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Focused menus, fresher ingredients driving sales at franchises

Franchise giants are seeing sales declines while up-and-comers take advantage of new consumer tastes.

By Nick Powills1851 Franchise Publisher
SPONSOREDUpdated 1:13PM 03/25/15

Proclaiming the virtues of quality over quantity may be a cliché, but like most clichés, it became a popular saying for a reason.

Data from research and consulting firm Technomic showed that while the 500 largest U.S. brands saw a 4 percent increase in cumulative sales growth during 2014, some of the most well-known franchises experienced sales declines.

Big names like McDonald’s and Subway both saw decreases, ending 2014 with sales declines of 1.1 percent and 3.3 percent, respectively.

“Brands focused on being the best, not the biggest, were the real winners in this year’s Top 500,” Darren Tristano, executive vice president of Technomic, said in a statement. “In many cases throughout fast-casual and specialized segments within quick-service and casual dining, narrowly focused menus and straightforward models for service and pricing have let brands put forward a value proposition and an image of high quality that definitely appeal to consumers.”

Additionally, Technomic reported that brands with a reputation for fresher and higher-quality ingredients were driving gains in the limited-service sector. For instance, Pita Pit contributed to a collective 9 percent increase in sales throughout 2014.

With brands like Back Yard Burgers priding itself on using 100 percent Black Angus beef and Smoothie King differentiating itself in the juice and smoothie segment by doubling down on healthful nutrients, it’s clear the focus on quality over quantity is one trend that won’t be slowing down anytime soon, particularly if it keeps paying off for brands’ bottom lines.

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