Fast food is devouring ‘fresh’ and ‘healthy’ competition
Americans aren’t forsaking fast food just yet.
Three years after analysts predicted that Chipotle would be the death of McDonald’s and other fastfood stalwarts, the onetime fast-casual darling is in free fall — and McDonald’s is reporting its third consecutive quarter of solid same-store sales.
McDonald’s is not alone. All of the “Big 3” burger joints — McDonald’s, Wendy’s and Burger King — have recently seen strong same-store sales growth.
The development has defied analysts’ expectations in a time of changing consumer preferences. It also speaks to the strong hold that fast food has on the American psyche.
“It’s iconic,” said Melissa Abbott, a vice president at the Hartman Group, a restaurant consulting firm. “There’s still a desire for foods that provide familiarity and comfort.”
As Abbott and other analysts describe it, the enduring appeal of fast-food chains goes far beyond taste. Despite an everexpanding menu of “better-for-you” options, chains such as McDonald’s still boast the holy trinity of convenience, low cost and familiarity.
In terms of convenience, the fast-food industry has invested heavily in online and mobile ordering, delivery and touch-screen kiosks that speed up waits.
McDonald’s also as aggressively discounted core items — such as soda, McNuggets and Big Macs. Wendy’s and Burger King have offered similar promotions.
By comparison, a single burrito at Chipotle can cost $7 to $10. The company announced Tuesday that it had missed revenue projections for the quarter.
As for those “changing consumer preferences” that the food industry frets so much about — among them, the desire for more natural and healthy foods — there’s little evidence that they’ve dissuaded many from chowing down on burgers.
Plus, fast-food chains have tweaked their meals around the edges to offer a few more “fresh” or “healthy” ingredients.