KRS Study: Close Look at Fast Food Restaurants

K I N G R E TA I L S O L U T I O N S CLOSE LOOK

FAST FOOD RESTAURANTS

WHAT U.S. SHOPPERS LOVE MOST ( A N D L E A S T ) A B O U T T H E I R M O S T- L O V E D LOCAL AND CHAIN QUICK SERVICE RESTAURANTS

In Q4 2015, retail design firm King Retail Solutions (“KRS�) identified and surveyed the top-rated local and chain quick service restaurant locations in each of 24 cities, equally representing six U.S. regions (Midwest, Northeast, Pacific, Rocky, Southeast, and Southwest).

The 1,200 most recent Yelp! reviews (200 per region) were analyzed. Any pros and cons mentioned were identified and catalogued. This report illustrates the results of that analysis.

W H AT U . S . S H O P P E R S L O V E M O S T A B O U T T H E I R M O S T- L O V E D FA S T F O O D R E TA I L E R S : compliments...

however...

80% 40% 19% 14% 12% 10% 10% 8% 7% 3%

12% 9% 8%

5% 3% 3% 2%

love the food love the customer service love that it’s fast love that it’s affordable love the fresh ingredients love the interior atmosphere love the big portions love that it’s clean love the convenient location love that it’s open early, late, or 24 hours

said food quality is poor said it’s not fast enough said customer service is lacking said it’s over-priced said the food is unhealthy said servings are too small said the space was dirty or unkempt 2% said there wasn’t enough seating

DRILLING DOWN BY GENDER AND

BY REGION OF THE U.S. (% INDICATES PERCENTAGE WHO PRAISED THE FACTOR)

MEN GAVE THE MOST FAST FOOD KUDOS FOR: good food (80%), good service (38%), fast service (16%), low cost (16%)

WOMEN GAVE THE MOST FAST FOOD KUDOS FOR: good food (79%), good service (43%), fast service (21%), freshness (14%)

MW

MIDWEST REGION GAVE THE MOST FAST FOOD KUDOS FOR:

NE

NORTHEAST REGION GAVE THE MOST FAST FOOD KUDOS FOR:

PAC

PACIFIC REGION GAVE THE MOST FAST FOOD KUDOS FOR:

ROC

ROCKY REGION GAVE THE MOST FAST FOOD KUDOS FOR:

SE

SOUTHEAST REGION GAVE THE MOST FAST FOOD KUDOS FOR:

SW

SOUTHWEST REGION GAVE THE MOST FAST FOOD KUDOS FOR:

good food (83%), good service (45%), fast service (21%), low cost (17%)

good food (76%), good service (36%), low cost (20%), fast service (19%)

good food (81%), good service (31%), fast service (18%), low cost (17%)

good food (76%), good service (41%), fast service (14%), big servings (12%)

good food (79%), good service (46%), fast service (18%), big servings (14%)

good food (83%), good service (45%), fast service (21%), freshness (15%)

W H I C H Q U I C K S E RV E C H A I N S O W N O U R H E A RT S , W H E R E , A N D W H Y ?

Chick-fil-A (14*)

good service (66%)

good food (62%)

fast service (36%)

clean (20%)

Chipotle (9*)

good food (62%)

fast service (31%)

good service (31%)

freshness (14%)

Five Guys (7*) Firehouse Subs (6*) In-N-Out Burger (5*) Culver’s (4*) Jersey Mike’s Subs (3*)

good food (85%) good food (89%) good food (74%) good food (90%) good food (85%)

good service (33%) good service (49%) good service (38%) good service (40%) good service (40%)

fast service (24%) freshness (22%) fast service (24%) clean (15%) freshness (35%)

serving size (24%) clean (11%) freshness (18%) fast service (15%) serving size (15%)

MOD Pizza (3*)

good food (77%)

good service (63%)

fast service (37%)

freshness (37%)

Potbelly Sandwich Shop (3*)

good food (70%)

good service (40%)

fast service (30%)

low cost (23%)

good food (90%) good service (68%) good food (80%) good food (80%) atmosphere (70%) good food (90%) good food (60%) good food (60%) good service (67%) good food (100%) good food (80%) good food (80%) good food (80%)

good service (28%) good food (60%) good service (30%) good service (40%) good food (60%) open late (30%) fast service (40%) fast service (20%) nearby (50%) fast service (20%) good service (80%) good service (60%) good service (80%)

low cost (14%) fast service (28%) open late (15%) n/a good service (60%) good service (10%) good service (40%) good service (20%) clean (33%) low cost (20%) atmosphere (30%) fast service (20%) fast service (40%)

freshness (10%) open late (16%) low cost (10%) n/a clean (40%) low cost (10%) clean (20%) nearby (20%) fast service (33%) nearby (20%) fast service (20%) low cost (20%) freshness (40%)

Raising Cane’s (3*) Taco Bell (3*) Popeyes (2*) Hot Dog on a Stick (1*) McDonald’s (1*) Original Tommy’s (1*) Pollo Campero (1*) Shake Shack (1*) Subway (1*) Tastee Freez (1*) Tijuana Flats (1*) Waba Grill (1*) Wendy’s (1*)

*Chart represents the most-mentioned “pros” for these top-rated Fast Food chains per Yelp! reviewers. Brands with less than 20 locations were deemed “local” for the purposes of this report. Asterisked number at right of each name represents the number of cities (out of 24 cities surveyed) in which the brand ranked as a “Top 3” highest rated Fast Food chain. In addition to chains, we looked at an equal number of highest-rated local Fast Food retailers. The following cities were surveyed: Albuquerque, Austin, Baltimore, Boise, Boston, Charlotte, Chicago, Columbus, Denver, Houston, Jacksonville, Las Vegas, Los Angeles, Milwaukee, Nashville, New Orleans, New York City, Omaha, Philadelphia, Phoenix, Portland, Salt Lake City, San Francisco, and Seattle.

By region, the top “fast food” chains were as follows...

Midwest

Northeast

Pacific

Rocky

Southeast

Southwest

Chick-fil-A Chipotle Culver’s Firehouse Subs Five Guys Raising Cane’s Taco Bell Tastee Freez

Chick-fil-A Chipotle Five Guys Pollo Campero Popeyes Potbelly S. Shop Shake Shack Taco Bell Wendy’s

Chipotle H. Dog on a Stick In-N-Out Burger McDonald’s MOD Pizza Original Tommy’s Popeyes Potbelly S. Shop Taco Bell Waba Grill

Chick-fil-A Chipotle Culver’s Firehouse Subs Five Guys In-N-Out Burger Raising Cane’s

Chick-fil-A Chipotle Culver’s Firehouse Subs Five Guys Raising Cane’s Subway Tijuana Flats

Chick-fil-A Firehouse Subs Five Guys In-N-Out Burger Jersey Mike’s MOD Pizza

TURNS OUT WE’RE IMPRESSED BY L O C A L & C H A I N FA S T F O O D B R A N D S FOR DIFFERENT REASONS. (% INDICATES PERCENTAGE WHO MENTIONED PRO OR CON) good food local 86% chain 73% good service local 34%

freshness local 9%

chain 47%

chain 15%

fast service local 12%

low cost local 18%

ample serving size local 14%

chain 25%

chain 11%

ch. 6%

cleanliness 4%

atmosphere local 12%

locally owned local 11%

nearby loc. 6%

open late 3%

chain 13%

chain 9%

n/a

chain 8%

3%

poor food quality local 13%

slow/long wait local 7%

poor service 5%

expensive 5%

lack of seating 4%

chain 12%

chain 11%

chain 11%

5%

n/a

small serving size 3%

unhealthy 2%

dirty/unkempt 1%

3%

3%

3%

T H E S E L O C A L Q U I C K S E RV I C E R E S TA U R A N T S R E A L LY S T O O D O U T. . .

Benny Pennello’s

Charlotte, NC

Pizza & Italian

80% mentioned the large serving sizes.

Café Spice Express Hot Dog Station Lighthouse Pizza Magic Dragon Oak Tree Café Ray’s Candy Store

Philadelphia, PA Chicago, IL Omaha, NE Seattle, WA Albuquerque, NM New York, NY

Indian & Pakistani Hot Dogs & Burgers Pizza Chinese American Traditional Fried Foods & Dessert

60% mentioned the low prices.

80% mentioned the good service.

60% mentioned the large serving sizes.

90% mentioned the good service.

70% mentioned the good service.

60% mentioned loving Ray, the owner.

Real Chili

Milwaukee, WI

Chili & American Fare

70% mentioned loving the late hours.

Seafood

60% mentioned the good service.

Shrimp Shack Seafood Kitchen Jacksonville, FL Subs N Such Wah Fung #1 Fast Food Wriggles It’s a Wrap

Charlotte, NC New York, NY

Sandwiches & Caribbean 80% mentioned the good service.

Chinese & Barbeque 90% mentioned the low prices and 60% mentioned the large service sizes.

Salt Lake City, UT Deli & Soup 90% mentioned the good service.

We looked at over 70 top-rated local Fast Food restaurants from coast-to-coast. The above locations stood out by getting accolades from 60% or more of their reviewers for a given positive factor beyond great food.

F O O D T R U C K S A L S O S T O O D O U T. . .

small serving size 4%

inconvenient hours 4%

unhealthy 5%

slow/long wait 7%

poor food quality 7%

poor service 8%

lack of seating 11%

freshness 4%

ample serving size 7%

fast service 8%

locally owned 11%

atmosphere 11%

low cost 12%

good service 19%

good food 92%

(11% OF TOP-RATED LOCAL FAST FOOD RESTAURANTS WERE FOOD TRUCKS.)

When it comes to quick service restaurants, food rules... In this

day and age where everyone is a foodie and instant-reviews lead quickly to crowd-sourced general opinions about brands, Fast Food chains looking to foster widespread goodwill and (hopefully) a nice little cult of raving fans can no longer fall back on stereotypical easy-outs like bland food at bottom barrel prices or speedy service brought to you by heat lamps and zombie employees. Not if they’re looking to create a retail experience that anyone with a smartphone, who can take a few seconds to sort all nearby restaurants by type, price point, and star-rating, is going to patronize.

With respectable options for grab-and-go appearing everywhere from supermarkets, to pharmacies, to convenience stores, the modern Fast Food shopper (as evidenced by the 1,200 Yelp! reviews analyzed for this report) expects great value for their money and appreciates a quick service experience where the food tastes consistently delicious, the service is fast and friendly, and the restaurant is thoughtfully put together and well-maintained. Icing on the cake are generous portions, notably fresh ingredients, extended hours, and a convenient location.

For the chain quick service restaurants (“QSRs”) who rose to the top of the nationwide Yelp! survey (Chick-fil-A, Chipotle, Five Guys, etc.) it’s clear that this isn’t breaking news. None of the most-loved chain QSRs got the most quantity of Yelp! praise for their low prices or for their fast service, although those factors were absolutely mentioned. The most frequent endorsement factors noted for these brands by Yelp! reviewers were love of the food itself and appreciation for kind, thoughtful staff (often the result of intense training on the restaurants’ part).

Local Fast Food restaurants appeared to be graded along the same lines as their larger, chain counterparts. While top local restaurants didn’t get as much recognition for fast or friendly service, these stores got comparatively more positive feedback for food quality, low prices, and larger servings than the chains. 11% of reviewers also made a point of mentioning local restaurants’ “localness” as a positive attribute.

What can quick service restaurants big and small take away from the data?

– – The most-loved Fast Food restaurants are those that balance food and service quality, menu cost, and general atmosphere in a way that leaves patrons feeling well taken care of on multiple levels.

– – Local brands may have an edge, especially as the current zeitgeist has a very fond eye for all things local and hand-crafted. However, translating great food into a great experience for customers will mean focusing on service training (something that some chains have turned into an art) to elevate the experience, on a consistent basis.

– – Food trucks (which made up 11% of the top local Fast Food restaurants surveyed) and are a format multiple chain brands are dabbling with, sidestep this a bit by operating from a window and allowing customers to fend for themselves beyond the point of purchase. This sounds great in theory, and would intuitively lead to lower menu costs; however, food trucks weren’t praised nearly as frequently for low costs as their local and chain sit-down counterparts and were called out by 11% of their reviewers for not offering ample seating.

H O W T O C R E AT E A Q U I C K S E RV I C E R E S TA U R A N T S H O P P E R S C A N ’ T L I V E W I T H O U T. . .

(OR AT LEAST ONE THEY WRITE RAVE REVIEWS ABOUT)

- Make food quality a top priority - Employ genuinely friendly staff and train them to be consistenly awesome and efficient - Keep overall prices reasonable - Build a menu around fresh ingredients, freshly prepared, with ample portions - Create an atmosphere that’s enjoyable to experience and keep it sparkling clean - Location, location, location!

- Consider extended hours “Chipotle is my gold standard for

“Delicious!.. Upon walking in the

fast food. This location is near my

door you are greeted by the staff with

work so I visit it often and the

a big “Welcome to Firehouse [Subs]!”

food and service [are]

It makes you smile.”

always great.”

- Derek H.

Columbus, OH

- Rachel S. Omaha, NE

“Wow! I don’t know how [MOD Pizza] makes such amazingly good Pizza so fast! Staff is friendly and they all work as a team and support each other. That makes you feel good while you wait for your Pizza.”

- Ryan K. Seattle, WA

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