Starbucks named the world’s most valuable restaurant brand
Its reinvention plan has borne fruit and customers’ return to office routines has increased demand for its products
For the eighth consecutive year, Starbucks has been ranked as the world’s most valuable restaurant brand, its brand value having risen 14% according to valuation consultancy Brand Finance’s new report.
Valued at $60.7bn, the increase aligns with the coffee chain’s reinvention plan, initiated in September 2022, which emphasises expansion, stronger employee support and new, experiential store concepts. The increase is bolstered by rising demand for Starbucks’s products especially as people return to office routines.
American brands make up 19 of the top 25 brands and collectively account for 90% of the total brand value in Brand Finance’s annual report on the most valuable and strongest restaurant brands. McDonald’s (brand value up 3% to $38bn) and KFC (brand value down 20% to $14.2bn) round off the top three, being ranked second and third respectively.
Brand value is the net economic benefit a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to those of its competitors.
The research reveals a dip in brand strength for major players that include McDonald’s, KFC, Domino’s Pizza, Subway and Burger King, with data indicating decreased scores for customer service, pricing perception and how likely they are to recommend the restaurant to their friends and family.
Brand Finance Africa chair Jeremy Sampson points out that the local restaurant landscape, which is biased towards chicken, is very different from ones elsewhere. “Yes, the global giants are here, but local brands like Nando’s and Chicken Licken are going head-to-head with international behemoths like KFC and others, and are enjoying great success. Post-Covid there is lots of ordering in, and with a tight economy some are trading down a little, but it is generally a very competitive and buoyant restaurant sector.”
Alex Haigh, MD of Brand Finance Asia, says: “The global restaurant industry is working to appeal to customers who generally have lower disposable income and may be grappling with higher living costs, and fast-food favourites are feeling the heat. Brand Finance research found that rising menu prices are affected by customer sentiment, which has resulted in a notable decline in brand strength among major players across the sector. However, brands that have managed to uphold affordable pricing strategies have not only preserved but also grown their brand strength year on year.”
The full ranking can be found in the Brand Finance Restaurant 25 2024 report.
The big take-out: Rising menu prices are affecting sentiment, resulting in a notable decline in brand strength among major players across the sector.
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