NPD: Burgers are king of the QSR hill in beef-focused Dallas

Nation's Restaurant News,  Nov 19, 2007  by Fern Glazer

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"You can push all the chicken you want.... The heritage of Texas is beef," said Craig Weichman, a former restaurant analyst.

Burger building

What is likely to help burger chains continue to thrive in Dallas is offering and marketing new or existing products that target the specific needs of consumers, Riggs said.

For Oak Brook, Ill.-based McDonald's, which has a strong foothold in the Dallas/Ft. Worth area with 300 units, a top priority is focusing on existing units and finding ways to satisfy local tastes.

"Over the past several years in the Dallas/Ft. Worth area, we have focused our efforts around building our business by making our existing restaurants better and therefore growing our business from our existing locations, rather than growing through building new restaurants," said Jerome Elenez, marketing director for McDonald's Greater Southwest Region.

No matter the region, officials at the No. 1 burger chain say McDonald's works closely with its owner/operators and suppliers in an effort to provide customers with the menu choices and variety they crave. Dallas customers enjoy "bolder, richer, spicier flavors," Elenez said. To meet that need, the burger chain is selling within that region products such as the Salsa Roja Snack Wrap, a grilled-chicken wrap with spicy salsa, shredded cheese and lettuce; and the Southwest Salad, a mix of cilantro-glazed chicken, poblano peppers, roasted tomatoes, black beans, fire-roasted corn, Cheddar cheese and chile-lime tortilla strips.

Although hamburgers are big business in Dallas, quick-service operators need not start flipping burgers to succeed there. Whether serving chicken, pizza, sandwiches or Mexican, operators need to think local, Riggs said. She suggested that they consider adding menu items tailored to regional tastes, developing localized marketing and advertising plans, expanding business hours or services, adding loyalty programs, and providing franchisees with insight into their specific areas.

"Consumer behavior and preferences differ from market to market," Riggs said. "[Operators] are challenged to address consumer needs on a local level."

Hamburger chains dominate Dallas' quick-service market

             Percentage of QSR     06-07 Traffic share
             traffic, 2007         point change

HAMBURGER        57.7%               1.4%
PIZZA            11.9%              -0.1%
SANDWICH         11.8%               0.4%
CHICKEN          10.8%              -0.6%
MEXICAN           7.9%              -1.1%

SOURCE: THE NPD GROUP/NPD FOODWORLD/NPD CREST

Note: Table made from bar graph.

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