US Foodservice: State of Play Analysis of U.S. Trends and Potential Impact on UK Foodservice

Transcription

1 US Foodservice: State of Play Analysis of U.S. Trends and Potential Impact on UK Foodservice Chicago, IL USA April 13, 2011

2 Session Objectives The World Around Us Focus on 2010 Results Consumer Outlook Trends to Watch Where Do We Go From Here 1

3 About Technomic Leading strategic consulting and research firm dedicated to the food industry Over 40 years of food industry focus Wide range of experience Broad contact network Professional staff with direct industry experience Unparalleled resource center 2

4 The World Around Us 3

5 One in Six Americans Either Unemployed or Underemployed 20% Feb % 12% 18.0% Unemployment + Underemployment 8% 9.5% Unemployment 4% 0% M a r ' J u n S e p t D e c M a r ' J u n S e p t D e c M a r ' J u n S e p t D e c M a r ' J u n S e p D e c Source: Bureau of Labor Statistics 4

6 Fuel Prices U.S. Jan 2004 $1.61 Gasoline Costs per Gallon in Dollars June 2008 $4.11 Feb 2011 $3.22 Source: Energy Information Administration 5

7 Restaurant Sales Real Growth 12-month moving average, U.S. Feb % Source: U.S. Census Bureau; Technomic, Inc. 6

8 Same Store Sales % Change Vs. Prior Year Continuing to Rebound Same-Store Sales Change vs. Year Ago Q Source: Public Company Reports, Technomic 7

9 The Winning Restaurant Formula 8

10 Growth Concepts Apply the Winning Restaurant Formula Service -Deliver the fundamentals -Team approach Food Consistently Solid Basics -Solid flavor profile, taste, quality, and presentation -Executed every customer visit Unit Appearance -Influences guests perception of overall satisfaction -Complements consumers emotional experience Manager Presence -Impacts customers & employees + Resonating Points of Differentiation Customer Lifestyle Integration -Concept attributes align with daily demands/desires of consumers Hospitality -More than just a meal and generic server/customer interaction Menu Desirability -Craveable -Positive impact on consumers perceived Quality of Life Atmosphere -Relevant energy Emotional Connection -What do you mean to customers? Source: Technomic Concepts 2015 Study 9

11 Resonating Point of Difference: Customer Lifestyle Integration Wide Variety 130+ Draft Beer on Tap Yard House Small Plates, Small Prices Cheesecake Factory Technology Integration ipad Menu & Wine Lists Source: Technomic Concepts 2015 Study 10

12 Resonating Point of Difference: Hospitality Server Interaction Artisan skill sets Server training Concept approachability and acceptance Friendly service with a smile Source: Technomic Concepts 2015 Study 11

13 Resonating Point of Difference: Menu Desirability Providing Demand Balance Heart Attack Grill Quadruple Bypass Burger Rustic Veggie Plate Healthfullness versus Indulgence Source: Technomic Concepts 2015 Study 12

14 Resonating Point of Difference: Atmosphere Relevant Energy Communal Dining Open Kitchen Integration Chef Preparation & Interaction Source: Technomic Concepts 2015 Study 13

15 Resonating Point of Difference: Emotional Connection Shares values that are similar to my own Maintains involvement in the local community Supports charitable efforts Source: Technomic Concepts 2015 Study 14

16 Who s Succeeding in the US? 15

17 Fastest Growing Fast Food Chains have Unique Positioning Chain 10 Sales ($MM) 10 Sales Growth 10 Unit Growth Positioning/Resonating Point of Difference $625 38% 35% Better Burger Gourmet Sandwich Shop 1, Fast Casual Mexican Fireman Themed Ethnic Noodles Source: Technomic Leading Chain Database, Top 500 Report Chain Estimates 16

18 Fastest Growing Fast Food Chains Fast Casual Positioning Chain 10 Sales ($MM) 00 Sales ($MM) 10-Year CGR Positioning/Resonating Point of Difference $310 $6 48.6% Fast Casual Asian 1, Fast Casual Mexican Fast Casual Noodle 2, Fast Casual Bakery Café Quick Service Donut Source: Technomic Leading Chain Database, Top 500 Report Chain Estimates 17

19 Fastest Growing Full Service Chains have Niche Appeal Chain 10 Sales ($MM) 10 Sales Growth 10 Unit Growth Positioning/Resonating Point of Difference $514 20% 10% Chicago Style Pizza % 16% Brew Pub Upscale Italian Large Affordable Portions 1, Chicken Wings Source: Technomic Leading Chain Database, Top 500 Report Chain Estimates 18

20 Fastest Growing Full Service Chains Have Grill Positioning Chain 10 Sales ($MM) 00 Sales ($MM) 10-Year CGR Positioning/Resonating Point of Difference $417 $ % Upscale Seafood Grill Upscale Brew House 1, Wing Bar & Grill Barbecue Bar & Grill Italian Grill Source: Technomic Leading Chain Database, Top 500 Report Chain Estimates 19

21 Reasons Why Concepts Succeed Innovation Improving existing menu offering and quality of service Differentiation Distinguishing core offering from the competition Evolution Enhancing the customer experience - avoiding drift Adaptation Meeting today s changing consumer demands 20

22 Reasons Why Concepts Succeed Innovation Improving existing menu offering and quality of service Happy Hour Small Plates It s my pleasure! 21

23 Reasons Why Concepts Succeed Differentiation Distinguishing core offering from the competition 22

24 Reasons Why Concepts Succeed Evolution Enhancing the customer experience - avoiding drift 23

25 Reasons Why Concepts Succeed Adaptation Meeting today s changing consumer demands 24

26 Trends to Watch 25

27 Trends to Watch Brand Extension - Food Truck Phenomenon Independent Operators Shift Attention to Chain Development BYOF - Bring-Your-Own-Food Gluten-Free Menu Development Farm Brand Offerings Redefining Calorie Counting Source: Technomic Concepts 2015 Study 26

28 Brand Extension Food Trucks East Coast BLT Restaurant Group, NYC West Coast Burgerville, Oregon Nationwide Diary Queen Blizzard Mobile Source: Technomic Concepts 2015 Study 27

29 Independent Operators Innovation Goes Mainstream Innovators shift from upscale to mainstream Chain share of market on the upswing Economy shifting attention to lower price points Source: Technomic Concepts 2015 Study 28

30 Bring-Your-Own-Food Trend Originated in New York City Restaurants With Minimal or No Kitchen Capabilities Focused on Students and Budget-minded Consumers Source: Technomic Concepts 2015 Study 29

31 Farm Brand Offerings on the Rise Natural, Organic and Hormone-free Higher Quality Positioning Animal Welfare Focus Source: Technomic Concepts 2015 Study 30

32 Gluten-Free Offering Healthier way of eating Can benefit gluten-intolerance and gluten diets Wider availability of better, tastier gluten-free products Source: Technomic Concepts 2015 Study 31

33 Re-Defining Calorie Counting Calories will rise to the surface Consumers will have a culture-shock Normal behavior will likely resume Source: Technomic Concepts 2015 Study 32

34 Where Do We Go From Here? 33

35 The Industry As We See It Consumer Lifestyle Integration will be Essential Menu Innovation and Desirability Will Draw Attention and Traffic Concept Differentiation Is Required to Succeed The Industry Will Likely Continue to Tread Water 34

36 The Industry As We See It Value will be the Ultimate Weapon in Battle Brand Strength Will Provide Customers With the Answers Get Ready for the Long Haul by Continuing to Invest in Your Brand The Industry Will Likely Continue to Face Headwinds 35

37 For more information please contact: Darren Tristano Executive Vice President David Henkes Vice President