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Full Service Restaurants - Casual, Family and Fine Dining - US - April 2015

Foodservice operators, including full service restaurants, have been focusing mostly on Millennials, but there are other demographics that also offer lucrative opportunities, such as Baby Boomers and Hispanics. Since price is still a consideration for so many of the younger population, it makes sense to focus on those with more disposable income. Refreshed menus, renovated spaces, better and faster service are items that appeal to a variety of consumers.

– Julia Gallo-Torres, Sr. Food and Drink/Foodservice Analyst

This report covers the following areas:

How can FSRs appeal to older demographics?
How can full service restaurants cater to diners who are still cost-conscious?
What lessons from fast casuals can FSRs learn?


SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Mintel Menu Insights
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Sales of full service restaurants continue to increase
Figure 1: Total U.S. sales and forecast of restaurants and other eating places, by segment, at current prices,
2009-19
Market drivers
Competitive context
The consumer
Figure 2: Changes in behavior, more, compared to previous year, January 2015
Figure 3: Frequency of visits to full service restaurants, high users, by gender and age, January 2015
Figure 4: Types of full service restaurants visited, by segment, by Income, January 2015
Figure 5: Ways consumers order at full service restaurants, by Hispanic origin, January 2015
Figure 6: Types of full service restaurants visited, by segment, by Generation, January 2015
What we think
ISSUES AND INSIGHTS
How can FSRs appeal to older demographics?
The issues
The implications
How can full service restaurants cater to diners who are still cost-conscious?
The issues
The implications
What lessons from fast casuals can FSRs learn?
The issues
The implications
TREND APPLICATION
Trend: Immaterial World
Trend: Prove It
Trend: Who Needs Humans?
MARKET SIZE AND FORECAST
Key points
Sales and forecast of US full-service restaurant sales
Growing sales reflect a stronger economy
Figure 7: Total U.S. sales and forecast of full-service restaurants, at current prices, 2009-19
Inflation-adjusted sales also show growth
Figure 8: Total U.S. sales and forecast of restaurants and other eating places, at inflation-adjusted prices, 2009-
19
Full-service restaurants still have larger market share than limited-service places
Figure 9: Total market share of restaurants and other eating places, by segment, at current prices, 2014
Figure 10: Total U.S. sales of restaurants and other eating places, by segment, at current prices, 2012 and 2014 25
Fan chart forecast
Figure 11: Total US sales and fan chart forecast of full-service restaurants at current prices, 2009-19
Fan chart forecast methodology
MARKET DRIVERS
Key points
Disposable income continues to rise in 2015, though slowly
Figure 12: Real disposable personal income, January 2007-January 2015
Wages have not increased since 2007
Figure 13: Median household income, in inflation-adjusted dollars, 2003-13
Money is tight for Millennials
Figure 14: Median household income, by age of householder, 2013
Consumer confidence is uneven, and fell in February 2015
Figure 15: Consumer confidence index, January 2009-February 2015
COMPETITIVE CONTEXT
Key points
FSRs continue improvements in menus, and service
Figure 16: Attitudes regarding full service restaurants, January 2015
Consumers want more information about the foods they eat
FSRs should focus on their expansive menu offerings to compete against fast casuals
MARKETING STRATEGIES
Key points
Launching fast casual-type concepts to stay in the game
FSRs renovate menus to offer fresh, trendier ingredients
Using technology to create efficiencies and safety
Moving away from discounts, though diners are resistant
Growth in both domestic and international areas
MENU ANALYSIS – FULL SERVICE RESTAURANTS
Key points
Conveying the uniqueness of dishes
Figure 17: Top 10 menu claims on full service restaurant menus, by incidence, Q4 2011-14
Figure 18: Top 10 dishes on full service restaurant menus, by incidence, Q4 2011-14
Top dishes menued at FSR, by segment
Figure 19: Top 10 menu items in casual dining restaurants, by incidence, Q4 2011-14
Figure 20: Top 10 menu Items on family midscale menus, by incidence, Q4 2011-14
Figure 21: Top 10 menu items in fine/upscale/gourmet restaurants, by incidence, Q4 2011-14
CONSUMER DATA – OVERVIEW
Key points
Consumers struggle to find significant discretionary income
Figure 22: Changes in behavior, more, compared to previous year, January 2015
Budget goes further at family midscale and casual dining venues
Figure 23: Types of full service restaurants visited, by segment, January 2015
Apps are popular for ordering; social media users frequent FSRs most
Figure 24: Types of full service restaurants visited, by segment, by mobile device ownership, January 2015
Figure 25: Types of full service restaurants visited, by segment, by social media usage, January 2015
Figure 26: Types of full service restaurants visited, by segment, by ways consumers order at full service
restaurants, January 2015
CONSUMER DATA – BY GENDER AND AGE
Key points
Older men consider themselves high users of FSRs; more Boomer women than younger women
say they are high users
Figure 27: Frequency of visits to full service restaurants, high users, by gender and age, January 2015
Figure 28: Types of full service restaurants visited, by segment, by gender and age, January 2015
Figure 29: Ways consumers order at full service restaurants, by gender and age, January 2015
Men visit more types of FSRs, but saving is important to both genders
Figure 30: Types of full service restaurants visited, by segment, by gender and age, January 2015
Figure 31: Types of full service restaurants visited, by segment, by gender and age, January 2015
Figure 32: Types of full service restaurants visited, by segment, by gender and age, January 2015
Figure 33: Changes in behavior, compared to previous year – More, by gender and age, January 2015
Figure 34: Deals, discounts and programs that most appeal to consumers, by gender and age, January 2015
Figure 35: Deals, discounts and programs that most appeal to consumers, by gender and age, January 2015
CONSUMER DATA – BY GENERATION
Key points
Desire for service increases with age; Boomers need attentive wait staff
Figure 36: Types of full service restaurants visited, by segment, by Generation, January 2015
Figure 37: Types of full service restaurants visited, by segment, by generation, January 2015
Figure 38: Types of full service restaurants visited, by segment, by generation, January 2015
Figure 39: Types of full service restaurants visited, by segment, by generation, January 2015
Figure 40: Ways consumers order at full service restaurants, by generation, January 2015
Figure 41: Attitudes regarding full service restaurants, by generation, January 2015
FSRs need to work on communicating healthier, safer foods image
Figure 42: Attitudes regarding full service restaurants, by generation, January 2015
Figure 43: Attitudes regarding full service restaurants, by generation, January 2015
CONSUMER DATA – BY INCOME
Key points
Family midscale restaurants appeal more to lower income groups
Figure 44: Types of full service restaurants visited, by segment, by Income, January 2015
Figure 45: Frequency of visits to full service restaurants, by Income, January 2015
Figure 46: Changes in behavior, compared to previous year – More, by Income, January 2015
High-income groups like independent restaurants, renovated spaces and new menus
Figure 47: Ways consumers order at full service restaurants, by Income, January 2015
Figure 48: Attitudes regarding full service restaurants, by Income, January 2015
CONSUMER DATA – BY RACE AND HISPANICS
Key points
Hispanics are dining out at FSRs and LSRs more
Figure 49: Ways consumers order at full service restaurants, by Hispanic origin, January 2015
Figure 50: Types of full service restaurants visited, by segment, by race and Hispanic origin, January 2015
Figure 51: Changes in behavior, compared to previous year – More, by Hispanic origin, January 2015
Figure 52: Deals, discounts and programs that most appeal to consumers, by race and Hispanic origin, January
2015
Figure 53: Changes in behavior, compared to previous year – More, by Hispanic origin, January 2015
Types of restaurants preferred by Hispanics
Figure 54: Types of full service restaurants visited, by segment, by race and Hispanic origin, January 2015
Figure 55: Types of full service restaurants visited, by segment, by race and Hispanic origin, January 2015
Figure 56: Types of full service restaurants visited, by segment, by race and Hispanic origin, January 2015
CONSUMER DATA – BY PARENTS
Key points
Millennial parents continue regular dining out pattern, with children
Figure 57: Types of full service restaurants visited, by segment – by generation by parent status, January 2015 .. 74
Figure 58: Types of full service restaurants visited, by segment – by generation by parent status, January 2015 .. 74
Figure 59: Changes in behavior, compared to previous year – More - by generation by parent status, January
2015
Figure 60: Types of full service restaurants visited, by segment - by generation by parent status, January 2015
Parents still value a good experience when dining out
Figure 61: Ways consumers order at full service restaurants, by generation by parent status, January 2015
Figure 62: Attitudes regarding full service restaurants, Any Agree - by presence of children in household,
January 2015
CONSUMER DATA – BY REGION
Key points
The South prefers buffets; the West more likely to visit Mexican concepts
Figure 63: Types of family/midscale full service restaurants visited, by region, January 2015
Figure 64: Types of full service restaurants visited, by segment, by region, January 2015
Figure 65: Ways consumers order at full service restaurants, by region, January 2015
Figure 66: Types of full service restaurants visited, by segment, by region, January 2015
Figure 67: Types of full service restaurants visited, by segment, by region, January 2015
CONSUMER DATA – BY AREA
Key points
Urbanites are the most demanding of groups
Figure 68: Types of full service restaurants visited, by segment, by area, January 2015
Figure 69: Ways consumers order at full service restaurants, by area, January 2015
Figure 70: Attitudes regarding full service restaurants, by area, January 2015
Figure 71: Attitudes regarding full service restaurants, by area, January 2015
APPENDIX – TRADE ASSOCIATIONS
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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