MENU TRENDS 2013 What’s Hot, What’s Not, What’s Next?

Presented by Nancy Kruse The Kruse Company

Menus 2013 Introducon

NEW ITEM INTROS HIT RECORD HIGH LEVELS: TOP 250 CHAINS, FIRST HALF 2012 Category New Items LTOs Entrées 1,640 1,415 Sides 459 137 Appezers 410 342 Desserts 397 344 371 265

Source: Technomic, Inc., MenuMonitor; Menu Innovaon Report

Menu Trends 2013 Agenda

• 5 Menu Must Haves • 5 Menu Newsmakers 5 Menu Must Haves Key Points ü Freshness ü Flavor ü Premiumizaon ü Customizaon ü Miniaturizaon What’s Hot? I. Freshness FRESH LOOK AT LOCAL FOODS % Offering Fine Dining 90% Casual Dining 63 Family Dining 56 Fast Casual 45 Fast Service 28

Source: Naonal Restaurant Associaon

Freshness Evoluon 1. Points of Origin Shari’s Fresh Blackberry LTO “Fresh Blackberries Grown in Northwest”

Blackberry Pulled Pork Salad Freshness Evoluon 2. Grower Idenficaon ’s Fresh Blackberry LTO Freshness Evoluon 3. Grown on Site HMSHost + Chicago Department of Aviaon’s Aeroponic Garden at O’Hare

What’s Next? Pushback What’s Hot? II. Flavor Synergy

INFLUENCES ü Ethnic foods ü Chef sensibility ü Sophiscated palates ü Experimentaon ü Approachability

Chili’s Pick-a-Pepper Promoon Sweet + Heat: Rubio’s Mango-Habañero Ono Taco

• Mango-Habañero Pineapple Salsa • Smoky Red Chile Sauce -Guajillos -Anchos -Red Jalapeños Erbert & Gerbert’s Luna

Eau Claire, WI Sweet + Smoky: ’s Maple-Glazed Entrée

• Salmon & Shrimp • Wood-Fire Grilled • Maple-Cherry Glaze Publix Supermarkets Take Leaf from Restaurants Sweet + Salty: ’s Salted Caramel Shake

• Red Hawaiian Sea Salt Denny’s Caramel-Bacon Stuffed French Toast

• Bacon Filling • White Chocolate- Cream Cheese Spread • Warm Maple Syrup • Bacon-Bit Sprinkles Sweet + Savory: Burger 21’s Ahi Tuna Burger

• Caramel Soy • Sriracha • Fresh Avocado • Pickled Cucumber L’Escale’s Black Cod with Sugarcane Marinade

• Fresh Ginger • Spiced Lobster Broth • Carrots, Onions, Fava Beans

Greenwich, CT What’s Next? Pucker Up for Sour

INFLUENCES

ü Korean Cuisine

ü Pickles/Pickling/Fermenng ü Vinegar/Vinaigree ü Greek Yogurt, Feta

Kogi Truck’s Bacon Kimchi Tofu Dog Los Angeles, CA What’s Hot? III. Premiumizaon

“Premium” Menu Menons On the Rise 2007 2012 69 138

Burger King’s Sandwiches

Source: Mintel Menu Insights

Taco Bell’s Canna Menu

Created by Chef Lorena Garcia

Fire-Roasted Corn Salsa, Black Beans, Cilantro Rice, More

Romano’s Macaroni Grill’s Parmesan-Crusted Veal Chop

• Bone-in Scaloppine • Prosciuo • Truffle-Mushroom Demi-Glace What’s Next? Liquid Assets Mac McGee’s Steak & Mushroom Pie

•Guinness Gravy

Roswell, GA What’s Hot? IV. Customizaon

Pie Five Leads Fast-Casual Pizza Pack Sandwich Concepts Offer Choices… Melted @ Northern Michigan University

Grilled Cheese Concept: 9 Breads; 5 Cheeses; Many, Many Toppings …And Yogurt Chains Put Patrons in Charge Menchies Frozen Yogurt: Mix, Weigh, Pay What’s Next? Pushback Umami Burgers Allows No Modificaons

EARTH BURGER •Mushroom-Edamame Pay •Slow Roasted Tomato •White Soy Aïoli •Truffle Ricoa •Cipollini •Leuce

Los Angeles, CA What’s Hot? V. Miniaturizaon

INFLUENCES üShareable üGrazeable üExperimentable üPoron controllable üCalorie controllable üCost controllable üDaypart, occasion flexible

TGI Friday’s New Taste & Share Menu Wendy’s Salad Program

• Entrée Size • Half Poron • Side Salad ’s Happier Hour What’s Next? Snacking Naon

WE’RE SUBSTITUTING SNACKS FOR MEALS

Usually skip or replace one 42% meal/day with snacks

3 meals with few snacks in 36% between

Usually skip or replace 2 9% meals with snacks

3 meals with many snacks 6% between

3 meals, no snacks 5%

Usually just snacks, no 1% meals

Source: Technomic Snacking Occasion Consumer Trend Report 5 Menu Must Haves What’s Not So Hot? • Poor menu merchandising – Seasonality – Hands-on prep – Kitchen experse – Flavor enhancements • Menu inflexibility – Controlled customer control – Poron opons

5 Menu Newsmakers Key Points ü The Chicken… ü …And the Egg ü Skin in the Game ü Corn Pone ü Greek to Me

What’s Hot I. Chicken Out

POULTRY IN MOTION Increase on Menus 2012 vs. 2009 Items with Poultry Ingredient 12% Chicken Fingers 10 Chicken Wings 19 Chicken on Pizza 26 Chicken Wraps 35

Source: Mintel Menu Insights Chefs Flock To Chicken Concepts

Bantam & Biddy Pecking Order Atlanta, GA Chicago, IL

Yardbird Miami, FL Fried Chicken Is Hot Thomas Keller’s Addendum

Yountville, CA Fried Chicken Is Really Hot One Eared Stag’s “Nashville Hot” Chicken Sandwich

Atlanta, GA

Fried Chicken Is Cold, Too ink.sack Federal Donuts Los Angeles, CA Philadelphia, PA Burger Chains Take Flyer on Chicken McDonald’s Tesng …Spicy McBites Bone-In Mighty Wings… Were Summer LTO

40 What’s Next? Beer Chicken Segment What’s Hot? Shell Games

INFLUENCES ü Protein packed ü Cost efficient ü Ethnic compability ü Around menu ü Around clock ü Comfort image ü Versale prep>>>>> Chefs Bedeviled By Eggs… Wayfare Tavern’s Deviled Eggs

•Fried Shrimp •Old Bay Yolks •Bread & Buer Pickles

San Francisco, CA …And Chains Like Them, Too Cracker Barrel’s Grilled Chicken ‘n Fresh Vegetable Salad

With Deviled Eggs, Country Pepper Vinaigree Incredibly Edible In Soups… Lile Donkey’s Sopa de Puerco

Birmingham, AL …In Salads… First Watch’s The Poacher

•Spinach •Bacon •Tomato •Avocado …In Pasta Dishes… Romano’s Macaroni Grill’s Pasta Carbonara …And In Pizzas and Flatbreads Piire Pizza’s Del Frisco’s Grille’s Greens, Egg & Ham Carbonara Flatbread

Los Angeles, CA Eggs Play Well With Sandwiches

Liberty Tap Room & Grill

Charleston, SC Franks ‘n Dawgs Brunch Dog

• Pork Loin Breakfast Sausage • Cobb-Smoked Bacon • Fried Egg Over Easy • Maple Mayonnaise

Chicago, IL

Rathbun’s Blue Plate Kitchen’s Croque Madame

Dallas, TX What’s Next? Egg-stra Special Breakfasts

Wow Bao’s Breakfast Bao

Chicago, IL Newsmakers III Crunch Time USE OF “CRUNCHY” IN MENU DESCRIPTIONS Year Menons 2008 195 2009 201 2010 209 2011 214 2012 226

Source: Mintel Menu Insights Chefs Have Skin in Game Yusho’s Skin Tasngs

SKIN IS IN • Chicken: Catbird Seat, Nashville • Salmon: Yusho, Chicago • Pork: The Greenhouse Tavern, Cleveland • Duck: Paris Club, Chicago

Some Operators Porkin’ Out The Alembic’s Hot Dog with Chicharrónes

San Francisco, CA Smith & Wollensky’s Cracklin’ Pork Shank

• Slow Cooked, then… • …Fried for Crispy Skin • Pineapple-Mustard Glaze • Creamy Sauerkraut • Firecracker Applesauce More Chains Feeling Crunch Steak ‘n Shake’s Jalapeño Crunch Steakburger

•Pepper Jack •Chipotle Mayo •Fresh Salsa •Jalapeños •Crispy Fried Onions White Castle’s Crispy Jalapeño Cheese Fries Taco Bell’s Doritos Locos Tacos What’s Next? Silky Smooth Ford’s Filling Staon’s California Avocado Grill’s Lamb Sandwich with Burrata Grilled Avocado Caprese

Culver City, CA Escondido, CA What’s Hot? IV. Menus Get Corny Cracker Barrel’s Shrimp & Grits with Roasted Corn Bread Elote Goes On and Off Cob Canna Feliz’s Elotes Locos Velvet Taco’s “Elote Style”

Ft. Washington, PA Dallas, TX Corn Dogs Go High and Low Oakley Bistro’s Shrimp Corn Dogs Sonic’s Corn Dogs Truffle Oil Mustard Sweet Corn Baer

Indianapolis, IN Corn Goes Back to Roots…

Bahama Breeze’s Sweet Peruvian Corn Cakes

•Roasted Pineapple Salsa …And Corn Goes Mul-Naonal The Greenhouse Tavern’s Corn Carbonara

•Creste Noodle •Pancea •Sheep ’s Milk Cheese •Black Pepper •Bread Crumbs

Cleveland, OH Speaking Of Corn

• “Farm to Table” Methods • 100% Estate-Grown Corn • Dislled Four Times What’s Next? Veggie-rama

No. 7 Subs’ No. 7 Subs’ Roasted Cauliflower Sandwich Broccoli Sandwich

Fried Shallots, Romaine, Chutney Mayo Mozz, Thai Basil Pesto, Fried Lemon What’s Hot? V. It’s Greek to Me

INFLUENCES • Yogurt, yogurt, yogurt! • Med cuisine tailwind • Accessible foods/flavors • Fast casual chains • High profile chefs Lile Greek Goes Tradional

• Mousaka • Passio • Dolmades >>>> • Souvlaki • Avgolemono Soup • Gyros • Spinach Pie • Baklava Goes Savory GREEK YOGURT + • Fresh Cucumbers • Sesame Nuggets • Red & Yellow Peppers • Drizzle of Honey & Chili Powder or • Almond Pesto • Sliced Almonds • Tomatoes • Olives • Sea Salt

Other Operators Get to the Greek

BGR/The Burger Joint’s THE GREEK • Freshly Ground Leg of Lamb • Cumin, Mint, Garlic • Tzatziki Sauce • Feta Cheese Cheesecake Factory’s Santorini Farro Salad • Farro • Beets • Cucumbers • Tomatoes • Red Onion • Feta Cheese • Tzatziki • Vinaigree Miami Subs Grill’s Mediterranean Gyro Sub Z Pizza’s Greek

• Feta • Mozzarella • Red Onions • Greek Olives • Tomatoes • Oregano What’s Next? Eastern Med Street Foods Ro Mediterranean Grill’s Falafel

•Organic Chickpeas 5 Menu Newsmakers What’s Not So Hot? • Failure to exploit key trends – Sauces, dressings, condiments – Sides, salads, sandwiches – Small bites, snacks • Failure to communicate – Take credit – Toot your own horn – Don’t leave money on the table!

Menus 2013 What’s Hot, What’s Not, What’s Next?

ü 5 Menu Must Haves ü 5 Menu Newsmakers Thank you!