Serving the New Senior Managing Menus and Dining. Senior Living Culinary and Nutrition Summit April 6, 2016
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1 Serving the New Senior Managing Menus and Dining Senior Living Culinary and Nutrition Summit April 6, 2016
2 2
3 Today s senior is a luxury-oriented consumer. What does the modern day resident want in foodservices and how can we achieve that in our busy industry? 3
4 About fsstrategy Inc. Business strategy consulting support for the foodservice industry focusing on Guest experience Financial performance Return on investment Markets served Non-commercial foodservice Commercial foodservice Foodservice supply chain
5 About fsstrategy Non-Commercial Foodservice Services Self-operated and contracted institutions Healthcare Education Business dining Attractions Remote catering Transportation Trade and convention centres Services Foodservice master plans Concept visioning and development Operational reviews Margin enhancement Menu optimization Menu explosion Labour matrices Management options
6 Broader foodservice industry trends New senior foodservice expectations driven by history What do we have to provide? What should we provide? Menu optimization applying commercial foodservice strategies to seniors menus 6
7 Serving the New Senior, Managing Menus and Dining BROADER FOODSERVICE INDUSTRY TRENDS 7
8 Canadian Foodservice Industry $ Billions Preliminary Quick-Service Restaurants $ 25.3 $ 26.8 Full-Service Restaurants $ 25.1 $ 25.9 Contract and Social Caterers $ 4.9 $ 5.1 Drinking Places $ 2.3 $ 2.2 Total Commercial $ 57.6 $ 60.0 Accommodation Foodservice $ 5.9 $ 6.1 Institutional Foodservice $ 4.4 $ 4.5 Retail Foodservice $ 1.6 $ 1.8 Other Foodservice $ 2.5 $ 2.6 Total Non-Commercial $ 14.4 $ 14.9 Total Foodservice $ 72.0 $ 74.9 Source: Restaurants Canada 8
9 Senior Living Foodservices 2015 Preliminary Canadian Sales (Billions) Percentage Share of Total Sales Percentage Contracted Total Foodservice Sales $ % Healthcare Foodservice $ % 18% Total Senior Living Foodservice $ % 13% Retirement Foodservice $ % 13% Long-Term Care Foodservice $ % 14% Sources: Restaurants Canada; fsstrategy, 2016 Canadian Institutional Foodservice Market Report
10 Canadian Foodservice Industry Traffic growth essentially flat 2015 average annual foodservice visits per capita 181, down four visits over previous year 1 Why? 1 Prefer home cooked meals Watching my budget Dining out for special occasions, on weekends Sales growth just over inflation 2015 menu inflation of 2.8% 1. Source: NPD Group Canada 10
11 Chain Foodservice Executive Opinions Top opportunities Menu innovation, more choice, healthy options, improved ingredient quality, flavour Markets Millennials, daypart growth, small markets, non-traditional (universities, colleges, hospitals) Top challenges Operating costs cost of sales, labour The economy Competition Source: 2016 Chain Foodservice C-Suite Survey, fsstrategy Inc. 11
12 Chain Foodservice Executive Opinions Top strategies Add new units in Canada Steal market share Grow average check Environmental sustainability a polarized market 56% - important or highly important 44% - neither important or unimportant or somewhat unimportant Source: 2016 Chain Foodservice C-Suite Survey, fsstrategy Inc. 12
13 Serving the New Senior, Managing Menus and Dining NEW SENIOR FOODSERVICE EXPECTATIONS DRIVEN BY HISTORY 13
14 History of Foodservice Segmentation 1960/70 Quick Counter Casual Dining Fine Dining 14
15 History of Foodservice Segmentation 1960/70 Quick Counter 1980/90 Quick Counter Premium Counter Family Midscale Casual Dining Casual Dining Fine Dining Fine Dining 15
16 History of Foodservice Segmentation 1960/70 Quick Counter Casual Dining Fine Dining 1980/90 Quick Counter Premium Counter Family Midscale Casual Dining Fine Dining 2000 s Quick Counter Premium Counter Fast Casual Family Midscale Casual Dining Premium Casual Fine Dining 16
17 Foodservice Industry Segmentation 1980/90 Quick Counter Premium Counter Family Midscale Casual Dining Fine Dining Baby Boomers fueled foodservice in this era their expectations in Retirement Homes are rooted here! 17
18 Generational Attitudes Towards Food TODAY Silent Generation Age Baby Boomers Age I m glad I don t have to cook anymore! I wish I had time to cook! Today s Resident Generation X Age Millennials Age What, me cook? What s cooking? I want what I want, where I want and when I want! Today s Resident s Family 18
19 Generational Attitudes Towards Food TOMORROW Baby Boomers Age I wish I had time to cook! Tomorrow s Resident Generation X Age Millennials Age What, me cook? What s cooking? I want what I want, where I want and when I want! Tomorrow s Resident s Family 19
20 Serving the New Senior, Managing Menus and Dining NEW SENIOR FOODSERVICE WHAT DO WE HAVE TO PROVIDE? 20
21 Retirement Home Act What We Must Provide Foodservice Requirements Safe food Food restrictions, allergies, sensitivities Adequate nutrients, fibre, energy Fresh seasonal foods Good nutrition Minimum 21-day cycle Alternative entrée choices Individual meals if cycle menu doesn't meet needs Sufficient time to eat at own pace Foodservice workers aware of diets, needs and preferences Retirement Homes 1 1. Source: Ontario Ministry of Community and Social Services, Retirement Homes Act,
22 No Different Than Commercial Foodservice Retirement Commercial Foodservice Requirements Homes 1 Restaurants 2 Safe food Food restrictions, allergies, sensitivities Adequate nutrients, fibre, energy Options Fresh seasonal foods Good nutrition Options Minimum 21-day cycle Variety Alternative entrée choices Individual meals if cycle menu doesn't meet needs Customization Sufficient time to eat at own pace Foodservice workers aware of diets, needs and preferences 1. Source: Ontario Ministry of Community and Social Services, Retirement Homes Act, Source: fsstrategy Inc. 22
23 Serving the New Senior, Managing Menus and Dining NEW SENIOR FOODSERVICE WHAT SHOULD WE PROVIDE? 23
24 New Seniors - Menus Fresh Local, sustainable Greater variety Healthier options Allergies and food intolerances Cultural and ethnic foods
25 New Seniors Dining Service Hospitality-focused foodservice concept Implies a sophisticated development approach Dining as an experience, not a meal Perhaps a-la-carte, restaurant-style dining Flexible dining times Customization Authenticity Participation 25
26 Serving the New Senior, Managing Menus and Dining MENU OPTIMIZATION APPLYING COMMERCIAL FOODSERVICE STRATEGIES TO SENIORS MENUS 26
27 Effective Menu Development is a Cyclical Process Evaluation & Analysis Design & Planning Implementation & Monitoring
28 Begin With The End In Mind What do you want to achieve with the menu? Increase revenue Drive traffic Reduce costs Improve guest satisfaction Promote social responsibility: promote awareness, support local, etc. 28
29 Begin With The End In Mind What do you want to achieve with the menu? Increase revenue Drive traffic Reduce costs Improve guest satisfaction Promote social responsibility: promote awareness, support local, etc. Offer the experience the senior wants and steer their choices to optimize margin 29
30 Simple Math Objective: Maximize Margin Total Margin = #Sold Unit Margin For every menu item you serve, you need to know the cost and in combination with residents selections the margin you can achieve relative to the funding (revenue) you are allocated for a meal or meal day = an optimized menu 30
31 C R A V E an Optimized Menu Capacity Relevance Accuracy Visibility Economics 31
32 Capacity Identify potential constraints Consider employee skills, and equipment/technology Design for flexibility 32
33 Relevance Brand Image/Concept Mission Values Strategic Objectives Capabilities Employee Satisfaction Demographics Psychographics Purpose of Visit Time of Day Path to Purchase Customer Market Trends Competition Demographics Social/Political Issues 33
34 Accuracy Controls detailed recipe costing, cross contamination, standardized recipes, periodic checks, inventory controls, training Research use appropriate / authentic descriptors and terminology Develop menus within capabilities of staff and facilities, or enhance the capabilities of staff and facilities 34
35 Visibility Choose the information that should be emphasized and de-emphasized Look past the printed menu Focus messaging on objective at hand Physical Design: Eye Magnets: Font size, weight, colour, borders and backgrounds Easy to Read: font size, contrast, lighting Number of Items per page and menu Themes that match your home s brand 35
36 Imagery: A Picture Says a Thousand Words Tomato Steak Image courtesy of Tina Phillips at FreeDigitalPhotos.net Image courtesy of KEKO64 at FreeDigitalPhotos.net 36
37 Sensory: Crispy, Juicy, Spicy Geographic Imagery: Use Your Words Northern, Texas, Country, Maritime Nostalgia Home-Cooked, Old World, Classic Brand Jack Daniels, Mill Street, Jimmy Dean 37
38 Economics Measurable Financial Objectives $ go to the bank % define efficiencies Cost must be relevant to overall budget
39 Contribution Classic Restaurant Menu Economics Four Menu Performers Dogs: Problem Children: Low popularity, low margin Low popularity, high margin Workhorses High popularity, low margin Stars: High popularity, high margin Quantity 39
40 C R A V E as a Flexible, Transferable Framework Parent Concept Menu Item 40
41 Thank You fsstrategy is an alliance of senior consultants that provides business strategy support -- research, analysis, design and implementation -- for the foodservice industry
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