Monday, June 16, 2008

No More Buns?


Probably not. But I prefer a wrap over a bun for many of the reasons mentioned:

Fast Feeders' New Wrap

Although buns are still No. 1 on the chart, consumers and chains such as McDonald's, Burger King, Arby's, KFC and Wendy's are singing the praises of tortilla wraps.

June 16, 2008

-By Eric Newman


Taco Bell isn't the only fast feeder that's thinking outside the bun these days.

About two dozen wrap products have been added to menus this year at such chains as Arby's, McDonald's, Burger King, KFC and Wendy's, per food industry research firm Technomic, Chicago.

The key driver seems to be convenience: "It's a lot easier to grip with one hand . . . it's more portable than a burger," said Darren Tristano, evp at Technomic.

The wrap has also curried favor because it can be used across a wider range of menu items and dayparts, said Arjun Sen, president at Restaurant Marketing Group, Centennial, Colo. "It helps diversify [the] menu," he said. "And even if it's a lesser part of the mix, it brings a halo effect to the overall menu because they are perceived as being healthier or better, which makes the whole restaurant look more attractive."

Since it is easier to assemble, Sen said, consumers feel a wrap is more likely to be made-to-order versus burgers that are kept under a heat lamp. "That is a huge value that you normally don't get anywhere else in fast food," he said.

As for the cost of menu items with buns versus wraps, comparing them directly is difficult as there are so many available options. However, said Tristano, "[Wraps are] not a very expensive product to have. It's a quick, inexpensive product that can be used with almost anything in your kitchen, and it can extend over virtually all day periods."

Burger King, which launched its Cheesy Bacon BK Wrapper breakfast wrap in April and plans to roll out a lunch wrap, has found opportunity in the tortilla's versatility.

"With the BK Wrapper we introduced a portable snack to our menu at an attractive price point," said Jonathan Muhtar, senior director of product development at Burger King, Miami.

"The Cheesy Bacon BK Wrapper has already exceeded our expectations at the breakfast daypart. Our Spicy Chicken BK Wrapper lunch wrap is selling well in test markets and we plan to launch it nationally later this year. Our guests value the BK Wrapper's taste, portability and [price]. It is a great alternative or add-on to our menu."

McDonald's added McSkillet Burrito to its breakfast menu in January alongside such items as its Sausage Burrito. "People are eating tortillas more today . . . and our customers are saying they want something a little more portable and convenient," said Danya Proud, a rep at McDonald's in Oak Brook, Ill. "[Wraps] are very operationally easy for the restaurants. It's one ingredient that can extend over many dayparts and it's very easy for our crew to put together."

KFC launched Toasted Wraps with grilled chicken in March, giving the chain more options for those who don't want fried offerings. David Novak, president and CEO at KFC, Louisville, Ky., hailed the launch in a recent conference call as "an initial step in expanding our portability options" that would "begin the long-term process of building a much broader offering for lunch customers and contemporizing the brand." He said KFC would add another "grilled portable" later this year.

Will wraps have buns on the run? Burgers hold a lion's share of the U.S. fast-food market, raking in $61.6 billion in 2007, per Technomic. "It's too early to see if it's a big threat to the burger bun," said Sen. "The wrap has more of a female and urban skew, so it's a little tough to see it as a super mainstream [product]."

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