Posted: March 21st, 2023
complete a PESTDG, but in this one wrtie about Demoghraphic
Demographic: What demographic cohort trends are emerging which may impact the industry and the company (Netflix):
Example: Are Gen Z and Gen Alpha (2010 and beyond births) trending toward content and experiences which Netflix doesnt meet?
Possible Research Support: What are the adoption rates/problems with emerging entertainment service forms (Quibi short form (failed in 12/2020), interactive, proprietary licensed content, etc.)
This is for Netflix. I need for Kroger please write one page about Demographic for Kroger and cite me the information page.
see example down. do the same
Requirements: one page single space
Demographic Trends Moderate Impact
A number of recent sociocultural and demographic trends are working in tandem to impact the fast food industry, most notably the growth of off-premise ordering and dining. While accelerated by COVID-19, this trend was already gaining significant momentum. The growing popularity of subscription services like Birchbox and BarkBox has generated interest in a similar approach to foodservice. Over half of Gen Z and young Millennials now say that they would be willing to join a restaurant subscription program with rewards (Foodservice Loyalty, 2020, p. 15). Burger King has already been testing a coffee loyalty program, while KFC is trying out a chicken wing subscription.
In their most recent Form 10-Q quarterly report, McDonalds acknowledged the importance of growing its digital customer experience platform and delivery services. They also made note of one of their strongest competitive advantages drive-thru service. Markets with a higher percentage of drive-thru [locations] are showing quicker recovery. (p. 16). Interestingly, for both mothers and Gen Z consumers, over 50% of these key segments cited drive-thru availability as a main driver of their purchases at fast food restaurants (Quick Service Restaurants, 2020, p. 12), and this was pre-COVID. As consumers needs for convenience, speed, and safety increasingly overlap, nearly half of all fast food customers now say that in addition to the regular drive-thru lane, they want a dedicated lane exclusively to pick up mobile orders (Quick Service Restaurants, 2020, p. 14). These types of investments may prove critical if consumers are slow to return to inside dining post-COVID.
Consumer breakfast trends will also be an important consideration. Sales were struggling pre-COVID, with more than 25% of consumers ordering breakfast from fast food restaurants less frequently year-over-year (Quick Service Restaurants, 2020, p. 38). Nearly one-fifth of consumers reported not ordering fast food breakfast at all. This decline is due in large part to the growing number of grab-and-go pre-packaged options available, along with increased competition – most recently from Wendys. McDonalds launched its all-day breakfast menu in 2015 to much fanfare. While this move did help increase its market share, McDonalds did not see a bump in actual customer traffic. During the five-year period post launch, foot traffic declined 3% year-over-year, signaling that all-day breakfast may not have actually attracted any new customers (Couillard, 2020, p. 34). Pre-COVID, the company had announced plans to expand its all-day breakfast menu, but in March 2020 they temporarily paused it in their restaurants. Its unclear when or if all-day breakfast will return to the menu.
Unsurprisingly, the overall trend of consumers becoming more health-conscious has significantly reduced demand for many traditional fast food staples. Fast food companies have been forced to add to and adapt their menus. An excellent example of this is the growing demand for chicken options. NRNs Top 200 report cited the chicken menu category as the fastest growing segment among restaurants and retailers. We need look no further than Popeyes recent success to understand the crazed popularity of chicken, driven by consumers perception that chicken is a healthier meat option than beef (Quick Service Restaurants, 2020, pp. 36-37).
Why do these trends matter? Fast food restaurants already offer convenience (locations) and fast service two of the top drivers of their business but many lack adequate healthy menu options. According to the most recent fast food customer surveys, if fast food restaurants added healthy options to their menus, they could grow their customer base by appealing to nearly 83% of consumers (Quick Service Restaurants, 2020, p. 49). In an industry where differentiation can be difficult, this could be a true difference-maker for McDonalds.
Even amid the pandemic, environmental sustainability is top of mind for many key consumer groups. Half of 18-34 year olds, and 43% of all fast food consumers, want takeout packaging that is recyclable. Nearly the same number desire less packaging overall. Tracking the preferences of this young demographic is important for fast food restaurants, as they hold the greatest potential buying power and are the next generation of parents (therefore the next big segment of fast food purchasers). While McDonalds does not have the strongest track record with environmentally-friendly packaging, they recently announced a partnership with sustainability platform Loop to develop a reusable cup program which they plan to pilot in the UK in 2021. The company has already piloted a similar system called Recup in Germany and announced a partnership with Starbucks last year to sponsor the NextGen Cup Challenge in the US (Global Data Point, 2020).
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