Examples of Differentiation in Fast Food
by Neil Kokemuller
Differentiation is a marketing term used to describe the process of developing promotional messages that distinguish your products from those offered by competitors in the minds of target customers.
Effective differentiation is critical to building a strong business, especially in a highly competitive marketplace like fast food. Before starting a fast food shop or franchise, or buying into one, you need to consider how to differentiate from local competitors and chain restaurants.
Taste Quality
One way to differentiate a brand is by emphasizing superior product quality. Success in differentiating a fast food brand on taste quality revolves around impacting advertisements backed by a great product. Burger King stresses the quality of its flame-broiled burgers in its ads. Given that the company’s price points are higher than those offered by others, it is critical that customers believe the taste quality exceeds the quality of less expensive competitors. If you own an independent fast food business, developing a distinctive taste or cooking process is often a better opportunity for differentiation than competing on cost with large chains.
Efficiency
The word “fast” in fast food is the basis for differentiation for companies that offer and promote a convenient, efficient service experience. Efficiency is central to differentiation strategies used by McDonald’s. The company routinely locates restaurants just off of highway exits or in well-traveled business districts. This factor makes it easier for buses to stop in. Additionally, the company stresses its fast ordering process, including indicating the typical service time on the cash registers in busier restaurants. Hiring quality workers, paying them fairly and motivating them can help a small fast food owner compete on efficiency.
Customer Service
Differentiating through effective customer service is a challenge for fast food providers given the importance typical customers place on efficiency. Thus, companies more commonly turn to gimmicky service experiences rather than overly personalized or customized service. Sonic, for instance, differentiates itself because of the unconventional “drive-in” experience it offers customers. Sandwich shop Jimmy John’s emphasizes its “freaky fast delivery” in its TV and radio commercials. With quality local workers, you may be able to compete on quality service in a small fast food shop.
Nutrition
The cultural trend toward more health-conscious eating has opened the door for fast food alternatives to the burger shop. Sandwich shop Subway has diligently differentiated itself as a healthy option. It has done so with the story of Jared, a regular guy who lost a lot of weight on the Subway diet. The company also regularly promotes several sandwiches with “six grams of fat, or less.” Additionally, the company has used direct comparison ads to promote its superior nutritional value relative to McDonald’s and other fast food shops.
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