The Allegra Strategies Top of Mind Report 2011 gathered the views from top executives and decision makers in 337 food retail, foodservice and hospitality outlets and food and beverage suppliers.
The report, which is in its fourth edition, said these brands continue to be the most highly rated in the industry because of their “excellent” customer service, consistent quality, strong identifiable culture and commitment to ethical initiatives.
“Pret A Manger retained its position as the most admired brand within the UK food and beverage sector. McDonald’s held second place. Waitrose rose to number three, credited for high quality products and excellent customer service. Starbucks re-entered leading industry executives’ top 10 ranking for the first time since 2008,” writes Allergra.
Jeffrey Young, Managing Director, Allegra Strategies said: “The most admired brands really understand the key loyalty drivers for their target market and develop strategies accordingly. Winning and retaining loyalty will be the key competency as competition intensifies.”
Split confidence
In other findings, the report revealed that although 75 per cent of the food and beverage firms surveyed reported positive like-for-like sales growth in the 3 months to December 2010, they still remain cautious.
Respondents were equally split between confidence in a positive trading environment and a perception of continuing challenges.
Around half of food and beverage executives said they did not expect full economic recovery to take place until the second half of 2012, as government austerity measures are expected to reduce consumer spending.
“Although trading performance is more optimistic, it is understandable that senior executives will exercise caution during 2011. The economic recovery remains sluggish and food cost pressures will intensify the squeeze on margins. Recessionary-forged consumer mindsets will lead to long-term value consciousness,” said Young.
Keys to success
A key to success is friendly and engaging service, which are critical for differentiation in a competitive marketplace. However, Allegra noted that there is still evidence of lower investment in staff development.
Brand loyalty is also crucial, said the research consultancy, which urged companies to better understand the key loyalty drivers for their target market.