Introduction
The restaurant industry is highly competitive, with brands facing constant pressure to differentiate themselves and attract loyal customers. While price, customer satisfaction, and brand equity are all key drivers of success, their impact varies by brand segment. To uncover these differences, Be Digital conducted a segmentation analysis of 90 restaurant brands in Thailand, using data from our 2024 Food Tracker study.
Our analysis included 24 metrics related to brand performance, customer perceptions, and market positioning. Using machine learning, we identified spend level, customer satisfaction, and visit frequency as the three most important factors that distinguish restaurant brand segments.
By analyzing these key drivers, we identified seven distinct brand segments, each with unique characteristics and growth strategies. Understanding where a brand fits within this framework can help businesses refine their marketing approach, pricing strategy, and customer experience initiatives.
The Seven Restaurant Brand Segments
Our analysis categorized restaurant brands into the following segments:
1. Low Value (8%) – Affordable but Struggling with Satisfaction
✔ Low prices (Average spend: 228 THB vs. market avg. 294 THB)
✖ Weak customer satisfaction (Avg. score: 64 vs. category avg. 76)
✖ Low visit frequency (3.0 visits/month vs. market avg. 3.5)
🔹 Action: Improve customer satisfaction to increase visit frequency.
🔹 Brands: Kamu Tea, KOI The, Jeffer Steak, BreadTalk, and others.
2. Low Price (11%) – Winning on Affordability and Frequency
✔ Lowest spend level (Avg. 190 THB)
✔ Customer satisfaction equals market average
✔ Highest visit frequency (4.6 visits/month)
🔹 Action: Expand market share by increasing brand awareness and store presence.
🔹 Brands: Subway, iBerry, Coffee Journey, Flash Coffee, McCafé, Domino’s, and others.
3. Value for Money (22%) – Balanced on Price and Satisfaction
✔ Good mix of affordability and satisfaction
✔ Above-average visit frequency (4.1 visits/month)
🔹 Action: Brands need to evaluate individual metrics to identify specific growth opportunities.
🔹 Brands: Tummour, Dairy Queen, Café Amazon, Five Star Chicken, Dunkin' Donuts, and others.
4. Overpriced (8%) – High Prices Without the Justification
✖ Premium pricing (Avg. spend: 329 THB)
✖ Below-average customer satisfaction (71 vs. category avg. 76)
✖ Lowest visit frequency (2.7 visits/month)
🔹 Action: Improve customer experience to align with price expectations.
🔹 Brands: Black Canyon, Ootoya, Zen, Pepper Lunch, Santa Fe, Hachiban.
5. Special Occasions (23%) – High-Value Brands with Selective Visits
✔ Premium pricing (Avg. spend: 343 THB)
✔ Above-average satisfaction (77 vs. 76)
✖ Visit frequency slightly below market average (3.1 visits/month)
🔹 Action: Ensure value perception remains high and reinforce brand exclusivity.
🔹 Brands: The Pizza Company, Pizza Hut, MK, S&P, Mister Donut, Swensen's, BonChon, Bar B Q Plaza, Fuji, McDonald's, and others.
6. High Value (15%) – Premium Experience with High Frequency
✔ Highest satisfaction scores (Avg. 80 vs. 76)
✔ High visit frequency (3.6 visits/month, exceeding the market average)
🔹 Action: Maintain service excellence and increase brand awareness to attract trial users.
🔹 Brands: Miyazaki, Momo Paradise, AKA Yakiniku, Choong Man Chicken, Haagen-Dazs, and others.
7. Average (13%) – Lacking a Distinct Positioning
✔ Scores close to the market average in all metrics
🔹 Action: Each brand needs a deep-dive analysis to determine specific opportunities for differentiation.
🔹 Brands: Texas Chicken, Coco Ichibanya, Laem Charoen, Hot Pot, Yoshinoya, Chester’s Grill, and others.
Strategic Takeaways for Restaurant Brands
✅ Identify your brand’s segment to tailor growth strategies. Each segment requires different actions—whether improving satisfaction, adjusting pricing, or expanding market presence.
✅ Price alone is not a differentiator. Affordability must be paired with strong satisfaction to drive loyalty.
✅ Brand positioning matters. Restaurants that carve out a distinct market space—either as premium or value-focused—tend to achieve stronger loyalty than those with vague positioning.
✅ Data-driven insights lead to smarter decisions. Our segmentation approach provides actionable guidance for restaurant brands looking to optimize their market strategy.
Conclusion: Segmentation as a Roadmap for Growth
Understanding where your brand fits within the seven restaurant segments provides a strategic roadmap for growth. By leveraging customer satisfaction, pricing strategies, and visit frequency data, brands can make informed decisions that drive market success.
At Be Digital, we help businesses translate complex consumer data into actionable brand strategies. Want to understand where your brand stands? Let’s talk.
📌 Interested in more insights? Read our full analysis on customer satisfaction and loyalty [here].