Stagnation is a dangerous enemy for catering business, especially for those franchisees or businesses belonging chains, as in the case of the biggest brands restoration organized.
To avoid as far as possible that stagnating or declining demand have a negative impact on the evolution and valuation of companies, many companies choose to obfuscate information that would draw reasoned conclusions about the true state of health of corporations. Thus effectively kept uninformed investors, stampeding not flee despite the situation.
In case of Starbucks It is well known. From the same company has been accepted from 2017 sales of coffee does not have much free scope to increase. That is why the famous brand siren has turned around 180 degrees in its market strategy; instead of continuing to invest in local advertising and saturated regions of the West, They have opted for look to the untapped market of Asia.
McDonald’s, meanwhile, has not made great fuss when talk about. The number of people visiting US institutions has declined, again and again repeatedly over the last three quarters. Nevertheless, Apart from joining the market fever take away and food delivery, They have little to say about their future expectations and how reach.
We are witnessing the clash of two megatrends.
On the one hand you have the search for healthier eating by consumers. Some do without sugary drinks, exciting empty calories that could jeopardize the cardiovascular health of inveterate cafeinómano. Other obsessive exercise control over the weight to fight an epidemic of rampant obesity. You want to enjoy the tasty food, But not at any price, hence fried and saturated fats lose advantage over healthy choices.
On the other hand business in general, not only restoration, encourage consumption of higher value items, because the profit margins of these tend to be more dilated by the feeling premium conferring no real cost to the company. That is why some have compared the catering business previously mented with Apple, the company famous for their phones and computers inflated prices; they all employ this marketing strategy.
While customers are willing to pay more for menus premium or make further orders for each visit, accounts restaurants will wear green.
At the moment it seems that investors will turn a deaf ear to warnings by analysts, but the decline in demand is a real problem, one ability to get to the tomb to one or more of these restaurants.
To take the bull by the horns, McDonald’s, Starbucks, Chipotle and other brands in similar situations should think outside preset frames to reach new customers or loyalty those occasional: new product lines, Rewards Programs, home delivery, etc.
Only in this way can overcome the crisis and give sustainability to the business.