t h e n e x t g e n e r a t i o n o f

t h e n e x t g e n e r a t i o n o f OCTOBER 2018 ISSUE 58 YOUR FREE DATASSENTIAL TREND REPORT

OF CONSUMERS LOVE CAFETERIA-STYLE RESTAURANT CONCEPTS DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 2

Pictured here is a menu from Haim s Quick Lunch Restaurant (featured at the Lunch Hour NYC exhibition), a cafeteriastyle restaurant that was based in New York in the 1900s. Restaurant segments are continuing to blur, and it's not always clear anymore what differentiates one from another. While in the past, cafeteria-style restaurants were associated more with premade items served on disposable dishes set on trays as you go down a line at a counter, today diners will find self-serve areas as well as fresh-made items served by a chef on china and paired with alcoholic beverages ranging from cocktails to beer to wine. Additionally, premade and packaged dishes might be available for customers to grab and go, similar to a c-store. Yes, the food is still typically premade and dished out onto customers plates, but with the increasing integration of locally-sourced and healthy ingredients, plant-forward dishes, and alcoholic beverages, cafeteria-style restaurants more than ever are crossing the border into fast casual territory. IKEA isn t just a furniture store in fact, its cafeteria-style restaurant is playing a big role in the success of its concept. Roughly 30% of the Netherlands-based retail chain s customers come specifically for the food. Though there has been a decline over the years of traditional cafeteria-style concepts (mainstream chains like Houston-based Luby s have been closing locations recently), modernized versions of cafeteria-style concepts that borrow elements from fast casuals have been popping up across the country. Eater reports that it may be time to reconsider the cafeteria s appeal. Because of (and not in spite of) regimented lines and limited menus, cafeterias have been vital spaces where community happens. They re as American as [apple pie]. Accessible and affordable, cafeterias leveled some of the classand gender-based disparities that ordered the restaurant industry first by giving women the opportunity to dine in public without the company of men. Today, modernized cafeteria-style restaurants are on the rise, taking elements from both cafeteria and fast casual concepts to create an environment favorable towards on-the-go customers as well as those seeking to connect with the community. It s not uncommon for these concepts to now source ingredients locally; feature seasonallychanging (sometimes even daily-changing) menus; promote ecofriendly practices; serve thoughtfully plated dishes on china; offer alcohol (which typically doesn t appear outside full-service restaurants); and plant-forward items. Harkening back to the roots of the cafeteria, today s concepts are also making a point to hire women, partner with minority-run businesses, and promote a larger social mission. As we dive into the next generation of cafeteria-style restaurants in this month s issue of FoodBytes, delete the image in your mind of cafeterias housed in dingy spaces and serving lowquality food en masse on plastic trays (although the tray can still be found at a number of operations, playing off nostalgia). As Zagat notes, Cafeteria-style dining doesn't have to mean plastic divided plates and reheated canned veggies. There's a version modernized for today's diners looking for comfort food that's fast, healthy, and if possible locally sourced. Diners grab a tray and watch as the food is prepped before their eyes. DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 53

CONSUMERS SAY WE ASKED 500 CONSUMERS WHAT TYPES OF FOOD AND BEVERAGE OPTIONS THEY D LIKE TO SEE AT CAFETERIA-STYLE RESTAURANTS HERE S WHAT A FEW HAD TO SAY: Vegan food options like faux meats, along with fresh fruits and veggies. I would like to see interesting homemade beverages like lavender lemonade and agua frescas. I would love to see gluten-free options. That is the biggest reason I don t eat at cafeteria-style restaurants, so if I could get a gluten-free sandwich or salad or soup or something like that, I would be much more likely to go. I would like to see healthier options less fat, sodium, sugar, etc. I would like to see more American and regional favorites. For example, in southwest Louisiana, we have our local dishes that are popular and some southern favorites. Regular fountain drinks are okay, but we have to have our fresh-squeezed lemonade and iced tea, too. More coffee choices and fruit bars with better sanitation such as covers for the food. The food should look good. I like to see fresh food made from scratch, not from a box. It should be well seasoned and not something poured from a can. Beverages should also be made fresh I don t want fountain drinks.

of consumers are interested in self-serve salad bars. N E X T OF K I N Earlier this year, former Eater Young Gun semifinalist chef Marco Bahena opened the all-day cafeteria-style dining concept Next of Kin (sister concept of next-door, full-service Kinship) in Evanston, a college town right outside Chicago. Eater Chicago reports that Next of Kin is aiming to make something for everyone, whether that means a build-your-own salad or chowing down on a burger that s chef-made, something worth calling out, particularly at concepts where customers don t immediately connect the food with freshness or creativity. In the morning at Next of Kin, customers can expect to find coffee and an array of eclairs (among other pastries) in flavors like Birthday Cake (filled with confetti and topped with rainbow sprinkles). In the afternoon, they can turn to graband-go options or the extensive salad bar, which showcases fresh, locally-sourced greens, grains, and produce locally-sourced being a keyword, as 40% of consumers responded to a Datassential survey saying they d be interested in seasonal, locallysourced ingredients at cafeteria-style restaurants (though, if applicable, the term is really worth calling out in any segment). THE L I T T L E B E E T New York-based The Little Beet, whose mantra is 100% Guiltin Free, aims to promote transparency by listing on their website the various farms and vendors they source their ingredients from, something many restaurants, regardless of segment, are doing. The focus at The Little Beet isn t just on providing customers with a quick bite, but also on making sure dishes have a healthand plant-forward lean, a growing trend across the industry. QSR magazine reports that concepts like The Little Beet are trying to shed the negative connotation that comes with cafeteria-style service, and bring the format back to life in a more modern and healthful way. DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 5

OF CONSUMERS LOVE SELF-SERVE DESSERT BARS DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 6

P U B L I C G R E E N S Cranberry Bubbles Cocktail Features Champagne and cranberries. Public Greens was born out of a need founder and James Beard Award semifinalist Martha Hoover saw for transparent, plantforward restaurants in Indianapolis, IN. The dishes served at both Public Greens locations star produce grown at the restaurant chain s own garden. Hoover told OpenTable, I thought a cafeteria-style restaurant would work because I love that the menu is right before you, and you can see everything. We designed the restaurant such that the cafeteria line is part of the kitchen, so the person serving you the food is the chef cooking the food, and you can ask any questions about what s in something, and how it s made. Having it be apparent the food was cooked by an actual chef is important according to our data, 40% of consumers are interested in having dishes prepared in front of them by a chef at cafeteria-style restaurants. With all its profits going to The Patachou Foundation, which provides food for 1,000 food-insecure children in Indianapolis, Public Greens describes itself as an urban kitchen with a mission. At Foodscape 2 (Datassential s annual event), we revealed just how important the social mission of manufacturers and operators is to consumers according to our data, 49% believe personal values are important to making purchases at the grocery store, and 81% of consumers visited a restaurant for the first time because of its connected values. When you run a business, you are advertising to the world who you are and what your values are, Hoover told Vogue. By insisting on sustainable practices across her Indy restaurants, Hoover has made her values clear, and simultaneously established herself as a powerful entrepreneur at the helm of a growing, egalitarian empire. of consumers are interested in having foods served on actual china rather than disposable dishes at cafeteria-style restaurants. Smoked Brisket Fried Rice Bowl with scallions, carrots, cabbage, spicy garlic sauce, and a runny egg.

When I opened the first Public Greens, I believed that the plant-forward, cafeteria-style menu was a type of eating and service that had a lot of growth potential And it turned out I was right There is a real market for people who want to eat high-end, highquality ingredients that are fresh and locally sourced in a relatively relaxed environment. - MARTHA HOOVER (from an interview with OpenTable) 8

Eating your vegetables shouldn t feel like punishment, Los Angeles-based Lemonade says on its website. The growing chain makes a point of showcasing vibrant vegetables in a fun, creative way, leveraging texture and color to compose dishes that are appealing to all consumers, not just vegans or vegetarians. The concept is flexible, with a regularly-updated menu and items featuring seasonal ingredients. Unique to their cafeteria-style restaurant is the way they re able to use just one item in a plethora of ways. Consider their salmon, which can be served marinated, seared, or stuffed in an avocado. Foodable notes that since the concept is very chef-driven, they get the opportunity to make variations of a dish where at a normal restaurant, there would only be one style of a fish dish. Various dietary preferences like glutenfree are also taken into consideration and are called out across the menu, something operators across segments could consider doing according to our Millennial Keynote Report, 30% of Millennials avoid at least one allergen in their diet. Jammin Grilled Cheese Made with apple bacon jam. According to Datassential FLAVOR, 49% of Gen Z and 48% of Millennials love grilled cheese sandwiches. S mores Brownie Gluten-free and vegan. Datassential s Haiku estimates that the term vegan will grow more than 35% on menus over the next 4 years. Macaron Raspberry-flavored and glutenfree. According to Datassential MenuTrends, the term glutenfree has grown 90% on menus over the past 4 years. Black Cherry-Infused Pink Lemonade FROZade Customers have the option to add blueberry boba to any of the FROZade flavors. DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 9

U R B A N P L A T E S When diners enter San Diego-based Urban Plates, they are faced with overhead menus they can peruse as they get in line. Like at a cafeteria, there are various food stations at Urban Plates, but instead of a server dishing up meals, there are chefs handing customers plated items ranging from salads to sandwiches to bowls, all of which can be customized to suit individuals personal tastes. To pair with meals, there are California wines and scratch-made desserts according to our data, 43% of consumers are interested in scratch-made items at cafeteria-style restaurants. When diners are done selecting items, they pay at the register and take a seat, either indoors or outdoors. The concept has recently been taking off, and Nation s Restaurant News announced that the chain closed a $38 million loan from Goldman Sachs Specialty Lending Group this month as it looks to continue expanding into new markets. Urban Plates is changing the way America eats, co-founder Saad Nadhir said in a statement. Guests desire affordable highquality, customizable meals served in a convenient yet inviting atmosphere with fine-dining hospitality. 3 G R E E N S M A R K E T There s a cool factor at this River North lunch mecca that puts it in a league apart from its dowdy salad bar contemporaries: You can watch a movie while you eat, sprawl out at a communal table, even get in a round of miniature golf, says Chicago magazine of 3 Greens Market. An 18-foot salad bar and hot food bar are the focal point at 3 Greens, Eater Chicago notes, and founder Brendan Sodikoff says it s all about choice. Customers like to have the ability to customize and build their own dishes, and combined with some trendy eatertainment aspects like board games, mini-golf, and table tennis, it makes for a next-level cafeteria-style restaurant that can appeal to a broader market. Stick around and play games, or just grab something to go (for more on eatertainment, search SNAP! for Creative Concepts: Eatertainment).

OF CONSUMERS ARE INTERESTED IN HAVING ALCOHOLIC BEVERAGES AT CAFETERIA-STYLE RESTAURANTS DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 11

COCINA 35 San Diego, CA-based Cocina 35 is known for serving up traditional scratch-made Mexican fare cafeteriastyle diners can order customizable platters, build their own salads and chilaquiles, or pay a visit to the ceviche bar. The selections change daily and range from chiles rellenos and cochinita pibil to chipotle chicken and carnitas. Pictured above are the restaurants horchata and Agua Fresh-kas, which come in flavors like strawberry and mint as well as mango, lemon, and Tajin (a seasoning that blends lime, mild chili peppers, and sea salt). Tajin was mentioned at Foodscape 2 by Datassential s resident Trendologist, Mike Kostyo, as an ingredient to watch, as it can add flavor to an array of items, from fruit to veggies to cocktails. of consumers are interested in cafeteria-style restaurants serving up globally-focused cuisines, such as Mexican or Asian. PICCADILLY Longstanding cafeteria-style restaurant chain Piccadilly, based in Baton Rouge, LA, is planning to introduce two new restaurants in the city this year. One of the new branches will be a Piccadilly to Go unit and showcase a drive-thru window, while the second will be a prototype featuring a modernized serving line and dining room as well as new dishes on the menu like Nashville hot chicken. The restaurant told The Advocate that to-go orders have grown 21% over the past year and make up a third of Piccadilly s sales. We are positioned for growth and the key is that we re adapting to our guests needs for convenience, says Piccadilly CEO Azam Malik. Families want fresh, affordable, homestyle meal options, even though they don t always have time to shop and cook. DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 12

1 2 1 DIG INN Founded by Adam Eskin, New York-based Dig Inn might be best known for its health-forward market bowls (pictured top left) that are reminiscent of the trays found at cafeterias and feature two sides and a protein atop grains or greens. For each item menued, the chain posts the corresponding nutritional information on their website under the headline hello, fellow labelreaders. The growing restaurant chain sources its fresh produce from small-scale, minority-run farms in Upstate New York, Long Island, New Jersey, New England, and Pennsylvania, using their purchasing power to support sustainable growing practices and invest in the future of farming. The menu revolves entirely around what s in season, and the partnering farms actually plant crops specifically for the chain. On its website, Dig Inn calls out how women represent 50% of culinary school grads and 52% of restaurant workers but only 19% of executive chefs, and states that as a company, they make a point to hire women 40% of their head chefs are women. As a variety of factors have reshaped Americans relationship with food the rise of the Food Network, a mindfulness about where our food comes from, the urge to share everything we eat on Instagram a new kind of food consumer has emerged, says the Boston Globe. Oftentimes, they value convenience, but also healthfulness, reasonable pricing, and an appreciation for aesthetic. 2 SAINT 3 BEATRIX LOU S ASSEMBLY The name Saint Lou's Assembly takes inspiration from managing partner Bruce Finkelman's grandfather, who owned Monarch Provisions in Chicago, which sold meat in the 1940s and 1950s to restaurants in the area. Eater Chicago reports that at that time, workers in the meatpacking district would frequent meat and three cafeterias, and Finkelman himself was a cafeteria regular. When Saint Lou s Assembly first opened, diners would come in, get a plastic tray like you would at a school cafeteria, and join a line at a buffet featuring quintessential cafeteria-esque items like meatloaf wellington or mac and cheese. The concept has since evolved, however, to feature full-service, but their signature Meat N Three deal is still available customers pay one price to choose a protein plus three sides (pictured top right). MARKET Beatrix Market features self-serve soup, hot food, and a salad bar in addition to sandwiches and other convenient grab-andgo options at a location in Chicago s Loop neighborhood that aims to appeal to busy college students attending nearby DePaul University. At its coffee bar, customers will also find ontrend butter coffee (also known as Bulletproof Coffee, which Haiku predicts will grow 26% over the next 4 years). When possible, the chain tries to source veggies, fruits, and grains locally and use seasonal items. 3 13

WHAT YOU MISSED IN LAST MONTH S TRENDSPOTTING DINE AROUND In last month s issue of Dine Around, we explored Raleigh-Durham and uncovered staple Carolina cue joints, one of the area s most-anticipated food halls, a mashup flower shop/dim sum restaurant/brewery, and much more. IN NOVEMBER: Alaska INTERNATIONAL CONCEPTS Last month we explored Danish chains that offer up everything from plant-based burgers to breakfast pizza to traditional eats like rugbrød and hindbærsnitter. IN NOVEMBER: New Zealand ON THE MENU Last month, we uncovered global ingredients like sumac and rosewater and learned how operators are leveraging artisan versions of nostalgic toaster pastries. IN NOVEMBER: We ll cover trends ranging from halloumi to drinking vinegar to eggnog. FOODBYTES Foodscape 2 was an experience unlike any other. In last month s FoodBytes issue, we recapped all the action with 52 things we learned and experienced. IN NOVEMBER: Sneak Peek at the BUZZ 2018 report CREATIVE CONCEPTS Mushroom coffee. Collagen matcha. Chlorophyll water. What do these drinks have in common? They re just a few examples of new beverages appearing at retailers and a small sip of the 70+ drinks we covered in last month s Creative Concepts. IN NOVEMBER: Meat & Seafood at Retail For information about an issue or to subscribe to a title, contact Datassential Business Development Manager Susan Cohen at 312-219-6428 or susan.cohen@datassential.com DATASSENTIAL S FOODBYTES: MODERN CAFETERIA-STYLE RESTAURANTS 14

BE THE TREND EXPERT 7 0 I S S U E S A Y E A R. S E A R C H A B L E I N S N A P. S U B S C R I B E T O D A Y.

GENERATIONS OF CHANGE the four-part Keynote series eating & drinking behavior health & lifestyle motivators retail habits & finances food & beverage preferences indexed findings Consumers are changing. People are eating in new ways, craving new things, and engaging with food in ways that have never been seen before. In addition, the demographics of the population are shifting dramatically from one generation to the next and compounded by rapid developments in technology, the food experience is becoming more nuanced and individualized than ever before. Invest in this four-part series and uncover what every generation thinks, feels, and does regarding everything food-related. Paint a full picture of the industry, one generation at a time.

GENERATIONS OF CHANGE Each report provides detailed assessment of a generation eating & drinking behavior o the where, what, when, why, and with whom of dining out o prep methods and culinary equipment used at home o a detailed look at the last away from home experience and at-home meal health & lifestyle motivators o diets followed and allergens avoided o foods consumers are trying to increase or decrease in their diet o sources of food-related information and food apps used retail habits & finances o stores types used for groceries and why o grocery list usage and store visitation by department o online grocery ordering and delivery usage o views on spending money on food and food budget prevalence food & beverage preferences o highest rated flavors, dishes, desserts, descriptors, brands, and more o successful menu introduction ratings for purchase intent and uniqueness (QSR, fast casual, casual, midscale, and c-stores) indexed findings o indexed analysis uncovers differences between each generation and the general population o within generation differences are analyzed (gender, race, income, employment, education, family structure, political views, fitness level, and more.) CHOOSE YOUR REPORTS MILLENNIALS the largest generation representing 75 million consumers and 25% of the population is moving through different life stages their wants are no longer one size fits all AVAILABLE NOW GEN Z an ethnically diverse and health-conscious group, this up-and-coming generation is socially conscious, known for their adventurous palette, and highly digitally engaged AVAILABLE NOW GEN X this frequently overlooked demographic has reached its highest income-earning years and are looking for authentic but comfortable foods with just a hint of adventure MAY 2018 BOOMERS with the largest spending power of any generation, don t move past these consumers who are seeking a balance between tasty and healthful foods as they age JUNE 2018 OR GET THE FOUR-PART GENERATIONS BUNDLE 4,000 consumers retail and foodservice report x-tab tool webinar GET STARTED. Contact Brian Darr at 312-655-0594 or brian@datassential.com

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