Grocerant Niche Mix & Match Meal Bundling Success Clues

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® loves to tell audiences “Back-in the day a drive-in restaurant was something that you drove to, got out of your car, stood in line to order from a window, then waited for either your name or number to be called and informed that your order was ready to pick up at the same window.”

Yes, you had to stand in the hot sun or in the rain to both order and pick-up your food.  It was fast food, it was new, it was the ‘cool’ thing to do. O’ and by the way the Hot food was hot and the cold food was cold. On top of all of that it saved you time and money.  That proposition was so powerful there is hardly a street any where in the world today you can’t find a fast-food restaurant.

That said, consumers are dynamic not static and ‘that fast food era’ has come and gone.  Driven by customer demand, or maybe impatience, consultants began introducing ‘operational efficiencies’ that in time created the drive-thru we all know today. McDonald’s introduced ‘combo meal’ on menu boards as an operational efficiency simply to reduce the time it took consumers to order. 

That was then.  A new study by Revenue Management Solutions, looked at fast food restaurant sales during the pandemic lets see some of what they found:

Revenue Management Solutions, asked over 800 U.S. diners, 88% of whom eat out at least twice a week. The results suggest combo meals are likely to stay on consumers' minds and, most importantly, operators have more pricing leverage than they might have thought.

Combo meals are universally popular

Overall, 65% of respondents purchased a combo meal from a QSR in the past month. While most everyone seems to love "a side of fries with that," millennials with families are the likeliest to purchase a combo, and 47% of frequent buyers have a household income between $30,000 and $74,000.

These demographics have, in the past, led operators to assume that value is the greatest motivator for purchase. Why else would the meals be often dubbed "value" or "family meals"? But our recent survey debunks this theory. It turns out that affordability isn't the only reason consumers buy a combo.

Combo doesn't imply "cheap"

In an open-ended question, we asked consumers the reason for choosing a combo meal. The results were split across three common themes:

·         39% referenced efficiency, including speed and ease of ordering.

·         38% referenced economics, including value and affordability.

·         34% referenced product preferences, including favorite products all in a full meal.

Let's look a bit closer at these responses.

·         Efficiency. Respondents who chose "efficiency" referenced the degree to which convenience, ease and speed supported their decision to order "combo." Others suggested that the "all-in-one" solution reduced the overall cognitive load of orders (we're all tired, it seems). And speed is of major significance these days. The survey also revealed that a full one-third of respondents who reported experiencing a long wait were unlikely to return to the same restaurant.

·         Value. More than a third of respondents did cite "value," "cheap" or "a deal" as the reason for their order, recognizing that the combination of items should be more affordable than the sum of its parts. But when asked "How much cheaper?" no respondents offered a specific dollar amount.

·         Product preference. Respondents whose motivation fell into the "product preference" category chose a combo because they liked the idea of a "full meal" or felt the variety could "fulfill their needs." Others expressed a fondness for or familiarity with the combo meal. Others were just plain hungry.

The fact is today Drive-thru’s define the restaurant sectors, Price – Value – Service equilibrium. With fast food transactions comprising over 83.8% of all restaurant meals served in the U.S.; our Grocerant Guru® believes they set the standard for service for the entire foodservice sector.

Consumers are seemingly more time starved today than ever before and the likelihood they want to cook a meal from scratch 3, 5, or 7 days a week at home are highly unlikely.  So, what are you planning to help consumers put a meal on the table fresher, faster, and more flavorful tonight?

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information.