These are interesting times in the fast food business. Fast food continues to be popular, but consumers are hungry for more options now. So, how about fast, cheap and healthier, or more ethnic, or a touch of “gourmet”? Hence the success of Panera, Chipotle, Baja Fresh, Quizno’s, etc.
A recent Brandchannel blog post, “McDonald’s President Cooking up Green Rival” gave brief but fascinating insights into the fast casual chain slated to open in 2011. Former McDonald’s alums Mike Roberts and Mike Donahue are behind the venture.
Tentative name: Stephanie’s. The idea: serve up a health-conscious menu in environmentally friendly locations with an eye to sustainability in every facet of the business. A great idea and a real departure for ex-McDonald’s alums, wouldn’t you say?
Being considered:
• Herb garden on the roof
• Grass parking lots
• Fresh flowers on tables
• Biodegradable cutlery
• Possible frozen food selections at outlets like Whole Foods
• Possible home delivery via electric cars
We all talk about a crowded marketplace, but there’s always room for fresh, new brands if they fill a niche. And if they deliver. One thing is certain: When it comes to restaurant brands, the two most important ingredients in the customer experience are taste and service. All of the green concepts in the world won’t create a success unless the principal criteria are met and the customer is happy.
In a recent Ad Age interview, Mike Donahue observed, when asked the inevitable question about founding a chain, that at present there are “no tangible goals other than to do one really good location, get the taste profile right and the affordability right.” After getting the formula down, they will determine “if and how quickly the concept can scale.” Smart. Why cookie cutter until they get the template right?
While the fast food biz has been generally anemic in a tough economy, with fast casual growing by only 4% in 2009, industry insiders feel if key trends can be capitalized on, as Stephanie’s is planning to do, the concept has plenty of upside. And if anybody can make a success in the fast casual category, it’s likely a pair of ex-McDonald’s execs. They’re probably right.
Questions:
• What do you think of the Stephanie’s concept? Will it fly?
• What do you think of the timing in launching a new fast casual concept in view of the sluggish economy?
• Would you personally be interested in eating healthier food in a fast casual setting like a Stephanie’s?
I’d love to get your feedback.
Tags: Marketing
Ted, Chipotle has showed that there’s definitely a market for fast, (mostly) sustainable food of good quality. As you mentioned, getting the food quality is paramount, but so is operational execution and excellence. That’s where Mike Roberts and Mike Donahue will really help!
Thanks for opining, Paul. Agreed. Let’s remember: there’s also a difference between fast food and fast casual restaurants where consumers expect the experience to be stepped up. Every detail matters. That’s why I particularly liked Donahue’s statement: “After getting the formula down, they will determine “if and how quickly the concept can scale.” That’s the right approach to take. Exactly right.
LOVE IT! Healthy fast food is the answer…period. If our American diet is not changed dramatically today, this generation of kids will be the first to live sicker and die younger than their parents. Yes, taste and service are very important as well, but the bulk of us live life in the fast land, so convenience reigns…which is why we need to change the fast food industry – one restaurant at a time. Check out what we are doing at http://www.livegreen2go.com!
Hi Anita,
Thanks for weighing in with your comments. Agreed: healthy + fast is a great trend in fast casual dining now, and it’s about time, right? Still, even with these new offerings, consumers will still opt for fast and less healthy. The key is education: parents need to instill good habits in their children from the beginning, so they can make sound choices for themselves as they grow up. We are actually discussing two segments of the restaurant industry here: fast food and fast casual. The greatest growth potential is in the latter and as Paul said, if anyone can execute this formula well, it ought to be two alums from McDonald’s. Stay tuned. . . .