RESEARCH | Staff Reporter, Singapore

Starbucks remains 'most valuable' restaurant brand: study

The coffee giant, according to Brand Finance, is valued at US$39.3 billion.

Starbucks has remained the most valuable restaurant brand after its value increased by 21% since last year to US$39.3 billion, according to the latest report by brand valuation and strategy consultancy Brand Finance.

The results, according to the research, were due to the brand’s expansion of its footprint geographically and through strategic partnerships, including the doubling of its stores across China; a joint venture with Indian non-alcoholic drinks brand, Tata Global Beverages; an upcoming partnership with Uber Eats, and entering the packaged coffee market in a partnership with Nestlé.

McDonald’s has maintained its second position closely behind Starbucks with a brand value of US$31.5 billion, up 27% from last year. It is also the chain with a brand strength rating of AAA+ in the restaurant sector, with a brand strength of 90.3 out of 100 versus the 86.2 out of 100 rating for Starbucks.

The top two brands leave the rest of the ranking far behind, with KFC pulling ahead into third place to US$13.5 billion following 67% growth.

“The restaurant sector continues to polarise, creating ever more larger brands that are not only very visible, but also very valuable,” Brand Finance CEO David Haigh said. “In a highly competitive marketplace middle sized and small players need to focus on understanding their customers’ tastes and habits to maintain their loyalty and fend off growing threat from supersized chains.”

Apart from calculating overall 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.

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