FLAVORS TO WATCH Stay on Trend with Global Fast Casual Fare Flavors Sweeping Fast Casual Restaurants Global influences intrigue local customers.

Fueled by younger consumers, on-trend cuisines are increasingly more global.1 For these ethnic cuisines, staying power expands far beyond ethnic Fast Casual restaurants. The opportunity is there for Fast Casual restaurants to innovate with diverse ingredients incorporated into familiar dishes.

Spicy, fermented, sweet – the list of flavors customers seek expands daily. Yet Fast Casual operators might be hesitant to incorporate new ingredients because of cost control, food waste, or a number of other menu-shrinking drivers.2 By balancing ingredients customers actively request with ingredients that have a high interest rating but are on less than 10% of restaurant menus, operators can spark interest and convince customers to take a bite. Plus, consumers are looking for new foods and beverages and, most of the time, restaurants are the establishments where diners first encounter new ingredients.3

51% of customers discover on-trend menu items at restaurants and 75% of those customers actually tried the on-trend item. 3

Read on to learn more about how global ingredients and flavors are valuable to Fast Casual operators looking to shake up their menus. Explore global flavors from spices to main dishes to beverages.

1 Datassential, CPP – Generations, 2015 2 Datassential, Pulse – Changing Menu Sizes, December 2016 3 Datassential, CPP – Flavor Dynamics, 2015

NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 2 CHAPTER 1 SPICES, SAUCES & CONDIMENTS CHAPTER 1: SPICES, SAUCES & CONDIMENTS Boost Dishes with a Dash of Spice Spices, sauces, and condiments boost flavor profiles.

A simple way to boost flavor, provide texture, or balance color on a given dish is to add spices, sauces, and even condiments to elevate a menu item. Customers consider a Japanese sauce like ponzu to be more unique than marinara or salted caramel. And diners believe truffle oil is more interesting than tzatziki sauce or rosemary. As ingredients move along the Menu Adoption Cycle, perceived star power diminishes.1

THE MENU ADOPTION CYCLE

INCEPTION ADOPTION PROLIFERATION UBIQUITY6 On-trend ingredients Lower price points and a Mainstream All sectors use begin at inception better understanding of how appeal the ingredient to use the ingredients

Ethnic Independents Fast Casual Restaurants Lodging Convenience Stores Fine Dining Restaurants Gastropubs Casual Chains Corporate Cafeterias Chef Casuals Colleges Family Restaurants Food Trucks Quick Service Restaurants Healthcare Upper Casual Grocery Deli K-12 Schools Casual Independents

1 Datassential, CPP – Flavor Dynamics, 2015 2 Datassential, MAC White Paper, November 2016

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FAST CASUAL MENUS WITH MIGHTY FLAVOR

Spices, sauces, and condiments can enhance dishes by bringing out different flavor profiles of vegetables, meats, fruits, and other ingredients.

FERMENTED WARM SWEET Miso3 Cinnamon2 Ganache4 Fermented soybean paste used in Made from the inner bark of A simple cream and chocolate Asian cuisines. 25% of consumers trees, cinnamon has been used for mixture, ganache is a versatile sauce. have tried miso. thousands of years. It can be found Since chocolate is consumers’ favorite in global spice mixes such as garam flavor for almost all types of desserts, masala, jerk spice, and ganache has the potential to be Chinese five spice. a best seller.

SPICY TANGY FATTY Gochujang1 Mignonette5 Coconut Oil5 A Korean condiment that contains A light sauce served with seafood, This oil is used to add a lavish red chili, rice, soybeans, and salt. typically traced back to French component to Asian dishes and Gochujang has grown on menus by cuisine. Although it’s only on 2% of beyond. Fat is now back on trend, over 1,700% in the last 4 years. restaurant menus, 32% of consumers adding richness to foods and even are interested in trying it. beverages.

1 Datassential, MenuTrends Penetration – Gochujang, 2016 2 Datassential, On the Menu, December 2015 3 Datassential, On the Menu, October 2015 4 Datassential, On the Menu, October 2016 5 Datassential, On the Menu, December 2016

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Keeping a variety of items and fear of alienating customers by removing their favorites has led about 35% of operators to increase the number of items on their menus.1 When operators add a new dish, they might be afraid that it will fail. Luckily, there are some ingredients that customers are actively seeking out.

There are many options for those looking to add on-trend flavors. With spices, sauces, and condiments, Fast Casual operators can refresh their menu items with ease and build profit. Aioli, honey butter, harissa, and gremolata also have become more prevalent on menus over the last few years.6 The following ingredients grew 100% or more on menus over the past 4 years.

HIGH PROFITABILITY POTENTIAL

105%5 3 SEA SALT 515% SRIRACHA

117%2 AGAVE

143%4 SOFRITO

1 Datassential, Pulse – Changing Menu Sizes, December 2016 2 Datassential, MenuTrends Penetration – Agave, 2016 3 Datassential, MenuTrends Penetration – Sriracha, 2016 4 Datassential, MenuTrends Penetration – Sofrito, 2016 5 Datassential, MenuTrends Penetration – Sea Salt, 2016 6 Datassential, Modern American Food Trends, December 2015

NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 6 CHAPTER 2 MAIN INGREDIENTS CHAPTER 2: MAIN INGREDIENTS Menu Additions with New Flavors Create bold dishes customers can’t wait to try.

After establishing which new spice combinations to use, which sauces to pour, and what condiments to offer, it’s time to invent menu items or enliven existing ones. One way to capture customers’ attention is to be bold by using innovative ingredients.

There are plenty of ingredients that people think they would enjoy but are on less than 10% of restaurant menus. When Fast Casual restaurants add out-of-the-box ingredients to the menu, the restaurants have a better chance of standing out. Operators can explore menu items that customers say they have been waiting to try.

One of the many drivers for diners who frequent Fast Casual restaurants is ethnic food – 13% of consumers planned their last Fast Casual trip because they wanted ethnic food. Expanding to a more globally-driven menu or tweaking entrée and dessert choices appeals deeply to diners. In fact, 83% find the idea of authentic ethnic cuisine appealing.5 Global inspiration is not just for main dishes, global flavors span dayparts and meal parts.

1 Datassential, On the Menu, October 2016 2 Datassential, On the Menu, December 2016 3 Datassential, On the Menu, May 2016 4 Datassential, On the Menu, January 2017 5 Datassential, CPP, 2015

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TRAILBLAZER MENU ITEMS

CHALLAH2 TONKATSU1 HOUSE-MADE CEREAL3 FALAFEL4

WANT TO TRY IT ORIGIN WANT TO TRY IT ORIGIN WANT TO TRY IT ORIGIN U.S.A. WANT TO TRY IT ORIGIN ISRAEL JAPAN THE MIDDLE 34% 36% 42% 43% EAST

MENU IDEAS MENU IDEAS MENU IDEAS MENU IDEAS Challah is a thick, doughy Think of tonkatsu as a close A better-for-you breakfast Falafel can be used as an bread that can stand up to relative of pork schnitzel. It’s option, house-made cereal appetizer, side dish, or main long cooking times and lots approachable enough for oftentimes uses less sugar and dish and can be infused with of toppings. A great go-to consumers to want to try it more natural flavors. Serve all different spices including bread for French toast or even with rice or alongside wasabi with milk or possibly offer it as za’atar and harissa. a viable option for croutons, mashed potatoes an ice cream topping. Challah can add more intrigue to Fast Casual menus.

KHACHAPURI4

WANT TO TRY IT ORIGIN REPUBLIC OF 45% GEORGIA

MENU IDEAS Think of khachapuri as a cousin to pizza. This cheesy, crusty bread is suitable for all dayparts and topping it with an egg makes it an out-of-the-box breakfast offering

1 Datassential, On the Menu, February 2017 2 Datassential, On the Menu, July 2016 3 Datassential, On the Menu, November 2016 4 Datassential, On the Menu, October 2016 5 Datassential, On the Menu, January 2017

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TRAILBLAZER MENU ITEMS

SMOOTHIE BOWLS5 ALTERNATIVE FRIES4

WANT TO TRY IT ORIGIN U.S.A. WANT TO TRY IT ORIGIN U.S.A. 45% 46%

MENU IDEAS MENU IDEAS Fast Casual operators that Alternative fries are a quick- already offer smoothies are at to-add option to Fast Casual an advantage for offering menus. Many alternative fry smoothie bowls. Since they options involve vegetables like are easily customizable, zucchini or asparagus, which restaurants can offer build- are coated in batter and fried or your-own smoothie bars. baked for customers to enjoy.

BANOFFEE PIE2 HUEVOS RANCHEROS1 CREPES3

WANT TO TRY IT ORIGIN WANT TO TRY IT ORIGIN WANT TO TRY IT ORIGIN ENGLAND MEXICO 47% 50% 59% FRANCE

MENU IDEAS MENU IDEAS MENU IDEAS Banoffee pie is made with Huevos rancheros takes Crepes have a light flavor bananas, cream, and toffee, sunny-side up eggs and puts that can be filled with typically with a biscuit crust them over salsa and refried almost any sweet or savory base. These flavors can be beans, all served on a tortilla. ingredient from chocolate to incorporated into ice cream Offer huevos rancheros strawberries to cheese. sundaes, crepes, or sorbets. as a breakfast item or use the same ingredients for innovative burgers or pizzas

1 Datassential, On the Menu, February 2017 2 Datassential, On the Menu, July 2016 3 Datassential, On the Menu, November 2016 4 Datassential, On the Menu, October 2016 5 Datassential, On the Menu, January 2017

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MANY DINERS PLAN BEVERAGE-ONLY OCCASIONS Global Inspiration in a Glass DURING THE DAY.1 Emphasize ethnic flavors on beverage menus.

When Fast Casual consumers order a main course away from home, over half of diners also order a beverage other than water1 making beverages another menu opportunity to globalize. Beverages are a staple on Fast Casual restaurant menus. In fact, beverages are oftentimes one of the menu segments with the most offerings.2 Beverages can drive profit across all dayparts but a large segment of diners are opting to include a beverage with their snack, opening up 1 an opportunity for operators to build traffic across slower dayparts. 35% Sometimes diners purchase only a beverage. Although 53% of NOT HUNGRY beverage-only occasions are preemptive, there are also consumers ENOUGH who spontaneously decide only to purchase a beverage – 47% to be exact.1 19% 68% of snacks purchased away from home also THE BEVERAGE SATISFIED MY include a beverage.1 HUNGER/CRAVING

18% WAS LOOKING FOR SOMETHING REFRESHING

14% THE BEVERAGE WAS FASTER/ 1 Datassential, CPP, February 2017 MORE CONVENIENT 2 Datassential, Pulse – Changing Menu Sizes, December 2016

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Double down on ethnic flavors by pairing global beverages with worldly cuisine. About a quarter of diners order beverages at restaurants in order to have something to go with their meal, so operators might have an even better chance of capturing consumers’ attention with suggestions for beverage pairings readily available.7

BEVERAGES AROUND THE WORLD

CAFÉ DE OLLA1 COLD BREW COFFEE2

ORIGIN ORIGIN MEXICO

NETHERLANDS

DESCRIPTION DESCRIPTION A thick, sweet, rich coffee drink made with Coffee beans steeped in cool water for 10 hours spices like cinnamon and cloves or more for a smoother, less bitter cup of coffee

FACT FACT Sometimes called “cowboy coffee” because Incidence on menus has increased by more than of its ties with cowboys who made the drink 1,700% since 20053 over the fire when they needed to warm up

THAI ICED TEA4 MATCHA5 APPLE CIDER6

ORIGIN ORIGIN ORIGIN U.S.A. THAILAND

CHINA

DESCRIPTION DESCRIPTION DESCRIPTION A black tea flavored with star anise A green tea used as a beverage or An unfiltered, unsweetened beverage and cinnamon incorporated into desserts made from fresh apples

FACT FACT FACT 1 Datassential, On the Menu, September 2016 2 Givaudan Flavors, Why Explore Cold Brew Coffee?, June 2016 Can include sweetened condensed milk or tapioca Matcha has grown 90% on menus in the 60% of consumers want to try apple cider 3 Datassential, MenuTrends, 2016 pearls (boba); known for its bright, orange hue past 4 years 4 Datassential, On the Menu, July 2015 5 Datassential, MenuTrends Penetration – Matcha, 2016 6 Datassential, On the Menu, December 2016 7 Technomic, Beverage Consumer Trend Report, 2016

NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 13 CHAPTER 4 AMERICLECTIC CUISINE ON FAST CASUAL MENUS CHAPTER 4: AMERICLECTIC CUISINE ON FAST CASUAL MENUS Regional Influences on Global Flavors American menus get global.

From region to region and state to state, local and global flavors intertwine. The demand for authentic homemade dishes drives consumers to Fast Casual restaurants that have a little taste of home. Different cultures have heavy impacts on specific regions around the United States.1

MOUNTAIN NEW ENGLAND

PACIFIC MIDWEST NORTHWEST

SOUTHWESTERN

MID-ATLANTIC

SOUTHERN

HAWAIIAN

1 Givaudan Flavors, Regional American Cuisine Culinary Breakouts, 2017

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WHILE TRADITIONALLY MANY REGIONS HAVE SIMILAR ROOTS, THE FLAVORS THAT ARE ON TREND DIFFER

NEW ENGLAND MID-ATLANTIC SOUTHERN MIDWESTERN

INFLUENCES INFLUENCES INFLUENCES INFLUENCES PORTUGAL, THE NETHERLANDS, AFRICA, GERMANY, POLAND, NATIVE AMERICAN ENGLAND, NATIVE AMERICAN, AUSTRIA, IRELAND, AFRICA SPAIN, SCANDINAVIAN THE CARIBBEAN PENINSULA

TRADITIONAL DISHES TRADITIONAL DISHES TRADITIONAL DISHES TRADITIONAL DISHES New England Clam Chowder, Maine Lobster1 Homemade dumplings, Chicken pot pie, Scrapple1 Grits, Creole Food, Soul Food1 Bratwurst, Cincinnati Chili, Chicago-style Hot Dogs1

ON-TREND ON-TREND ON-TREND ON-TREND The push for “fresh”is strong. 93% of diners Food halls originated in Philadelphia beginning in Many operators are recreating traditional comfort Detroit-style pizza is characterized by a thick, airy believe food and beverages offered at Fast Casual the 1600s, but took off in the early 1900s. Many foods by refining the dishes for a more crust and toppings beneath the sauce to prevent establishments are either somewhat or very fresh.2 food halls today have Fast Casual restaurants upscale feel.4 sogginess. With 64% of diners interested in available in addition to other vendors.3 trying Michigan’s take on pizza, Detroit-style could begin to take the place of Chicago deep-dish and New York thin pizza on menus.5

HAWAIIAN PACIFIC NORTHWEST SOUTHWESTERN MOUNTAIN

INFLUENCES INFLUENCES INFLUENCES INFLUENCES POLYNESIA, JAPAN, CHINA, JAPAN, NATIVE AMERICAN, NATIVE AMERICAN, THE PHILLIPINES, KOREA, ITALY, SPAIN, MEXICO, COWBOY CHINA, KOREA, GREECE EUROPE PORTUGAL

TRADITIONAL DISHES TRADITIONAL DISHES TRADITIONAL DISHES TRADITIONAL DISHES Ahi tuna, Poi, Spam, Poke1 Alaskan King Crab, Shitake mushrooms, Chiles rellenos, Fish tacos, Fajitas1 Gelatin desserts, Rocky Mountain oysters, Washington apples1 Idaho potatoes1

ON-TREND ON-TREND ON-TREND ON-TREND Although poke is only on 2% of restaurant menus, With restaurants’ desire to create less waste, rough An Asian Fast Casual concept has taken the Consumers in the Mountain region – specifically 24% of consumers want to try it.9 fish (fish not typically eaten) are beginning to Southwest’s Mexican influences and mashed them Utah – eat more gelatin desserts and gelatin salads make their way onto menus. The Pacific Northwest, with Japanese cuisine to create a sushi and than any other state.1 Savory gelatins such as aspic particularly Oregon, is home to some of these fish. burrito all in one.8 have the potential to work well in Utah Fast Casual And 38% of chefs believe using rough fish on restaurants. Although only in its inception phase, menus will be a long-term trend.7 aspic is a nostalgic dish for some diners.6

1 Givaudan Flavors, Regional American Cuisine Culinary Breakouts, 2017 2 Datassential, CPP, 2015 3 Datassential, Creative Concepts – Food Halls, April 2015 4 Datassential, Modern American Food Trends, December 2015 5 Datassential, On the Menu, January 2017 6 Datassential, On the Menu, November 2016 7 Datassential, FoodBytes – 2017 Trends, December 2016 8 Datassential, FoodBytes – Trend or Fad?, August 2016 9 Datassential, On the Menu, May 2016 NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 16 CHAPTER 4: AMERICLECTIC CUISINE ON FAST CASUAL MENUS

Operators have the chance to give their customers a global food experience. Plus, 29% of diners like dishes that feature more than one type of cuisine. Mexican and Asian are two Fast Casual cuisines gaining popularity at a steady pace.1

SOUTH OF THE BORDER Mexican Fast Casual restaurant sales are expanding, earning 43% of Mexican Limited Service Restaurant sales.2 And customers want more Mexican ingredients at their favorite spots despite the fact that 73% of Fast Casual restaurants already serve some type of Mexican-inspired dish. 3

Fast Casual customers also want more Asian flavors on menus. Asian- Mexican fusion finds its home in Baja cuisine. Infusing Asian and Mediterranean influence into Mexican dishes, Baja cuisine originated in Tijuana.4

59% of consumers would like to see more Mexican dishes at Fast Casual restaurants.3

With Asian and Mexican Fast Casual restaurants expanding at a rapid pace, operators can capitalize on the desire to try different cuisines. The term “Baja” is used to describe The variety of ingredients available to operators – gochujang, chorizo, all different types of menu items from galangal, tofu, and more – offer up unlimited ways to update menus 5 to suit globally-minded consumers. The distinctive flavors that both tacos to cold beverages. Asian and Mexican cuisines offer has the potential to attract a wide consumer base.

1 Technomic, Ethnic Flavor and Protein Insights – Nestlé Professional, June 2016 2 Technomic, The Future of LSR – Fast Food and Fast Casual Trend Report, 2016 3 Technomic, MenuMonitor, 2016 4 Technomic, The Future of LSR – Fast Food and Fast Casual Trend Report, 2016 5 Datassential, On the Menu, April 2016

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ALONG THE PACIFIC Although all Asian cuisines have the potential to attract customers, most diners are in favor of Chinese-inspired plates that please the palate. When consumers are choosing a dinner entree, 52% are likely to order a Chinese-style chicken dish.1

FAST CASUAL CUSTOMERS CRAVE CUISINES FROM THE PACIFIC2

35% 44% 44% CHINESE THAI JAPANESE

Fast Casual customers seek out Asian concepts – 60% would visit if given the opportunity.3 Additionally, among those eating out for lunch during the work week, 35% would order an Asian-inspired lunch.4

79% of Fast Casual menus contain at least one Asian dish.5

Bowls are gaining popularity and a way to please even picky customers by allowing them to make their own. For an Asian twist, stir fry allows back-of-the-house Fast Casual teams to incorporate Asian ingredients into menus. In fact, 62% of all consumers are interested in make-your-own stir-fry concepts.6

1 Technomic, Poultry Consumer Trend Report, 2015 2 Technomic, The Future of LSR – Fast Food and Fast Casual Trend Report, 2016 3 Datassential, Creative Concepts – Asian Fast Casual Restaurants, November 2015 4 Technomic, Lunch Consumer Trend Report, 2016 5 Technomic, MenuMonitor, 2016 6 Datassential, Creative Concepts, November 201

NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 18 CONCLUSION Globally-Minded Menus Flavor Trends at Fast Casual Restaurants

There are a wide variety of on-trend flavors that Fast Casual operators can use to revitalize their menus. Global spices, sauces, and condiments accompany main menu items to boost flavor while ethnic entrée offerings attract consumers cross-generationally. Beverage menus can also be reinvented to include drinks from all over the world and beverages can be paired with main dishes for a globally-inspired combo, and 45% of customers are interested in trying new ethnic foods.1

Staple local cuisines across the United States can trace meals back to ethnic influences and on-trend ingredients today have the potential to impact these well-known regional flavors.

With so many opportunities to add ethnic flairs to the menu, operators can innovate for globally-minded diners.

73% of operators claim their menus have at least some ethnically-inspired food, flavor, or ingredient.2

1 Datassential, CPP, February 2017 2 Datassential, PULSE - Ethnic Foods, 2015

NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 19 Nestlé Products Overview THE LATEST GLOBALLY-INSPIRED NESTLÉ PROFESSIONAL PRODUCTS

KOREAN BBQ SAUCE PERI PERI SAUCE BEEF PHO CONCENTRATE ROASTED TOMATILLO SALSA Sweet and sour with spicy South African sauce made Vietnamese broth base Mexican salsa with just a hint and smoky notes with chili peppers, garlic, with bold flavor of spice and a hint of lemon

GREAT FOR GREAT FOR GREAT FOR GREAT FOR stir fry, bulgogi, pizza chicken skewers, grilled broth bowls with rice tacos, huevos rancheros, sauce fish, chicken wings noodles, sliced beef, green posole onions, and radishes