Why are US fast food chains conquering Britain?
Courtney Hagen-Ford, assistant professor of marketing at Northeastern University in London, says social media has increased the appeal of American brands.
LONDON — With every announcement of a new Wendy’s restaurant in the UK comes a flood of requests for more on social media.
“Come to Yorkshire.”
“I’ve been waiting for some locations for years.”
“Ipswich?”
It seems the British just can’t get enough of the square burgers and Frosty drinks, as Wendy’s is looking to make another attempt at the British market.
The burger chain opened stores in the 1980s but left before the turn of the century due to high real estate and operating costs, according to The Guardian. But after returning in 2021 after a 20-year absence, Wendy’s now has more than 40 outlets in the country.
It is by no means the only US fast food chain trying to gain a foothold in the UK. Taco Bell also tried its hand at the market in the 80s and 90s, but found that the market was not yet mature enough. Today, the chain has over 120 restaurants.
Additionally, customers line up around the block to get chicken from the newly opened Popeyes, while places like WingStop and Shake Shack try their luck.
Courtney Hagen-Ford, assistant professor of marketing at Northeastern University in London, says social media has increased the appeal of American brands.
“This allows us to reach these hidden consumers faster and easier than ever before,” she says. “If you target the right audience, you’ll reach the right people.”
The consumer behaviour expert says Wendy’s in the US has a strategy of using humor – what she calls “cheeky language” – on social media, meaning many online-savvy young Brits are likely to have heard of the brand, despite leaving the UK before they were born.
“This is the kind of thing that can and will go viral, and geographic boundaries don’t matter that much,” she says. “If you’re active on social media – and a lot of young people are these days – it’s very likely that someone from the millennial generation has come across Wendy’s cheeky remarks.
“They joke, they talk to other brands, they interact with people they’ve joked about. There’s this absolutely, beautifully clear brand identity that comes from the way they design and run their social networks. You know exactly who they are, you know what they’re going to be – there’s no ambiguity.”
Brands with unique selling points
Brands with a unique selling proposition (USP) are also more likely to encourage first-time customers to try their products, says Hagen-Ford.
One of the first major chains to demonstrate that the British burger market could not be conquered by just McDonald’s and Burger King was Five Guys. The Virginia-based company opened its first British restaurant in Covent Garden, London, in 2013 and now has 175 branches.
Hagen-Ford says: “Five Guys’ success lies in the fact that their offering has a very clear unique selling point. It may be expensive, but where else can you top your burger with an infinite number of ingredients?
“Just putting customisation at the forefront is pretty unique in the British fast food landscape. And not just customisation, but along the lines of ‘cheese, bacon, whatever – throw it on as much as you want, go wild.’ Nobody else does that. It has a clear identity and a unique selling point.”
There are a number of chicken shops in the UK, but what makes Popeyes so popular is its offering of “biscuits and gravy,” says Hagen-Ford. Biscuits in the UK are what Americans would call cookies, while the southern “biscuit” in the UK is more akin to a simple scone.
But Hagen-Ford says successful brands need to create a “reason to return” that goes beyond the novelty factor and freebies that have helped attract customers so far.
“Biscuits and gravy is the kind of food that a Brit who has never been to the American South has heard of but doesn’t really know. So that could bring people in. Whether they come back depends on Popeyes,” says Hagen-Ford.
“Popeyes has to give them a reason to come back. They had a reason to come through the door – ‘Hey, I’m trying biscuits and gravy.’ But will you come back? Popeyes has to convince you.”
Pandemic changed customer attitudes
Sabina Crowe, head of economics at Northeastern University’s London campus, says the pandemic has changed consumers’ attitudes toward takeaway food.
“During the pandemic, people turned to Deliveroo and UberEats because it was so easy to get food delivered and you couldn’t leave the house to buy food,” says the food economist.
“People have simply become accustomed to this convenience and now a large proportion of fast food is not bought in person but is ordered through these apps and consumed at home.”
Another incentive, says Crowe, is price, especially given the public’s increased cost consciousness in light of global fuel prices as a result of Covid-19 and the Russia-Ukraine war.
“Especially now, as the cost of living crisis continues, people are less likely to go to restaurants where it is more expensive and you have to pay a service charge,” says the associate professor.
“Instead, just order from KFC, McDonald’s or Popeyes.”
One aspect of takeout culture that has allowed US brands to gain a foothold is the rise of so-called “dark kitchens” (also called “cloud kitchens” or “ghost kitchens”). Often hidden away from the main shopping street, these warehouse-like buildings house a variety of industrial kitchens where takeout operators can offer their food. Employees then prepare a brand’s signature food, which is sold exclusively through delivery apps.
Popeyes and Five Guys have been known to try to expand their offerings through the use of “dark kitchens,” and Crowe agrees that the development of such openings changes the landscape for large chains looking to test the waters.
“If the financial impact on the company is not too great,” she says, “then it makes a lot of sense for them to test a particular location or a particular market and see if it might be worth opening a permanent store in that urban location.”
Fast food is a growing market
Fast food is a growing market both globally and in the UK. According to Fortune Business Insights, the market is expected to grow by at least 50% between 2021 and 2028. In the UK, the fast food and takeaway industry was worth £22 billion ($29 billion) last year. According to Statistica, it is expected to grow to £400 million ($529 million) in 2024.
And it’s not just US restaurants jumping on the bandwagon. Homegrown chains are making waves too. Greggs, a bakery in north-east England, has nearly 2,500 branches in the UK and recently overtook McDonald’s as the UK’s most popular takeaway breakfast.
Crowe points out that the growth of the industry also has implications for public health.
A slice of pepperoni pizza from Greggs contains a third of the amount of calories the National Health Service (NHS) recommends an adult should consume per day. In England, there are restrictions on how close new takeaways and chicken shops can be to schools, but the Times reported that KFC was able to persuade building inspectors to lift or weaken these restrictions in 24 cases.
“Eating these high-calorie, low-nutrient foods is certain to increase obesity rates in the UK, and children are particularly at risk,” says Crowe.
“And as obesity increases, so will the diseases associated with it – diabetes, heart disease, high cholesterol, arthritis. This will clearly lead to a huge increase in costs for the NHS.”
But once the habit of enjoying fast food is formed, especially at a young age, it can be difficult to break, argues Crowe.
“If you’re used to going to McDonald’s, Five Guys, Popeyes or wherever every Monday, just do it over and over again,” she says.
“You think, ‘If this worked for me in the past, why not? It’s a good option and it will work for me again in the future.’ It’s really difficult to break these habits once they’re formed, so it’s very important that children and young people don’t get used to these really unhealthy foods.”
