Home > Back to Publisher > Report Information

The Foodservice Landscape in the U.S.: Restaurant Industry and Consumer Trends, 2nd Edition

Packaged Facts
February 1, 2012
272 Pages - SKU: LA6497863

Abstract Table of Contents Search inside this report Related Reports

Countries covered: United States

Special offer: buy your choice of any two Packaged Facts foodservice reports for $6,000
While the U.S. economic recovery remains fragile, we find much for the restaurant industry to celebrate. Packaged Facts' Foodservice Landscape forecasts restaurant growth of 4.2% in 2012, on the heels of 6% market growth in 2011.

Nonetheless, the industry continues to face significant challenges. For the past three years, guest traffic volume has come entirely from population growth, not usage increase. Restaurant operators across restaurant segments must also contend with the increased numbers of lower-spending guests and with the loss of higher-income patrons, which has translated to higher volume but lower guest check averages.

Food commodity price increases could also threaten the continuation of the 2010-2011 sales recovery. And while our analysis calls into question the impact of consumer confidence on guest visit frequency, further declines in the unemployment rate are needed to spur restaurant industry growth, as our analysis supports a relationship between the unemployment rate and guest visit frequency across a range of restaurant segments.

This report provides the guidance industry participants need to understand industry and consumer trends shaping the U.S. foodservice landscape, including the quick-service, fast casual, family, casual and fine dining restaurant segments:

Restaurant price, promotion and branding strategy assessment, including stepped up industry “fast casualization”; the effect of daily deals on customer ordering habits; and restaurant operators’ menu pricing and promotion strategies.
Macro-economic analysis & trending, including an economic forecast through 2014; consumer confidence trends and their application to foodservice; employment trends and their application to foodservice; consumer spending, wealth and debt trends and their application to foodservice; and retail and commodity food price trends and forecasts.
Restaurant industry guest traffic trending, including guest traffic count and visit frequency comparisons for three restaurant segments (snack and beverage, limited-service and full-service), along with analysis by demographic and by daypart.
Industry-leading restaurant brand analysis covering each major restaurant segment, including menu strategies; customer food lifestyle segmentation analysis; trended guest visit frequency analysis; and performance metrics.
Restaurant cuisine & menu trending, focusing on menu item penetration by restaurant segment, including top proteins, sides, kids’ items, healthy claims, and preparation methods.
Market size and forecast for restaurant and drinking place sales, same-store sales analysis of major brands for 2005-2011, and consumer restaurant spending by segment for 2007-2010.
Assessment of health and wellness trends shaping the restaurant industry, including obesity and calorie count trends; health and food away from home correlations; government and industry health initiatives; and menu labeling effectiveness.
Restaurant technology trend analysis, with a focus on increasingly mobile communication-oriented consumers and emerging mobile payment technologies.

Chapter 1: Executive Summary
Scope and Methodology: Scope of coverage
Methodology: Consumer survey methodology; Market size and forecast; Consumer restaurant spend trending; Menu item trend analysis; Other sources; Restaurant categories; Limited-service restaurant definitions; Full-service restaurant definitions; Other definitions
Share of Stomach: Restaurant Sales Analysis: Insight capsule
Restaurant Macroeconomic Analysis: Insight capsule; Fast facts
Restaurant industry guest traffic trends: Insight capsule; Fast facts
Restaurant cuisine & menu trends: Insight capsule
Restaurant Health & Wellness Trends: Insight capsule
Restaurant price, promotion and branding strategies: Insight capsule
Restaurant Technology Trends: Insight capsule
Chapter 2: Share of Stomach: Restaurant Sales Analysis
Overview
Market size and forecast
Shaping growth: A fragile economy performing moderately well; Food commodity prices a potential boogeyman; Significant growth will remain elusive until unemployment rate drops; Potential for long-term shift in HH income distribution; Catering to non-white racial/ethnic groups more important than ever
Market and forecast
Graph 2-1: Sales at Restaurants & Drinking Places, 2006-14
Graph 2-2: Sales at Restaurant & Drinking Places, % Change, 2006-14
Performance context
Food away from home spending share declines, but 2010 growth is stable
Graph 2-3: Food Away from Home vs. Food at Home, 2001-2010
Restaurant Performance Index exhibits moderate strength during 2011
Graph 2-4: Restaurant Performance Index, 2007-2011
Restaurant segment performance & outlook
Quarterly samestore sales comparisons, by brand and restaurant segment: Reading the graphs; One-year and multi-year comparisons
Snack and beverage restaurant performance & outlook
Coffee wins; treats lose
Graph 2-5: Snack & Beverage Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Positive segment momentum through 2011
Graph 2-6: Snack & Beverage Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
QSR performance & outlook
Outlook
QSR: The behemoth grows while others falter
Graph 2-7: Quick-Service Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Mixed momentum through 2011
Graph 2-8: Quick-Service Restaurant Quarterly Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010
Fast casual: some industry leaders, but growth far from universal
Graph 2-9: Fast Casual Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Positive momentum
Graph 2-10: Fast Casual Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Pizza: Domino’s shows sales leadership
Graph 2-11: Pizza Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Positive signs
Graph 2-12: Pizza Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Family restaurant performance & outlook
Graph 2-13: Family Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Negative momentum
Graph 2-14: Family Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Casual restaurant performance & outlook
Casual Bar & Grill narrows losses
Graph 2-15: Casual Bar & Grill Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Casual bar & grill momentum shifts markedly positive
Graph 2-16: Casual Bar & Grill Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Casual Steak takes a beating
Graph 2-17: Casual Steak Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: 2011 brings wind to sails
Graph 2-18: Casual Steak Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Casual Italian
Graph 2-19: Casual Italian Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Olive Garden momentum falters
Graph 2-20: Casual Italian Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
International and seafood casual restaurants
Graph 2-21: Casual International Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Momentum returns
Graph 2-22: Casual International Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Fine dining performance & outlook
Outlook
Fine dining restaurants fall the hardest
Graph 2-23: Fine Dining Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: 2011 brings moderate rebound—but 2007 sales levels remain distant
Graph 2-24: Fine Dining Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Consumer spending trends
Restaurant growth: follow the money
Table 2-1: Demographic Share of HH Income: 2007-2010
Follow the population
Table 2-2: Demographic Shares of Persons & Households: 2007-2010
Food at home gains
Hispanics driving growth in food spending
Table 2-3: Food, Food at Home, Food Away from Home & Restaurant Expense:
Hispanic v. Non-Hispanic, 2007-10: Driving restaurant spending
Table 2-4: Restaurant Share of Spend, by Restaurant Segment:
Hispanic v. Non-Hispanic, 2007-10: Driving dayparts
Table 2-5: Restaurant Share of Spend, by Daypart: Hispanic v. Non-Hispanic, 2007-10
Growth at opposite ends of the age spectrum: Lifestyle change to mark restaurant spending boom?
Table 2-6: Food, Food at Home, Food Away from Home & Restaurant Expense, by Age, 2007-10: Carrying full-service restaurants
Table 2-7: Share of Spend, by Restaurant Segment, by Age, 2007-10: Daypart spending trends
Table 2-8: Restaurant Share of Spend, by Daypart, by Age, 2007-10
HH income trends
Table 2-9: Food, Food at Home, Food Away from Home & Restaurant Expense, by HH Income, 2007-10
Table 2-10: Restaurant Share of Spend, by Restaurant Segment, by HH Income, 2007-10: Daypart trends
Table 2-11: Restaurant Share of Spend, by Daypart, by HH Income, 2007-10
Chapter 3: Restaurant Macroeconomic Analysis
Overview
Our take: muted optimism
Economic forecast through 2014
GDP: A long time getting back, but finally passes pre-recession levels: Forecast factors
Graph 3-1: Unemployment, GDP & Inflation Forecast, 2011-2014
Analysis: consumer confidence & foodservice
Consumer confidence remains abysmal but is rising from bottom: Present Situation Index increases business condition perceptions & job prospects brighten; Expectations Index rises on business conditions & job prospect optimism
Graph 3-2: Unemployment Rate, Savings Rate & Consumer Confidence, 2007-2011
Foodservice application and analysis: Strong correlations to LSR family, snack and beverage & high-frequency limited-service usage
Table 3-1: Degree of Consumer Confidence, Limited-Service Restaurant Use & Usage Frequency: Weaker correlation to full-service usage
Table 3-2: Degree of Consumer Confidence, Full-Service Restaurant Use & Usage Frequency: Tie between consumer confidence and restaurant brand performance?
Table 3-3: High-Confidence Consumers: Restaurant Brand Usage & High-Frequency Use
Analysis: employment & foodservice
Unemployment remains high but is tapering downward: Job openings rise
Foodservice application and analysis
Rise in the unemployment rate results in lower restaurant engagement: Limited-service restaurant usage among employed consumers remains stable
Table 3-4: Limited-Service Restaurant Usage Frequency Analysis, By Employment Status, 2008-2011: Full-service restaurant usage among employed consumers dips
Table 3-5: Full-Service Restaurant Usage Frequency Analysis, By Employment Status, 2008-2011
Demographic analysis: Trouble areas; Restaurant industry ramifications; Bright spots; Restaurant industry ramifications
Table 3-6: Unemployment Trends, by Demographic, October 2009 to December 2011
Analysis: spending, wealth and debt trends
Consumer spending ticks upward: Inflation-adjusted foodservice & accommodations consumer spending up 4% since 2005
Graph 3-3: Real Personal Consumption Expenditures by Type of Product,
Indexes, 2007-2011: Lower energy prices free up discretionary income for restaurant spending
Graph 3-4: U.S. Regular Gasoline Prices, 2007-2011
Household wealth gradually rebounds
Graph 3-5: Household Net Worth, 2005-2011
Wealth bedrocks follow two different paths: Home prices remain depressed; Wilshire 5000 reflects significant market gains & stock equity strength
Graph 3-6: Wealth Effect: Wilshire 5000 and Case-Shiller Index: 2007-2011
Consumer balance sheets undergoing repair: Household debt burden declines; Financial obligations ratios also drop
Graph 3-7: Consumer Debt Ratios: 2007-2011
Food price outlook
Commodity food prices: Commodity cost containment as profit margin protection; Menu pricing to become a more dicey proposition; Restaurant setback a possibility; McDonald’s commodity costs to rise by 4.5% to 5% in 2012; Managing price increases
Graph 3-8: Producer Price Index, Selected Commodities, 2007-2011
Grocery and restaurant price outlook
Graph 3-9: CPI Forecast, Food at Home & Food Away From Home 2011 & 2012
Chapter 4: Restaurant Industry Guest Traffic Trends
Overview: NPD: Guest traffic trends and forecast summary
Foodservice usage, by foodservice establishment type
Fast food and convenience store foodservice share youth appeal: Usage among 55+s plummets
Table 4-1: Foodservice in Past Month, by Foodservice Outlet: Gender, Age & HH Income
Convenience store foodservice usage varies by race/ethnicity: More of an urban phenomenon
Table 4-2: Foodservice in Past Month, by Foodservice Outlet: Race/Ethnicity, Region & Population Density
Foodservice usage, by daypart
Lunch and dinner exhibit widest usage: Target female snackers
Table 4-3: Foodservice in Past Month, by Daypart: Gender, Age & HH Income: Hispanics a breakfast opportunity?; Urban versus rural
Table 4-4: Foodservice in Past Month, by Daypart: Race/Ethnicity, Region & Population Density
Restaurant guest traffic count and frequency comparisons, 2008-11
Visit frequency definitions
Population growth saves industry
Table 4-5: Restaurant Usage by Major Segment, 3-Year Growth Index, 2008-11
Stable guest visit frequency trends
Table 4-6: Limited-Service & Full-Service Restaurant Guest Visit Frequency, 2008-2011
Age restaurant usage trends: Snack and beverage usage declines
Table 4-7: Restaurant Segment Usage & Growth, by Generation, 2008-11
LSR guest visit frequency, by age
Graph 4-1: Limited-Service Restaurant Usage Frequency, by Age/Generation, 2011
Consumers age 45-64 lead usage growth
Table 4-8: Limited-Service Restaurant Guest Traffic Trending, by Age/Generation, 2008-2011
FSR guest visit frequency, by age
Graph 4-2: Full-Service Restaurant Usage Frequency, by Age/Generation, 2011: Gen Y leads full-service traffic growth
Table 4-9: Full-Service Restaurant Guest Traffic Trending, by Age/Generation, 2008-2011
HH income restaurant usage trends: Downward migration in HH income has serious ramifications for restaurant industry
Table 4-10: Restaurant Segment Usage & Growth, by HH Income, 2008-11
LSR guest visit frequency, by HH income
Graph 4-3 Limited-Service Restaurant Usage Frequency, by HH Income, 2011: <$50K HH income LSR users increase 16%
Table 4-11: Limited-Service Restaurant Segment Usage & Growth, by HH Income, 2008-11: Usage increases most pronounced among <$25K & <$25-$49K HH income users
Table 4-12: Limited-Service Restaurant Guest Traffic Trending, by HH Income, 2008-2011
FSR guest visit frequency, by HH income
Graph 4-4: Full-Service Restaurant Usage Frequency, by HH Income, 2011: Loss of $50K+ FSR users not made up by gains in <$50K HH income users
Table 4-13: Full-Service Restaurant Segment Usage & Growth, by HH Income, 2008-11
Table 4-14: Full-Service Restaurant Guest Traffic Trending, by HH Income, 2008-2011
Race/ethnicity restaurant usage trends
Table 4-15: Restaurant Segment Usage & Growth, by Race/Ethnicity, 2008-11
LSR guest visit frequency, by race/ethnicity
Graph 4-5: Limited-Service Restaurant Usage Frequency, by Race/Ethnicity, 2011
FSR guest visit frequency, by race/ethnicity
Graph 4-6: Full-Service Restaurant Usage Frequency, by Race/Ethnicity, 2011
Hispanic restaurant usage trends
Table 4-16: Limited-Service & Full-Service Restaurant Guest Traffic Trending, Hispanics,
2008-2011
Presence of children restaurant usage trends
LSR guest visit frequency, by presence of children
Graph 4-7: Limited-Service Restaurant Usage Frequency,
by Presence of Children, 2011
FSR guest visit frequency, by presence of children
Graph 4-8: Full-Service Restaurant Usage Frequency,
by Presence of Children, 2011
Daypart guest visit frequency
Summary analysis: Dinner remains biggest draw; Breakfast and snack growth; LSR breakfast, LSR dinner and FSR snack outpace other daypart segments
Table 4-17: Restaurant Use, by Daypart and Restaurant Segment, 2008-11
Daypart restaurant usage, by age
Table 4-18: 2011 Daypart Use, by Restaurant Segment: Age
Daypart restaurant usage growth, by age: Percentage breakfast use among 35-44s grows over time; Percentage snacking use among 25-34s on the upswing
Table 4-19: 2008-2011 Daypart Usage Growth, by Restaurant Segment: Age
Daypart restaurant usage, by HH income
Table 4-20: 2011 Daypart Use, by Restaurant Segment: HH Income
Daypart restaurant usage growth, by HH income
Table 4-21: 2008-2011 Daypart Usage Growth, by Restaurant Segment: HH Income
Chapter 5: Restaurant Cuisine & Menu Trends
Overview: Datassential
What’s hot?
Table 5-1: Top Menu Trends, 2011
Restaurant segment distribution
Table 5-2: Restaurant Brand Distribution, by Segment, 2011
Top proteins
Table 5-3: Top 10 Proteins, Restaurant Penetration, by Segment, 2011
Top sides
Table 5-4: Top 10 Sides, Restaurant Penetration, by Segment, 2011
Kids’ menu item analysis: Hot trends
Table 5-5: Top Kids Menu Trends, 2011
Table 5-6: Top Kids Items, Restaurant Penetration, by Segment, 2011
Healthy menu claims
Table 5-7: Top 10 Healthy Claims, Restaurant Penetration, by Segment, 2011: Menu presence trends
Table 5-8: Top 10 Healthy Claims, Restaurant Penetration, 2007-11
Preparation method analysis: Hot preparation methods
Table 5-9: Hot Preparation Method Trends, 2011: Top preparation methods
Table 5-10: Top Preparation Methods, Restaurant Penetration, by Segment, 2011
Mexican menu presence dwarfs those of other Latin American regions
Table 5-11: Latino/Hispanic Cuisine: Restaurant Industry
Menu Incidence & Brand Penetration, by Segment, 2011
Marketing claims that jumped the shark
Words the restaurant industry has killed: Artisan? Are you sure?; Stretching “local” boundaries; Handmade, yes; but does saying so really convey anything?
Chapter 6: Restaurant Health & Wellness Trends
Making health a priority
The argument in dollars and cents: $150 billion a year
Calories trending higher: Long-term calories trend: negative; short-term trend: positive
Graph 6-1: Caloric Intake by Food Group: Number of Calories, 1970-2009
Restaurant industry growth and the obesity connection: Frequency of restaurant use correlates with negative diet self-perception; Fast food correlation even stronger
Eating out and calories: 1 meal out a week = 2 extra pounds a year
Diet and health tied to type of restaurant frequented: Burgers and fries; Sandwich/sub; Full-service
Consumers underestimate restaurant meal calories: Calorie underreporting raises concerns
Government and industry initiatives quickly gathering steam
MyPlate
HealthierUS School Challenge
Kids LiveWell
Patient Protection and Affordable Care Act of 2010: Health professionals’ hopes
Barriers to effectiveness: No change in transaction volume or calories per transaction; Increased consumer awareness; Consumer confusion; Health apathy at POS; Interaction with restaurant labeling differs from grocery labeling
Expect behavioral change: NPD says calorie information will have little effect on consumer ordering: we disagree; Study context; Changes in food choices and spend
On the menu
How to promote health on the menu
Table 6-1: Successful Health and Nutrition Promotion Strategies, 2011
Reduce the added sugar: How much is too much?
Hold the salt: The cost savings: $32.1 billion?; The restaurant connection
Healthy claims: inherent health leads the pack
Table 6-2: Top Healthy Claims: Restaurant Penetration by Segment, 2011
Healthy claims: trend leaders
Table 6-3: Top Healthy Claims: Restaurant Penetration, 2007-11
Mini trend tapers, but opportunity remains: Next step: portion control without labels; Mini-desserts: incenting use while limiting food content; A trend with legs
“Healthy”: more expensive and often not so healthy: Restaurant segment analysis reveals significant price differences
“Natural” QSR menu items do exist; but does natural mean “healthy”?
Consumers’ propensity to health and nutrition on the upswing: Few have been ordering healthy items; But interest in food health is there; The upside; The downside
Graph 6-2: Food & Diet Propensities: Healthful Propensities, 2007-11
Graph 6-3: Food & Diet Propensities: Indulgence & Dieting, 2007-11: Self-care on the upswing
Graph 6-4: Food & Diet Propensities: Knowledge, Money & Time, 2007-11: Packaged Facts’ proprietary psychographic analysis
Healthy menu introductions: Whataburger; Einstein Bros. Bagels
Chapter 7: Restaurant Price, Promotion and Branding Strategies
Overview
Fast casual as nexus of change: Facing a hard reality
Countering full-service malaise with fast casual concepts: rationales
Brand launches: Red Robin Burger Works; IHOP Express; IHOP Café; A “signature” Steak ’n Shake
Warning: “fast casual” not the easy, simple solution to sales woes
Pei Wei fast casual brand not immune to lowering menu prices: Pei Wei Diner Select; Lower price points lower the barrier to purchase frequency
Stripped down fast casual: Pei Wei Asian Market: “No service” strategy; Non-traditional locations
JambaGo: a non-traditional market foray
Building loyalty: E-mail incentives trigger follow up visits; Tie to cause marketing; Make it more rewarding
Daily deals: weighing the pros and cons of social couponing: Daily deal sites; The “Groupon” effect; An overblown concern?; Pros; Cons; Who daily dealers take with them; How daily dealers choose the restaurant; Daily dealer spending and ordering behavior; Cannibalization effect; Intent to return and recommend
Spinning value
Moving away from extreme affordability: Burger King jettisons $1 menu items; Wendy’s eschews extreme affordability: W mid-tier offering incents value meal trade up
Value as choice
Cheesecake Factory promotes tiered pricing
P.F. Chang’s moves price points downstream
Olive Garden lowers entrée-level price points to incent lower-income guests: Strengthens everyday affordability to reach lower-income households
At Denny’s, everyday value provides the foundation; LTOs provide the balance: $2 $4 $6 $8 Value Menu delivers a chunk of sales; LTOs provide trade-up incentive
Everyday combos
Everyday value promotion: dueling 2 for $20 promotions
Family bundles
All-you-can-eat
Upselling on quality: Domino’s: Product reformulation pays huge dividends; Balancing low-price promotions with higher quality introductions; Artisan Pizza promises quality; provides upselling ammunition
Expanding the demographic: Supplementing menu with more healthful offerings; Expanding cuisine reach
Chapter 8: Restaurant Technology Trends
Overview
Mobile consumers; mobile technology: Why it matters; A plethora of consumer-facing potential; Note on location-based services
Online ordering evolves: Shift to multi-concept platforms
Adapting online ordering to mobile technology
A youth driven phenomenon
Graph 6-1: Mobility & Technology Index, by Age, 2010
Restaurant lifestyle engagement informs technology use
Table 6-1: Mobility & Technology Attitudes & Behaviors
Table 6-2: Mobility & Technology Attitudes & Behaviors, Restaurant Lifestyle Group: Higher-frequency restaurant users' technology connection
Table 6-3: Mobility & Technology Attitudes & Behaviors, High-Frequency Restaurant Segment Users, Selected Restaurant Segments
Success story: Five Guys: Mobile share of online ordering: 33%
Mobile payments
Why it matters: A new era of speed and convenience; Quicker card-based restaurant service; Usage is nascent, but consumer interest is there
NFC payments set for launch and quick uptake
Apple and Google in the wings
Google Wallet arriving at a restaurant near you
Starbucks takes the barcode route: Benefits; Stored value card foundation; 26 million transactions and counting
Other developments
Remote drive-thru ordering
Mobile POS growth: Buffalo Wild Wings testing iPad ordering
MCD TV: Incenting sit-down sales?
Call centers build incremental sales
Chapter 9: Restaurant Brand Analysis: Snack & Beverage Segment
Overview
Performance summary: snack and beverage restaurant segment: Coffee wins; treats lose
GRAPH 9-1: Snack & Beverage Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Positive segment momentum
Graph 9-2: Snack & Beverage Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Starbucks Corporation
Beverages comprise three-quarters of retail sales
Table 9-1: Starbucks, Revenue Mix by Product Type, 2009-2011
Recession response: Menu pricing strategies and customer incentives
Social media and technology innovation: A holistic approach firing on all cylinders; Driving toward a strong, unified emotional connection; Food and drink customization online; My Starbucks Idea; Brand managers mingling with the people: what a concept!; My Starbucks Rewards continues to strengthen; iPhone & Android apps; Connecting with Wi-Fi; Mobile payments; eGifting; Customizable Frappuccinos
Retail development innovation: Starbucks juice bar concept
Beverage innovation: Blonde Roast; Evolution Fresh - Beyond Starbucks’ doors
Food innovation: Bistro Box launch
Product innovation: VIA; Seattle’s Best; K-Cups
Graph 9-3: Starbucks Usage Frequency Food Segmentation Analysis
2008-2011 guest traffic frequency analysis: Starbuck’s: General use on decline; higher-frequency use increases; Trouble spots: females, high-income individuals and black consumers
Graph 9-4: 2008-2011 Guest Traffic Frequency Analysis: Starbuck’s
2011 builds on 2010 turnaround: Same-store sales momentum strengthens; Traffic and guest ticket rises
Table 9-2: Starbucks, Selected Metrics, 2007-11
Dunkin’ Donuts
Marketing initiatives - Creating a Fan
2009-11 menu strategy
Beverages: K-cups a hit
Table 9-3: Dunkin Donuts: 2011 New Beverage Menu Items & LTOs
Food
Hitting the right notes with breakfast and snacking: Sandwiches, wraps and dollar menu fill out breakfast menu; Big ‘N Toasty offers premium alternative; Incremental health innovation; Hearty Snacks
Table 9-4: Dunkin Donuts: 2011 New Food Menu Items & LTOs
2008-2011 demographic trend analysis: Dunkin Donuts: Strong usage growth across demographics
Graph 9-5: 2008-2011 Demographic Usage Frequency Trending: Dunkin’ Donuts
Sales performance: Expansion plans and unit growth; Same-store sales improve
Table 9-5: Dunkin’ Donuts, Selected Metrics, 2007-11
Jamba Juice
Food and beverage strategy: New on the menu; Menu-related performance; Retail branding strategy
New store concept to underpin market expansion strategy
Sales performance: Jamba Juice
Table 9-6: Jamba, Inc., Selected Metrics, 2007-11
Chapter 10: Restaurant Brand Analysis: QSR Segment
Overview
Burger King
Growth strategy
Menu initiatives: Barbell strategy remains in place; Breakfast trends; Premium; 2011 ushers aggressive value experimentation
Table 10-1: Burger King: 2011 New Food Menu Items & LTOs: Litigation forces Value Menu transition; Incremental ice cream sales bump; Fry wars
Customer food lifestyle segmentation analysis: Application
Graph 10-1: Burger King Usage Frequency Analysis, Food Lifestyle Segmentation
2008-2011 guest traffic frequency analysis: Burger King: 18-24s eschewing the brand; Other trouble spots
Graph 10-2: 2008-2011 Guest Traffic Frequency Analysis: Burger King
Sales performance: Burger King: 2010 brings guest check pressure; 2011 closes gap in same-store sales declines
Table 10-2: Burger King, Selected Metrics, 2008-11
McDonald’s
Tiered menu approach: Dollar Menu to remain a fixture; No trading down to Value Menu
Breakfast: a quarter of sales, with unit volumes on the upswing
Breakfast strategy: sales growth = guest count growth
McNuggets revitalized: Chicken on the upswing
Beverage sales are booming: Coffee lays the foundation for broadening McCafé platform
Other initiatives: Reimaging rolls forward; Extending hours; Increasing capacity with side-by-side drive-thru
Food lifestyle segmentation analysis: Convenience and Ease and Weekend Cooks
Graph 10-3: McDonald’s Usage Frequency Analysis, Food Lifestyle Segmentation
2008-2011 guest traffic frequency analysis: McDonald’s: Customer usage trends the envy of the QSR segment; Trends strong across the board, with one important exception
Graph 10-4: 2008-2011 Guest Traffic Frequency Analysis: McDonald’s
Sales performance: McDonald’s
Table 10-3: McDonald’s, Selected Metrics, 2007-11
Wendy’s
2009-2010 strategy: “Real” food at a real value: Wendy’s reenters breakfast wars with premium QSR differentiation; Redhead Roasters
Tweaking menu strategy by moving away from extreme affordability
Weaning customers off of extreme affordability: The W; 2011 menu introductions; Chicken line extensions on the way
“Food Lifestyle” segmentation groups a blend of McDonald’s and Burger King
Graph 10-5: Wendy’s Usage Frequency Analysis, Food Lifestyle Segmentation
2008-2011 guest traffic frequency analysis: Wendy’s: Demographic trends suggest turnaround; Mixed usage trends
Graph 10-6: 2008-2011 Guest Traffic Frequency Analysis: Wendy’s
Sales performance: Wendy’s
Table 10-4: Wendy’s, Selected Metrics, 2009-11
Jack in the Box
Regional footprint and boon and a bane: Highly concentrated Hispanic areas influence restaurant-leading Hispanic share
Table 10-5: Jack in the Box Location & Hispanic Population Analysis
Menu strategy: Value bundling drives traffic but lowers average check; Menu activity; New menu boards
Sales performance: Jack in the Box
Table 10-6: Jack in the Box, Selected Metrics, 2007-11
Domino’s Pizza: Menu overview
Growth strategy
Menu innovation: higher quality products timed with well executed promotions: Product reformulation pays huge dividends; Balancing low-price promotions with higher quality introductions; Artisan Pizza promises quality; provides upselling ammunition; Carryout promotion
Technology innovation: iPhone app passes $1 million in weekly sales; Call center builds incremental sales
Food Lifestyle Segmentation
Graph 10-7: Domino’s Usage Frequency Food Segmentation Analysis: Domino’s delivers to Hispanics
Table 10-7: Domino’s Location & Hispanic Population Analysis
2008-2011 guest traffic frequency analysis: Domino’s
Graph 10-8: 2008-2011 Guest Traffic Frequency Analysis: Domino’s
2008-2011 guest traffic frequency analysis: Pizza Hut
Graph 10-9: 2008-2011 Guest Traffic Frequency Analysis: Pizza Hut
Sales performance: Domino’s
Table 10-8: Domino’s, Selected Metrics, 2007-11
Chipotle Mexican Grill
Competitive positioning: customization; Food with Integrity: Marketing that backs Food with Integrity
2010-2011 menu strategy
Restaurant expansion: ShopHouse translates Chipotle model to different cuisines: Digging deeper into established markets while expanding into new ones
Cultivating loyalty: Farm Team Loyalty program off the ground; Cultivate Chicago guest interaction event; Chipotle Cultivate Foundation
2008-2011 guest traffic trend analysis: Chipotle: Growth across demographic groups
Graph 10-10: 2008-2011 Guest Traffic Trend Analysis:
Chipotle Mexican Grill
Food Lifestyle Segmentation: Variety on a Budget & True Foodies
Graph 10-11: Chipotle Usage Frequency Analysis, Food Lifestyle Segmentation
Sale performance: Chipotle: Industry-leading same-store sales growth
Table 10-9: Chipotle Mexican Grill, Selected Metrics, 2007-11
Panera Bread
Menu initiatives: Trade up winner; Owning the menu category; Paninis go from development to the menu; Breakfast, salads and cookies performing well; What to expect in 2012; Catering
Loyalty program at 8 million members and counting
Panera Bread Food Lifestyle Segmentation: Variety on a Budget and True Foodies turn the doors with greatest frequency
Graph 10-13: Panera Bread Usage Frequency Analysis, Food Lifestyle Segmentation
2008-2011 guest traffic frequency analysis: Panera Bread
Graph 10-14: 2008-2011 Guest Traffic Frequency Analysis: Panera Bread
Sales performance: Panera Bread
Table 10-10: Panera Bread, Selected Metrics, 2007-11
Qdoba Mexican Grill
Aggressive expansion underway
Menu strategy
Sales performance: Qdoba
Table 10-15: Qdoba, Selected Metrics, 2007-11
Chapter 11: Restaurant Brand Analysis: Family Segment
Overview
Family restaurant segment performance summary
Graph 11-1: Family Restaurant Annual Same-Store Sales Index:
2005-10, 2006-10, 2007-10 & 2008-2010: Negative momentum
Graph 11-2: Family Restaurant Quarterly Same-Store Sales Index:
2008-11, 2009-11 & 2010-11
Bob Evans
Growth strategy
Menu trends: New on the menu; Daypart analysis
2008-2011 guest traffic frequency analysis: Bob Evan’s: Broadly based guest traffic losses
Graph 11-3: 2008-2011 Guest Traffic Frequency Analysis: Bob Evan’s
Sales performance: Bob Evan’s: Sequential same-store sales improvement, but still negative
Table 11-1: Bob Evans, Selected Metrics, 2009-11
Cracker Barrel Old Country Store, Inc.
Restaurant operations
Retail operations
Marketing and menu strategy: Menu changes geared toward maintaining relevance and reach; Supplementing menu with more healthful offerings; Kids LiveWell options; Luring the budget-conscious with LTOs
Meet Reformed Traditional food segmentation group halfway on health?
Graph 11-4: Cracker Barrel Usage Frequency Analysis, Food Lifestyle Segmentation
2008-2011 guest traffic frequency analysis: Cracker Barrel: Penetration rates falling; HH income usage trends shifting downward
Graph 11-5: 2008-2011 Guest Traffic Frequency Analysis: Cracker Barrel: Fiscal 2012 outlook
Table 11-2: Cracker Barrel, Selected Metrics, 2009-11
Denny’s
Recession challenges: region, lower-middle income demographic and late-night
Marketing strategy
America’s diner is always open: But other rollouts round out the menu; 2010 shift to everyday value supported with LTO entrees
Everyday value provides the foundation: $2 $4 $6 $8, who do we appreciate?; 2-4-6-8 Value Menu mix hovering around 20%
LTOs provide the balance: Tour of America; Let's Get Cheesy; Baconalia; Fit Fare
Graph 11-6: Denny’s Usage Frequency Analysis, Food Lifestyle Segmentation
2008-2011 guest traffic frequency analysis: Denny’s: Mixed usage trends: youth a trouble spot
Graph 11-7: 2008-2011 Guest Traffic Frequency Analysis: Denny’s
The Hispanic connection: Denny’s geographic analysis
Table 11-3: Denny’s Location & Hispanic Population Analysis
A non-traditional expansion strategy
Travel centers: Universities; Fast casual; Smaller footprint models on the horizon?
Sales performance: Light at the end of the tunnel
Table 11-8: Denny’s, Selected Metrics, 2007-11
Chapter 12: Restaurant Brand Analysis: Casual Segment
Overview
Chili’s Bar & Grill
Company growth strategy: Franchising/joint ventures
Restaurant operations: On the menu; Entrée pricing
Back-of-the-house: “Kitchen of the Future”
Front-of-the-house: Reimaging
Menu innovation: Everyday value promotion; Experimenting with lunch: from Bottomless Express to Lunch Break; A fast casual response
Going forward: Usage trending downward; Trouble spots: younger consumers and higher HH income consumers
Graph 12-1: 2008-2011 Guest Traffic Frequency Analysis: Chili’s: Menu pricing analysis
Table 12-1: Chili’s, Menu Pricing Analysis, 2007-11
Sales performance: Chili’s: Q3 2011 and going forward
Table 12-2: Chili’s, Selected Metrics, 2008-11
Olive Garden
Menu strategy: First: emphasize promotions; Then, go beyond promotions; Then, strengthen everyday affordability to reach lower-income households; And pick up the pace
2008-2011 guest traffic frequency analysis: Olive Garden
Graph 12-2: 2008-2011 Guest Traffic Frequency Analysis: Olive Garden: Sales performance: Olive Garden
Table 12-3: Chili’s, Selected Metrics, 2008-11
Chapter 13: Restaurant Brand Analysis: Fine Dining
Overview
Morton’s The Steakhouse: Pending sale; Dependence on business spending; Beef, beef and beef; Rounding out the menu; Wine sales holding steady; Private dining boardroom bookings on the rise; Bar 12-21 boosting bar sales; Steak & Seafood for Two promotion extended
Sales performance: Morton’s: On a price-raising tear
Table 13-1: Morton’s Restaurant Group, Selected Metrics, 2008-11
Ruth’s Chris Steak House
On the menu
Demographic
Revenue building strategies and menu moves: Promotional activity; Gift cards; Private dining
Sales performance
Table 13-2: Ruth’s Chris Steak House, Selected Metrics, 2007-11
Appendix
Appendix on food lifestyle segmentation charts

More United States Quick Service Restaurants Reports

Amusement Park Foodservice Trends in the U.S. by Packaged Facts
Thanks to improving attendance and in-park spending, U.S. amusement park foodservice sales have surpassed prerecession levels, and Packaged Facts’ Amusement Park Foodservice Trends in the ...

Sports and Entertainment Arena Foodservice Trends in the U.S. by Packaged Facts
Facing stagnating seating capacity, attendance challenges, and a difficult ticket pricing environment, the U.S. sports and entertainment industry has sought to increase per capita guest ...

Coffee Shops by First Research, Inc.
Brief Excerpt from Industry Overview Chapter: The US coffee shop industry includes about 20,000 stores with combined annual revenue of about $10 billion. Major companies include ...

Coffee & Snack Shops in the US - Industry Market Research Report by IBISWorld
Coffee & Snack Shops in the US Snack attack While a decline in disposable income and healthier eating trends hurt many coffee and snack shops during the ...

Sandwich & Sub Store Franchises in the US - Industry Market Research Report by IBISWorld
Sandwich & Sub Store Franchises Eating up The resilient Sandwich and Sub Store Franchises industry has experienced continual growth, because of healthy menu items and niche markets. ...

See all reports like this >>

More United States Reports

e-Discovery Software Publishing in the US - Industry Market Research Report by IBISWorld
e-Discovery Software Publishing in the US Finding growth : Electronic discovery (more often known as e-discovery) refers to a data search, location and securing process for use ...

D&B Country RiskLine Report: The United States of America by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

D&B Country Report: The United States of America by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Country Report United States January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

Coal - US - a snapshot (2010) by Mintel - Snapshots
Coal in US by Mintel Global Market Navigator provides you with annual year-end market size data, most recently updated in 2010. This market covers consumption ...

See all reports like this >>

The Foodservice Landscape in the U.S.: Restaurant Industry and Consumer Trends, 2nd Edition

Share this report

Other tasks

Research Assistance

Related Markets

Quick Service Restaurants Reports

Free Alert Me service