CONSUMER CHANGE IN FAST FOOD PREFERENCE

James Richardson and Luis Kluwe Aguiar

In the UK fast food companies are failing to meet changes in consumer demands. Objectives: to test (1) fast food chains attributes that appeal to contemporary consumers; (2) fast food brand recognition (3) consumers alternative fast food outlets.

The fast food industry is perceived to be an American creation, but the fish-nchip format has prevailed in the UK since the eighteenth century as an outlet where the working classes could easily purchase inexpensive prepared foods. Whilst in the USA, the first hamburger outlets appeared in the mid 1930s with the sector quickly developing and expanding into fast food chains only in the post Second World War era. With the expansion of the road network and subsequently the motorcar industry producing affordable vehicles for the masses it was possible to see the changes in lifestyle in the 1950s that required adaptations of food provision. This was well captured by the first hamburger companies. According to Schlosser (2001) with increased mobility and the sprawling of urban areas people spent more time commuting to work. This was coupled with an increasing presence of women in the workplace thus leading to less time allocated for food preparation at home. At that stage, some three quarters of the family food budget was initially spent on fast food meals.

Quick to capture the changing nature of the business, the fast food industry has also changed the face of the food chain in the last decades. Changes in food presentation and preparation were derived from technological

improvements that facilitated the preservation of both uncooked and precooked foods. The advent of the microwave helped with the rapid preparation of food. As well as food preparation, the presentation of food also went
Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

through transformation. Outlets that relied highly on staff and the use of crockery or cutlery gave way to a strong eat with your fingers emphasis.

In addition to this, technological advances in packaging allowed the ultimate use of disposal of materials made of plastic, cardboard and polymers. These came in tandem with a drive towards uniformity of expectations, which included not only the presentation of the food itself, but also radical changes to the fundamentals of traditional restauranteuring (Schlosser 2001).

Rault-Wack and Bricas (2002) propose that food is also a powerful medium for the construction of cultural and collective identities. Therefore, by establishing a corporate identity through the use of architectural symbolism such as red tiles and neon arches (Jackle and Scalle, 1999), the overall result meant that a particular name would be immediately associated with a particular product and service. As a result a strong brand association and identification was established facilitating the formation and consolidation of strong corporate identities. In the UK, fast food preparation and presentation thus follows the American model which created a strong cultural and collective identity. The model has provided the consumers with uniformity and repeated experience (Schlosser 2002). Guthman (2003) calls this phenomenon the McDonaldisation of our society that has embraced the all American meal throughout the globe. However, in the UK the great success of the traditional fast food outlet is potentially beginning to lose its pull factor. Sandelman (2003) believes that the actual fast food sector is in transition from a traditional selling of burgers to the pre-eminent arrival of a fast casual food industry. The driving force for change has been a number of issues that raise questions to scrutinise the fast food companies, such as the link of regular fast food ingestion to obesity (Sapala 2002), chains showing operating loss for the first time in their thirty eight years of history and the forced closure of outlets. This is reflected on McDonalds facing a lawsuit from an overweight teenager who felt it was the company to blame for her condition (The Economist 2002). The food giant has also closed down outlets worldwide.

Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

The fast food industry is going through a transient period where consumers, by becoming more alert to the implications of the effects of modern life, are scrutinising fast food companies. What holds on to the consumer may no longer be valid. The gap notion that has formed between the needs of the UK consumer and the offerings of the fast food retailer may not be entirely fulfilled. Schlosser (2001) the most vehement critic of the fast food system, agrees that fast food, more specifically hamburgers, taste good. Yet Morgan and Murdoch (2000) disagree as they regard fast food from tasting good superficially since they are technologically enhanced products dripping with fat, therefore could by no means be tasty. Yet Sapala ( 2002) by establishing a parallel between the fast food industry and that of tobacco, has come to the conclusion that we may become addicted to fast food, its texture, taste and the sensation of fullness after its ingestion. Nonetheless, whether it is the consumers responsibility to watch what they eat or the retailers obligation to monitor the healthiness of what they serve seems irrelevant when considered against the backdrop of consumers power of perception. After all, fast food brands are merely what the consumer perceive them to be (English 2002). Companies that fail to come with replacements for such a consumers perception may contribute to enlarging the gap of products on offer and consumers wants. This gap could be understood by fast food companies maintaining their original branding attributes and not moving on with time. After all, branding communicates the firm across multiple dimensions: culture, product mix, geographical area and consumer mix. Mahon (1989) believes that an effective brand must be capable of responding to a changing technological and global environment. And knowledge about the external environment is thus key to branding. Thompson (1967) understands branding as key functions so that it works for mitigating uncertainty sensing changes in a dynamic environment; understanding the impact on the organisation, and creating viable responses. Griffing (2002) sees McDonalds largest obstacle is to overcome its present uncertainties due to its shear brand success. As a generic symbol of the industry, it represents all that is good and bad. However, the chain has been able to manage all the uncertainties so far such
Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

as allegations of beef content on its French Fries oil thus affecting Vegan, Vegetarians and Hindus and the obesity related lawsuit among others. In an interview with Dr B J Pettifer, the author was led to believe that after studies carried out regarding caloric, fat and sodium content on burgers and other sandwiches from popular food chains and from a company with clear mission statement on creating natural food made of best ingredients it seems that eating a burger is not the worst food offering. According to Dr Pettifers research some sandwiches perceived as more natural may carry more fat and carbohydrate content than a hamburger. The ill consequence of frequent ingestion of fast food only comes as a result of habitual consumption. It seems that the issues come down to the consumer purchasing behaviour and brand perceptions. Despite this, fast food organisations should respond to pressures by becoming more specialised and less autonomous with centralised decisionmaking requirements. It would be possible for fast food companies to come up with discrete brands that are more capable of reacting to the diversity of demand. Discrete branding strategies suggest that different product or divisions within a companys portfolio may be centrally co-ordinated without overlap at a local level. A seminal work by Miele and Morgan (2003) has identified a new trend in the market: The Slow Food Movement. The movement gathers people interested in saving regional cuisines and products. The contention that fast food and the cultures it stimulate are potentially threatening ways of life places fast food at a level of controversy beyond comprehension. Should the fast food industry be indeed threatening the ways of life that societies depend on, then one should assess the long-term consequences for both the consumer and fast food retailers. Will the consumer recognise that the functionality of their culture is perhaps being threatened? Nonetheless, in the UK the fast food industry may not be threatening society but is in earnest being threatened by the resilience and diversification of the society exercising its choice. English (2002) believes that the UK is a unique case as it does not consume as much

Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

fast food as in the USA, despite consuming much more than in Western Europe. Could this gap between the message the fast food companies convey and the image the brand represents not be understood, the implications for management are vast. Methodology In order to establish what is provoking the gap between what fast food companies deliver and what consumers actually want, a pilot focus group was carried out at the Royal Agricultural College involving students. The major fast food outlets recall included McDonalds, Burger King, Pret-a-Manger, Dominos and Supermarkets. For the authors surprise, supermarkets came up in the panel as the ultimate expression of fast food outlet. This may be due to supermarkets localisation strategies in recent years that have promoted a widespread acceptance as a convenient and potentially trusted retailer of fast food. The range of fast food companies also reflect all the segments of the market. From McDonalds perceived quick and cheap to Pret-a-Manger seen as tasty/wholesome, but expensive. Following this, the next stage was to consider brand recall regarding what it conveys and its association with brand perception and expectation. In light of research by Kara et al (1995) the panel proposed a set of attributes that should be investigated as considered key to the Uk fast food industry. These are: Speed; Convenience; Choice; Healthiness; Predictability; Aroma; Cleanliness; Presence of Friendly Staff and Cost. These attributes were

tested in isolation and in association with the principal outlets identified. In order to establish what attributes contemporary consumers ideologies and aspirations perceive as lacking from the fast food provision, a set of secondary attributes was identified and tested. These include: Lower Fat Content; Organic Ingredients; Larger Vegetarian Selection; More Local Produce; Better Service; Biodegradable Packaging; Kosher/Hallal ingredients; More Licensed Outlets and Pleasant Looking Staff.

Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

Data was collected by the means of a survey carried out in London in February 2003. This aimed at establishing the UK consumer habits with a view to perhaps capturing new ways of fast food consumption. Data was collected using a partial-random sampling technique in the form of a selfadministered questionnaire. This was carried out in three different neighbourhoods on either sides of the river Thames in London: Notting Hill, Kings Cross Station and in Vauxhall. Some 100 questionnaires were distributed with return rate of 70%. The sample represents a cross section of the population regarding age, gender, income and ethnic background.

Results:

Gender Male Female

% 31.4 68.6

Age = 16 17-24 25-35 36-49 50 +

% 4.3 20 21.4 34.3 20

Ethnicity White Afro-Caribbean Asian Mixed Origin Hispanic

% 75.7 14.3 4.2 2.9 2.9

The implication of the highest female response rate is two fold: women maybe more inclined to fill in a questionnaire, but more importantly they are the driving force behind the fast food industry. Womens attitude towards health and food content has put pressure on the fast food industry to alter their product mix.

The sample also mirrors the general population distribution in London where some 92.1 are white and 7.9 of ethnic minorities.

Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

Respondents major spontaneously recalled indicate that McDonalds (80%), Burger King (60%), KFC (50%), Pizza Hut (26%). These were followed by Fins-n-Chips, Pret-a-Manger, Dominos, Wimpy, Chinese Take Away, Pizza Express and Supermarkets in this order.

Traditional fast food brands such as McDonalds, Burger King and KFC indicate strong brand recognition. Brand recognition also meant that it still conveyed a strong association between consumer perception and

expectation. However, the research shows evidence of a change in fast food purchasing habits whereby supermarkets are possibly eroding the power of strong brands in the contemporary fast food market. In spite of supermarkets having very low brand recognition as a fast food outlet, with only 2.8% brand recognition, by providing fast food meal solutions they have captured a considerable share of the market. Some 50% of the respondents stated they buy fast food from supermarkets once or more times per week. Thus, the research gives some indication of the respondents perception of

supermarkets being able to deliver healthier food choices.

Some 69% of the respondents were willing to pay from 2.01 to 5.00. This price bracket gives the consumer the widest choice, from hamburgers meals to special sandwiches, small pizzas and supermarket solutions.

The main attributes regarding traditional fast food provision such as taste cleanliness, convenience, speed and predictability are still ranked high in the respondents recall. However, other attributes such as healthiness, provision of choice and friendly staff are relevant to consumers when thinking of alternative outlets. Therefore, consumers perceive that attributes of the traditional fast food retailer no longer meet their discerning expectations specially those belonging to higher income brackets. In addition, the respondents indicated desired characteristics missing from todays fast food products include: lesser fat content (68.7%), better service (48.6%) and both organic ingredients and biodegradable packaging (41.4%) as well as broader vegetarian selection, friendly staff, more use of local produce and Kosher/Hallal ingredients.
Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

Conclusions: The primary attributes guiding consumer behaviour such as taste, cleanliness, convenience and cost are no longer enough to represent the true desires of the consumer. Findings indicated that in the UK there has been a shift of preferences from satisfaction based on cheap food and speedy service to more emphasis on ingredients and taste.

The brand power in the contemporary fast food format is being eroded. The perceived attributes of the traditional fast food retailer no longer meet the demand and product expectations of the discerning UK consumer. The gap generated between the UK consumer needs and the products of the fast food retailer has not been filled. In the post-modern fast food sector, supermarkets despite not being characterised as fast food outlets, provide, intentionally or not, discrete and translucent brands that are likely to play a defining role in the consumer purchasing choices.

UK fast food companies are not responding quickly enough to satisfy these aspirations. The research shows a real opportunity for fast food companies to enter a more specialist end of the market. Fast food outlets should project an alternative approach to contemporary consumers to reflect their demands. Thus, the UK fast food industry offers opportunities to both existing food retailers with unrealised potential and new entrants wanting to create a new brand for those who demand cuisines that share characteristics with todays more conscientious consumers. Bibliography

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Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College

4. Kaynak Erdener, Kara Ali, Kucukemiroglu Orsay.Marketing Strategy for Fast food restaurants: a customer view. International Journal of Contemporary Hospitality Management. 7 4 1995. 5. Mahon, J. Corporate political strategy. Business in the Contemporary World. 2 1: 50-62 6. Miele, M, Murdoch, J. Fast food/slow food: differentiating and

standardising cultures of food Globalisation location and sustainable livelihoods. Ashbridge 2003. 7. Rault-Walk Anne, Bricas Nicola. Ethical issues related to food sector evolution in developing countries: about sustainability and equity. Cirad 2000. 8. Sapala, S. Is the fast food industry becoming the new tobacco industry?. Obesity Surgery 12 1:1-2. 9. Schlosser, Eric. Fast food nation what the all American meal is doing to the world. Penguin 2002. 10. The Economist. Fast food in America not so fast. The Economist 365 8302:89 7 December 2002. 11. Thompson J. Organisations in action. McGraw-Hill 1967.

Luis Kluwe Aguiar M.Sc. Senior Lecturer in Marketing at the Royal Agricultural College James Owen Richardson, Graduate student of the Royal Agricultural College