As quick-service chains jockey for position in a mature and crowded market-place, more of them are offering nontraditional foods at nontraditional times. While some fast-food operators continue to duke it out for the standard breakfast-lunch-dinner business, others are turning their attention to less-conventional snack dayparts.
They blur the lines between dayparts. Over time our propensity to consume three square meals a day has been eroded by changing lifestyles. The edges of set meal times have been blurred, and consumers expect food on demand, regardless of the time.
One of the most publicized examples of this shift in consumption patterns is McDonald’s announcement that it is considering extending its hugely successful breakfast program throughout the day. This will accommodate not only third-shifters on their way home, but also patrons in the throes of a nocturnal McGriddle attack. Quick-service chains are in an especially good position, as their orientation toward grab-and-go items served at a reasonable price point puts them smack in the middle of the snack action.
They extend operating hours. Research suggests that the greatest opportunity for snack sales is late at night. Port Washington, N.Y.-based NPD Group reports that the fastest growing daypart is between 9 p.m. and midnight, and many chains have responded by expanding their hours to midnight and beyond. The NPD Group also says that the heaviest users during this time period are 18- to 34-year-olds, who make up 50 percent of customer traffic.
This tech-savvy cohort is being actively courted by Taco Bell. In fact, the chain is so gung ho about the prospects that it has invented a whole new daypart, dubbed FourthMeal, and has supported it with a jazzy website featuring interactive games. In addition, menu items are promoted and drinks are recommended that complement each item. Taco Bell units are open until 1 a.m. or later, and the chain is moving full speed ahead to maximize the longer operating hours.
Evening is not the only time to attract off-hour patrons. Midmorning and midafternoon are coffee break times, and coffee specialists are among the competitors moving to snag snackers after their breakfast rush. Dunkin’ Donuts, which has built business with early-morning commuters seeking coffee, also offers snack options, including more sophisticated versions of their standards, such as white hot chocolate or Latte Lite, a reduced-calorie espresso drink.
They emphasize portability. Chain chefs are creating items that offer the best combinations of essential snack elements. To score with customers, snacks should be portable, inexpensive and small. Portability is a hallmark of QSR operations such as Burger King, which serves chicken fries in a container that, according to the chain, “screams portability.” KFC hit the jackpot with the aptly named Snackers, a line of grab-and-go sandwiches that are miniature versions of the regular offerings.
They keep the price down. Snacks are perceived as having less value than a full meal, and consumers feel they should be priced appropriately. But thanks to Starbucks’ success with higher-end coffees, the price limits on a cup of java have been pushed upwards, making patrons more likely to splurge on an iced caramel macchiato or double chocolate chip Frappuccino after the sun has set.
At the same time, chains like KFC and McDonald’s have employed a careful pricing strategy with their snack products. KFC’s diminutive Snackers weigh in with an appropriately small price tag of 99 cents. In an especially savvy move, McDonald’s priced the popular Snack Wrap at $1.29 to encourage patrons to trade up from the Dollar Menu. The approach paid off, and the corporation has attributed recent same-store sales growth to the product line.
They control portions. Snacks are by definition of modest size, and consumers feel less guilt about treating themselves to an indulgent small bite. Lots of baked goods fit the bill. Au Bon Pain patrons can satisfy their cravings with a hazelnut mocha brownie or hazelnut dream cookie. Or they can choose a chocolate-dipped, cranberry-almond macaroon or key-lime pie cookie. Riding the crest of a retro-foods trend, Starbucks features a chocolate-chocolate cupcake for nostalgic baby boomers. In a more contemporary vein, there’s a chai tea latte bar. And to cater to car-bound customers on the run, Sonic Drive-Ins recently promoted cheesecake bites with a side of strawberry dip.
Nancy Kruse, president of The Kruse Company, is a trends analyst based in Atlanta. E-mail her at [email protected].
