datassential decision making factors presentation from mslf
TRANSCRIPT
decision factors
new research from
Getting at the WHY New landmark study (currently in progress)
Extremely thorough analysis of:
BEHAVIOR – consumer decisions away from home
MOTIVATIONS – why consumers make those choices
SOLUTIONS – tactics to positively influence consumer decisions
12,000 consumers
Operator perspective
MenuTrends exploration(7,000+ menus; 1.2 million items)
Brand new data
the research process
completed as of 8.7.2012
to be conducted
Traditional QSR
Fast-CasualMidscale Dining
Casual Dining Upper Casual Fine Dining
Lodging Restaurants
Lodging Room Service
C&U Dining Hall
C&U Retail / Hosted
Hospital Cafeteria
Long-Term Care
B&I C-StoreGrocery
PerimeterRecreation & Amusement
Food Trucks & Kiosks
Other
explored segments
The research focuses primarily on segments where consumer choice is most relevant. Prisons, for instance, are not covered.
IFMA CONSUMER PLANNING PROGRAM
Bill McClellan, Dawn Food Products (Chair)
Rick Kirkpatrick, Sweet Street Desserts (Vice Chair)
SPECIAL RESEARCH COMMITTEE
Nelly Bentz, Heinz North America
Andrea Hickman, McCain Foods
Bernie McGorry, Dawn Food Products
Mike Stammer, Hillshire Brands
Donna Surma, Basic American Foods
Devon Gerchar, IFMA
Jim Green, IFMA
Guided by a special research committee
These pages feature just a short sneak peak of this new landmark research.
For more information about the study, please contact IFMA.
venue decisions how and why consumers choose WHERE to eat
Family meal 19%
Quick bite 17%
Casual lunch 15%
Casual dinner 14%
Cheap bite 14%
Running errands 13%
Relaxing at home 10%
Hold you over 9%
Food for energy / fuel 9%
Last minute dinner 9%
Dinner on the way home 8%
Hanging out with friends 8%
Social gathering 5%
Work break 5%
Road trip 4%
Morning commute 3%
Celebration / special occasion 3%
Before a movie / event 3%
Weekend breakfast 3%
Business / work lunch 3%
Date / romantic meal 2%
Brunch 2%
Festive / party-like 1%
Girl's night out 1%
Formal dinner 1%
Guy's night out 1%
Meeting coworkers after work 1%
Impressing someone 1%
Frequency of AFH occasions / dining motivators
Dining occasions are generally ordinary and not event driven. To maximize their business potential, operators should generally ensure that their proposition appeals to everyday life. (there are exceptions, of course)
Why do occasions matter?Because they drive venue decisions.
QSR Fast-Casual Midscale Casual Dining
Cheap Bite Casual Lunch Weekend Breakfast Celebration
Quick BiteBusiness / Work
LunchBrunch Date / romance
Dinner on the Way Home
Hanging Out with Friends
Family Meal Celebration
Morning CommuteBefore a movie /
eventSocial Gathering Casual Dinner
While running errands
Casual DinnerHanging Out with
FriendsSocial Gathering
Top Aligned Occasions by Restaurant Segment*
*within each segment, occasions that align particularly well with that segment
Technology directly influences venue selection for 15 billion occasions annually.
42%viewed menu
online
41%visited place’s
website
25%search engine
21%social media
20%daily deal
site
online photos: 18%restaurant listing site: 13%
user reviews: 13%navigation system: 12%
mobile app: 11%
It starts with the menu, often viewed on that place’s own website.
General purpose search engines and social media are used next most
commonly, along with daily deal sites.
Online photos play an increasingly pivotal role.
Mobile (phone) apps are used less commonly, but may grow as apps
marketplaces mature.
Of those who used technology to decide where to eat, % who used…
resources usedto decide where to eat (last occasion)
However, decisions are still based predominantly on prior experience.
Previous Experience: 66%
Word of Mouth: 33%
Technology: 21%
Consumers are mostly creatures of habit… and are far more motivated to go somewhere familiar thansomewhere new.
72% wanted to go
somewhere familiar
11% wanted to go
somewhere new
This figure drops even further in practice. While 11% wanted to go somewhere new, ultimately only 6% actually did so.
94% of occasions are repeat visits.
the customer acquisition challenge: Introduce New Behavior
Foodservice behavior is often habitual.
Most are inclined to simply visit familiar places, making it hard for other businesses to draw traffic.
To attract new customers, operators must go above and beyond – giving the consumer a real reason to visit.
The goal in this case is to dislodge consumers from their comfort zone.
the flipside: Loyalty
But isn’t repeat visitation a testament to operators’ ability to build a loyal customer base?
Convenience46%
Loyalty54%
Well, only partially.
Nearly half of all repeat visits are driven by convenience rather than loyalty.
% of repeat visits attributed to…
80%
75%
73%
64%
62%
59%
58%
58%
53%
48%
40%
18%
Fine Dining
Upper Casual
Fast Casual
Casual Dining
Delivery
Coffee Shop
Buffet Restaurant
Midscale
Supermarket deli
QSR
C-Store
Cafeteria
[repeat visits]
% visiting out of
LOYALTY
True loyalty is more common to certain industry segments.
Fast-casuals, for instance, draw far more loyalty traffic than do QSRs.
the customer retention challenge:Promote True Loyalty
What may be perceived as customer loyalty is often just the manifestation of a need for convenience.
True loyalty is rarer, and is generally associated with higher-end segments.
Despite their high re-visitation rates, QSRs, C-Stores, and Cafeterias are the segments least likely to foster true loyalty.
Yet Fast-Casuals show that this need not be the case –that limited service venues are indeed capable of building true loyalty.
menu decisions how and why consumers choose WHAT to eat
82.3
90.3
92.6
97.996.4 96.1
93.4 93.3
2005 2006 2007 2008 2009 2010 2011 2012
Average Menu Size(items per menu)
[excludes beverages; “all day menus” only]
Following several years of increase, average menu size began to decrease following 2008’s economic downturn.
During this time, operators became more guarded in
their approach to introducing new items – often favoring
nostalgic old-time favorites.
a little context about the menu
A big menu is neither good nor bad…
It’s all in how it’s positioned to the consumer
39% want a big menu
with lots of choices
35% want a
smaller, focused menu
The two points above need not always be mutually exclusive.
If organized well, even a large menu could potentially appeal to consumers who normally prefer a smaller, more focused offering.
76%
Menu decisions are often pre-meditated…
already had something in mind before entering the venue
88% ordered what they had in mind
and of them…
But that’s not to say that menu decisions can’t be influenced.
In the next phase of this research, we’ll explore specific strategies to build check averages and promote menu items more effectively.
12.3
12.8
13.1
13.313.4
13.6
13.7
2005 2006 2007 2008 2009 2010 2011
Menu Descriptiveness(average word count; Casual Dining Entrees)
For instance:
Although menu sizes have shrunk since 2008…
Restaurants have continued to improve how they describe their dishes during this time.
30%
52%
Without bread basket
With bread basket
Appetizer Incidence
(FSR’s)
16%
32%
Without bread basket
With bread basket
Dessert Incidence
(FSR’s)
Consider too the case of the bread basket.
Meals that include bread baskets are actually MORE likely to also include appetizers as well as desserts.
While presentation and ambiance also play a role, the bread basket can help set the stage for a fuller dining experience.
Food that's fun to eat 41%
Made to order 38%
Classic American food 37%
Eaten with one hand 31%
Large portion size 29%
Piping hot 27%
Only uses fresh ingredients 27%
Signature dish 25%
What SPECIFIC attributes do consumers seek in their food?
Food that’s fun to eat tops the list, edging out even “made to order” and “large portion sizes”.
Beyond quality and freshness
Beyond quality and freshness
Popular dish 24%
Free refills 23%
Hearty foods 22%
Scratch made 20%
Balanced meal 20%
All-natural ingredients 20%
Fried food 19%
Vegetables 17%
Not fried 17%
Can dress food up further 16%
High protein 16%
Low in fat 16%
Enough for leftovers 15%
Low in calories 15%
Something spicy 14%
Beautiful food 13%
No MSG 12%
Some like it HOT!
Consumers are just as interested in spicy foods as they are low fat or low calorie offerings.
What SPECIFIC attributes do consumers seek in their food?(middle tier attributes)
Beyond quality and freshness
Multiple courses 12%
Local ingredients 12%
Low in sodium 11%
Authentic ethnic dish 10%
New menu item 10%
Interesting / new ingredients 10%
No HFCS 9%
“Americanized ethnic dish 9%
Whole grains 8%
Made by a true chef 8%
Trendy foods 8%
Organic ingredients 8%
Antioxidants 6%
Gluten free 5%
Fancy dish 5%
Wine pairings 3%
What SPECIFIC attributes do consumers seek in their food?(lower tier attributes)
Despite all the media attention and rush of new products promoting it, gluten-free still appeals to only a small portion of the overall population.
A greater percentage of consumers want products made with no HFCS, whole grains, or even organic ingredients.
next steps building solutions to influence behavior
Coming up NEXT
Test of tactical initiatives to sway VENUE as well as MENU decisions
Areas of exploration include:
o New business attractors
o TRUE loyalty enhancers
o Check average builders
o Menu strategies
o Promotion & merchandising tactics
o Consumer-based definitions of “fun foods”, “signature dishes”, and more
Operator insight into what works, what doesn’t work, and why
Do you have a venue or menu solution you’d like to test?Contact IFMA to include your ideas in the research.