A National Pork Board Report All About Dining Out: Executive Summary 3 Table Restaurant Segments 5 of the Dining out Landscape 6 Multicultural Is Mainstream 7
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A National Pork Board Report All About Dining Out: Executive Summary 3 Table Restaurant Segments 5 of The Dining Out Landscape 6 Multicultural is Mainstream 7 Contents LSRs See Growth in Fresh Pork 8 What Drives Dish Decisions? 9 9 Dish Occasions 10 Indulging Taste 11 Friendly Flavors 11 Dining Duos 12 Family Celebrations 13 Personal Cravings 14 Social Sharing Integral to Dining Experience 15 The Stars of Latin-Asian Fusion Cuisine? Mendin and Pork 16 Pork Implications 17 Eating Healthy 18 Fit Fuel-Up 19 A Healthy Balance 20 Pork’s Leading the Pack on Transparency 21 Pork Implications 22 Quick and Convenient 23 Quick Picks 24 Convenient Catch-Ups 25 On the Fly 26 Consumers Seek Experience and Customization 27 Dining Out at the Convenience Store 28 Fresh and Local Pork Scores Sales Gains for Rutter’s 29 Fueling Up with Fresh Tex-Mex Flavors 30 Pork Implications 31 LOOKING AHEAD 32 Sources 33 Research Methodology 34 All About Dining Out: Executive Summary The landscape of dining out in It requires finding a point of operators’ opinions, shows areas America is experiencing seismic differentiation. And that’s where pork of opportunity for pork, as well as shifts. Where people expect to find comes in. large gaps in understanding. In fact, meals made with fresh, healthy both consumers and foodservice ingredients looks a lot different today Our research into consumers’ operators have positive things to say than 10 years ago, with expectations dining out habits, as well as about pork: now including venues from convenience stores to airport kiosks. As foodservice operators look to level CONSUMER OPERATOR up their offerings, competition has PERCEPTIONS PERCEPTIONS become more intense. People enjoy eating pork when they They think it’s flavorful and versatile On a per capita basis, we eat at dine out because they don’t always restaurants 31 fewer times per year make it at home than we did in 2000. And while restaurant dollars are expected to see They want to see more pork on menus They’re open to adding pork to their slight growth due to price increases, menu traffic is expected to remain flat after several quarters of decline.1 They would visit a restaurant more They want to find more ways to menu frequently if it offered more pork pork dishes What’s the secret to breaking through a crowded and competitive They’re highly satisfied when they One of the top three most important environment? How can foodservice order fresh pork when dining out factors when dining out is menu operators drive traffic and increase variety, so new pork dishes give sales during times of rising costs? operators an opportunity to increase customer loyalty2 3 With both consumers and operators in America, this report combines In All About Dining Out, we’ll review feeling positive about pork, it’s a more than 10,000 consumer the occasions that define dining protein that should be dominating interviews with demographic and out decisions. What are the factors menus. And while pork is featured on spending data, as well as foodservice that go into choosing a dish in a over 91% of menus as an ingredient, operator interviews, menu trends foodservice establishment? What are it only appears in 17% of entrees. and omnibus data. The result is the drivers, social considerations and When cuts such as bacon, sausage a comprehensive, in-depth look needs that shape that decision? And and pepperoni are removed, that at the needs, considerations and how can pork more seamlessly fit into number drops dramatically – less than motivators that impact out of home those occasions in ways that meet 7% of menu entrees feature fresh dining decisions when meat protein consumer demand and operator pork. is present. needs? As the No. 1 consumed protein Like all industries, foodservice Within this report and throughout globally, pork is on-trend, a source is experiencing monumental, 2019, we identify growth of healthy protein and a vehicle for rapid change. The competitive opportunities in the foodservice popular, experiential multicultural landscape, as well as ordering and industry and convert them into flavors and dishes. Consumers look delivery models, have completely powerful, collaborative ideas and for all these attributes in their meals; revolutionized foodservice over initiatives that empower industry pork should be a shining star on the past few years, and the pace of partners to succeed. We will provide menus. change shows no signs of slowing. insights into the markets, occasions and behaviors that shape Americans’ So, where’s the disconnect? Why Pork, and the meat industry in dining habits, and then drive action don’t operators offer more pork general, cannot continue to sit on to adapt. From Insight to Action, we options when consumers are clearly the sidelines watching these changes can be the disruptors, guiding the hungry for it? unfold. We need to be part of the future of the industry. story and part of the solution — the That’s what we set out to understand innovators helping foodservice in our latest Insight to Action report, operators tackle these challenges, All About Dining Out. Like our willingly and eagerly adapting to inaugural report, Dinner at Home meet consumer demand. 4 Restaurant Segments Throughout this report, we refer to different types of foodservice establishments. We define these as: LIMITED SERVICE RESTAURANTS (LSRs) • Quick Service Restaurants (QSRs): Counter service with no wait staff; focus on speed; food often served in disposables. • Examples: McDonald’s, Burger King, Taco Bell, Subway, Wendy’s, Domino’s Pizza, Little Caesars, Sonic • Fast Casual: Counter service with focus on fresh ingredients and customizations. • Examples: Chipotle, Panera Bread, Five Guys, McAlister’s, Firehouse Subs, Smashburger, Blaze Pizza FULL SERVICE RESTAURANTS (FSRs) • Midscale: Waiter service at moderate prices; often breakfast-focused and generally no alcohol. • Examples: Denny’s, IHOP, Steak ‘n Shake, Perkins, Braum’s, Friendly’s • Casual: Waiter service at a higher price point than midscale; often offering a full bar. • Examples: Applebee’s, Olive Garden, Red Robin, Marco’s Pizza,The Cheesecake Factory • Fine Dine: High-end table service with chef-driven menu; most entrees priced $25 or higher. • Example: Fleming’s Prime Steakhouse, Ruth’s Chris Steakhouse, The Capital Grille 5 The Dining Out Landscape The dining out landscape has gone available or because their food Getting there, however, requires through dramatic changes in recent options reflect their values. innovation on the part of foodservice years — and changes continue to operators and packers alike. happen. Consumers say personal values, such as their concern for the environment For example, many consumers stick A few decades ago, about two-thirds (43%), where pork is sourced (44%) to the items they know and love. of food and beverage spending and how animals are treated (44%), More than one in five consumers went to in-store purchases, typically are increasingly important in their (22%) say they will always stick with at supermarkets.3 Today, Americans pork choices.8 Operators agree: what is familiar, while more than spend more than 50% of their Nearly two-thirds of operators (65%) half of consumers (51%) are only food budgets on away from home say they think consumers would sometimes willing to try new things.11 (AFH) meals.4 Yet while people are increase their consumption of fresh Foodservice operators should spending a larger portion of their pork if it was marketed as “antibiotic- understand what dishes consumers food budget AFH, they are actually free,” and 56% think consumption know and love, and capitalize on their eating AFH less often.5 would increase if it was marketed as routine. “sustainably raised.” Part of this is due to consumers On the other hand, not only are enjoying foodservice meals at By segment, limited service half (51%) of consumers sometimes home, choosing to order takeout restaurants and other eating places willing to try something new, more and delivery through options like such as cafeterias, grills/grill buffets than one in four consumers (27%) GrubHub and Uber Eats. When and snack/non-alcoholic beverage consistently look for something new they do eat out, consumers have an bars now bring in more revenue to eat.12 Among the people who dine overwhelming number of choices, than full service restaurants, and out most frequently, innovative menu from restaurants to retail and food the gap is growing.9 Propelling the options and limited time offers are trucks to convenience stores. In fact, limited service restaurant segment important.13 Our research found that convenience store foodservice sales is the rise of fast casual venues that consumers seek out menu options reached about $38 billion in 2017, offer counter service with a focus on they don’t usually make at home. up 38% from 2012, with continued high quality, fresh ingredients and This represents an opportunity for growth expected.6 customization.10 foodservice operators to keep things fresh and experiment with the dishes In this challenging environment, The growth of fast casual, however, they offer. some restaurant chains thrive and does not equate to growth for the grow while others struggle and pork industry. There has been a 2% Finally, as fewer consumers eat dwindle. For example, Hawaiian decline in pork’s appearance on the traditional three square meals restaurants are opening at a faster restaurant menus in the fast casual a day, lines between dayparts are rate than other cuisines, while segment over the last 10 years. blurred. This offers an opportunity Chinese and steakhouse growth is for foodservice operators to leverage slowing.7 Providing dishes that will better meet these nontraditional dayparts with diners’ needs can help foodservice all-day offerings like snacks and Regardless of cuisine type, operators combat these challenges appetizers to drive incremental consumers expect higher quality — — attracting not only more people, business.14 they want to feel good about the but also a larger variety of people, food they’re eating, whether that’s increasing the frequency of their visits because it’s the highest quality and ultimately maximizing profit.