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SURVEY ANALYSIS Pg. 3 # WINNING BRANDS Pg. 22 # SEGMENT WWW.NRN.COM MARCH 24, 2014 A PENTON© PUBLICATION SURVEY ANALYSIS pg. 3 l WINNING BRANDS pg. 22 l SEGMENT RANKINGS pg. 24 Saving with sustainability pg. 52 • Restaurants, suppliers co-brand pg. 58 • Wendy’s marketing success pg. 68 WWW.NRN.COM MARCH 24, 2014 A PENTON© PUBLICATION PAGE 3 THE CHEESECAKE FACTORY’S CAJUN JAMBALAYA PASTA See which brands win diners’ devotions and why in the fourth annual survey BY ROBIN LEE ALLEN desires and rewarding brands that listen to their preferences. Three IN-N-OUT BURGER’S estaurants have questioned out of the four top-performing DOUBLE-DOUBLE CHEESEBURGER and studied for years the im- brands in their respective Con- Rpacts the Millennial age group sumer Picks restaurant industry will have on their businesses — segments — In-N-Out Burger RUTH’S CHRIS STEAK HOUSE’S THE ORIGINAL PANCAKE HOUSE’S and the answers have arrived. in Limited Service, The Original HERO RIBEYE APPLE PANCAKES In the fourth annual Consumer Pancake House in Family Dining Picks survey from Nation’s Res- and Ruth’s Chris Steak House in taurant News and WD Partners, Fine Dining — were buoyed by the rising importance of peer or high scores in many attributes, but social reviews, best tied to survey most importantly in Likely to Rec- attributes Likely to Recommend ommend. Many of the highest- and Likely to Return, showcase the ranking brands within the report’s dominant nature of sharing among subsegments, like Limited-Service Millennials. Beverage/Snack or Casual-Dining With the bulk of the estimated Italian/Pizza, also scored high in 90 million people born between Likely to Recommend. 1980 and 2000 now in their 20s “[The results are] tied to the and 30s, Millennials are dining increasing consumer power of out in droves, loudly voicing their CONTINUED ON PAGE 20 Fight for breakfast escalates BY LISA JENNINGS attack on the beloved Egg McMuf- Burger players like Burger King, fin and McDonald’s dominance at Jack in the Box and Hardee’s have rmed with a Waffle Taco and a breakfast. But Taco Bell joins a long fought to chip away at Mc- few years of Millennial-driven growing crowd of morning quick- Donald’s morning market share. Amomentum, Taco Bell is tak- service competitors, all hoping to Subway has trained consumers ing a bold step into the morning tempt consumers out of bed with to buy both a morning meal and daypart with its national rollout of innovative yet affordable offerings a sandwich to eat later for lunch. breakfast March 27. served with convenience, speed Chick-fil-A is spreading love for Many see the move as a direct and a decent cup of coffee. CONTINUED ON PAGE 10 Taco Bell’s breakfast rollout, featuring such innovative offerings as the Waffle Taco, is set to occur March 27. 20 | NRN.COM | MARCH 24, 2014 Learn how diners measure your brand in the fourth annual survey from NRN and WD Partners CONTINUED FROM PAGE 3 the Millennials, where two-thirds of Mil- lennials will probably ask friends for their opinions before going to a restaurant,” said Dennis Lombardi, executive vice president, foodservice strategies at WD Partners. The Dublin, Ohio-based consulting firm over- ATMOSPHERE CLEANLINESS CRAVEABILITY FOOD QUALITY MENU VARIETY sees the Consumer Picks survey. Combine this Millennial need to seek out opinions with the dominance of social media — research firm eMarketer estimates that two-thirds of U.S. Internet users, or 163.5 million people, were part of social media networks by the end of 2013 — and LIKELY TO REPUTATION LIKELY TO SERVICE VALUE RECCOMEND REURN that’s a lot of sharing. Restaurants need to be sure they are listening. Consumer Picks measures customers’ opinions of restaurant brands using 10 attributes, offer- As Millennials make more and more res- ing insights into where they’re excelling and where there’s room for improvement. taurant visits and share their opinions on social media, restaurant brand scores for Likely to Recommend and Likely to Return third-place position in 2013 to No. 1 in 2014. results, the importance of the Food Quality, within the Consumer Picks survey will take One of the attributes in which it excelled was Cleanliness, Value and Service attributes was on even more importance, Lombardi said. Craveability, where Original Pancake House not diminished. Success in those attributes re- “Likely to Recommend and Likely to Re- was nearly 16 percentage points higher than mained crucial to all consumers across all of the turn are the best ways to tell us their impres- runner-up Cracker Barrel. Original Pancake segments. The next most important attribute — sions,” he said. “Those scores are an aggrega- House also won the highest score for Likely to one that differs from segment to segment and tion of emotions and feelings.” Recommend, coming in 5.8 percentage points we call the ‘X factor’ — includes Craveability for The 2014 Consumer Picks report includes higher than runner-up Cracker Barrel. Limited Service, Atmosphere for Casual Dining survey results for 162 restaurant brands rep- Jon Liss, general counsel and corporate chef and Menu Variety for Family Dining. resenting four segments: Limited Service, for Portland, Ore.-based Original Pancake Brands that win over guests with the X fac- Casual Dining, Family Dining and Fine House, noted that social media had helped to tor tend to win overall consumer preference. Dining. The survey was fielded in January, raise the profile of the 121-unit chain, which For more insights into brand strengths and the and the results reflect more than 44,000 con- operates as a network of franchises. demographic trends driving dining-out choic- sumer attitudes on 10 attributes: Food Qual- “There’s a viral quorum, if you want to put es, turn the page for the full special report, in- ity, Value, Cleanliness, Service, Menu Variety, it that way,” Liss said. “In the past two to three cluding the full methodology and breakdown Reputation, Atmosphere, Craveability, Likely years we’ve broken through to get a national from WD Partners on page 50. n to Recommend and Likely to Return. reputation. There are more franchisees in- Beyond the growing importance of rec- volving themselves in social media, and that robinlee.allen@penton.com ommendations, the survey also revealed that might have some impact.” Millennials placed more value than the older Although Cracker Barrel edged ahead of baby boomer generation and seniors on Cra- Original Pancake House in its score for Atmo- INSIDE veability, no matter the restaurant segment. sphere — another attribute Millennials value Winning Brands p22 Those preferences led to a notable upset more within the Family-Dining segment than Limited Service p24 within the Family-Dining segment, where baby boomers and seniors do — and Menu The Original Pancake House this year de- Variety, it was not able to maintain its hold on Casual Dining p34 throned longtime top-scorer Cracker Barrel the No. 1 spot for the fourth year in a row. Fine Dining p42 Old Country Store. Original Pancake House While Millennials are throwing their weight Family Dining p44 garnered the highest scores for seven of the 10 around and the increased importance of the attributes in that segment, pushing it from its Likely to Recommend attribute is shifting Insights & Methodology p50 BY THE The Consumer NUMBERS: 44,458 Picks survey was ratings collected developed by WD restaurant industry segments Partners’ Insights chains ranked analyzed group, a division of 162 4 WD Partners. For new brands attributes more detailed or customized data, please contact 9 represented 10 addressed Dennis.Lombardi@WDPartners.com. MARCH 24, 2014 | NRN.COM | 21 WINNING BRANDS The four chains featured here placed No. 1 in their respective segments, with consumers reporting their love for characteristics ranging from the brands’ food quality to a reputation for excellence. The factors driving their success with guests are detailed below. LIMITED-SERVICE WINNER In-N-Out Burger Irvine, Calif.; 292 units Service: The starting wage for employees is higher SURVEY STRENGTHS: than the minimum wages in its markets, and the Food Quality: The burgers are made from never- chain is known for low turnover. frozen, 100-percent beef patties ground in-house and served on house-baked buns. Potatoes are cut Reputation: People have loved the concept since and fried in-house for fries, and milk shakes are 1948 in California. Slow growth has brought outlets made from real ice cream. Order your burger “ani- to Nevada, Arizona, Utah and Texas, where it has mal style,” and your patty will be grilled with mus- maintained its popularity. tard, and topped with grilled onions and extra sauce. Likely to Recommend/Return: Fans are unwaver- IN-N-OUT BURGER’S Value: A Double-Double cheeseburger with fries ing in their devotion. In California, in particular, all DOUBLE-DOUBLE is roughly $5 near Los Angeles. Given the quality, other burger brands are compared to In-N-Out, and CHEESEBURGER WITH In-N-Out’s prices are hard to beat. visitors are advised to visit the chain at least once. FRENCH FRIES IN-N-OUT BURGER IN-N-OUT FAMILY-DINING WINNER THE CHEESECAKE FACTORY’S MISO SALMON The Original Pancake House Portland, Ore.; 121 units SURVEY STRENGTHS: THE ORIGINAL PANCAKE HOUSE’S APPLE PANCAKES Food Quality: The brand seeks franchisees that already love the restaurant’s food and focuses on consistency. Reputation: This chain has recently made the leap from a cult fa- vorite to one with national buzz. Craveability: Specialties such as Apple Pancakes and a focus on top-quality ingredients garner the chain high ratings in this attribute. Likely to Recommend/Return: Original Pancake House leaves local marketing in the hands of franchisees that understand what their customers want, with the goal of turning them into regulars.
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