurant dining. “We know from our own customer base that things are only likely to get less predictable as just under two thirds (63%) of our customers who are restaurant managers expect the percentage of food orders from online delivery services to increase over the next year,” John Coldicutt, chief commercial officer of Planday, said. “In order to stay competitive and profitable, restaurants need to listen to changing consumer preferences and use the available technologies to cater to an increasingly unpredictable environment.”

52% of the respondents answered that they Millennials are turning are willing to dine in if restaurant services are to a plant- done by robots as compared to 39% of Gen based diet. X diners. But Planday noted that they are still craving for human interactions as 51% would prefer to make a complaint or a compliment to a person over machines. Veganism still continues to be recognised as a trend as millennials are turning to a plant-based and environmental-friendly approach. 75% thinks that vegan or vegetarian

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restaurants will be most in demand in the next two years. “The UK restaurant sector has seen multiple high-profile closures in the last 12 months, as well-established chains struggle to correctly predict and match market demand. This survey gives us insight into the complex and changing consumer expectations, from younger to older diners, contributing to this challenging environment,” Coldicutt added.

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Engineering seasonal menus: maximising margins for Christmas Revenue Management Solutions managing director Philipp Laqué discusses how operators can ensure their menus are optimised to make a profit this Christmas.

easonal menu changes with a few timely additions are always a popular move, giving diners the chance to try something new or rediscover a forgotten favourite. Christmas in particular is a fantastic time to showcase innovative ideas and seasonal ingredients. Customers are seeking experiences to lift the shorter days, and the chance to try a new dish at a much-loved local or sample emerging taste trends in the surroundings of a favourite brand can be irresistible. With this in mind, all operators should get in on the act and ensure their menus are optimised to make a profit this Christmas. When re-engineering any menu, it’s crucial to know what will work as a promotional angle each season. Quick service restaurants and casual dining concepts benefit significantly from prominent holidays such as Christmas as it brings a chance to look at individual product categories: think hot drinks, warming mains and comforting desserts. Not only are these items top of the customer’s list when it comes to dining out of home in colder weather, they are also some of the industry’s best performers in terms of profit margin. Operators should take a look at what they can do to optimise their menu for the season and drive profit.The main drivers of seasonal success remain the same for all.

The use of Christmas specials is a chance to showcase a chef’s creativity and promote local produce.

Menu changes must: • Be easy to execute • Enable speed of service during peak times • Be designed with profitability in mind • Be described on the menu in an appealing way Interestingly, operators can achieve these objectives for seasonal dishes by looking at the data held in their EPoS system. Analysis of the data can yield vital results, highlighting items with high profitability and showing operators where they need to focus their pitch to drive customer demand for these dishes. Of course, the analysis will also reveal which menu items that give a below-average profit contribution so these can be replaced or promoted differently. The use of Christmas specials is a chance to showcase a chef’s creativity and promote local produce, while also using leftover or surplus ingredients. Operators should ensure these items are priced appropriately and the ideas should hold real mass appeal. Equally, if operators spend time training front-of-house staff to promote or upsell a seasonal special, they need to ensure it is an item that achieves profit equal to or greater than similar products or the effort will be wasted. Consistency is key While it’s imperative operators react to seasonal changes and reflect the current

Subway launches first drive-thru store in Ireland The chain also teased more stores with the Fresh Forward design in the next six months.

ubway has announced that they have launched the first drive-thru outlet in Boucher Road, Ireland. “We are delighted to develop the Subway presence in Northern Ireland and wanted to offer something different to the already loyal Subway customers. It’s such an exciting time for us and we’re delighted to be opening the first Drive-Thru store in Ireland,” Damian Havlin, franchisee owner of Subway Boucher Road, said. The site houses their Fresh Forward concept store design, making one of the eight Fresh Forward stores planned over the next six months in Northern Ireland. It also feature a design that incorporates a bright new colour palette along with the digital menu boards. “The Boucher Road area is a thriving destination for time

The Boucher Road area is a thriving destination for timerestricted commuters.

restricted commuters, health-conscious families and forward-thinking millennials making it the ideal location for Subway’s first Drive-Thru in Northern Ireland,” Stacey Brown, development manager for Subway Northern Ireland, said. This year, the brand celebrated its 20th year in Northern Ireland and has opened over 105 stores, creating over 1,500 jobs across the country.

mood within their offer, consistency is also a key driver in customer loyalty. Sometimes, diners just want what they came in for, and loyalty will thrive when operators achieve that balance. A consistent customer experience needs not only to be addressed in food quality and taste, but also in brand identity, so maintaining a uniform menu design is important. Menu refreshes and some changes to design elements are useful, to keep the brand fresh and relevant, but too many changes over too short a period can confuse customers, leading them to question the stability of the brand and sometimes causing a drop in transactions. With this in mind, before making changes to menu content and design, operators should consider testing the plans for a set time to fully understand the financial implications. Pressure groups Menu changes can also be used to increase profits in reaction to one-off occasions such as Bonfire Night or to pull in the crowds during the run-up to Christmas. The key to unlocking the potential at these times is understanding the underlying consumer need that has been triggered by the event. For example, with big Christmas and New Year events that generate widespread interest, it is likely that operators will see larger groups gathering together. In these circumstances, menus can be optimised for profit by offering special sharing dishes that also upsell or promote add-ons. Operators can also offer in advance to cater for customers throughout their visit, without the need for any orders to be placed while the party is in full swing – perhaps by suggesting a pre-order per person. Not only does the customer not have to worry about queuing and looking after a large group, operators can prep the kitchen teams too, knowing what the bulk of their work will be and just handling ad hoc orders as they come in. Chain reaction Operators must not forget the ingredient supply chain when planning seasonal changes. Prestige Purchasing advises renegotiating at least twice a year, with refreshes usually taking place in June and December. Winter is a particularly good time to renegotiate with suppliers, especially if the operator is planning menu changes and can incorporate seasonal flavours to take advantage of the variety of foods available.

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Yum China aims to redefine the customer experience with new KFC ‘future’ store concept The fast food operator also introduced the fully-automated dessert station in Suzhou.

um China has announced that they launched their new ‘future’ concept store for KFC in Hangzhou that has digital technologies such as self-ordering kiosks to digital and mobile payment solutions. The store features an open, transparent store layout and aims to target younger generations. A KBAR is also available, serving made-to-order dessert items, juice and specialty tea drinks that caters to the increasing demand for personalized service and menu items. The fast food giant also launched a fully-

We are using technology to redefine every touch point.

automated dessert station in their Suzhou outlet. Customers will have to scan a QR code and select three ice cream flavours. A robotic arm will then serve the ice cream in a cone. Yum China has expressed plans to run trials for the said technology in other locations, as the dessert segment is seen as the chain’s key growth driver in the country. “Digital is transforming the restaurant industry and we are excited to test cuttingedge technologies at scale and bring new experiences to our customers. We are using technology to redefine every touch point

of the customer journey,” Joey Wat, CEO of Yum China, said. “With our in-store technology applications, KFC and Pizza Hut Super Apps and partnerships with leading technology partners, we have created a powerful digital ecosystem that offers a seamless experience for our customers whether they are on mobile, online or dining in restaurants.” Last September, they announced that KFC and Alibaba held a joint launch of an AI-powered self-ordering kiosk, which is said to provide a more efficient way to navigate and order from the chicken chain’s menu as it reduced waiting times. A year prior to that, they also partnered with online mobile payment platform Alipay to introduce the Smile To Pay feature. It is a facial recognition payment technology that has rolled out to 300 KFC stores across China. “We will continue to explore the latest technologies to create unique dining experiences and offer our customers more convenient and personalized services,” Wat added. Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China that holds the exclusive rights in mainland China to KFC, Pizza Hut, and Taco Bell. Apart from the known brands, they also own the Little Sheep and East Dawning concepts.

Costa Coffee’s new goal: 1,200 stores in China by 2022 The announcement follows notable competitors’ expansion plans in the country.

he coffee market in China continues to heat up with Costa Coffee’s announcement that it has bought one of their joint venture partners in China. This will enable the brand to have full control of stores outside of Beijing and dramatically increase its target number of sites by 2022 to at least 1,200. Currently, they stand at over 440 stores in the country with plans to open an additional hundred sites and new products already in the pipeline. Whitbread announced the buy-out of the 49% share in the South China joint venture held by Yueda – whose operation comprised of approximately 250 stores – for RMB 310 million (£35 million) last October 2017. Costa says that the earlier partnership with Yueda was “essential” in the brand’s “first phase” of development but added that full control would enable them to have a “greater level of focus on improving the overall proposition and reshaping the store network.” Citing their strategy to focus on “core cities”, 39 stores were closed in the year.

Costa currently has at least 440 stores in the country.

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Costa’s other joint venture partnership with BHG in North China will remain unaffected. “The experience gained from Costa’s trials provides confidence in the customer offer and the opportunity to extend the store network to more than 1,200 stores by 2022, with significant opportunity beyond this over the longer term.” The announcement was made in the middle on conducted steps to demerge the coffee brand from Whitbread, its then-parent

company based in the United Kingdom. “Costa will become a listed entity in its own right and the clear market leader in the out-of-home coffee market in the UK. Costa will also be well positioned to build further on its strong international foundations with growth expected in China and Costa Express,” Whitbread said in their full-year report. Globally, total sales grew by 5.2% in the quarter due to new stores and Express machines.

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Starbucks partners with Alibaba Group to bolster their coffee delivery services in China Starbucks Delivery Kitchens are now being trialled in Shanghai and Hangzhou.

tarbucks has formed a landmark partnership with the Alibaba Group in a bid to “transform the coffee experience” in China. Through the collaboration, the global coffee chain will utilise Alibaba’s ecosystem of companies including the Ele.me’s ondemand platform to conduct delivery services. The delivery program is planned to expand across 30 cities to more than 2,000 stores by end of the year. Ele.me became a subsidiary of Alibaba in April, when the e-commerce giant acquired the startup for $9.5 billion. Its chief rival is Meituan-Dianping, a delivery and services provider that recently went public in Hong Kong. Starbucks will also partner with Alibaba’s Hema supermarkets to create “Starbucks Delivery Kitchens”, spaces specifically designed for delivery order fulfillment. “Our transformational partnership with Alibaba will reshape modern retail, and represents a significant milestone in our efforts to exceed the expectations of Chinese consumers. Starbucks China is one to watch, and I have full confidence in the team that will bring the new innovation

Our partnership with Alibaba will reshape modern retail.

behind the Starbucks Experience to life,” Kevin Johnson, president and chief executive officer of Starbucks said in their announcement. Daniel Zhang, Chief Executive Officer of the Alibaba Group, added: “Starbucks is more than a destination for premium coffee and we share the same vision to pioneer a new coffee culture and lifestyle through innovation and technology. Alibaba is thrilled to expand our existing partnership with Starbucks by leveraging our cuttingedge New Retail infrastructure and digital power to enable an unprecedented

experience for consumers.” For years, Starbucks operated in China with little opposition, controlling an impressive 58.6% of the country’s coffee market in 2016, according to research firm Euromonitor International. Its closest rivals were McDonald’s and Costa, which held 6.1% and 3.8% of the market, respectively. The global market for coffee products, including freshly brewed, instant and packaged coffee drinks, is worth 12 trillion yuan, according to JingData. The U.S. leads this market, accounting for one-fourth of coffee consumption worldwide.

Shake Shack to launch in three Asian markets on 2019 The chain is just one of the US burger brands looking to ramp up its growth in the continent.

merican fast casual chain Shake Shack has recently announced that they will be launching its flagship site in Singapore’s Jewel Changi Airport. They have partnered with Korea-based food company SPC Group in bringing their debut store in the island-country. “For years we’ve been looking for the right opportunity to enter the Singaporean market given its regional importance, and we’re thrilled to have found the right strategic partner and an ideal launch location,” Michael Kark, Shake Shack’s vice president of global licensing. However, this is just the third announcement the burger chain has released this year regarding its Asian expansion for 2019. Last July, they announced that they are going to Manila as they partnered with Philippine retail company SSI Group. “Manila is an incredible city; its heart beats with a distinct warmth and hospitality. We are excited to begin the search for our first site in Metro Manila and look forward to becoming part of this community,” Kark said.

We’re thrilled to have found the right strategic partner and an ideal launch location.

Then a month later, they stated that they are targeting Shanghai with their licensee Maxin Caterers which is a Hong Kong based food, beverage and restaurant chain. The two companies have also previously partnered in 2017 to have 14 stores in Hong Kong and Macau by 2027. They have just opened their flagship site in China’s autonomous region last May. “There’s incredible opportunity in China and I couldn’t think of a better place to begin

this chapter of our story than Shanghai, a city that understands great brands, appreciates premium ingredients, and ultimately loves food,” said Randy Garutti, CEO of Shake Shack. “The city’s streets overflow with vibrant flavors and energy every day and we can’t wait to join Shanghai’s thriving food community.” Shake Shack is one of many US-based burger chains that are keen on entering the Asian market.

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Veganism is becoming more mainstream, and restaurant brands like Domino’s, Zambrero and Lord of the Fries are taking it seriously What’s the next step for brands looking to take a piece of the growing demand for plant-based food?

hat once was a fringe movement tagged as ‘boring’ or ‘extreme’, veganism has now become a global phenomenon and has been recognised for its positive impact on sustainability and animal welfare. The multi-site restaurant space is a testament to its mainstream power, with brands ensuring that they have offerings that cater to everincreasing demand across multiple markets today. Australia-based Lord of the Fries (LOTF) is one of them and is known in the space as one of the only vegan fast food chains. They started in 2004, long before vegan fast food was a booming market. Now, they are also the Australian partner of Beyond Meat, a U.S.-based startup that has created a meat-free offering that features a patty made from plant-based protein. “When we started LOTF it was hard to find fries made without beef tallow. Veggie burgers were all peas (and) corn and veg dogs were scarce. These days vegetarian is common, vegan is more niche but you can find vegan options in so many mainstream businesses,” co-founder Amanda Walker told QSR Media. Whilst she believes the QSR industry would be “wise” to adopt veganism, Walker thinks simply having vegan options may not be enough to persuade increased patronage. “People are looking at QSRs more critically in terms of their sustainability perspective, ethical stance, treatment of staff as well. We work hard in all [the] aforementioned as we aim to be a leader in the industry and [we] know changes need to be made if we want our civilisation to thrive,” she added. Aside from running LOTF, Walker also confirmed that they will launch a plant-based baked goods business at Melbourne CBD called Weirdoughs in November. Domino’s added itself to the list of brands adapting to the vegan-friendly trend by vegan cheese to its menu in Australia last January due to an “overwhelming response” from a survey they conducted in Facebook. The item was initially added to their menu for a limited time but has since become a permanent addition. “Our pizza sauce and bases are veganfriendly so all of the pizzas on our menu can in fact be altered to suit a vegan diet. Many people do not realise that our Garlic Bread is also vegan-friendly, and we have recently introduced Vegan Cheesy Garlic Bread, so vegans can now enjoy the cheesy version of our most popular accompaniment,” said Domino’s CEO for

There is a strong business case to have a strong offering in the vegan space.

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Australia and New Zealand, Nick Knight. They also have a dedicated page for Vegan Cheese Enthusiasts, a hub set up by the pizza chain for customers to share vegan pizza hacks, experiences, new topping ideas, community events and updates. “Our menu is not a one-size-fits-all and we’re all about offering our customers choice. We’re always evolving our menu to keep up with changing tastes and give our customers more choices to suit their dietary and nutritional requirements. A move to plantbased and meat-free products is one of the biggest trends in food, and we believe it’s here to stay,” Knight added. Zambrero also responded to the growing vegan market by releasing their own vegan cheese. “We have seen an increase in the desire for vegan-friendly products, not only by vegans but also those that are lactose intolerant and health conscious,” a Zambrero spokesperson said. “It can be tricky to find consistency in plant-based alternatives, especially that taste really good, so consumers are definitely responsive when brands spend time and effort exploring ways in which to offer variety for all dietary requirements.” Similar to Australia, brands in the United Kingdom such as LEON are responding to the growing global vegan market by developing more plant-based offerings that do not compromise on flavour. “The LEON mission has always been to make it easy for everyone to eat and live well. That means creating dishes that can be enjoyed by everyone, regardless of their dietary preferences. We’ve also championed meat as a side dish and often talk about ways to make vegetables taste good, so the rise of veganism in the UK has been a welcome challenge,” LEON’s Head of Food Erica Molyneux said.

Catering to the “new” vegan A number of research companies have predicted that ‘going vegan’ would be the year’s top trend in food and beverage. Euromonitor International found that Australia was the third fastest growing market in the world after the United Arab Emirates and China. They also predicted that Australia’s packaged vegan food market will worth $215 million by 2020. According to a report by MCA Menu Tracker, vegan options on menus in UK restaurants have increased by 237% this year compared to 2017. “One thing that really drives the global aspect of veganism is the passion brought to the conversation by vegans in general and their willingness to share the message,” Fran Harper of supplier Paramount 21 explained. “The quality, range and understanding of vegan food has grown massively making a vegan diet more accessible to people with busy lifestyles and generally more appealing.” Whilst affirming that restaurant should consider the growth of veganism, she reminds restaurant brands that such vegan offerings should stand up against non-vegan products. “The ‘new vegan’ is demanding a much higher quality/tasting product than would have been acceptable even a few years ago. Not all brands need to be pitched to the vegan space; flexitarianism is now recognised as a trend. There is a very strong business case to have a strong offering in the vegan space.” With veganism now mainstream, she says further development and innovation will build vegan products as “everyday” options. “New products will be developed with increasing levels of fortification to aid the vegan diet (protein, zinc, iron, omega 3s, calcium and B12) making it easier to maintain a healthy vegan diet,” she concluded.

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Organic & authentic: how Guzman y Gomez struck marketing gold by following their instincts Chief marketing officer, Lara Thom, looks back at the success of #BringCalHome, and explains the importance of brands having a personality

t all started with a simple Facebook post. Cal Ryan, a millennial backpacker travelling in London, sent Guzman y Gomez (GYG) a message and started a campaign November of last year to get him back to Australia so he could eat one of their signature burrito bowls. Relying on their gut instincts, GYG’s marketing team answered the call and challenged Cal to get 3,000 comments and 1,000 shares in two weeks. In a surprising turn, the target was reached in less than a single day with numerous headlines around the world spotlighting the phenomenal campaign. More than half a year later, #BringCalHome was recognized at the 2018 QSR Media Awards as the Best Marketing Campaign for the past 12 months. Guzman y Gomez also bagged the top prize for being the year’s Best Multi-Site Restaurant. QSR Media talked to Lara Thom, GYG’s chief marketing officer, who looked back on the success of #BringCalHome, the value of having a brand personality, and their plans this year. QSR Media: Tell us more about your reaction to winning Best Marketing Campaign and Best Multi-Site Restaurant at the recentlyheld QSR Media Awards. Winning awards is always such an honour. But to win the Best Marketing Campaign within our industry was an acknowledgement for our team that the campaign was recognised as best in class by our peers. I was immensely proud of my team and what they achieved with this campaign; they moved incredibly fast to bring it to life and as the true millennial marketers they are, they had so much belief and confidence in every move we made with this campaign.

The campaign just skyrocketed: [Cal] was covered by London press as well.

QSR Media: GYG won the Best Marketing Campaign for #BringCalHome, which went viral. Looking back, what gave you the instinct to pursue that post from Cal? The #BringCalHome campaign evolved organically. Cal Ryan was sitting in his flat in London craving a GYG burrito bowl. He wrote to us on our Facebook page asking us to fly him home for a burrito bowl and back to London where he could continue his travels. I picked the post up at 2am in the morning just as he posted it. It was so ballsy and so “GYG” I thought “Why not?! This is exactly what a typical GYG millennial customer will do for a burrito!” We challenged him to get a certain number of likes and shares on his post and gave him 2 weeks to hit the number. He did it in 24 hours! From there, the campaign just skyrocketed: he was on radio, TV and covered by the London press as well. We flew Cal into Brisbane for the opening of our 100th restaurant in Burleigh but we also surprised his parents and flew his brother Nate in from London as well where the boys met their baby niece for the first time. As news travelled, the story got bigger and bigger and hit headlines globally. It was a nice distraction from all the bad news that was going on in the world at the time. QSR Media: What do you think drove the success of the campaign? What are some things your team learned from it, which you will apply to future marketing campaigns and/or other activities? We were very fortunate that Cal was a genuine fan of the brand and very media savvy. We couldn’t have cast a better brand ambassador for the campaign so we owe a lot to him, his brother Nate and their cheeky personalities. The success of the campaign was driven by its

authenticity. It wasn’t a pre-planned campaign or stunt, it was yet another ‘story’ for GYG to tell about our guests and the lengths they will go to get their hands on our food. Consumers loved getting on board to help him achieve the number of likes and shares he needed to fly from London to Australia for a GYG burrito and it had a ring of ‘Who would do that?’ to it! We’ve always been agile as a team but this campaign taught us that when we follow our guts on a great idea, [we’re] not to over analyse it but just go with it and see where we end up. QSR Media: To what extent do marketing campaigns like these contribute to developing brand love? We always start with the product, if the product isn’t right, there will be no brand love. You can develop the best marketing campaigns in the world but it’s more important that your product delivers the goods. Our guests genuinely LOVE our food and I think that’s the contribution this campaign made to the brand love guests have for GYG. It showed how far one customer would go for a burrito. Our tone of voice and brand personality is the cream on top and Cal knew he would receive a fun answer from us even if we didn’t say yes. Every aspect of our business is focussed on our guests and they feel it when they walk into our restaurants. This campaign was confirmation that we do listen to our guests and deliver on our promises. QSR Media: What’s next for GYG? We’re looking after the environment, vegans and developing our tech stack at a rapid rate. We opened the doors to our very first 24/7 GYG restaurant in Swanston St, Melbourne. We’re bringing the demand for the late night burrito to our customer base. Already, the response has been mind-blowing — who doesn’t love a late night burrito?! GYG is currently sifting through the potential of sites across Australia to go 24/7. At GYG we never rest, watch this space!

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Can fast food heavyweights withstand the premiumisation wave? What’s the next step for brands looking to take a piece of the growing demand for plant-based food?

n a sea of brands situated in Chadstone’s dining precinct, a Japanese fast casual chain known for their premium food offerings is looking to bring their ‘A-game’ along with a ‘A-star’ chef. Japanese wagyu-don eatery OMI recently partnered with Japanese Iron Chef Ikuei Arakane, who will serve as their Executive Consultant Chef to create a new udon range. OMI says the fit-out, which can accommodate seventy diners, will still pay homage to their original concept. From premium-marbled beef sourced from awardwinning local suppliers to deluxe Japanese sauces, the chain aims to combine the muchloved rice bowl with the quality of Asian flavours. “Finding quality yet affordable food at any food court in Melbourne is sometimes difficult, but we created OMI to fill this void,” Ven Chin, founder of OMI, said. “OMI has proven to be a successful model, with interest from potential franchisees and potential joint venture partners to expand OMI to other countries.” OMI is one of many smaller operators in the country making its presence felt with their premium offerings. Traditional and more established chains, whether big or small, have also recognised the benefits of riding the premiumisation wave. Three months ago, Gelatissimo created their Deluxe Range of ice cream flavours, which include the Golden Macadamia Blondie, Luxe Lime and Coconut and Decadent Cookie Dough. The premium range was done in collaboration with brand ambassador Reece Hignell, who was a contestant in this year’s Masterchef Australia. “Working with a talented chef like him not only brought fresh inspiration, but allowed us to create a range of flavours that appealed to all Australians and especially to those who desire a more deluxe and indulgent treat,” Gelatissimo’s CEO Filipe Barbosa said. Fast food giant McDonald’s also released their Gourmet Creations range last year, which include their Classic Angus, Chicken Clubhouse, and Classic Chicken Salad. The range feature ingredients that are deemed “unusual” or expensive to acquire such as shaved parmesan, baby spinach, rasher bacon, jalapenos, truffle aioli and dijonnaise. “Our customers have been asking for gourmet burgers through Drive-Thru so we’ve delivered just that. We are always evolving our offering and listening to our customers so we are pleased to now offer them great tasting, gourmet burgers at the speed of their lifestyles,” McDonald’s Australia chief marketing officer

Traditional operators will find it harder to improve their images.

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Jenni Dill previously explained.

“Major players in the Fast Food and Takeaway Services industry have sought to Premium, healthy fast food to drive further benefit from the food culture shift, introducing growth premium menus with higher quality In their 2016 report, Nielsen defines ingredients. Consequently, major players such ‘premium’ as an item composed of highas McDonald’s have struggled to keep up with quality ingredients that can be accompanied the rapid growth of smaller premium operators with a ‘superior’ style or design and as well as like Grill’d,” he added. customer service. Vuong expressed confidence that an More than 50% of the study’s respondents “increasing consumer appetite” for premium in the Asia-Pacific answered that purchasing and healthy fast food will drive growth for the premium products makes them feel good, Fast Food and Takeaway Services industry over successful and confident. the next five years. IBISWorld forecasted as early as 2015 that “Consumer concerns about the fat content premiumisation will affect all areas of fast of traditional fast foods are likely to limit food. Speaking to QSR Media, Senior Industry growth in these segments, while premium Analyst Bao Vuong cites a shift in Australia’s products are expected to become more widely food culture as the trend’s driver over the past available,” he said. “This trend is anticipated five years. to boost profitability for premium operators, “Greater emphasis has been placed on as premium products often carry higher premium meals and ingredient quality. This margins.” shift, combined with foodie culture, has led Specifically, operators embracing healthyto an increased number of smaller fast-food eating trends are projected to take market operators differentiating themselves based on share from fast food heavyweights themselves quality,” he explained. over the next five years. “These traditional This trend, he says, led to more gourmet operators, such as McDonald’s and KFC, will options in the fast food market and new find it harder to improve their images. Menu food options that were previously considered innovation will be the key to success over the restaurant meals. However, he surmises that next five years, with QSR’s likely to expand some major operators have found difficulty in low-fat or low-sugar ranges to meet shifting changing their image. consumer demand,” he concluded.

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