American brands excel in South African restaurant brand survey

April 11, 2015 - PRLog -- McDonald's was ranked second out of 45 restaurant brands in South Africa, according to the results of a survey conducted by Acentric Marketing Research (Pty) LTD. The survey was conducted in the last quarter of 2014 and included 45 restaurant-chain brands. The survey was conducted amongst a scientifically selected sample of 363 online panelists living in South Africa, and has a margin of error of 5.1% (see technical note).

McDonald's was joined in the top 10 by one other American brand, KFC, while new entrant Burger King is a rising star, having already entered the top 20.

"American brands are embraced by South Africans who overall have a fairly neutral attitude to American politics. American brands, in many cases, already have brand equity in South Africa – even if they haven't actually entered the market yet. A case in point is Amazon, one of the top online retailers according to previous research conducted by Acentric. High levels of consumption of American media and entertainment contribute to this," says Craig Kolb, MD of Acentric Marketing Research.

Each brand was ranked according to the Acentric Brand Model (ABM) Index, a proven measure of customer-based-brand equity which correlates with a brand's share of customers. The index combines 17 attributes covering 6 major topics: product, service, functionality, value for money, brand image and enjoyment. The Acentric Brand Model Index (ABM Index) is a standardised brand equity index. It is specifically a customer-based brand equity index rather than a financial valuation.

McDonald's excelled in terms of child friendliness, fast service and good locations.

In contrast, McDonald's arch-rival Burger King (a new entrant to the South African market) excelled in terms of value for money, friendly service and attractive presentation. "While not one of the top 10, Burger King's rise as a brand has been phenomenal and is already ranked 15^th out of 45. Burger King still needs to ramp up the number of outlets in order to boost brand recognition," says Craig Kolb, MD of Acentric Marketing Research.

Overall customers considered quality food to be one of the most important attributes. "While not one of McDonald's top listed strengths, the restaurant still performed well enough in many other areas leading it to excel as a brand. Burger King performed slightly better in this area but cannot leverage its advantages until it expands sufficiently. As for the other brands, it appears there is substantial variation in perceptions of food quality. Woolworths was one of the top performers in this area," says Craig Kolb, MD of Acentric.

In addition to food quality considerations, there is a global trend towards customers demanding healthier menu options, and South Africa is no exception. "As a result, perceptions of food health were included in the study. While food health isn't the worst performing attribute on average in the industry, there is extensive variation in performance by brand. Differences also exist by demographic - for instance gluten/grain concerns are foremost in higher-income households. There is definitely a need in this space that is not being satisfied by existing players," says Kolb.

Cleanliness was also very important to customers. "While in general, restaurants were perceived to perform well on the cleanliness attribute, there is again substantial variation brand to brand. Vida e Café did well in this area as did Europa. Burger King outperformed McDonald's slightly, but both still have some way to go," says Kolb.

The report covers a range of issues, including but not limited to: needs segments, purchase behaviours, attitudes to technology use in restaurants, sources of annoyance and brand performance.

The report titled "South African Restaurant Brands Report 2015" is available from: http://www.acentric.co.za/reports/sa-restaurant-brands-re...

Technical note

The survey was conducted using an ISO certified online-panel of 363 restaurant customers yielding a margin of error of +-5.1% at 95% confidence level. Respondents were weighted to approximately represent middle and upper income customers in terms of age, gender, race and ethnic group.