Commentary

Keep an eye on the QSR menus

McDonald's, KFC and Taco Bell have more than 65,000 restaurant locations worldwide. They must appeal to uniquely different tastes and menu preferences across their international operations.

February 17, 2020 by Paul Schlossberg — president, dfw consulting

One thing we, as convenience service operators, need to track, is menu changes at fast food restaurants. That includes new products being added and items being discontinued. Managing your product menu, in every category, is very important to your success.

New products from fast food brands point out opportunities and challenges for us in 2020. We will be searching for new SKUs in product categories where we have very limited experience.

Since food items are generally the most expensive product selections we offer, it's critical to focus on creating and delivering food menu items our shoppers will want to purchase. That might be overly simplified. What is even more important is selecting new products which will generate repeat transactions. Once shoppers try a new item, we need repeat sales — again (and again).

The big fast food brands make new products a major priority. They want to avoid shoppers being bored with the menu. New products are tested frequently. Some succeed and "graduate" to the regular menu. Other items might be losers and are dismissed. Then there is the McRib, which was not a winner when introduced. But the product had rabid fans who demanded its return. McDonald's has made it an LTO winner by periodically bringing it back to selected stores for a "return engagement."

Let's look at the newest round of new products. McDonald's is moving into what they describe as "vegan meal offerings." Their new Veggie Dippers will be introduced in the United Kingdom and Ireland. It includes "…four 'dippers'…breaded and fried and stuffed with red pepper, rice, sundried tomato pesto and split peas."

McDonald's has been testing a plant-based burger in Canada but has not yet brought one to market in the U.S.

In the U.S. KFC has tested seasoned fries at 250 stores. It's branded as Secret Recipe Fries. According to KFC's head chef, consumers have been wanting these for a long time. KFC's menu also has "classic potato wedges." There is speculation, but not confirmation about whether these new fries would replace the potato wedges

Here are two updates concerning Taco Bell's menu developments:

1. The dollar menu will add Double Stacked Tacos. The three products are part of the "Cravings Value Menu."

2. A plant-based food item is being introduced as an LTO in Shanghai, China. From thespoon.tech: The new product is a "…limited edition taco made with plant-based Omnipork…the OmniPork Crunchy Taco, (featuring) OmniPork's meat-free ground pork…"

What are the primary lessons we can learn from these three leading fast food restaurant chains? McDonald's, KFC and Taco Bell have more than 65,000 restaurant locations worldwide. They must appeal to uniquely different tastes and menu preferences across their international operations. As you plan your menu, think carefully about:

1. How do we appeal to folks who are "meat-eaters" and those who are "vegans or vegetarians?" And there are flexitarians, too.

2. How do you test new products before rolling them out across all your venues? Take some time to think through the process to manage and control how new items are introduced. Doing a small-scale test will allow you to understand the volume and inventory demands before you encounter severe out-of-stocks during a full-scale rollout.

3. Have you considered how to execute LTOs at your locations? Why not take a leap and test an item (or a few) for a limited time? If it is a flop, pull it quickly. If it's a winner, begin to plan for how quickly you can successfully roll it out.

Learn from what the leading fast food restaurant companies are doing. Test new products and new categories. Try things you would not have even considered a few years ago. If you want to sell more stuff, it is going to take some new thinking in 2020.

Photo courtesy of iStock.

FoodserviceMcDonald's

About Paul Schlossberg

Paul Schlossberg operates D/FW Consulting, specializing in branded product and market development projects for vending, foodservice, coffee service, convenience stores and other market segments with strong impulse purchase potential.

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