Increased Focus on Healthy Offerings Helps Reshape the Fast Food Industry
FinancialBuzz.com News Commentary
Oct 20, 2020, 09:00 ET
NEW YORK, Oct. 20, 2020 /PRNewswire/ -- The fast-food industry is experiencing a challenging year with the pandemic and social distancing measures hurting sales. Yet, the industry is expected to recover as the economy slowly reopens. Furthermore, the increasing number of restaurants and hotels is expected to accelerate the growth of the fast-food market due to the effects of rapid globalization. Additionally, an increase in health awareness among consumers and an increase in demand for healthy foods have helped transform and drive growth simultaneously. The availability of healthy fast food has changed the trajectory of the market, making it attractive to middle-class customers, and altered eating habits both in emerging and leading economies. According to data published by Market Data Forecast, the size of the global fast-food market is expected to be valued at about USD 647.7 Billion in 2020 and is projected to reach USD 931.7 Billion by the end of 2025 while exhibiting a CAGR of 4.6% over the time period. Urban Tea, Inc. (NASDAQ: MYT), Darden Restaurants, Inc. (NYSE: DRI), Restaurant Brands International Inc. (NYSE: QSR), Dunkin' Brands Group, Inc. (NASDAQ: DNKN), The Wendy's Company (NASDAQ: WEN)
Health oriented foods are expected to be the driving force behind the broader restaurant, food & beverage market. Restaurants and food manufacturers alike are now in a position where customers demand that their health will be considered a priority, and various brands have already begun or will begin rebranding towards that goal. "The looming question is whether these brands will take advantage of this surge in sales, and new found hipness and awareness especially from the baby boomers who grew up on these foods to latter leave them as their awareness of ingredients and health concerns grew closer as they aged - and reformulate and reimagine their products to be healthier – and save their brands from oblivion," a report by Forbes explained.
Urban Tea, Inc. (NASDAQ: MYT) announced breaking news yesterday that, "it has begun planning for the opening of a new store in New York City.
MYT currently has two stores in NYC, Meno, a store offering tea-based beverages and light snacks, as well as Crop Circle, a store offering its featured "guokui," a popular street snack originating from northern China's Shaanxi province, as well as other popular Chinese street food. MYT is currently planning to open a third store combining the offerings of both popular street food and tea-based beverages in NYC. It is currently in the planning phase and working on product development and selecting an address for the new store.
Long Yi, CEO, commented that, 'With the gradual stabilization of existing store operations, the Company's management sees the future prospects of our product positioning and business philosophy in the New York catering industry. As a result, we plan to accelerate our expansion in New York, and are currently selecting a location for our new store. I am very happy that our food and beverage options are liked by our customers in New York. In the future, we plan on strengthening our product research and development capabilities and strive to meet more consumer needs. In the future, the Company plans on integrating the product lines of various brands and making it even easier for consumers to purchase different types of foods and beverages in one store.'"
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Darden Restaurants, Inc. (NYSE: DRI) reported back in September its financial results for the first quarter ended August 30th, 2020. Total sales of USD 1.53 Billion, a decrease of 28.4% driven by negative blended same-restaurant sales of 29.0% and partially offset by the addition of 14 net new restaurants. "The actions we continued to take in response to COVID-19, which include being laser-focused on execution and strengthening our business model, resulted in significantly improved first quarter performance that exceeded expectations," said CEO Gene Lee. "I'm incredibly proud of how our restaurant teams have adapted to our new operating environment and their ongoing dedication to safety and delivering exceptional guest experiences."
Restaurant Brands International Inc. (NYSE: QSR) announced back in September that Burger King® is unveiling new restaurant designs that will deliver flexibility, innovative features and convenient options for how BK® food can be ordered and delivered, to fulfill changing guests demands. Dedicated mobile order and curbside pick-up areas, drive-in and walk-up order areas, enhanced drive-thru experience, exterior dining spaces and sustainable design elements are featured throughout the new designs. Created by the Restaurant Brands International in-house design group, the plans were drafted with input from tech, operations and food innovation teams to dramatically improve the Burger King® restaurant guest experience. The new designs will provide multiple ordering and delivery modes and highlight a physical footprint 60% smaller than a traditional Burger King restaurant building and site.
Dunkin' Brands Group, Inc. (NASDAQ: DNKN) reported last week on the national coffee day. "For so many Americans, Dunkin' equals coffee, and coffee equals Dunkin'… there is simply no other coffee choice. We're declaring National Coffee Day as National Dunkin' Day to highlight how much our coffee means to people, and create an opportunity to raise a cup to everyone across the entire country who understands and appreciates how important that daily cup of Dunkin' can be to keep running," said Drayton Martin, Vice President, Brand Stewardship at Dunkin'. The brand will also be delivering the exclusive care packages to select fans who do not currently live close enough to a Dunkin' store to celebrate National Dunkin' Day. The company has more than 13,100 restaurants in 41 countries worldwide.
The Wendy's Company (NASDAQ: WEN) reported back in July the national launch of 'Wendy's Rewards™' loyalty program, allowing customers the opportunity to earn points to unlock rewards for their favorite menu items. To kick off Wendy's Rewards, fans can get double points on their first order for a limited time+. "Wendy's has some of the most loyal customers around, and we're thrilled to launch a program that rewards them for their excellent taste in craveable, high-quality food," said Carl Loredo Chief Marketing Officer for The Wendy's Company. "What better way to reward them than with icons like Spicy Nuggs, Baconator, Frosty-ccino, Honey Butter Chicken Biscuit, and so much more."
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