Market Research Logo

LSR: Ethnic Concepts - US - February 2015

LSR: Ethnic Concepts - US - February 2015


“Consumers have favorable opinions about ethnic food and flavors, as well as the LSR brands that offer them. For operators who want to remain in a good light, they need to be up-to-speed with restaurant mobile technology, use high-quality ingredients, and offer both new ethnic fare and ‘tried-and-true’ items to be top of mind with potential customers.”

– Katrina Fajardo, Foodservice Analyst

This report discusses the following key topics:

Is definition of authenticity changing for good (or not-so-good) for operators?
Panelists are excited about new flavors, but still hold on to “tried-and-true” menu items
Technology use at LSR Ethnic concepts is growing


SCOPE AND THEMES
What you need to know
Definition
Data sources
Mintel Menu Insights
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total US sales and fan chart forecast of limited-service restaurants at current prices, 2009-19
Market drivers
The consumer
The definition of authentic cuisine, according to consumers, is changing
Figure 2: Opinions of authenticity among LSR ethnic concepts, October 2014
Visits to Latin, Asian, and Mediterranean LSR concepts have increased
Figure 3: LSR ethnic concept usage, October 2014
Intent to use more technology at LSR restaurants posted largest growth
Figure 4: LSR ethnic concept changes in behavior, more, October 2014
Consumers look forward to trying ethnic foods and flavors
Figure 5: Attitudes regarding LSR ethnic concepts, October 2014
What we think
ISSUES AND INSIGHTS
Is definition of authenticity changing for good (or not-so-good) for operators?
The issues
The implications
Panelists are excited about new flavors, but still hold on to “tried-and-true” menu items
The issues
The implications
Technology use at LSR Ethnic concepts is growing
The issues
The implications
TREND APPLICATION
Trend: Experience is All
Trend: Objectify
Trend: Locavore
MARKET SIZE AND FORECAST
Key points
Sales and forecast of market
Figure 6: Total US sales and forecast of limited-service eating places, at current prices, 2009-19
Figure 7: Total US sales and forecast of limited-service eating places, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 8: Total US sales and fan chart forecast of limited-service restaurants at current prices, 2009-19
MARKET DRIVERS
Key points
Americans are spending more on food and still dining out
Figure 9: Food-at-home and away-from-home expenditures in the US, 1960-2013
Unemployment rates are falling but underemployment is still an issue
Figure 10: Unemployment rate and underemployment, January 2007–October 2014
Consumer confidence and disposable personal income is on the rise
Figure 11: Consumer confidence index, January 2007-Dec 2014
Figure 12: Real disposable personal income, in billions, January 2007-November 2014
Both Baby Boomers and Millennials are crucial generations for foodservice
Figure 13: US population, by generation share, 2014
America’s diversity is growing , and so will ethnic flavor desires
Figure 14: Population by race, 2013-18
Figure 15: Population by Hispanic origin, 2013-18
Obesity and healthful eating is a top concern with Americans
Figure 16: American adults, by weight category, as determined by Body Mass Index (BMI), 2008-14
COMPETITIVE CONTEXT
Key points
Non-LSR Ethnic concepts are trying their hand at ethnic offerings
FSR and fine dining locations are expanding the ethnic food scene
Retail expands ethnic food varieties in stores
MARKETING STRATEGIES
Overview
LSR Ethnic brands are expanding to create unique dining experiences for customers
Panda Express experiments with new food and drink items in their new “Innovation Kitchen”
The Halal Guys slated to open brick-and-mortar locations across the US
New menu items help expand flavor profiles
Fazoli’s adds new Signature Cheddar Alfredo Bakes
Fresca Bowls at Del Taco helps compete against fast casual and other Mexican-inspired chains
Qdoba’s new burritos use sauce to bring more flavor
Promotions and giveaways help LSR Ethnic brands gain exposure in the market
Noodles and Company celebrates National Noodle Day with giveaways
California Tortilla utilizes Instagram for their hot sauce campaign
Garbanzo Mediterranean Grill celebrates Bean Day by raising funds for young adults fighting cancer
LSR Ethnic restaurants go healthier and more ethical
Salata brings back its “Eat Light at Night” promotion
Tropical Lite is the new healthful menu section at Pollo Tropical
Taziki’s Mediterranean Café earns REAL certification
Chipotle stops serving pork due to suppliers violating standards
Taco Bell tests protein, Greek yogurt at breakfast
MENU ANALYSIS
Figure 17: Menu item cuisine type at QSR and fast casual, by incidence, Q4 2011-Q3 2014
Salads debut to showcase healthy ethnic flavors
Authentic items and ingredients are emerging on LSR ethnic menus
Spicy makes its way onto LSR Ethnic menus
LSR: ETHNIC FOOD CONCEPTS – SOCIAL MEDIA
Key findings
Market overview
Key social media metrics
Figure 18: Key social media metrics, Jan. 2015
Brand usage and awareness
Figure 19: Brand usage and awareness for select ethnic food concept restaurants. Oct. 2014
Interactions with ethnic concept restaurants
Figure 20: Interactions with select ethnic food concept restaurants, Oct. 2014
Leading online campaigns
Mobile apps
User-generated content
Games
What we think
Online conversations
Figure 21: Online conversations for select ethnic food concept restaurants, by week, Jan. 19, 2014-Jan.
18, 2015
Where are people talking about restaurants?
Figure 22: Online conversations for select ethnic food concept restaurants, by page type, Jan. 19, 2014-
Jan. 18, 2015
What are people talking about?
Figure 23: Topics of conversation for select ethnic food concept restaurants, Jan. 19, 2014-Jan. 18, 2015
OPINIONS ABOUT AUTHENTICITY AMONG RESTAURANT BRANDS
Figure 24: Opinions of authenticity among LSR ethnic concepts, October 2014
Ubiquity in the market can lead to authentic opinions
Authenticity is connected to fresh and local
Marketing can be key in operators offering authentic foods
Fast-casual ethnic concepts are considered authentic to Older Millennials
Figure 25: Opinions of authenticity among LSR ethnic concepts, by age, October 2014
Hispanics think highly of these brands’ authenticity
Figure 26: Opinions of authenticity among LSR ethnic concepts, by race/Hispanic origin, October 2014
CORRESPONDENCE ANALYSIS
Methodology
Question used:
Men are a coveted demographic for LSR Ethnic concepts; how can operators keep them
coming through their doors?
Figure 27: LSR ethnic concept daypart usage, February 2015
The data
The issues
Figure 28: Correspondence analysis, February 2015
The implications
CONSUMER DATA – OVERVIEW
Visitation to LSR Ethnic concepts increased, with fast food Latin and fast casual Asian
leading the way
Figure 29: LSR ethnic concept usage, October 2014
Consumers are using technology more often at LSR Ethnic
Figure 30: LSR ethnic concept changes in behavior, more, October 2014
Dealing is moving from traditional discounts to website coupons and loyalty programs
Figure 31: LSR ethnic concept deals, October 2014
Panelists expect higher-quality, fresh, customizable foods when visiting LSR Ethnic concepts
Figure 32: Important attributes at LSR ethnic concepts, October 2014
Respondents are “ethnic foodie fans” but still enjoy common ethnic foods
Figure 33: Attitudes regarding LSR ethnic concepts, October 2014
CONSUMER DATA – BY RESTAURANT TYPE
Key points
Mediterranean and Indian LSR concepts are attracting diet-focused consumers
Figure 34: LSR ethnic concept changes in behavior – More, by restaurant types, October 2014
Figure 35: Important attributes at LSR ethnic concepts, by restaurant types, October 2014
Latin, Italian, and Asian visitors are more apt to use BOGO deals; mobile app discounts for
Mediterranean, Indian
Figure 36: LSR ethnic concept deals, by restaurant types, October 2014
CONSUMER DATA – BY DAYPART
Key points
Affordability is key for evening snack; customization and portion sizes are areas of
opportunity
Figure 37: LSR ethnic concept deals, by dayparts, October 2014
Figure 38: Important attributes at LSR ethnic concepts, by dayparts, October 2014
CONSUMER DATA – BY GENDER
Key points
Women look for affordability and health
Figure 39: LSR ethnic concept changes in behavior – More, by gender, October 2014
Figure 40: Important attributes at LSR ethnic concepts, by gender, October 2014
Figure 41: Attitudes regarding LSR ethnic concepts, by gender, October 2014
CONSUMER DATA – BY AGE
Key points
Lunch and dinner are areas of opportunity among Millennial-aged consumers
Figure 42: LSR ethnic concept usage, by age, October 2014
Figure 43: LSR ethnic concept daypart usage – Lunch, by age, October 2014
Figure 44: LSR ethnic concept daypart usage – Dinner, by age, October 2014
55-64 year-olds are slowly, but surely, using technology at restaurants
Figure 45: LSR ethnic concept changes in behavior – More, by age, October 2014
Figure 46: LSR ethnic concept deals, by age, October 2014
25-34 year-olds can be daring with new ethnic foods, as well as hesitant
Figure 47: Attitudes regarding LSR ethnic concepts, by age, October 2014
CONSUMER DATA – BY HISPANIC/NON-HISPANIC
Key points
Hispanics are core users of LSR Ethnic; willing to spend more, visit more
Figure 48: LSR ethnic concept usage, by race/Hispanic origin, October 2014
Figure 49: LSR ethnic concept changes in behavior – More, by race/Hispanic origin, October 2014
Hispanics are more sceptical about ethnic foods
Figure 50: Attitudes regarding LSR ethnic concepts, by race/Hispanic origin, October 2014
CONSUMER DATA – BY INCOME
Key points
Affordability is the biggest concern for consumers less than $50K income
Healthy, upscale items are important to consumers more than $100K income
Figure 51: LSR ethnic concept changes in behavior – More, by household income, October 2014
Figure 52: LSR ethnic concept deals, by household income, October 2014
Figure 53: Important attributes at LSR ethnic concepts, by household income, October 2014
Figure 54: Attitudes regarding LSR ethnic concepts, by household income, October 2014
APPENDIX – OTHER USEFUL TABLES
Figure 55: LSR ethnic concept usage, October 2014
Figure 56: Opinions of authenticity among LSR ethnic concepts, by age, October 2014
Figure 57: Opinions of authenticity among LSR ethnic concepts, by race/Hispanic origin, October 2014
APPENDIX – CONSUMER DATA – BY RESTAURANT TYPE
Figure 58: LSR ethnic concept changes in behavior – More, by restaurant types, October 2014
Figure 59: LSR ethnic concept deals, by restaurant types, October 2014
Figure 60: Important attributes at LSR ethnic concepts, by restaurant types, October 2014
APPENDIX – CONSUMER DATA – BY DAYPART
Figure 61: LSR ethnic concept usage, by dayparts, October 2014
Figure 62: LSR ethnic concept deals, by dayparts, October 2014
Figure 63: Important attributes at LSR ethnic concepts, by dayparts, October 2014
APPENDIX – CONSUMER DATA – BY GENDER
Figure 64: LSR ethnic concept usage, by gender, October 2014
Figure 65: LSR ethnic concept deals, by gender, October 2014
Figure 66: Important attributes at LSR ethnic concepts, by gender, October 2014
APPENDIX – CONSUMER DATA – BY AGE
Figure 67: LSR ethnic concept daypart usage – Lunch, by age, October 2014
Figure 68: LSR ethnic concept daypart usage – Dinner, by age, October 2014
Figure 69: LSR ethnic concept changes in behavior – More, by age, October 2014
Figure 70: Important attributes at LSR ethnic concepts, by age, October 2014
APPENDIX – CONSUMER DATA – BY HISPANIC/NON-HISPANIC
Figure 71: LSR ethnic concept changes in behavior – More, by race/Hispanic origin, October 2014
Figure 72: LSR ethnic concept deals, by race/Hispanic origin, October 2014
Figure 73: Important attributes at LSR ethnic concepts, by race/Hispanic origin, October 2014
Figure 74: Attitudes regarding LSR ethnic concepts, by race/Hispanic origin, October 2014
APPENDIX – CONSUMER DATA – BY INCOME
Figure 75: LSR ethnic concept usage, by household income, October 2014
Figure 76: LSR ethnic concept changes in behavior – More, by household income, October 2014
Figure 77: LSR ethnic concept deals, by household income, October 2014
Figure 78: Attitudes regarding LSR ethnic concepts, by household income, October 2014
APPENDIX – CONSUMER DATA – BY RACE
Figure 79: LSR ethnic concept usage, by race/Hispanic origin, October 2014
Figure 80: Important attributes at LSR ethnic concepts, by race/Hispanic origin, October 2014
Figure 81: Attitudes regarding LSR ethnic concepts, by race/Hispanic origin, October 2014
APPENDIX – US CENSUS REGIONS
Figure 82: LSR ethnic concept usage, by region, October 2014
Figure 83: LSR ethnic concept changes in behavior – More, by region, October 2014
Figure 84: Important attributes at LSR ethnic concepts, by region, October 2014
Figure 85: Attitudes regarding LSR ethnic concepts, by region, October 2014
APPENDIX –LSR ETHNIC FOOD CONCEPTS – SOCIAL MEDIA
Key social media metrics
Figure 86: Key social media metrics for select ethnic concept restaurants, Jan. 2015
Online conversations
Figure 87: Online conversations for select restaurants, by week, Jan. 19, 2014-Jan. 18, 2015
Brand usage or awareness
Figure 88: Brand usage or awareness, October 2014
Figure 89: Noodles & Company usage or awareness, by demographics, October 2014
Figure 90: Pei Wei usage or awareness, by demographics, October 2014
Figure 91: Daphne’s California Greek usage or awareness, by demographics, October 2014
Figure 92: Panda Express usage or awareness, by demographics, October 2014
Figure 93: Kogi BBQ usage or awareness, by demographics, October 2014
Figure 94: Moe’s Southwest Grill usage or awareness, by demographics, October 2014
Activities done
Figure 95: Activities done, October 2014
Figure 96: Noodles & Company – Activities done – I have looked up/talked about this brand online on
social media, by demographics, October 2014
Figure 97: Noodles & Company – Activities done – I have contacted/interacted with the brand online on
social media to, by demographics, October 2014
Figure 98: Noodles & Company – Activities done – I follow/like the brand on social media because, by
demographics, October 2014
Figure 99: Noodles & Company – Activities done – I have researched the brand on social media to, by
demographics, October 2014
Figure 100: Pei Wei – Activities done – I have looked up/talked about this brand online on social media, by
demographics, October 2014
Figure 101: Pei Wei – Activities done – I have contacted/interacted with the brand online on social media
to, by demographics, October 2014
Figure 102: Pei Wei – Activities done – I follow/like the brand on social media because, by demographics,
October 2014
Figure 103: Pei Wei – Activities done – I have researched the brand on social media to, by demographics,
October 2014
Figure 104: Panda Express – Activities done – I have looked up/talked about this brand online on social
media, by demographics, October 2014
Figure 105: Panda Express – Activities done – I have contacted/interacted with the brand online on social
media to, by demographics, October 2014
Figure 106: Panda Express – Activities done – I follow/like the brand on social media because, by
demographics, October 2014
Figure 107: Panda Express – Activities done – I have researched the brand on social media to, by
demographics, October 2014
Figure 108: Moe’s Southwest Grill – Activities done – I have looked up/talked about this brand online on
social media, by demographics, October 2014
Figure 109: Moe’s Southwest Grill – Activities done – I have contacted/interacted with the brand online on
social media to, by demographics, October 2014
Figure 110: Moe’s Southwest Grill – Activities done – I follow/like the brand on social media because, by
demographics, October 2014
APPENDIX – TRADE ASSOCIATIONS
Council for Responsible Nutrition
Food Marketing Institute (FMI)
International Food Information Council (IFIC)
International Food Service Executives Association (IFSEA)
International Foodservice Distributors Association (IFDA)
International Foodservice Manufacturers Association (IFMA)
International Franchise Association (IFA)
National Council of Chain Restaurants (NCCR)
National Nutritional Foods Association (NNFA)
National Restaurant Association (NRA)
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media 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

Share this report