The most valuable restaurant brand is Starbucks.
As per the 2023 “Restaurants 25” analysis by independent brand valuation firm Brand Finance, McDonald’s and Starbucks remain the most valuable restaurant brands globally.
The top 25 restaurant brands in the world for the year are determined by the company’s annual report, which takes into account variables like market share, royalty fees, and brand strength.
According to Richard Haigh, managing director of Brand Finance, “restaurant brands have faced continued challenges throughout the last few years, from rising inflation and supply chain issues to the COVID-19 pandemic-induced lockdowns.” “However, some of the biggest restaurant brands in the world, like Starbucks, have managed to overcome these challenges and see consistent rise in their brand value. Restaurant brands need to adapt to the rising sustainability requirements that consumers are requiring from the food and beverages they consume if they want to continue to be successful.
Starbucks is ranked first in the most valuable restaurant brands list and has maintained its leadership position for the last six years. According to Brand Finance, Starbucks’ brand value rose.
The research attributes Starbucks’ 30% increase in value over its pre-pandemic levels to the company’s September 2022 unveiling of a reinvention strategy. The reinvention plan calls for investing $450 million in 2023 and more in 2024 and 2025 into already-existing US stores; looking into potential growth in the cafe, pick-up, delivery-only, and drive-thru-only concepts; and taking advantage of the growing demand for customized cold beverages, which accounted for 75% of total beverage sales in US company-operated stores.
Founder and acting CEO Howard D. Schultz stated during an August 2 earnings call that “the premium customized cold coffee opportunity ahead for Starbucks all over the world is simply enormous.”
In contrast, McDonald’s suffered a 7% decrease in brand value from the previous year to $36.9 billion. McDonald’s decision to raise prices as a result of supply chain problems and inflationary pressures is cited by Brand Finance as the most likely reason for the decline in value.
According to Brand Finance, “McDonald’s has raised prices on several popular menu items over the last 12 months due to the macro-economic difficulties faced by the brand and market instability.” “With a restaurant brand whose reputation has been built on inexpensive goods, customers have not received this decision well.”
Nonetheless, there is some hope for McDonald’s in the report. McDonald’s “Accelerating the Arches 2.0” strategy, which highlights the company’s digital sales channels, which accounted for one-third of systemwide sales, presents prospects for growth, according to Brand Finance.
Only Domino’s, with a paltry 1% gain in brand value, among the remaining top five restaurant brands—Kentucky Fried Chicken, Domino’s, Subway, and No. 4—saw any change. Burger King (No. 9) and Tim Hortons (No. 7) of Restaurant Brands International, Inc. experienced the largest value growths in the report’s top 10, rising 38% and 39%, respectively.
Popeyes, a subsidiary of Restaurant Brands International, was recognized as one of the top three fastest growing brands in the survey based on change in value. The value of the fried chicken brand increased by 96% to $1.8 billion in 2022, a 49% increase from its pre-pandemic worth. Improvements in brand awareness, the desire to reenter the Chinese market, and the company’s intended expansions into
The two fastest-growing brands include Texas Roadhouse, at No. 1, up 56%, and Jollibee, at No. 2, up 53% in value from the previous year. The expansion tactics of both brands—Texas Roadhouse targeting less populated US markets, while Jollibee focuses on China and the US—have largely contributed to the growth of their respective values.
You may also like:
Food security in emerging nations: issues and remedies
Are drinks the secret to increasing cannabis use among consumers?
Managing the lack of labour for mushroom picking
According to Brand Finance, “Texas Roadhouse has started to expand into smaller markets, which it sees as regions with populations between 40,000 and 60,000, in which receptive consumers have responded well to it.” “The revenue forecast has increased as a result of this growth trajectory, and the projection of authentic brand values has continued.”