Identica Insight

IDENTICA INSIGHT

NEW EXPERIENCES IN EATING

Issue 15 Issue 15 2 NEW EXPERIENCES IN EATING

EATING EVOLUTION

“ W E ARE CURRENTLY IN A ‘POST-ACQUISITIVE’ ERA WHEREBY FOOD EXPERIENCES ARE CONSIDERED MORE COVETABLE LUXURIES THAN OBJECTS LIKE JEWELLERY AND CARS,”

AdAge, 2013

The way we think about food has dramatically changed over recent decades. We now care about provenance, traceability, craft and of course the health implications of what we cook and what we eat.

In the West, food has become a social commodity that people enthusiastically share with others. It is an integral part of one’s lifestyle. In consumers’ minds, food has moved from a show product to a show you know product. Experience, environment and personal service become elevated in this new world.

This trend for food experience is being spearheaded by millennials (18-34 years of age). But all this comes at a time when young people in this country are faced with unemployment and families have less money to spend.

‘New Experiences in Eating’ aims to identify the trends appearing in dining out and dining in but also map our ever-evolving relationship with food.

ARE WE EATING IN OR OUT?

Since 2008, consumers have reined in their spending but the UK’s eating out market has risen 7% since that date.

Admittedly, that growth has largely come from the fast-food sector as consumers are trading down and opting for quicker and cheaper options. However Prezzo, Domino’s Pizza, Marston’s and Greene King have all posted impressive sales growth through-out the downturn.

Over the past 30 years, the UK’s eating out spend as a proportion of overall food spend has doubled to approximately a third. This is still lower than the U.S. where their eating out spend is 50% of the overall food spend.

Meanwhile, the generation most effected by unemployment, millenials (age 18-34) are the biggest spenders when it comes to eating out. 64% of that age group eat out more than once a week.

12% OF MEALS ARE EATEN OUT Financial Times, 2013

SPENDING BY AGE GROUP PER YEAR The Restaurant Choice, 2012

- Takeaways £7,274 £7,218 £7,116 - Eating out - Groceries £5,235 £4,069

£1,237 £1,231 £1,267 £1,359 £937 £1,019 £971 £582 £673 £317

18 - 24 25 - 34 35 - 44 45 - 54 55+

THE NEW FOOD PARADIGM

Millennials still prefer cheaper food, and want previous generations to be gender neutral Because millennials grew up in an education it to be convenient. But they are also more when it comes to the role of cooking (61% of system that promoted group work over willing to pay for fresh and healthy food, and females and 60% of males enjoy cooking). individual study, soliciting peer feedback is a are prepared to go to great lengths to find it. way of life. It’s one big food conversation and if Millennials have much less brand loyalty and your brand has something interesting to say, Artisanal, organic, exotic, unusual, small are more willing to engage in untraditional this generation will listen. batch are what is desired. Food has become distribution models of food. The purchasing of an exploration and an adventure. food online is a natural exercise while A personalised service is appreciated across millennials are less inclined to adopt the ‘one- the generations. A local restaurant that knows Millennials believe they consume healthier, stop-shop’ format of food and prefer specialty. your first name or a barista who says ‘the more natural/organic, less processed and usual?’ can make all the difference. If a better tasting foods than their parents – and It’s on trend to be a foodie. In the past few customer feels special then this will foster they’d be right. They also are more likely than years, the circulation numbers for Bon Appétit brand loyalty. magazine have skyrocketed.

A FOOD LIFESTYLE

Being a ‘foodie’ is a holistic part of a complete lifestyle centered around local, trusted, fresh, healthy and exotic tastes in food.

The more we understand about food and how to cultivate, prepare and appreciate it the better. But importantly, food has become cool. The indulgence in exotic flavours both in the home and out means that consumers can socially trade in food and create their own communities and tribes.

Food magazines have been in existence for a long time but there has been a significant rise in specialist periodicals covering geographical cuisines or individual food groups. What’s significant is that this new breed of publications and complementary websites fuse edibles with literature, art, culture and fashion, creating a lifestyle map with off-beat, gastronomically immersive, content.

Of course these foodies need an outlet for their creativity. Enter Foodily, the platform that allows anybody to post recipes, video tutorials and host discussions around anything to do with food.

THE MAINSTREAM FOODIE

The line between specialty and mainstream Their influence can create a spike in ingredient foods continues to blur due to the escalating sales or kitchen paraphernalia while foodie movement. This is being compounded by simultaneously creating a cult-like following. the rise of certain ‘foodie’ chefs, or Heston Blumenthal sent the sales of prunes experimental chefs that now shine bright in skyrocketing in 2013 (14% increase) as he the mainstream media. recommended them as a healthy snack. Search of term “foodie” in Google Trends, time period 2004 to 2013

Yotam Ottolenghi Heston Blumenthal Tom Kerridge

SUPERMARKET SURPRISE

There’s no escaping that household incomes – Ready meals are most popular in one and have reduced, consumers are trading down two person households without children. to faster, more convenient dining experiences. – Italian, British and Indian meals make up An increased investment in premium three-quarters of all ready meals sold. ready meals has emerged. Time and cash poor families are increasingly opting to – More ready meals are in eaten in the UK dine-in while the increase in single person than the rest of Europe combined. households means ready meal sales are at an all time high.

Consumers of all ages are looking for natural and quality ingredients from their meals which has seen the premium ready meal market increase year-on-year by 8%.

During the economic downturn the M&S Dine in for £10 strategy was replicated by many supermarkets and was a reaction to people dining out less and needing a credible alternative.

Moving forward however, supermarkets have recognised that consumers are more knowledgeable about food and happy to explore new cuisines. Exotic ready meal options are starting to be promoted to try and capture those who know about food but still look for convenience.

TAKEAWAY FEVER

It was once just a treat for the weekend, ordering service, has revealed figures showing restaurants worldwide. Global revenues were but a new survey has found that the average how the growth in smartphone use and £64m in 2012. Briton now forks out £110 per month on adoption is driving changing consumer buying takeaway meals. habits for takeaway. Since it was founded in It just goes to show that if a business can 2001, the London-based Just Eat has grown identify and service a consumer habit then Just Eat, the UK’s leading online takeaway steadily to encompass more than 28,000 that business can reap the benefits.

SINGLE SERVE SPECIALISATION

The eating in and eating out landscape is constantly evolving. Restaurateurs, brands and retailers are all innovating to capture consumers’ imaginations and pounds.

No longer must a restaurant have an encyclopedic menu of exotic fare in order to attract attention. Nowadays, the mastery of a single dish is enough to propel new eateries into the limelight. If restaurants can master one dish then consumers will flock from miles.

Soho’s Flat Iron has perfected the art of the little known flat iron steak cut and only sells that singular dish. The restaurant specially trains their chef’s to become masters of that steak cut.

New York’s Pomme Frites focuses on Belgian fries only, while London’s Meatball & Wine Bar only sells five types of meatballs.

This focused dining is not a new concept however. Parisian restaurant L’Entrecôte has served a walnut salad starter and a main course of steak and chips since its inception in 1959.

DIGITAL DINING

New technologies are transforming the its guests to experience multi-sensorial dining. McDonald’s Singapore have introduced physical dining experience. Digital platforms Each dish is accompanied by kaleidoscopic interactive tables for children to use in in restaurants and bars are offering wall projections, computerised lighting, scent collaboration with their parents’ smartphone. unprecedented customisation opportunities, diffusions and surround sound – all designed with hundreds of food and drink combinations to intensify the taste of the food. Many think digital dining is a gimmick. In the to suit every taste and nutritional need. case of Ziosk, it can make a restaurant more Ziosk tablets enable patrons to independently efficient, and suit younger consumers who Shanghai-based restaurant Ultraviolet enables order food and drink and even settle their bills. naturally expect high levels of digital integration.

BRANDED HYBRIDS

Fashion and consumer brands are delving into the world of dining in an effort to increase their bricks-and-mortar store traffic.

Dining tends to be more memorable than simply a shopping experience. If retailers can capture the imaginations of retailers then they can also capture more of their pounds.

Alfred Dunhill have opened a British restaurant in Beijing that will allow Chinese customers to taste traditional roast beef with gravy, and Yorkshire pudding. Alfie’s by Dunhill, as it’s named, is located in their two-storey Asian flagship store and has separate opening times to the retail space.

U.S fashion retailer Tommy Bahama has opened a fish restaurant in their Manhattan flagship store. The space also features two additional bars to encourage customer dwell time. A slower and more relaxed retail pace than other stores in Manhattan.

Luxury fashion retailer Roberto Cavalli has opened a store-cafe in New Delhi as they understand the value of retail-hospitality.

SOME OF THE UK’S POPULAR FAST CASUAL RESTAURANTS THE RISE OF FAST CASUAL

Fast casual dining combines fast food-style service with a theme and decor more likely to be associated with a full-service restaurant.

These kinds of restaurants, which typically offer a short menu, outperformed the industry average by achieving sales growth of 2.5% in 2012.

They benefit from the same streamlined process that make fast food operations so efficient and profitable, along with a greater degree of customisation and a slower dining pace. It is the customers’ choice whether to have a quick meal with one drink, or linger over desserts.

Nearly a third of visitors say they choose a fast casual outlet because their children like it, and the research finds that 46 per cent of all visits were family occasions.

A mean average spend of around £9 per head shows that value for money has a big role to play too, comparing with just over £11 spent in full-service chains like Strada or Giraffe, £8 in the pub and £3.50 at fast food outlets.

Chipotle has seen sales figures increase 20% in Environments that encourage communication THE FUTURE OF 2012 compared to only 4.4% from McDonald’s. between customers will be something we start The arena of fast casual is here to stay but to see more often. Visual preparation of food is FAST CASUAL what does the future hold for it? also important to consumers as they react positively to transparent businesses.

NO COMPROMISE WITH KIDS

Fortunately we’ve moved away from the days of crayons to entertain our children at the table but unfortunately the food that is provided on the miniature menus still lack imagination and quality.

Food conscious parents will demand a certain standard of food and drink for their children. Restaurants can benefit by offering something other than chicken nuggets and fizzy drinks as young people’s dietary desires will reflect their parents. Homemade, organic and responsibly sourced products are what restaurants need to be providing for their younger customers - the same quality and thought as the main menu.

A recent survey found eight out of twenty-one restaurants did not have any vegetables or salad in their children’s menus and eleven did not have any fruit on offer as a children’s dessert. In reality, 66% of parents think food provision for children in restaurants is not good enough and they will soon start to boycott those who neglect the kids menu.

There are restaurants who are making a stand. Jamie’s Italian provides ‘shake-me’ salads to allow kids to interact and have fun with healthy food.

FOOD FROM THE STREET

Street food or food stalls have seen a remarkable rise in popularity over the last few years. Traditional consensus towards street food was that the quality of product was poor and the hygiene questionable.

Street chefs are now the inventors, the experimenters and the creatives. Real exploration of foods and flavours now come from the markets and street corners of our cities. Their specialisation in perhaps one dish or unique cuisine make them experts. Street food culture has amassed loyalty from foodies searching for experiences that others haven’t quite found yet.

Pizza Pilgrims was a small truck located at Berwick Street, London that was fitted with a wood fired oven. The pizzas became so popular that the two brothers who owned the truck had to open a restaurant in Soho.

Similarly, Pitt Cue (BBQ pork) had to respond to their incredible demand by moving from a Southbank food van to a Soho restaurant. The laid back style is retained with no reservations FOOD available which means the queue is often TRENDS TAIWANESE BUNS around the corner. 2014 HOTDOGS ROTI WRAPS CEVICHE © Copyright Identica Limited 2014 Issue 15 16 NEW EXPERIENCES IN EATING

FOOD FESTIVALS

Street food popularity and the foodie following restaurants are failing to localise or react it has amassed means that the community quick enough to certain foodie trends. now hold festivals for connoisseurs to fully immerse themselves in food. Street Eat, Kerb and Feast are all festivals in the capital that are held on a monthly These festivals are becoming very popular basis that allow independant vendors to as consumers want to explore new cuisines. showcase their products to thousands of Power to the independents as chain waiting customers.

WHAT THIS MEANS

We know that the nation is not dining out as Consumers are more adventurous than ever Traditional restaurants need to react quicker much as they once did but a larger proportion when it comes to food, even when dining at to the trends appearing in ‘fast casual’. This of younger people are dining out than any of home. Ready meals need to capture the relaxed pace is more akin to today’s consumer the previous generations. imaginations of the nation. We are starting who like speed, but appreciates quality food in to see this happen but it will continue. a comfortable environment. This is positive for the restaurant sector – an entire generation that is accustomed to Food innovation is now coming from the street If restaurants can make service more personal dining out of the home – and that food arena and customers are heading direct to then this can translate into a more memorable habit will continue. the source. As popularity of street vendors experience for the customer. Moving forward continues, expect more to evolve into restaurants. this will become increasingly important.

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