Do You Want Fries With That?
The decline in fast food combo sales isn’t just due to a struggling economy—it’s driven by customers wanting more options. A study by NPD Group shows that over the past five years, combo meal sales have dropped by 12%, signaling a shift in consumer preferences. To stay relevant, businesses must adapt to changing customer demands by continuously monitoring feedback and offering more variety. Staying in tune with your audience’s needs is the key to long-term success.
I was reading this article By Chip Lebovitz on fortune.com about the "not so happy meal...the decline of fast food combo sales", and several thoughts struck me.
While the first assumption may be that the changing economy might happen to be the reason for the decline in demand for an American staple, it really is something else. People need more options. Wake up everyone...things are changing...again.
Here's the article:
FORTUNE -- Do you really want fries with that? A recent NPD Group study suggests that your answer is likely a weak maybe.
In the past five years, combo meal sales, a staple of the fast food menu, have decreased by 12% compared to the previous five-year period. Total combo meal orders declined by a billion over a five-year period ending in January 2012, from nine to eight billion orders.
The dip in orders is that rare piece of bad business news that companies may not be able to explain away by citing the struggling economy. While factors like higher unemployment certainly have played a role in the depressed sales -- particularly among 18-34 year olds, a group that makes up the majority of combo meal patrons -- it wasn't the primary driver behind this shift.
"While economic pressures are apart of [the decrease in combo meal sales], it came out loud and clear that the customer wants more options in the combo meal," says, Bonnie Riggs, NPD restaurant analyst and author of the report.
If you don't keep up with changing needs of your customers you will always be trying to stay above water. Stay in the loop. Always monitor reactions, requests, responses, etc. That will bring lasting success.
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