Luxury and fast food may seem like very different businesses. But they’re both known for their ability to thrive even in challenging economic conditions. For luxury brands, that’s because of their ability to sell premium goods to more of a ‘recession-proof’ affluent customer base. For fast food, it’s because of the perceived value they provide diners compared to ‘slower’ restaurant options. When times get tough, fast-food brands do well.
Fast food brands are among the most resilient in this year’s Kantar BrandZ Most Valuable Global Brands report, with the global top 10 fast food brands totalling $340bn in brand value. When compared with a 20% overall drop in the Global Top 100, fast-food brands dropped just 4% in value, performing as well as the luxury industry. Overall, the top 10 global fast food brands have increased in value by over 34% versus pre-pandemic levels.
McDonald’s and Starbucks take away top honours in this year’s global category ranking. Behind their success, is the global expansion of their franchises. Both McDonald’s and Starbucks opened thousands of new stores across the world, building a wider audience, particularly in China and the wider Asian market, where lockdowns had previously put a halt on expansion plans.
Improved customer experience was also a major contributor to the fast food category’s performance. Streamlined delivery services, following the fast pivot during the pandemic, and embracing digital novelty concepts for store formats and takeaway services have proved successful in keeping diners happy.
Consistent expectations and perceived value mean that people will often turn to their favourite fast-food restaurant despite other options. And with the top brands keeping a close eye on digital trends that will consistently improve its customer experience, such as McDonald’s experimenting with AI chatbots, it will remain a strong category for years to come.
Kantar BrandZ Top 10 Most Valuable Global Fast Food Brands 2023
Rank 2023 |
Brand |
Brand Value 2023 ($ Mil.) |
Brand Value 2022 ($Mil.) |
|---|---|---|---|
1 |
McDonald’s |
191,109 |
196,526 |
2 |
Starbucks |
61,534 |
61,758 |
3 |
KFC |
22,056 |
22,293 |
4 |
Chipotle |
13,318 |
16,234 |
5 |
Subway |
11,002 |
12,647 |
6 |
Domino’s Pizza |
10,655 |
13,902 |
7 |
Pizza Hut |
8,807 |
8,954 |
8 |
Burger King |
7,676 |
7,134 |
9 |
Taco Bell |
7,185 |
7,769 |
10 |
Chick-Fil-A |
7,139 |
6,959 |
Fast food brands are uniquely positioned to innovate and increase their brand value as recession looms for many – from creating an improved in-store experience, as collection versus delivery rates increase, to finding iconic moments that transform the customer experience. At a time when many households are tightening their budgets, continuing to streamline operations will also remain important to win over hearts and wallets by showing to consumers fast food brands are on their side.
Other key findings from the 2023 Kantar BrandZ global report include:
- Burger King outperformed the wider category thanks to its investment in long-term brand-building. The brand spent $400 million on its “Reclaim the Flame” strategy in 2022, with $150 million of the budget going toward advertising and digital.
- Maximising customer value while balancing rising costs will be critical for the sector as customers continue to manage the cost-of-living crisis. While delivery is likely to remain a major sales channel for fast food brands, rising costs could see a shift to more customers opting for pickup to save delivery fees.
- Brands with momentum: Fast food brands to watch over the next year include Canadian burrito brand, Freshii, Bastard Burgers from Sweden and Korea’s leading burger and chicken brand, Mom’s Touch.
The Kantar BrandZ Most Valuable Global Brands 2023 report, including a detailed analysis of the fast food sector, is available now from
www.kantar.com/campaigns/brandz/global
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