The Changing Consumer Environment for

Retail Store Food Service

by

Denis C. Wesenberg SuperValu Albuquerque, New Mexico

Introduction It has become increasingly important, therefore, that we as marketers make every effort A diversity of forces is driving the pace and to understand the “new” consumer--what drives direction of change in the American Foodservice. and influences her/him. For as the consumer The state of the industry is one of constant, changes, so our industry changes. dramatic,swift-moving change, requiring constant examination and analysis. Historical/Demographic Change

There’s no question that the changes that Occasionally,it is enlightening to look back lie immediately ahead are much different from and see how far we’ve come or how little we’ve those that unfolded in the immediate past, and changed. So let’s see just how food consumption that the forces driving those changes are con- patterns and society respond to events, changing siderably different. technology and demographic factors.

Much of what happened to the foodservice 1950s industry in the 1970s flowed directly from the forces set loose by soaring commodity and energy 1. Baby-boom underway, startedin 1946 (World prices, which affected not only the cost and pro- War II). fitability of doing business, but caused basic changes in how companies operate, how groce~ 2. Women devoted primarily to family, home stores presented themselves, and certainly how and community. Cleaning standard: “eating consumers thought about and shopped for food. off the floor.” Until recently, the 1980s were being driven pri- marily by the restructuring process under way in 3. 31 percent of women 18-years-old and older business, generally due to commodity/ingredient in the work force. price stability and to overall stalling of inflation. 4. Movement to the suburbs. The 1990s will be fueled mainly by the emergence of the consumer as the all powerful 5. USDA Daily food guide. Emphasis on mini- influence. This goes beyond the way the food- mum daily requirements. service industqy has traditionally, but often neglectfully or without understanding, paid 6. Meat and potatoes necessary for “balanced homage to the ultimate buyer. Shifts in demo- meal. graphics and in demands emanating from con- sumers will drive the marketplace to a degree 7. Three square meals basic to good nutrition; never experienced before. In fac$ that’s already protein essentialfor a quality diet. happening as the 1980s wind down. 8. Mealtime a family occasion and it was not uncommon for a “soup to nuts” spread as a

Journalof Food DistributionResearch February90/page 59 symbol of hospitality. Homemade food is the 23. Cigarette smoking identified as a cause of norm. lung cancer and higher death rates from car- diovascular disease and higher mortality 9. First generation of frozen foods available: overall. TV dinnera, frozen juice. 24. Santa Barbara oil spill. Rachel Carson’s 10, Convenience products denigrated for quaMy “Silent Spring’’--a landmark publication and price. addressing environmental issues directly.

11< Commercial TV becomes populaq food com- 25. Beginning of movement against environ- panies sponsored many TV shows. mental pollution and chemicals.

12, TV opens new opportunity for food 26. Life expectancy at birth -69.9 years. advertising. 1970s 13, Life expectancy at birth: 68.1 years. 27. Baby boomers have fewer children than 1960s expected; baby bust era under way.

14. Baby-boom era ends in 1964. 38 percent of 28. Increasedpreoccupationvvithself-fulfillment-- women, 16-years-old and older, in the work “want it all” mentality. force. 29. 47 percent of women, 16-years-old and older, 15. Focus on “self’ and activities outside the in work force.

home: ● Larger proportion of women enteringwork

● Cleaning, cooking standardlowered; tradi- force than in previous decades.

tional meal de-emphasized. ● Convenience growing in importance: o Homemade food means opening a box of meal-skipping becoming acceptable. mix. 30. Cooking/cleaning standards lowered. 16. Era of civil rights movement and women’s liberation. 31. Fast food restauranta attracting working women. 17. Start of the “Me Generation’’--doing your own thing. 32. World grain shortage haa effect on domestic c Convenience growing in importance. food prices. . Alternative lifestyles surfacing.

● Americans believe present to be better 33. Attitude toward red meat changes: beef is than past and that future will improve on a wasteful commodity--it takes 100 pounds of present. grain to produce five pounds of beef.

18. Senate Select Committee on Nutrition and 34. Alternative protein sources introduced: tofu, Human Needs investigateshunger and mal- fish, poultry. nutrition among nation’s poor. Then there came a strong interest by government in 35. It is no longer economical to cook at home. foods--part of Kennedy’s plan. 36. 1973 recession. 19. Government sponsored food programs respond to recognition that nation’s poor are 37. Increase in domestic food prices institution- suffering from malnutrition. alizes consumer movement.

20. White House Conference on Food, Nutrition 38. First oil boycott; energy crisis. and Health. 39. Shift from psychology of abundance to con- 21. Opens public and Congressional interest in servation ethic

the nutritional well-being of the nation. ● Inflation concerns dominant.

● Mqjority believes past looked better than 22. Surgeon General’s Report on Smoking and present and the present looks better than He&h. the future.

Febyuary90/page 60 Journalof Food DistributionResearch

. 70. Economic squeeze may affect 85. Manufacturers begin to substitute “natural”

● eating away from home. ingredients for artificial. c premium, upscale convenience foods. “ Colors and flavors afTected acroes the board.

71. Life expectancy at birth: 73.7 years. ● Preservatives fall by the wayside.

● Labeling to include nutritional as well as 1990s ingredient information.

72. 65 percent of women, 16-years-oldand older Conclusion in work force. In ,the 1960s, Americans were anxious to 73. Convenience becomes the most important understand their differences; in the 1970s to cul- factor in daily living. tivate them. An intense flowering of

● Take-out foods expected to increase by individualismand the rise of the “Me Generation” approximately 15 percent annually. followed in the 1950s. The mass market split

● Shift to more meals eaten at home but apart with the rising affluence and education of not prepared at home. the middle class. By 1960, the average family

● Microwaveable foods of all types, especially had $4,900 more to spend in a year than it had bakery items increasing in number and in 1950. By 1970, over half the population had improving in quality. a high school diploma. For the first time in history, a majority of people could afford to be 74. Median annual income expected to increase different. paralleling demographic shift in age--more 50+ consumers than ever before. When a population is growing steadily, the marketplace has room for everyone. When 75. More discretionary spending power. growth slows, the marketplace soon becomes crowded. This is what happened with the 76. Quality outweighs price in making purchas- American market in the late 1960s. The U.S. ing decisions. population had never grown as slowly--up only 13.4 percent. Women were no longer delivering 77. Continued growth in “upscale” products an endless supply of new customers to the expected. nation’s manufacturers. The baby-boom had turned to baby-bust. 78. Variety breads and rolls viewed as upscale products by large percent of consumers. In the 1970s, for the first time, the Northeast stopped growing. Across the country, 79, Dietary issues continue to grow in impor- in another turnaround, even metropolitan areas, tance as consumem are bombarded by the traditional growth areas, took second place to media. Continued emphasis placed on prod- non-metropolitan areas as more and more people ucts that are low in cholesterol, fats and chose to live in less densely settled areas. These sodium; high in fiber, calcium and specific new demographic trends flew in the face of the vitamins. traditionalAmerican lifestyle,but many American businesses were still marketing as they always 80. Nutrition consciousness becomes a way of had. life--no longer just a health issue. Alert business people reaUzed,however, that 81. Breads and rolls high in fiber continue to the changing American population affected their grow in popularity. markets profoundly. So we increasingly catalog, classify, stigmatize and glori~ according to dif- 82. Fiber-enriched muffins become a new “hot” ferences of habit age, income and taste. The item. result is an American sliced into dozens of dif- ferent geographic, economic, social and cultural 83. Consumers concerned about a balanced diet markets. For want of a better name, call it the but are willing to make trade-offs to include “slicing of America.” desserts.

84. FDA regulates food additives to a greater degree.

February90/page 62 Journalof Food DistributionResearch 40. U.S. Department of Agriculture publishes 53. Obesity emerges as major public health prob- nationwide food consumption surveys. lem, national thinness obsession continues while Americans grow heavier. Lowering fat 41. Food safety concerns mount as ability to and cholesterol levels becomes major health detect toxicities advances beyond ability to concern. understand their effect on human health. Focus on additives, preservatives,saccharin, 54. Emphasis on fresh fruits and vegetables. nitrites, sulfites. 55. Increase in consumption of complex car- 42, Life expectancy at birth. 70.8 years. bohydrates--pasta, potatoes, rice, variety breads gaining in popularity. 1980s 56. Nutritionally conscious population makes 43. Baby boomers becoming parents, with two trade-offs to satis~ ‘tiant-it-all” mentilty. out of three mothers returning to work force. 57. Desserts become a reward for working, play- ing hard; workout pig-out syndrome. 44. Baby boomers’ lifestyles change to include family 58. Global travel more affordable and easily

● More meals at home but not prepared at accessible. Spurs European influence on home. traditional American foods.

● Stress levels mount as discretionary time declines. 59. Croissants emerge as the “hottest” new roll item. 45. 55 percent more women, 16-years-old and older, in work force 96 million women in 60. Fancy desserts such as tortes grow in popu- the work force. lari~, also Dove Bars, gourmet ice creams.

46. Convenience growing in importance, 61. Growth and mobili~ of various ethnic

● Meal skipping, snacking, and grazing groups influence and change traditional become acceptable. American eating habits.

● Take-out foods increasing to save time.

● Microwaveable foods improving in quality 62. Bagels become increasingly popular. and number. 63. Chinese and Mexican foods readily available 47. Household size shrinking: over 50 percent in restaurantsand supermarkets. Americans of households are one or Isvo persons. are increasingly exposed to “new” foods with a surprisingly high rate of acceptance. 48. Smaller portion sizes available and con- sidered prudent for weight control. 64. National Academy of Sciences; Nutrition, Diet and Canceq National Instituteof Health 49. Recession in 1982; median annual earnings Consensus Conferences on:

2 percent less than in 197% low income ● Cholesterol

households earning under $15,000 (up 3.9%); ● Osteoporosis

service economy growin~ manufacturing ● Obesity shrinking. 65. Food and pharmaceutical firms respond to 50. Spurs use of generics and aiTectsred meat recommendations. consumption. Meat alternativeslike cheese increasing. 66. Calcium supplements and fortified foods and beverages flood the market. 51. Red meat consumption declines as poultqy consumption increases. Controversy and 67. Growth of “lite” foods and beverages--low resolution of “Dietary Guidelines.” calorie, low fat low sugar, low sodium.

52. Shift from minimum daily requirements to 68. Muffins become acceptable part of balanced maximum levels of specified nutrients, such breakfast. as fat to prevent diseases linked with “dietary abundance.” 69. Black Tuesday raises economic uncertain~.

Joupl of Food DistributionResearch February90/page 61