- Starbucks extends lead, remaining most valuable restaurant brand for 7th consecutive year, widening gap on McDonald’s
- Texas Roadhouse is the fastest growing brand, up 56%, Jollibee follow close behind
- Greggs is the strongest brand in the restaurant sector with AAA rating
- Starbucks has highest Sustainability Perceptions Value of US$3.1 billion
Starbucks extends lead, remaining most valuable restaurant brand for 7th consecutive year, widening gap on McDonald’s
Starbucks (brand value up 17% to $53.4 billion) has cemented its position as the world’s most valuable restaurant brand. The American multinational coffeehouse chain has held this position for seven consecutive years and has significantly widened its lead over the second most valuable restaurants brand, McDonald’s (brand value down 7% to US$36.9 billion).
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest brands in the Restaurant brands are included in the annual Brand Finance Restaurant 25 2023 ranking.
Starbucks generated accelerating demand for its products throughout 2022 following a continued return to normality as pandemic-related restrictions reduced globally. Starbucks’ brand value is now 30% higher than its pre-pandemic value. This success highlights the positive impact that the brand’s US Reinvention Plan has had since its launch in 2022.
Richard Haigh, Managing Director of Brand Finance commented:
“Restaurant brands have faced continued challenges throughout the last few years, from the Covid-19 pandemic induced lockdowns, to rising inflation and supply chain issues. Despite this, some of the world’s largest restaurant brands, such as Starbucks, have successfully navigated these difficulties to achieve solid brand value growth. In order to sustain success going forward, restaurant brands must increasingly cater to the higher standards for sustainability that consumers are demanding when it comes to the food they eat and drink.”
Texas Roadhouse is the fastest growing brand, up 56%, Jollibee follow close behind
Texas Roadhouse has achieved a 56% brand value increase in 2023, to a brand value of US$2.3 billion, making it the fastest growing restaurant brand in the ranking. This brand value increase comes primarily as a result of the brand’s strong expansion strategy. The brand now operates 700 restaurants and has further raised its expansion targets for the coming years, hoping to reach 900 units.
Filipino brand Jollibee (brand value up 53% to US$1.6 billion) followed closely behind as the second fastest growing brand in the ranking. The brand’s post-pandemic growth plans have seen it expand further into the US market, planning to open 500 stores in the coming years and rival other fast-food giants such as McDonald’s and KFC.
Greggs is the strongest brand in the restaurant sector with AAA rating
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 150,000 respondents in 38 countries and across 31 sectors.
British baked goods institution, Greggs (brand value up 17% to US$1 billion), is the strongest brand in the ranking with a Brand Strength Index Score of 89/100 and corresponding AAA rating. Greggs remains the strongest brand despite raising the prices of its products in the face of rising operating cost, inflation, and supply chain issues.
Starbucks has highest Sustainability Perceptions Value of US$3.1 billion
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
As well as being the world’s most valuable restaurant brand, Starbucks also has the highest Sustainability Perception Value of US$3.1 billion. The brand’s position at the top of the Sustainability Perceptions Value table is not an assessment of its overall sustainability performance, but rather indicates how much brand value the brand has tied up in sustainability perceptions.
As a seasoned expert in brand valuation and the restaurant industry, my deep understanding of the subject matter allows me to shed light on the intricacies of the article you've provided. My expertise spans across brand valuation methodologies, market dynamics, and the key factors influencing brand strength and sustainability perceptions.
The article discusses the Brand Finance Restaurant 25 2023 ranking, where Starbucks has solidified its position as the world's most valuable restaurant brand for the seventh consecutive year. With a brand value of $53.4 billion, Starbucks has not only maintained its leadership but has also widened the gap over its closest competitor, McDonald's, whose brand value has declined by 7% to $36.9 billion.
Starbucks' success is attributed to its accelerating demand throughout 2022, following the easing of pandemic-related restrictions globally. The article emphasizes the positive impact of Starbucks' US Reinvention Plan launched in 2022, contributing to a 30% increase in brand value compared to its pre-pandemic levels.
Another noteworthy mention is Texas Roadhouse, identified as the fastest-growing brand with a remarkable 56% increase in brand value, reaching $2.3 billion. This growth is attributed to the brand's robust expansion strategy, currently operating 700 restaurants with plans to reach 900 units in the coming years.
Jollibee, a Filipino brand, closely follows as the second fastest-growing brand with a 53% increase in brand value, amounting to $1.6 billion. Jollibee's post-pandemic expansion plans include venturing further into the US market, aiming to open 500 stores and compete with major fast-food giants.
The article also introduces the concept of brand strength, where Greggs, a British baked goods institution, is identified as the strongest brand in the restaurant sector. With a Brand Strength Index Score of 89/100 and a corresponding AAA rating, Greggs maintains its strength despite facing challenges such as rising operating costs, inflation, and supply chain issues.
Moreover, the assessment of sustainability perceptions is highlighted in the article, with Starbucks leading in this aspect as well. While Starbucks holds the highest Sustainability Perception Value of $3.1 billion, it's crucial to note that this reflects the brand's perceived sustainability rather than an overall evaluation of its sustainability performance.
In conclusion, this comprehensive overview of the Brand Finance Restaurant 25 2023 ranking provides valuable insights into the dynamics of the restaurant industry, emphasizing the importance of brand value, strength, and sustainability perceptions in shaping the success of leading brands like Starbucks, Texas Roadhouse, Jollibee, and Greggs.
