Market Monitoring QSR: Developments Q2 2020

Mathieu Geuskens
Published on
October 13, 2020

McDonald’s, KFC and Burger King, the major QSR chains, have seen sales decline substantially in Q2 due to restrictive government measures and changing consumer behavior resulting from the COVID-19 pandemic.

Market Monitoring of Quick Service Restaurants

Market monitoring helps companies to objectively evaluate their current position within the market and the development of that position. Furthermore, it helps to spot new growth opportunities and whether the market is saturated.

QSR Market Analysis Q2 2020

Global same-restaurant sales were down 21-25% compared to 2019Q2, driven largely by temporary restaurant closures in the beginning of the quarter. In light of expanding off-premise and drive-thru penetration and recent reopenings, the companies expect sales levels to restore further in the third quarter of 2020. With same-restaurant sales down 21-25% globally, the Western-European and international markets have been hit significantly harder than the US market due to the high level of drive-thru penetration and less restrictive government measures in the latter. The sales development moves largely in line with the reopening pace in specific countries: US sales for both McDonald's and Burger King are almost back on 2019 levels in June and July due to the fast reopening of restaurants and dining rooms.

At the moment of publication of the Q2 earnings, all chains have managed to reopen the vast majority of their locations, with an average of 95% of restaurants partially or fully operational. Nearly all US locations have reopened both McDonald’s and Burger King indicate that international markets continue to experience the effects of government measures, in line with the aforementioned difference in sales development. Adjusting to ‘the new normal’ of social distancing and strict hygiene guidelines, the QSR chains focus on increasing drive-through penetration and introducing off-premise options such as curbside pickup and home-delivery at existing locations, rather than opening new restaurants.   

With pandemic not nearly out of sight, QSR chains are focused on restoring sales levels further in the new situation. With sales trends appearing to support this goal, it is important to understand company- and regional- specific developments in the sector. Download A-INSIGHTS' QSR 2020Q2 and future market updates, including general trends and company specific developments in the second quarter of 2020 here.

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