What do McDonald’s Dollar Menu, KFC’s Popcorn Chicken and convenience store roller dogs have in common? Anyone who grasps the answer has the key to unlock the door to sales success in 2013 and beyond. The answer has less to do with price than it does with a change in America’s eating pattern.
The U.S. is increasingly a snacking nation, starting with Millennials, who are aged 19-36 in 2013.
- When they dine out, 44% of consumers look for food that is easy to eat on the go, but it’s 55% of Millennial men and 58% of Millennial women, according to consumer research conducted for Mintel’s soon-to-be-released Dining Out: A 2013 Look Ahead—U.S., January 2013 report.
- Half of college students say they tend to snack throughout the day rather than eat three meals a day, and it’s 56% of women, according to Mintel’s University Foodservice—U.S., February 2013 report, which will be released in February.
There are plenty of other studies out there that prove snacking is on the rise. And so we’re back to McDonald’s, KFC and c-stores.
I just read that 7-Eleven plans to earn 20% of its sales from fresh foods by 2015. It wants to attract health-conscious consumers and better compete with Dunkin’ Donuts and Starbucks. I think they can reach that 20% if they tweak the focus away from health (I know that’s not PC, but let’s get real) and put/keep their focus on snackable fresh items—some of which can be healthful. That means rethink salads, and maybe even sandwiches, and go with dipable chicken pieces, fresh cookies, yogurt and granola, smoothies… that kind of thing.
I also read that KFC was surprised when its popcorn chicken was so successful (raking in $20 million in a 6-week promotion and representing more than $1 billion in yearly international sales). That should not surprise anyone. Everyone, pay attention. Just offer bite-size anything and it will do well—it’s a snack or a meal! How could it go wrong, unless the taste is horrible?
Here’s another surprise that shouldn’t have been a surprise. McDonald’s U.S. same-store sales in November jumped 2.4% driven by the chains increased efforts to market its Dollar Menu. Analysts were shocked. They shouldn’t have been. Besides saying “cheap,” a dollar says “snack.” The two go together well.
And that may be the success of the future. Combine small portions, convenience, and cheap, and you have snacks. Success will follow. This works for any channel that has a convenience factor, as in quick-serve restaurants, convenience stores, food trucks, grocery store check-out lines, etc.
Let’s watch and see who “gets it” in 2013.
Tell me what you think.
Jody