Name: These Trends Are Reshaping the Fast-Food Industry
Uploaded: 2016-08-18
Duration: 3 min 36 s
Description: As restaurants continue to try and get healthier

[ SOUND ] What other trends are we seeing? Maybe in fast food. Maybe in the broader kind of fast whatever. Casual, everything category. Are we seeing other changes? So, I would say. I think one of the big things that we're seeing. And this falls into what McDonald's is doing as well, is. There's this re- definition of health, a little bit away from things that are just about fat and calories and we're towards things like provenance, where does my food come from? Where is it sourced? And I think, here with cage free eggs Companies are making decisions about antibiotics and meat. Those fit very neatly into that realm a little bit and MacDonald's is certainly playing there. We've seen other big changes from other change, chains as well. Yeah, John I'm gonna come to you in one second, but I actually want to ask you one more question, It came in from a viewer on Facebook live. there you go, right. Right? So, we're streaming the show on Facebook live, Fortune Live on Facebook live. A reader wanted to know about GMO are you seeing this kind of trend with GMO as well in the restaurant? Yes we are definitely seeing a lot of companies talk about GMOs and say either labeling or saying we're taking them out Whatever the science is on that, that's fine. But customers are saying we wanna know. Right. Okay. Sean what else have you see in this category? Food. Well actually, most restaurants actually had a really bad quarter. And part of that's because the price gap between the food that you can buy A grocery store. And the food you can buy at a fast food restaurant has actually narrowed. Really? Commodity prices have declined, grocers are passing on that kinda those lower prices at the grocery store. That's resulting And people being able to get more for their dollar at a grocery store then they're less likely to go to a McDonald's or a Panera. And it's hurting sales for the industry. That is so interesting, I had no idea. And there's also a bit of changing. We've all talked about this a little bit in In the past, this kind of resorting of the categories and price points in restaurants, right? So, fast food is, I guess, the lowest. And then there's this fast casual category that came out of nowhere a few years ago, and now it's very dominant, then, beyond that, how are those ebbing and flowing, those categories? Beth? I think that fast food is always trying to be a little bit like fast casual, always trying to upgrade a little bit and I think, again, up Woman: Upgrading the quality of ingredients is one way that they're trying to do that. I think that we're also seeing kind of this mid space in between, so maybe slightly lower in price point than fast casual, which would be, let's say, a Panera, but a little bit higher than a McDonald's or something like that. So, I think there is a little bit of ebb and flow between all of the different categories there. Man: yeah, John You talked about kind of this softness. What are you seeing in the quarters to come? Just broadly across either food or just restaurants specifically. Is this a blip? So a lot of analysts said we've had a problematic Three months. What is it gonna look like over the next three months? And Wendy's and Starbucks both complained about the election. They said that they think that that has created some weaker consumer confidence. People are unsure of how to spend their money. We've seen that in apparel. Lowe's had a poor quarter last week, so we're seeing it in home improvement. It's a very broad, where's the consumer now? There's been some projections of weaker GDP for the US. What does that mean for consumer spending? So we're not seeing a bump in taco bowls because Donald Trump posted a picture. Not right now, yeah. And a lot of chains are opening new restaurants And that's creating a lot of competition. So, Buffalo Wild Wings is opening new stores, Panera, all these chains are expanding, and as they do that, that creates more competition in your neighborhood, which hurts the potential to grow sales. [ SOUND ]

As restaurants continue to try and get healthier