Issue of the Month: Why QSR's are all jumping on the value bandwagon
"Value" proposition for QSR's gets fleshed out.
Steve Hansen should know a thing or two about running a successful QSR, after all he was the man behind the WA based chain Chooks Fresh & Tasty which was sold to QSRH and rebranded into Chicken Treat. Steve now at the helm of management consultancy Think Done helps us dissect the "value" proposition for QSR's in part 1 of this series.
QSR Media: How is value defined in today's QSR environment?
Steve: Value is always about what the customer perceives it to be. If they have been spending $9 per day say on their lunch, then they will expect that they can purchase products, quickly which fill the need and satisfy their hunger at a price and if it is delivered then that is good value and they will return. I do not think that value is being defined any differently today to what it has been in the past or what it may be in the future. The whole experience determines what the customer decides real value is.
QSR Media: Has the value proposition gone too far with promotions like McDoanld's $1 loose change menu?
Steve: Any value proposition is in essence just another marketing proposition and the customer actually expects that those propositions will be changed on a regular basis. Promoting , using $1 loose change is catchy and can work and it can be used in many ways. In fact one could use any small amount in an effort to get the customer to think “I will try that”. Eg . With every burger or pack for just 50c more you can have a small fries or for those $1 coins in loose change you can add one of these products to your purchase. The value proposition is decided by the client and if you have his/her attention and they make a purchase it has done it’s job.
QSR Media: Quantity and Quality = Value, your thoughts?
Steve: In QSR in many outlets team members will believe that quantity is a driver for the customer and consequently heap fries/chips into packs. This is a major problem for variances in useage of product and everyone should be seeking to provide consistency in all packs. A burger , small chips and a drink or chicken and chips in a pack and a drink in a combo, when presented properly , will always be seen by the customer as being good value, because it has satisfied the need at the time.
QSR Media: Any other comments?
Steve: Value is always decided on the whole experience and how the customer perceives that experience on the day.