American fast-food chains adopt snappier menus

Eateries Experiment With Cheaper Snack Innovations

FAST-food restaurant chains, eager to increase sales during the sluggish afternoon hours, are working hard to satisfy snack cravings with an array of smaller, cheaper products. For fastfood chains, selling snacks is an opportunity not only to boost overall sales, but also to make better use of existing employees and real estate. “The typical restaurant makes a vast majority of its business in a fouror five-hour time period, and there are arguably 24 hours in a day in which we can eat,” said Bob Goldin of food research firm Technomic. “They are saying, ‘you know, let’s figure out ways to even it out.’“ Between 1998 and 2006, the amount US consumers spent on snacks rose 39% to more than $27 billion. That number is still growing, though not as rapidly. Snack sales are expected to total about $30 billion by 2011, according to market research firm Euromonitor International. In the last two years, both McDonald’s and Yum Brand’s KFC chain have introduced blockbuster products targeted specifically at snack time. For McDonald’s, the $1.29-Snack Wrap, a strip of grilled or fried chicken wrapped in a tortilla that was introduced last year, has been one of the chain’s biggest launches ever. And at KFC, the 2005 launch of the 99-cent Snacker sandwich — a fried chicken strip on a sesame bun — is credited with reversing a prolonged sales slide at the chicken chain. Now, other chains are following suit. Earlier this year, Taco Bell introduced a taquito, priced at $1.79, that it is marketing as a snack. More recently, Jack in the Box introduced a sampler of stuffed jalapenos, mozzarella sticks and spicy chicken bites for $3.99, though customers can get a smaller serving for $1.79. CKE Restaurant’s Carl’s Jr and Hardee’s chains are adding boneless Buffalo wings, priced at $3.19 for three and $4.69 for five, to their menus. In addition, CKE Restaurants marketing chief Brad Haley said its addition of hand-scooped ice cream milk shakes in 2005 helped increase late afternoon sales, as kids looked for a snack after school. McDonald’s said it is working on other ways to boost sales outside of traditional meal times. Don Thompson, president of McDonald’s US business, said at an investor conference this week that the company’s plan to introduce more speciality coffee drinks such as lattes and iced coffees would draw in customers at different times of day.

Courtesy: EconomicTimes
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