Major US fast-food chains are expanding their delivery networks and improving online ordering systems to capture more business from consumers who increasingly value convenience and technology.
McDonald’s is rapidly rolling out delivery service at stores across the country after finding in limited trials that average delivery orders at some locations generated up to twice as much in sales as in-store orders, stated the Nation’s Restaurant News reports. McDonald’s also observed that about 60% of delivery orders were made during the evening and late night, periods that are typically slower than lunch time service.
Delivery volumes are highest in areas near college campuses, lower-income neighborhoods, and downtown districts where people primarily travel by public transit. Pizza restaurants and other outlets with well-established delivery networks will likely face more competition from the larger chains that are starting to enter the space.
Domino’s Pizza has gotten ahead of the trend in recent years by investing heavily in improvements to technologies such as its popular mobile app, which allows users to order pizza in seconds and track deliveries in real time. The company says that these tech upgrades have played a significant role in driving 32% same-store sales growth over the last three years.
Fried-chicken sandwiches are becoming hot commodities on fast-food menus as consumers continue to seek out alternatives to burgers and another standard quick-service fare. Adoption of strategies such as new product developments, franchising, value meal offerings, enhanced delivery options and enter into partnerships with apparel brands for merchandise and other brandings strategies by the major market players are expected to drive the market for fast food and quick service restaurants in the U.S.
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Further key findings from the report suggest:
• Hamburgers emerged as the largest segment because of increasing consumer demand and comparative preference over other fast food items
• Hamburgers segment is anticipated to remain dominant throughout the forecast period owing to strong demand for these products from population of different age groups including children, youth, adults, and old age population
• Sandwich segment is expected to show a faster growth in the near future mainly due to
• Some of the key players in the market are Kentucky Fried Chicken Corporation, Domino’s Pizza, Inc., Pizza Hut, Inc., Taco Bell and McDonalds Corporation, which are expected to hold a significant share over the forecast period.
• Key players adopt strategies such as new product developments, franchising, value meal offerings, enhanced delivery options and enter into partnerships with apparel brands for merchandise and other brandings strategies to strengthen their position
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