QUICK SERVICE VS. FAST CASUAL. What consumers want and how your restaurant can deliver it to them.

Transcription

1 QUICK SERVICE VS. What consumers want and how your restaurant can deliver it to them.

2 What s next in & Fast Casual dining? In a country that put fast food on the map over 75 years ago, there s a thirst among consumers and the industry to uncover what s next. And there s good news for everyone: while fast still rules the day in both Quick Service Restaurants (s) and Fast Casual establishments, menu options are getting fresher every day. Old favorites are finding newer, healthier friends. (Would you like an apple instead of fries in your Happy Meal?) Ethnic-themed s are joining the ranks of burger joints. (Choolah Indian BBQ, anyone?) And customizable Fast Casual options are becoming the new family meal. Consumers are happy with the results and showing it with increased traffic and dining dollars. While s and Fast Casual restaurants will never compete with fine dining in terms of experience, these establishments still hold high appeal and play an important and growing role in consumers lives. There s also a big difference in consumer expectations between s and Fast Casual restaurants. s must now compete with the fresher and perceived healthier options of their Fast Casual counterparts while Fast Casual chains try to match the convenience and speed of s. Convenience, menu consistency, quality, and healthier food: consumers are demanding it all. The good news for the industry? When consumers get the better choices they re after, these food decisions are quick to turn into lifestyle choices. Read on to learn more about consumers motivations, how they define value, what they want out of Fast Casual restaurants and s, and the top trends in limited-service dining. s must now compete with the fresher and perceived healthier options of their Fast Casual counterparts while Fast Casual chains try to match the convenience and speed of s. NESTLEPROFESSIONAL.COM

3 CHAPTER 1: VS. : A SNAPSHOT

4 CHAPTER 1: VS. : A SNAPSHOT Why Consumers Choose You And Why They Don t While s and Fast Casual establishments often draw in the same consumer in terms of demographics, both establishments have their niche in a consumer s life. What a person chooses depends mostly on how much time they have, who they re with, and what they want in terms of an experience. s are ideal when people are under a time crunch and dining solo; Fast Casual establishments are preferred for a shared sit-down meal in a nice environment. It s also perceived to offer a healthier meal at a better price than a Full Service Restaurant (FSR), where they have to take tip into consideration. Although the individual reasons for choosing a or Fast Casual restaurant vary, the reasons a consumer chooses away from home (AFH) options are the same for both s and Fast Casual establishments 1. For the same reasons consumers choose a Fast Casual restaurant or, they often choose not to go to one or the other. Sometimes, the Fast Casual diner wants to have someone bring them their food, refill their drink, and just take care of them; they don t want to self serve and they ll choose an FSR, even if it s more expensive. Consumers avoid s because they believe the food isn t as healthy and they have a heightened awareness of their overall wellness. They know that s are now offering healthier options, but they also see that these choices are priced higher and are not of better quality. REASONS FOR AVOIDING 2 REASONS FOR CHOOSING 26% HAVE NO TIME TO COOK 14% WENT OUT TO CELEBRATE 24% FEEL AFH IS EASIER THAN COOKING AT HOME 10% THINK AFH FOOD TASTES BETTER WHICH FACTORS DO CONSUMERS SAY ARE BARRIERS TO DINING OUT? 30% PROCESSED FOOD 30% LACK OF HEALTHY OPTIONS 43% NOT AFFORDABLE 30% LACK OF DEALS 29% LOW QUALITY 20% SERVICE NOT GREAT MORE LIKELY TO VISIT IF: Offer healthier value menu options and combo meals Give discounts for frequent visits Offer value menu options 1 Datassentials, CPP 2015 Segment Drive 2 Datassenials, CPP Segment Overview NESTLEPROFESSIONAL.COM

5 CHAPTER 1: VS. : A SNAPSHOT Overall, diners at both types of restaurants want their food and beverages to be fresh. What this means at each restaurant, however, is a little different: DEFINING FRESH Consumers expect (and demand) a lot of choices, but want those choices to be served hot or cold, and taste just made. Consumers believe that a smaller menu means the ingredients are more seasonal and fresh. NESTLEPROFESSIONAL.COM

6 CHAPTER 2: MOTIVATIONS

7 CHAPTER 2: MOTIVATIONS Diving Deeper Into Personal Motivators: Getting Traffic In The Door When you see a group of coworkers enjoying coffee at your restaurant in the a.m., you assume that the clean environment, fresh brew, and overall experience brought them in your door. But there s often more going on behind the scenes in the consumers lives. As trends come and go, these personal motivators often stay the same and tend to drive consumers to dine at both Fast Casual restaurants and s. REASONS FOR VISITING I GO BECAUSE I M CRAVING SOMETHING SPECIFIC. 64% 86% 14% 68% I LIKE/APPRECIATE/DESIRE THE CONSISTENCY. 78% I LIKE/WANT INNOVATIVE FOODS. 22% When consumers want to try something new, they generally scale up to fine dining or check out a trendy option at the local food truck. You re out anyway...why not grab a bite? Often, life s unplanned circumstances draw consumers to Fast Casual or dining. TOP 5 MOTIVATORS FOR EATING OUT: 1. No time to cook 2. Enjoy the experience 3. Already out 4. It s easier 5. Craving something particular Restaurant owners and operators can only influence 2 of the 5 top motivators: consumers experiences and their cravings. Focusing on customer service, consistency of product, and key menu offerings gives you a competitive edge. APPLICATION SATISFY THEIR CRAVINGS: WHERE TO FOCUS YOUR TIME AND MONEY. While you can t control how often consumers will be out and about, you can control what drives them into your establishment. Cravings are largely based on menu options, consistency, and quality. Experience involves a variety of factors including food/beverage, customer service, and environment/atmosphere. Offer consistency. Make a few select items on your menu more consistent with semi-scratch or premade options. For example, use premade barbecue sauce on a grilled chicken sandwich or serve protein-enhanced breakfast drinks. Make impulse buying easier. Offer real rewards programs that pay off like a free meal or $5 off for every $50 you spend. Make the deal attainable and worth pursuing. Be the go-to solution: Make useful suggestions/options that accommodate why consumers visit a or Fast Casual restaurant. For instance, create family meals to-go that working parents can pre-order and pick up on the way home. 1 Datassentials, CPP 2015 NESTLEPROFESSIONAL.COM

8 CHAPTER 3: VALUE

9 CHAPTER 3: VALUE Creating Maximum Consumer Value: The Overall Equation Do you think value equals price? Cost is often just one factor in a consumer s perception of value. There are many variables that come into play from the way food looks to the smile that accompanies its delivery to the feeling the consumer has in your restaurant. When creating a sense of value for the consumer, it s often just as important to deliver a good experience as it is to avoid a bad one. VALUE DRIVERS GIVE ME WHAT I WANT The value equation includes several tangible items that can set your restaurant apart: 47% GREAT SERVICE AVOID WHAT I DON T LIKE Consumers will often consider a restaurant a poor value if they encounter any of these turn-offs: 57% NOT CLEAN 40% INCONSISTENT QUALITY LEAVE CONSUMERS PLEASANTLY SURPRISED... When looking at how to elevate the value of your establishment, consider a few hidden motivators that often leave consumers happier. These drive your value higher and can motivate people to revisit your establishment over the competition: 41% GREAT FOOD & BEVERAGE CHOICES 52% UNFRIENDLY SERVICE 20% UNHEALTHY FOOD Choices for the entire group Offers top brands Good ambience Ability to customize 35% HIGH QUALITY INGREDIENTS 42% SERVICE IS TOO SLOW 17% NOT ENOUGH VARIETY/ BORING MENU TOP EXPECTATIONS BY RESTAURANT TYPE APPLICATION 45% FOOD DELIVERED FAST 37% HIGH QUALITY INGREDIENTS 14% HEALTHY OPTIONS WHILE CONSUMERS IDENTIFY DIFFERENT EXPECTATIONS OF A OVER A RESTAURANT, CUSTOMER SERVICE REMAINS KEY. 44% HIGH QUALITY FOOD & BEVERAGE 42% GOOD SERVICE 22% VARIETY ADD MORE VALUE TO EVERYTHING YOU OFFER: Consider customizable beverages. Provide snappy service without limiting yourself to a soda dispenser. Beverage equipment for flavored iced tea, infused waters, and specialty coffee offers a variety of customizable options without compromising speed and service. Include your team. Ask your team to work with you to develop service standards. Having input on process and protocol helps employees feel a sense of ownership, which motivates and can positively impact results. Feature healthier options prominently on your menu. Even if repeat visitors are driven by cravings for traditional menu items, they will be happy to know they have choices, especially when they want to experiment with something new. For a quick way to spice up your sandwiches or side dishes, use Nestlé Tribe Hummus, which comes in a variety of flavors and is free of cholesterol, hydrogenated oils, and high fructose corn syrup. 1 Datassentials, CPP 2015 NESTLEPROFESSIONAL.COM

10 CHAPTER 4: MENU

11 CHAPTER 4: MENU Driving Check Size: When & Why Consumers Will Pay More While consumers appreciate the convenience of dining out, they still have to consider their overall budgets. There are several areas where consumers state that paying a little more is worth it: FRESHER, NAME-BRAND BEVERAGES When it comes to food, consumers are more likely to pay a premium for fresh, all-natural ingredients at a Fast Casual resaurant than at a. However, the rules are a bit different when it comes to beverages and that s good news for both. Consumers state that, no matter what type of establishment they re at, they re willing to pay more for drinks when they have any of the following attributes: 28% FRESH-SQUEEZED JUICE 23% ALL NATURAL 24% HAND-PREPARED BEVERAGES 21% POPULAR BEVERAGE BRANDS INTERNATIONAL FLAVOR International cuisine is growing in popularity among both and Fast Casual diners. In fact, Fast Casual customers state that they re more likely to experiment now and then ordering a curry dish with a Lassi instead of a burger and a soda (even if they come in craving the latter). consumers, however, are fairly limited in the types of international dishes they ll experiment with; if it s Italian, Mexican, or Chinese food, they ll likely give it a try. TOP ETHNIC FOODS BY RESTAURANT TYPE: 1. Italian 2. Mexican 3. Chinese 1. Italian 2. Mexican 3. Chinese 4. Greek 5. Japanese 6. Thai 7. Indian APPLICATION 1 Datassentials, CPP 2015 ENHANCE YOUR MENU: GET THE MOST OUT OF EVERY CONSUMER TRANSACTION. Pair food with all-natural beverages and feature these combos on your menu. Design snack packs that offer healthy calories and a flavor punch between meals. Think small salad + fruit smoothie or half a turkey wrap + fresh-squeezed juice. Pair drinks with the appropriate menu items whether it s an ethnic eat or signature dish. For example: iced tea with a deli item, juice with a breakfast sandwich, or San Pellegrino with a Caesar salad. NESTLEPROFESSIONAL.COM

12 CHAPTER 5: TOP TRENDS AND INFLUENCES What s Next? The more dining trends change, the more they stay the same. Across most dining out options, consumers are looking for good food fast, specifically: High-quality options Premium ingredients Great taste Ingredients that come from a good place Attractive presentation These factors not only create a great experience for consumers, they also provide the largest opportunity for restaurants to grow their business. MORE HEALTH & WELLNESS OPTIONS Today s consumers care about their health and want to feel that their preferred consumer brands do too. 40% of consumers say they carefully watch what they eat and only 11% feel food that they eat away from home is healthier than the food they eat at home. Good food is often healthy, fresh food. Today, fast dining options fall behind in this category, with only 15% of consumers believing that s care about their health and wellbeing and 30% believing Fast Casual restaurants do. With farm-to-table restaurants and local chefs parking fresh food trucks in front of office buildings over lunch hour, s and Fast Casual establishments need to increase their healthier options. THERE S AN OPPORTUNITY TO CHANGE CONSUMER PERCEPTIONS: THEY CARE ABOUT MY HEALTH AND WELLBEING. 15% 30% EATING AT HOME IS BETTER. 84% 70% EATING AT HOME IS HEALTHIER. 94% 85% 1 Datassentials, CPP % of Americans say that eating well is important and 70% state that it s worth paying more for healthy products. NESTLEPROFESSIONAL.COM

13 CHAPTER 5: TOP TRENDS AND INFLUENCES SOURCING INGREDIENTS While consumer expectations for local, organic ingredients are pretty low in the fast dining categories, consumers are still spending more dollars on dishes that can prove their lineage: organic meats, sustainably grown veggies, and low-hormone dairy. Natural tops the charts in terms of popularity with consumers 88% of those polled claimed they re more likely to buy those products. Americans also have concern over unhealthy farm practices, making organic and pesticide-free big purchase drivers. THERE S AN OPPORTUNITY TO CHANGE CONSUMER PERCEPTIONS THEY SHOW A COMMITMENT TO SUSTAINABILITY PRACTICES. I M WILLING TO PAY MORE FOR... FRESH INGREDIENTS 22% 33% ALL-NATURAL INGREDIENTS 21% 31% NO ARTIFICIAL FLAVORS 14% 19% 21% 27% I WOULD FEEL BETTER KNOWING WHERE THEY SOURCE THEIR INGREDIENTS. APPLICATION 74% 81% SEIZE THE OPPORTUNITY: GIVE CONSUMERS MORE HEALTHY OPTIONS. Tout healthy ingredients on your menu or create a segment of the menu dedicated to healthier options (that are well-defined, like organic ingredients, low-calorie, natural, wholesome, etc). Accommodate popular diet restrictions and choices to demonstrate a commitment to consumer interests in wellbeing: mark items that are gluten free, dairy free, vegan, and vegetarian. Run seasonal campaigns that speak to your establishment s practices and philosophy around sourcing good ingredients. Natural tops the charts in terms of popularity with consumers 1 Datassentials, CPP 2015 NESTLEPROFESSIONAL.COM

14 Consumer demand is high for what Fast Casual restaurants and s offer: convenience and familiarity. Yet, consumers are asking for more: better service, fresh choices, and quality ingredients. With consumer taste cravings driving traffic, consistency will keep people coming in the door and new flavors and dishes will drive growth, especially menu items that can prove their all-natural background or health benefits. It s more important than ever to find solutions that don t break the bank while offering variety, quality, consistency, and speed. TOP HEALTH-CONSCIOUS NESTLÉ PROFESSIONAL BEVERAGES PRODUCTS LATEST INGREDIENT FORWARD FOODS FROM NESTLÉ PROFESSIONAL NESTLÉ VITALITY FLAVOR INFUSED WATERS NESTEA ICE TEAS SUNKIST JUICES NESTLÉ HARISSA SAUCE NESTLÉ GOCHUJANG FLAVOR CONCENTRATE LATEST INGREDIENT FORWARD BEVERAGES FROM NESTLÉ PROFESSIONAL BEVERAGES NEW PRODUCTS THAT ALLOW FOR FOOD PROGRAMS TO BEST FIT THE / OPERATIONAL MODEL NESTLÉ VITALITY FLAVOR INFUSED WATERS LIKE PINEAPPLE GINGER, STRAWBERRY BASIL AND CUCUMBER MINT.* NESTLÉ HYDROPONIC BASIL PESTO NESTLÉ ROASTED CHICKEN BROTH CONCENTRATE * Infused waters have NO artificial colors, flavors, sweeteners (stevia), or preservatives. NEW INNOVATIONS THAT ALLOW FOR BEVERAGE PROGRAMS TO BEST FIT THE / OPERATIONAL MODEL Sources: Datassential CPP 2013: Segment Overviews, January 2014 Datassential CPP 2013: Upgraded Segments, January 2014 Datassenetial CCP 2015 Decision Factors Datassenetial CCP 2015 Segment Reviews Datassenetial CCP 2015 Value Beyond Price Nestle Health & Wellness Trend Report, 2016 NESTLÉ COOLPRO COLD BEVERAGE SOLUTION NESCAFÉ MILANO SPECIALTY COFFEE MACHINE