McDonald’s: The Brand America Loves to Visit

 

McDonald’s has been a cornerstone of American fast-food culture, and its popularity shows no signs of slowing down. Steven Johnson Grocerant Guru® and the team at Tacoma, based Foodservice Solutions® wants you to know you are not the only one that visits McDonalds.

In fact, nearly 87% of U.S. households visited the chain at least once over the past 12 months, according to recent data from the analytics firm Numerator. This makes McDonald’s the most visited restaurant chain in the United States, a title it has held for years.

In the past seven years, McDonald’s has consistently attracted millions of customers annually, with many visiting multiple times throughout the year. According to historical data, here is an overview of how many Americans have visited McDonald’s over the last seven years:

McDonald’s U.S. Visits (Annual)

·         2017: Approximately 120 million Americans visited McDonald’s at least once.

·         2018: Roughly 123 million Americans.

·         2019: An increase to 126 million Americans.

·         2020: Despite the pandemic, McDonald’s saw 121 million visits as drive-thru and delivery services sustained business.

·         2021: Visits rebounded with 129 million Americans visiting.

·         2022: Continued growth with 133 million unique visits.

·         2023: The number hit a peak with 138 million American visitors, demonstrating its continued dominance in the fast-food space.

On average, the typical McDonald’s customer made 54 visits in the past year, spending approximately $461. That breaks down to relatively modest spending per visit, showing how McDonald’s affordable pricing remains a key driver for its frequent visits.

The Next Seven Most Visited Chains in America

While McDonald’s reigns supreme, several other chains also attract significant traffic across the U.S. Here’s a look at the next seven chains based on their popularity:

1.       Starbucks:

o    Two-thirds of U.S. households visited Starbucks in the past 12 months. Known for its loyal, high-income, urban Gen X customer base, Starbucks visitors tend to dine out four times a week. Despite strong customer loyalty, the chain has experienced sales struggles this year.

2.       Subway:

o    With over 20,000 locations in the U.S., Subway has a stronghold in rural areas. Numerator data suggests its customers are 18% more likely to live in rural areas. Subway’s presence in both small towns and urban centers helps maintain its wide appeal.

3.       Dunkin':

o    Dunkin' remains a favorite among coffee lovers, particularly in the Northeast. Its customers allocate 14% of their total restaurant spending at various dining establishments, showing that they are frequent restaurant-goers, even beyond Dunkin’.

4.       Taco Bell:

o    Taco Bell draws a large, younger demographic, with late-night offerings and affordable prices. The chain's convenient, handheld menu items have helped it maintain a strong position among fast-food diners.

5.       Chick-fil-A:

o    Known for exceptional customer service and quality chicken sandwiches, Chick-fil-A enjoys a cult-like following, particularly in the Southeast. Its limited operating hours (closed on Sundays) have done little to deter its immense popularity.

6.       Chipotle Mexican Grill:

o    Chipotle has seen significant growth in recent years, especially among younger, urban customers. According to Numerator, its customer base is 43% more likely to be younger Gen Z consumers and 44% more likely to be Black.

7.       Wendy’s:

o    Wendy’s continues to attract customers with its “fresh, never frozen” beef and a wide range of menu items. While not on the same scale as McDonald’s, Wendy’s remains one of the go-to choices for consumers seeking fast and affordable meals.

Why McDonald’s Remains on Top

What makes McDonald’s so beloved? A few key factors contribute to its enduring success:

1.       Affordability: McDonald’s value menu and regular promotions keep it competitive and accessible to a wide range of consumers.

2.       Convenience: With over 13,000 locations across the U.S. and robust drive-thru and delivery operations, McDonald’s is easy to access.

3.       Brand Loyalty: The chain has cultivated a strong emotional connection with customers through consistent branding and nostalgic appeal.

4.       Innovation: From introducing healthier menu items to tech-savvy mobile ordering, McDonald’s stays ahead by adapting to consumer trends.

With McDonald’s attracting nearly nine out of 10 U.S. households in the past year, it’s clear that the brand is not just a fast-food giant, but a cultural icon embedded in the fabric of American life. Whether through a quick drive-thru meal or a nostalgic Happy Meal, McDonald’s continues to be the restaurant America loves to visit.

Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation, and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Will No Tax on Tips Help or Hurt Employees Restaurant Employees?

 

The team at Tacoma, WA based Foodservice Solutions® is wondering out loud about no taxing of tips as immediate income. From restaurant servers to bartenders and delivery drivers, many service workers rely heavily on tips to supplement their income. But what happens when governments decide to remove taxes on those tips? The proposal to eliminate taxes on tips sounds like an immediate financial win for employees, but history and long-term consequences suggest that the story is far more complicated. In fact, while untaxed tips may increase short-term earnings, they could significantly impact Social Security income in the future—leaving workers more vulnerable in retirement.

The Historical Role of Tipping and Taxation

Tipping in the U.S. has a long history, dating back to the late 1800s when it became common practice in the hospitality industry. Initially controversial, tipping was seen by some as an exploitation of workers. By the mid-20th century, it became a social norm, especially in restaurants, where it accounted for a substantial portion of workers' wages.

In 1965, the U.S. government began requiring workers to report their tips as income, which was subjected to taxation. Employers also became responsible for tracking and reporting their employees’ tipped income. This system ensured that tips would be included in calculations for Social Security, Medicare, and other benefits.

The Proposal: No Tax on Tips

The idea of eliminating taxes on tips has been floated as a way to benefit low-income workers. After all, service employees often struggle to make ends meet, and freeing up the portion of their income that would go to taxes might seem like an easy fix.

However, this approach is not without consequences. While more take-home pay may sound appealing, the long-term repercussions could outweigh the immediate benefits. To understand why, let’s look at how tipping and taxation intersect with Social Security.

The Social Security Dilemma

Social Security benefits are based on a worker’s average indexed monthly earnings during their 35 highest-earning years. The more income that is reported to the Social Security Administration, the higher an employee’s benefits will be in retirement.

If tips are no longer taxed, many employees may choose not to report them—or may feel less obligated to do so. This would result in a lower recorded income over time, ultimately reducing the amount they would be eligible to receive in Social Security payments. For example, a server who earns $30,000 a year, with half coming from tips, could lose out on thousands of dollars in annual Social Security income if those tips go unreported.

A Case Study: The 1980s Social Security Crisis

In the early 1980s, the U.S. experienced a Social Security funding crisis, driven partly by gaps in workers’ reported income. At the time, many service employees failed to report their full tipped earnings, leading to lower contributions to the Social Security fund. In response, stricter laws were enacted to ensure accurate reporting of tipped income, highlighting the delicate balance between short-term earnings and long-term benefits.

This crisis serves as a cautionary tale for today’s workforce. Eliminating taxes on tips could lead to a repeat of history, where insufficient Social Security contributions leave both employees and the system at risk. With the average American relying on Social Security for 40% of their retirement income, the stakes are high.

Short-Term Gains, Long-Term Losses

While proponents of eliminating taxes on tips argue that workers should be allowed to keep more of their hard-earned money, it’s important to consider the long-term trade-offs. The immediate financial boost of untaxed tips might seem attractive, but for many employees, this would result in reduced Social Security benefits down the line.

The Potential Impact by the Numbers

·         Current Social Security Contributions: As of 2024, service employees and their employers each contribute 6.2% of earnings (including tips) to Social Security. For a worker who earns $20,000 in tips annually, this translates to $1,240 in contributions from both the employee and employer.

·         The Social Security Formula: For a worker who earns $30,000 annually (including tips), their estimated monthly Social Security benefit after retirement would be approximately $1,235. If tips go unreported or untaxed, and their reported income drops to $15,000 annually, their monthly benefit could fall to $700—a significant reduction.

·         Retirement Income Gap: For workers earning $30,000 a year with half from tips, failure to report tips could result in a $500 monthly gap in Social Security benefits, which translates to $6,000 less per year in retirement.

The Broader Economic Consequences

Beyond the individual impact, untaxed tips could create systemic problems. The Social Security Administration relies on payroll taxes to fund benefits, and a reduction in taxable income could exacerbate the already strained system. With 90% of U.S. households dependent on Social Security in some capacity, the loss of revenue could lead to benefit cuts or future tax hikes to make up the shortfall.

Moreover, employees who underreport their tipped income might also miss out on other benefits tied to taxable income, such as unemployment compensation, workers’ compensation, and even mortgage or loan qualifications.

The Double-Edged Sword: Worker Classification and Minimum Wage

It’s also worth noting that untaxed tips could further complicate discussions around worker classification and minimum wage. In many states, tipped employees are paid a lower base wage, with tips expected to make up the difference. If tips go unreported or untaxed, it becomes more difficult to ensure that workers are being compensated fairly.

Think About This: A Cautionary Approach

While the proposal to eliminate taxes on tips is well-intentioned, the long-term consequences could be devastating for workers who rely on Social Security for their retirement. The historical lesson of the 1980s Social Security crisis and the importance of reported income for future benefits underscore the risks involved. Employees may see short-term gains from untaxed tips, but the potential loss of Social Security income in the long run could outweigh any immediate financial relief.

In the end, it’s crucial to remember that taxes on tips serve a broader purpose: securing workers’ financial futures. Without proper contributions to Social Security, many service workers may find themselves in a precarious situation later in life—proving that sometimes, what looks like a win today can lead to a loss tomorrow.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

The New Role of Visceral and Voice Food Marketing

 

Success does leave clues and consumers are dynamic not static and according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® as U.S. consumers face rising costs, the dining landscape is evolving in real-time.

A recent study by Givex reveals that 41 percent of Americans are eating out less, 45 percent have reduced food delivery, and 60 percent are cooking more at home compared to last year. With food away from home rising 20 percent in price since August 2021, restaurants now compete for an ever-smaller slice of consumer spending. In this challenging climate, effective, data-driven marketing strategies are more essential than ever.

The food industry's shift from traditional brand marketing to digital food marketing has created new opportunities for engagement, but it also demands a more precise approach. Brands can no longer rely solely on broad campaigns; instead, they must harness data, technology, and the evolving values of their customers. The rise of digital platforms, AI-driven insights, and voice marketing has further transformed the landscape, allowing for visceral, real-time connections with customers. These tools are vital to reaching a generation of consumers who are more fragmented in their dining preferences than ever before.

The Digital Marketing Evolution in Foodservice

In today’s marketplace, the transition from brand-centric marketing to digital-first, values-based strategies is paramount. Digital food marketing offers the ability to reach consumers through personalized, real-time engagement, from social media ads to AI-powered voice assistants. According to a 2024 study by Deloitte, restaurants that have integrated voice and digital marketing strategies see up to a 15% higher engagement rate, particularly among Millennials and Gen Z, who prefer ordering via mobile apps or digital platforms. Meanwhile, Boomers and Gen X remain more influenced by tradition-driven marketing messages, underscoring the need for a multichannel approach.

However, even with the digital revolution in full swing, the key to success lies in understanding consumer behavior through value segmentation. Efficient marketing strategies must not only utilize the tools of digital engagement but must also align with consumer motivations—be it convenience, quality, or social connection. As the Zenzi by Aletheia research demonstrates, dining decisions are deeply rooted in six core value types—Achievement, Pleasure, Freedom, Purpose, Tradition, and Security—each influencing consumer behavior in unique ways.

For example, Achievement-driven consumers are 41 percent more likely to dine out frequently and prioritize brand recognition and rewards. Meanwhile, Purpose-driven diners, who place high importance on sustainability and ethical sourcing, dine out less but are drawn to restaurants with a strong social or environmental mission.

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The Importance of Visceral and Voice Marketing

In this era of digital transformation, voice marketing is emerging as a game-changer. Voice search is projected to account for over 50% of all search activity by 2025, according to Comscore, making it an essential tool for food brands to integrate. Voice assistants like Alexa and Google Home are becoming key entry points for consumers to explore restaurant offerings, make reservations, or order takeout, especially among Gen Z and Millennial customers. These generations are increasingly using voice technology not just to seek information but to interact with brands in more meaningful, hands-free ways.

Incorporating visceral, sensory-driven marketing also heightens consumer engagement. According to a report by Forbes, campaigns that appeal to the senses—such as mouth-watering visuals in digital ads, enticing smells in stores, or ambient sounds in videos—can boost purchase intent by up to 30%. This is particularly true in foodservice, where the experience is multi-sensory by nature.

Aligning Consumer Values with Targeted Marketing

To resonate with today’s consumers, restaurant marketers must craft campaigns that speak to the underlying values that shape dining behavior. Zenzi by Aletheia’s behavioral segmentation study sheds light on how different values influence dining preferences, offering a roadmap for crafting more relevant marketing messages.

1.       Achievement: These consumers seek quality, efficiency, and exclusivity. They respond to campaigns emphasizing loyalty programs, speed of service, and brand prestige.

2.       Purpose: Purpose-driven diners are less frequent patrons but are highly loyal to brands that reflect their values. Marketing should highlight sustainability initiatives, community involvement, and ethically sourced ingredients.

3.       Tradition: Consumers motivated by Tradition prioritize consistency and familiarity. Marketing should focus on nostalgic, feel-good elements such as longstanding recipes, warm service, and family-friendly environments.

4.       Pleasure: Fun-loving and socially driven, Pleasure types seek enjoyable, affordable dining experiences. Marketing should emphasize promotions, socializing, and vibrant atmospheres.

Understanding and aligning marketing messages with these values creates precision in campaigns, leading to higher engagement and loyalty.

The Strategic Shift for Restaurants

As the industry navigates rising costs and shrinking margins, leveraging insights from behavioral segmentation can significantly enhance marketing effectiveness. With more consumers seeking personalized and digital experiences, restaurants must also evolve from one-size-fits-all strategies to dynamic, multichannel campaigns that incorporate voice marketing, sensory engagement, and value-based messaging.

According to the National Restaurant Association, restaurants that adopt digital tools like AI-driven marketing platforms, loyalty apps, and real-time feedback loops can see a 20% improvement in customer retention. Moreover, data from Zenzi’s research indicates that personalized messaging that aligns with core consumer values can boost conversion rates by 18%.

The lesson is clear: As the food industry moves further into the digital age, understanding the psychological and emotional motivations behind consumer behavior is critical. By tapping into these insights and incorporating cutting-edge digital tools, restaurants can create campaigns that are not only more precise but also more impactful—helping them survive and thrive in a challenging market.

Colleen Howell, a research analyst at Aletheia's audience research arm Zenzi, emphasizes that understanding consumer values is now more important than ever in restaurant marketing. By incorporating psychology, AI, and data science, Zenzi enables brands to connect more deeply with their customers, offering insights that lead to higher engagement and loyalty.

In today’s market, where competition is fierce and consumers are more selective, understanding these values and using them to guide marketing strategy is a recipe for success. Restaurants that blend digital marketing with value-driven insights will be better positioned to capture the attention and loyalty of consumers across generations.

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.