Hispanics and Fast Casual Dining - US - February 2016

Hispanics and Fast Casual Dining - US - February 2016

Hispanics over index for use of all subcategories of fast casual restaurants which makes them an important segment that fast casual restaurants can’t ignore. However, in spite of this, Hispanics tend to have difficulties seeing a better value in fast casual restaurants when comparing these to other types of restaurants.

This report examines the following areas:

Hispanics over index for all fast casual dining subcategories
Most Hispanics don’t see a better value in fast casual restaurants compared to other types of restaurants
Not overcomplicating it – it’s all about the food


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Hispanics’ expenditures on LSRs projected to reach $48.7 billion by 2019
Figure 1: Expenditures and fan chart forecast of Hispanic consumers on limited service restaurants, at current prices, 2010-20
The issues
Figure 2: Fast casual restaurant types Hispanics used in the past month, Hispanics vs all, October 2015
Figure 3: Hispanics’ perception of value – Fast casual restaurants vs other types of restaurants, October 2015
Figure 4: Hispanics’ reasons to visit fast casual restaurants, October 2015
The opportunities
Figure 5: Hispanics’ visits to fast casual restaurants by type and meal of the day, Indexed to all*, October 2015
Figure 6: How Hispanics learn about fast casual restaurants, October 2015
What it means
THE MARKET
What you need to know
Hispanics’ expenditures on LSRs currently estimated at $38.1 billion
Structural market factors may affect fast casual restaurants
Other trends affecting the market
Market size and forecast
Hispanics’ expenditures at LSRs projected to almost double between 2010 and 2020
Figure 7: Expenditures and fan chart forecast of Hispanic consumers on limited service restaurants, at current prices, 2010-20
Figure 8: Expenditures by Hispanic households on limited service restaurants, at current prices, 2010-20
Market factors
Improving labor market for Hispanics has a positive impact on their confidence
Figure 9: Hispanic unemployment, January 2007-December 2015
Hispanics live in larger households and are more likely to have children
Figure 10: Average household size and average number of adults and children in households, by race and Hispanic origin, 2014
Figure 11: Presence of children in household, by race and Hispanic origin, 2014
The Hispanic population is young
Figure 12: Population by Hispanic origin and generation share, 2015
Bicultural Hispanics fueling growth of fast casual restaurants
Figure 13: Hispanics’ change in behavior toward fast casual restaurants, by household income, October 2015
Market perspective
Hispanics claim to be cooking more at home
Figure 14: Hispanics’ change in behavior toward fast casual restaurants, by gender and age, October 2015
Figure 15: Attitudes about trying new foods, Hispanics by language spoken at home vs all, July 2014-September 2015
New foods more appealing as Hispanics become more acculturated
Understanding how Hispanics define foreign foods
Figure 16: Attitudes about eating foreign foods, Hispanics by language spoken at home vs all, July 2014-September 2015
The trend toward more healthful foods gains relevance with higher incomes
Figure 17: Hispanics’ attitudes about healthier fast food, by household income, July 2014-September 2015
KEY PLAYERS
What you need to know
Fast casual restaurants that build strength around food may do well
Differentiation from other restaurants is the biggest challenge
More fragmentation is to be expected
What’s working?
In a fragmented market, clearly defining strengths of the food
Figure 18: Pollo Tropical® is Growing, January 2014
Figure 19: About El Pollo Loco, July 2014
Figure 20: The Roti Story, September 2012
Figure 21: What we’re made of – Hatch green chiles, Costa Vida Mexican Grill, October 2015
What’s challenging?
Differentiation from fast food restaurants
Figure 22: Average number of limited service restaurants Hispanics visit in a typical month, by age, July 2014-September 2015
What’s next?
More fragmentation coming to a market near you
THE CONSUMER
What you need to know
Hispanics more likely to visit fast casual restaurants than all US consumers
Hispanics’ visits to fast casual restaurants are limited mainly to lunch and dinner
Fast casual restaurants not a better value for most Hispanics
Meeting expectations lead to repeat visits
The price/quality relationship needs to communicate value
The power of recommendations
Hispanics and fast casual dining
Hispanics over index for all fast casual dining subcategories
Figure 23: Fast casual restaurant types Hispanics used in the past month, Hispanics vs all, October 2015
Younger Hispanic men drive visits
Figure 24: Fast casual restaurant types Hispanics used in the past month, by gender and age, October 2015
More affluent Hispanics eating more at fast casual restaurants
Figure 25: Hispanics’ change in behavior toward fast casual restaurants, by household income, October 2015
Meals Hispanics eat at fast casual restaurants
Hispanics over index for lunch and dinner at fast casual restaurants
Figure 26: Hispanics’ use of fast casual restaurants by type and meal of the day, indexed to all, October 2015
The competition for Hispanic customers is more evident during lunch
Figure 27: Correspondence analysis – Types of restaurants and types of meals, October 2015
Figure 28: Types of restaurants, October 2015
Fast casual restaurants versus fast food restaurants
Few Hispanics consider fast casual restaurants offer a better value than fast food restaurants do
Figure 29: Hispanics’ perception of value – Fast casual restaurants vs fast food restaurants, October 2015
Figure 30: Hispanics’ perception of value – Fast casual restaurants vs fast food restaurants, by household income, October 2015
More affluent Hispanics more likely to see value in fast casual restaurants
Hispanics not replacing casual dining restaurants with fast food restaurants
Figure 31: Hispanics’ change in behavior toward fast casual restaurants, by household income, October 2015
Fast casual restaurants versus casual dining restaurants
Hispanics see equal value in fast casual restaurants and in casual dining restaurants
Figure 32: Perception of value among Hispanics – Fast casual restaurants vs casual dining restaurants, October 2015
Less-affluent Hispanics gravitating toward fast casual restaurants instead of casual dining restaurants
Figure 33: Hispanics’ change in behavior toward fast casual restaurants, by household income, October 2015
Fast casual restaurants versus Hispanic independent restaurants
Hispanics have a slight inclination to see better value in Hispanic independent restaurants
Figure 34: Perception of value among Hispanics – Fast casual restaurants vs Hispanic independent restaurants, October 2015
Less-acculturated Hispanics see better value in Hispanic independent restaurants
Figure 35: Hispanics’ perception of value – Fast casual restaurants vs Hispanic independent restaurants, by level of acculturation,
October 2015
Bicultural Hispanics eating more at Hispanic independent restaurants
Figure 36: Hispanics’ change in behavior toward fast casual restaurants, by level of acculturation, October 2015
Hispanics’ reasons to visit fast casual restaurants
It’s all about the food
Figure 37: Hispanics’ reasons to visit fast casual restaurants, October 2015
Less-acculturated Hispanics give more relative weight to a kid-friendly atmosphere
Figure 38: Hispanics’ reasons to visit fast casual restaurants, October 2015
Hispanics’ opinions about fast casual restaurants
Satisfaction leads to repeat visits, but opportunities for stronger engagement exist
Figure 39: Hispanics’ opinions about fast casual restaurants, October 2015
Figure 40: Hispanics’ opinions about fast casual restaurants, by level of acculturation, October 2015
Hispanics more willing to pay more at fast casual restaurants (if quality deserves it)
Figure 41: Hispanics’ opinions about fast casual restaurants, Hispanics vs all, October 2015
How Hispanics learn about fast casual restaurants
Recommendations are key to making fast casual restaurants known
Figure 42: How Hispanics learn about fast casual restaurants, October 2015
Bicultural Hispanics more open to learn through multiple sources
Figure 43: How Hispanics learn about fast casual restaurants, October 2015
Change in use of coupons, loyalty programs, other deals at fast casual restaurants
Use of coupons, loyalty programs, other deals shows limited change
Figure 44: Hispanics’ change in behavior at fast casual restaurants – Use of client engaging tactics, by level of acculturation,
October 2015
APPENDIX
Data sources and abbreviations
Data sources
Correspondence analysis methodology
Abbreviations and terms
A note on acculturation
The market
Figure 45: Expenditures by Hispanic households on dining out, at current prices, 2010-20
Figure 46: Expenditures by Hispanic households on dining out, at inflation-adjusted prices, 2010-20
Figure 47: Expenditures by Hispanic households on dining out, by segment, at current prices, 2010-20
Figure 48: Expenditures by Hispanic households on dining out, by segment, at current prices, 2013 and 2015
Figure 49: Expenditures by Hispanic households on limited service restaurants, at current prices, 2010-20
RESEARCH METHODOLOGY
US Multicultural Methodology
Consumer research
Trade research
Statistical Forecasting

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook