Results of a 2011 Consumer Reports’ quick service restaurants (QSR) ratings survey revealed many consumers are abandoning top fast-food chains like McDonald’s, Subway, Starbucks and Wendy’s and frequenting smaller fast-food chains for quality of food, service, value and speed.
A recent MSN Money article indicated the big four QSRs (cited above) actually will have a combined total market share of less than 40% in 2012, and the $170 billion QSR industry is ripe with opportunities for smaller QSRs and investors.
MSN ranked the following five up-and-coming fast-food restaurants to watch:
David's Tea—A family-owned business opened in 2008 by Canadian entrepreneur David Segal, David's Tea's currently has a retail presence in Canada, New York, California and Illinois, and an online business that ships products, including tea and gifts across both Canada and the United States.
Jamba Juice—In business since 1990, the company retooled its business plan three years ago and expanded its smoothie product offering to support its shift to an overall lifestyle brand, adding steel cut oats, fresh juices, and reduced calorie options to the menu.
Five Guys Burgers & Fries—Founded in Washington, D.C. in 1986, the company began its franchising push in 2003 and now has more than 1,000 locations nationwide and 1,500 more units in development.
Jimmy John's—MSN calls Jimmy John’s the dark horse in the competition to capture Millennials, a key fast-food market segment. The company hangs its hat on offering fresh, affordable ingredients like bread baked in-house daily, and meats and veggies prepared fresh every morning.
Papa Murphy's—The "take n' bake" pizza chain has been Zagat-rated as the No. 1 pizza chain for two years running. The Washington-based company is the fifth-largest pizza chain in the United States and has more than 1,200 stores in 37 states.
