RESEARCH | Staff Reporter, Australia

These QSRs Aren't Threatened by Rising Supermarket Rivals

Some QSRs may be feeling the competitive heat rise. More supermarkets, convenience stores and big-box retailers roll out their own prepared food choices and branded restaurant concepts. But two operators reveal why they are not sweating buckets just yet.

The Coffee Club, for one, claims that the kinds of food and the dining experience that supermarkets offer are not appealing to the QSR’s typical customer.

“To be honest, the people who buy supermarket sushi and pizza, aren’t the type of customer we are targeting,” says The Coffee Club team. “With most of our stores located in busy shopping precincts, what we offer won’t appeal to people who are looking for mass-produced grab and go meals.”

Instead, The Coffee Club relies on attracting customers through its two-pronged unique selling proposition: Prepare meals in onsite kitchens by trained cooks, and serve meals in comfortable and relaxed surroundings.

“We know that our loyalists like to sit in comfortable surroundings with friends and family and linger over a coffee, and we cater to that need by offering a relaxed and family-friendly environment,” says The Coffee Club team.

Chatime, meanwhile, insists that the increased competition is a “good thing” since the QSR iced tea chain will benefit from their big-budget marketing promotions.

“Supermarkets and brands like Lipton have much larger budgets to make people more aware of the category and the product. Their marketing can help introduce consumers to iced tea,” says Carlos Antonius, general manager at Chatime.

He reckons that once customers are more familiar with iced tea as a drink concept, they will then be more open to trying more exciting and more premium iced tea concepts like Chatime. This is where the QSR chain can then shine, making a name for itself among customers that want a more extraordinary iced tea experience – one with unique flavors and add-on ingredient options.

“These brands don’t have branded store concepts. Therefore, they can’t offer the freshness, variety of flavours and ability to customise your drink that Chatime can,” says Antonius.

Photo credit: The Coffee Club Facebook page

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