Hungry Jack’s decision to launch the Angry Angus Burger last year appears to support the CEO of Philadelphia-based Restaurant Advisory Services, Ron Gorodesky’s view that portion sizes are on the increase.
With its two beef patties, deep-fried onion rings, cheese and bacon, the Angry Angus was reported as providing a massive 3532 kilojoules, 26g of saturated fat and 5.6g of salt at one sitting.
Steve Hansen, managing director of Nando’s has chips on the menu, hungry customers also have the option of increasing their portion size by adding a larger serve of healthier side dishes such as couscous, spicy rice and corn.
“It’s all about providing customers with a choice,” says Jacinta Chapman-Cavalot, national PR manager of Nando’s Australia. “And we’re finding they’re responding to that choice.”
In Australia at least, the move to healthier options appears to be generating more opportunities in the burger sector rather than slowing down growth.
“The gourmet burger sector is expanding,” says Soubjaki. “We’ve taken one of the world’s favourite foods and made it healthy to the point where it’s not as naughty as a greasy or fat-packed alternative and is perceived as a reward for the health conscious.”
Burgers remain such a popular item on Nando’s menus that they recently added the new Tropico Burger. As Chooks’ Hansen points out, burgers are easy to consume on the run and, particularly when it comes to chicken, offer a potentially healthier alternative to other items on the menu.
“Chooks’ chicken burger range has continued to grow strongly over the past few years,” he says.
Value pricing is the way to go
In the fast food sector, few would argue that value is king.
“Customers are always looking for value for money, and bundles and meal deals are important ways to keep them coming back for more,” says Soubjaki. “Offering drinks and sides as part of a meal is good business. It is pointless to price your main offering low and sting customers on upgrades or modifications – customers catch on quickly and the promotion eventually fizzles out. A good value promotion is the quickest way to volumes.”
Over the past few years, Hansen has also seen a growth in demand for combos and believes the trend will continue. He encourages franchisees to make the most of the opportunity by altering menu boards in order to create more focus at the point of sale.
Breaking away from traditional locations
Faced with growing competition, saturated markets and higher operating costs, American franchisors are searching out creative alternatives to traditional sites. One strategy is the so-called multiple-branding, where several restaurant chains operate from the same location. This has the potential to attract more customers by offering a number of different menus while reducing fixed operating costs such as rent.
According to Hansen, this is already working well in Australia. “Concepts whereby restaurant, seating and toilet areas are communal is something that should work but has not yet been tested by many,” he says.
Soubjaki also sees genuine merit in shared locations. “Multi-franchise food courts owned by the one operator are usually a well balanced offering, with variety to capture all tastes and preferences,” she says. “I have seen several very successful models in regional Victoria, New South Wales and Queensland and I’m sure we’ll see more.”
In America, food franchises have also started to appear in retail stores such as K-Mart and Wal-Mart – another strategy Hansen considers worthwhile.
“The locating of fast food outlets in supermarkets is something that we are pushing for,” he says. “To date, Australian supermarket chains have not picked up on this option, but it certainly will be the way of the future.”
Burger Edge is looking at roadhouses, pubs, airports and even stadiums.
“It makes sense to think creatively when traditional retail spaces are becoming increasingly expensive, competitive and unreliable,” Soubjaki says.
Following trends – or setting them?
Chapman-Cavalot says that the open communication between the various Nando’s countries provides great insight into what’s happening on a global scale.
“This gives us the ability to know what’s happening in the restaurant industry in various parts of the world and respond to changing consumer trends,” she says.
“The trend is your friend and you have to focus on it,” says Hansen. “But we also need to stay true to what we do in our business and do what I call ‘the Four Re-s’ – research, rejuvenate, rebrand and review.”
While most American trends will eventually have an impact on Australia, it isn’t always a one-way street.
“In some cases, I am seeing Australia leading the trends,” says Soubjaki. “While much of the US is still entrenched in the traditional fast food retail models, California and New York are leading a move towards approaches Australians have been embracing for the last five years.”
Soubjaki also points out that the days are gone when brands determined trends.
“Understanding customers’ needs and staying in tune with social patterns is every retailer’s duty,” she concludes. “In the end it’s the customer who decides whether your offering is superior to that of your competitors.”