Chains Teens Like

   Since spring of 2007 restaurant analyst Nicole Miller of Piper Jaffray has been asking high school students (54 percent male, 44 percent female) to list their favorite chain restaurants in order of preference. Some 1,200 students, age 16 on average, are told to write in responses on blank lines, rather than choose them from a list, she says. About a third of the students work part-time jobs. Their weighted household income is $75,000.
   The following percentages reflect the results from tallying each student’s top choice.

Fall 2008                                             Fall 2009

1 Starbucks 14%                                1 Starbucks 12%

2 Chipotle 5%                                      2 Chipotle 9%

3 Olive Garden 4%                              3 Chili’s 4%

4 Chili’s 3%                                          4 Olive Garden 4%

5 McDonald’s 3%                                 5 McDonalds 3%

6 Cheesecake Factory 3%                6 Taco Bell 3%

7 Applebee’s 2%                                 7 Cheesecake Factory 3%

8 Subway 2%                                       8 Caribou Coffee 2%

9 Taco Bell 2%                                     9 Chick-fil- A 2%

10 Panda Express 2%                           Outback Steakhouse 2%

     Red Lobster 2%                            

nk Brand % Total Rank Brand % Total Rank Brand % Total

 Here are Miller’s takeways:

• Operators with a value message are gaining teen market share. Since the fall 2007 (recession start) survey, QSR and premium-convenience chains have ranked as the most preferred teen brands, including Starbucks, Chipotle and McDonald’s. 
• However, brands within the casual-dining segment, like Olive Garden, notably Darden’s most value-oriented concept, continue to resonate with teens.

• Chipotle maintains its number 2 position of preferred brands on the school survey (closing the gap on Starbucks) with approximately 9 percent mind-share.