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Dining Out: The Restaurant Decision-Making Process - US - July 2014

Published By :

Mintel

Published Date : Jul 2014

Category :

Hotels & Restaurants

No. of Pages : 195 Pages


The US restaurant industry is so large and mature that it’s increasingly difficult to carve out opportunities for growth. Operators must focus on differentiation, not only with menus but overall positioning. The answer may lie in even greater customization, with tailored restaurant concepts for niche audiences and for different day parts. They need to know who their core customer is and create an entire environment just for them.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

Executive Summary

Market drivers
Figure 1: US restaurant sales fan chart, 2009-19
Restaurant usage
Figure 2: Restaurant expenditures, November 2012-December 2013
Where/how do consumers prefer to eat food
Figure 3: Where consumers eat restaurant food, April 2014
Demographics and restaurant behavior
Gender
Age
Household income
Household size
Race/Hispanic origin
Drivers for new restaurant trial
Figure 4: Drivers for new restaurant trial, April 2014
What we think

Issues and Insights

Protein largely un- and under-marketed on restaurant menus
The issues
Tiered approach may maximize consumer appeal
The issues

Trend Application

Trend: Immaterial World
Trend: FSTR HYPR
Trend: The Nouveau Poor

Market Drivers

Key points
Restaurants seeing slow, but sure, gains
Restaurant sales and forecast
Figure 5: US restaurant sales and forecast, at current prices, 2009-19
Figure 6: US restaurant sales and forecast, at inflation-adjusted prices, 2009-19
Restaurant sales by full-service and limited-service segments
Figure 7: US restaurant sales by segment, at current prices, 2012 and 2014
Rising food prices challenge operators
Figure 8: Restaurant performance index, January 2012-March 2014
Figure 9: Changes in Food Price Indexes, 2012 through 2014
Figure 10: Restaurant menu price changes, year-over-year, March 2013-March 2014
Figure 11: Consumer sentiment index, January 2012-May 2014
Figure 12: Unemployment and underemployment rates, January 2007-April 2014
Aging population will likely damper restaurant growth in the next decade
Figure 13: US population by age, 2009-19

Innovations and Innovators

Fast-casual concept expansion full of fresh flavors and creativity
YUM! explores premium
Chipotle expands its Asian and Italian concepts
Food trucks offer large operators a host of gains
Tech capitalizes on enhancing convenience and speed
Panera 2.0
Other outlets
Other tech advances of note
Latest food innovation trends

Competitive Context

Spoilt for choice
It starts with menus…
…and the food that truly distinguishes a restaurant
Figure 14: distribution of ingredient claims in commercial restaurants, Q4 2013
Figure 15: important influencers when deciding where to dine out
Figure 16: consumers demand more detailed menu information
Referrals play a lesser but important role
Grocery outlets nab consumers during shopping visits
Figure 17: Distribution of expenditures on food for off-premise consumption, by channel, 1993, 2003, 2012

Marketing Strategies

Operators expand interactive ordering
Figure 18: Pizza Hut, Interactive concept table, March 2014
How much should operators care about social media?
Relational marketing maneuvers
Figure 19: Subway, Summer with Cimorelli, June 2014
Other social media marketing efforts
Figure 20: Followers/subscribers of select LSRs and FSRs, June 2014

Consumer Data – Overview

Key points
Restaurant expenditures and locales consumers prefer
Special occasions and important restaurant characteristics
What deters restaurant usage and what matters with menus
New menu labeling rules shouldn’t deter consumers
Drivers for new restaurant trial
Consumer tables
Figure 21: Restaurant expenditures, November 2012-December 2013
Figure 22: Where consumers eat restaurant food (limited service), April 2014
Figure 23: Where consumers eat restaurant food (full-service), April 2014
Figure 24: Choosing a restaurant based on occasion, April 2014
Figure 25: Important characteristics when choosing a restaurant, April 2014
Figure 26: Barriers to restaurant usage, April 2014
Figure 27: What matters with menus, April 2014
Figure 28: Drivers for new restaurant trial, April 2014

Consumer Data – Gender

Key points
Men are most likely restaurant-goers and spenders, especially at FSRs
Clean bathrooms matter, especially to women
Women somewhat more deterred than men by range of factors
Menu matters skew more to women
Referrals/promotions drive new restaurant trial, especially for women
Consumer tables by gender
Figure 29: Restaurant expenditures, by gender, November 2012-December 2013
Figure 30: Where consumers eat restaurant food (limited service) – Any type of restaurant, by gender, April 2014
Figure 31: Where consumers eat restaurant food (limited service) – Dine in, by gender, April 2014
Figure 32: Where consumers eat restaurant food (limited service) – Delivery, by gender, April 2014
Figure 33: Where consumers eat restaurant food (full-service) – Any type of restaurant, by gender, April 2014
Figure 34: Where consumers eat restaurant food (full-service) – Dine in, by gender, April 2014
Figure 35: Where consumers eat restaurant food (full-service) – Delivery, by gender, April 2014
Figure 36: Important characteristics when choosing a restaurant, by gender, April 2014
Figure 37: Barriers to restaurant usage, by gender, April 2014
Figure 38: What matters with menus, by gender, April 2014
Figure 39: Drivers for new restaurant trial, by gender, April 2014

Consumer Data – Age

Key points
Restaurant expenditures jump at age 25
Millennials frequent restaurants of all kinds
On any occasion, age distinguishes restaurant priorities
Millennials more laid back, but they still prefer function over form
Mature adults more deterred to eat out by cost, service, and weather
Over-55s sensitive to primary menu matters
With new restaurant trial, Millennials want answers; over-55s want deals
Consumer tables by age
Figure 40: Restaurant expenditures, by age, November 2012-December 2013
Figure 41: Where consumers eat restaurant food (limited service) – Any type of restaurant, by age, April 2014
Figure 42: Where consumers eat restaurant food (limited service) – Dine in, by age, April 2014
Figure 43: Where consumers eat restaurant food (limited service) – To go or carry-out, by age, April 2014
Figure 44: Where consumers eat restaurant food (limited service) – Delivery, by age, April 2014
Figure 45: Where consumers eat restaurant food (limited service) – Drive-thru, by age, April 2014
Figure 46: Where consumers eat restaurant food (full-service) – Any type of restaurant, by age, April 2014
Figure 47: Where consumers eat restaurant food (full-service) – To go or carry-out, by age, April 2014
Figure 48: Where consumers eat restaurant food (full-service) – Delivery, by age, April 2014
Figure 49: Choosing a restaurant based on occasion – Special occasion, by age, April 2014
Figure 50: Choosing a restaurant based on occasion – Everyday, by age, April 2014
Figure 51: Important characteristics when choosing a restaurant, by age, April 2014
Figure 52: Barriers to restaurant usage, by age, April 2014
Figure 53: What matters with menus, by age, April 2014
Figure 54: Drivers for new restaurant trial, by age, April 2014

Consumer Data – Household Income

Key points
Threshold at $50K for over-average restaurant expenditures
Affluents ($100K+) prefer to dine in, even at LSRs
Relative income polarizes priorities with occasions
Less affluent patrons have higher expectations when eating out
Seasoned restaurant-goers (affluents) expect more with menus
Affluents ($75K+) raise bar when choosing a new restaurant
Consumer tables by household income
Figure 55: Restaurant expenditures, by household income, November 2012-December 2013
Figure 56: Where consumers eat restaurant food (limited service) – Any type of restaurant, by household income, April 2014
Figure 57: Where consumers eat restaurant food (limited service) – Dine in, by household income, April 2014
Figure 58: Where consumers eat restaurant food (limited service) – To go or carry-out, by household income, April 2014
Figure 59: Where consumers eat restaurant food (limited service) – Drive-thru, by household income, April 2014
Figure 60: Where consumers eat restaurant food (full-service) – Any type of restaurant, by household income, April 2014
Figure 61: Where consumers eat restaurant food (full-service) – Dine in, by household income, April 2014
Figure 62: Where consumers eat restaurant food (full-service) – To go or carry-out, by household income, April 2014
Figure 63: Choosing a restaurant based on occasion – Special occasion, by household income, April 2014
Figure 64: Choosing a restaurant based on occasion – Everyday, by household income, April 2014
Figure 65: Important characteristics when choosing a restaurant, by household income, April 2014
Figure 66: Barriers to restaurant usage, by household income, April 2014
Figure 67: What matters with menus, by household income, April 2014
Figure 68: Drivers for new restaurant trial, by household income, April 2014

Consumer Data – Household Size

Key points
Figure 69: Millennials living at home with parents, by age, gender, education, employment status, 2012
Medium to large households key target for operators
For any occasion, larger households seek referrals and family friendliness
Small households more particular with restaurant selection and menus
Consumer tables by household size
Figure 70: Restaurant expenditures, by household size, November 2012-December 2013
Figure 71: Where consumers eat restaurant food (limited service) – Any type of restaurant, by household size, April 2014
Figure 72: Where consumers eat restaurant food (limited service) – Dine in, by household size, April 2014
Figure 73: Where consumers eat restaurant food (limited service) – To go or carry-out, by household size, April 2014
Figure 74: Where consumers eat restaurant food (limited service) – Delivery, by household size, April 2014
Figure 75: Where consumers eat restaurant food (limited service) – Drive-thru, by household size, April 2014
Figure 76: Where consumers eat restaurant food (full-service) – Any type of restaurant, by household size, April 2014
Figure 77: Where consumers eat restaurant food (full-service) – To go or carry-out, by household size, April 2014
Figure 78: Where consumers eat restaurant food (full-service) – Delivery, by household size, April 2014
Figure 79: Choosing a restaurant based on occasion – Special occasion, by household size, April 2014
Figure 80: Choosing a restaurant based on occasion – Everyday, by household size, April 2014
Figure 81: Important characteristics when choosing a restaurant, by household size, April 2014
Figure 82: What matters with menus, by household size, April 2014

Consumer Data – Race and Hispanic Origin

Key points
Hispanics lead restaurant spend/usage at LSRs, Asians at FSRs
Figure 83: Average household size, by race/Hispanic origin, 2001-11
Figure 84: Population share 2009-19 and buying power 2000-13, by race/Hispanic origin
Top factors about equal for all races/ethnicities
Menu needs to be quite dispersed for races/ethnicities
Consumer tables by race/Hispanic origin
Figure 85: Restaurant expenditures, by race/Hispanic origin, November 2012-December 2013
Figure 86: Where consumers eat restaurant food (limited service) – Any type of restaurant, by race/Hispanic origin, April 2014
Figure 87: Where consumers eat restaurant food (limited service) – Dine in, by race/Hispanic origin, April 2014
Figure 88: Where consumers eat restaurant food (limited service) – To go or carry-out, by race/Hispanic origin, April 2014
Figure 89: Where consumers eat restaurant food (limited service) – Delivery, by race/Hispanic origin, April 2014
Figure 90: Where consumers eat restaurant food (limited service) – Drive-thru, by race/Hispanic origin, April 2014
Figure 91: Where consumers eat restaurant food (full-service) – Any type of restaurant, by race/Hispanic origin, April 2014
Figure 92: Where consumers eat restaurant food (full-service) – Dine in, by race/Hispanic origin, April 2014
Figure 93: Where consumers eat restaurant food (full-service) – To go or carry-out, by race/Hispanic origin, April 2014
Figure 94: Where consumers eat restaurant food (full-service) – Delivery, by race/Hispanic origin, April 2014
Figure 95: Choosing a restaurant based on occasion – Special occasion, by race/Hispanic origin, April 2014
Figure 96: Choosing a restaurant based on occasion – Everyday, by race/Hispanic origin, April 2014
Figure 97: Barriers to restaurant usage, by race/Hispanic origin, April 2014
Figure 98: What matters with menus, by race/Hispanic origin, April 2014
Figure 99: Drivers for new restaurant trial, by race/Hispanic origin, April 2014

Custom Consumer Segmentation

Group 1: Social media’s influence
Group 2: Speed
Group 3: Diet and health
Group 4: Referrals
Group 5: Convenience and ease
Group 6: Value
Segmentation definition
Figure 100: Consumer segmentation definitions (1 of 2), April 2014
Figure 101: Consumer segmentation definitions, April 2014 (continued)
Consumer tables by consumer segmentation
Figure 102: Where consumers eat restaurant food (limited service) – Any type of restaurant, by foods/beverages, April 2014
Figure 103: Where consumers eat restaurant food (full-service) – Any type of restaurant, by foods/beverages, April 2014
Figure 104: Important characteristics when choosing a restaurant, by choosing a restaurant, April 2014
Figure 105: Barriers to restaurant usage, by restaurant usage, April 2014
Figure 106: What matters with menus, by matters with menus, April 2014
Figure 107: Drivers for new restaurant trial, by new restaurant trial, April 2014

Appendix – Additional Tables

Consumer tables by gender
Figure 108: Where consumers eat restaurant food (limited service) – To go or carry-out, by gender, April 2014
Figure 109: Where consumers eat restaurant food (limited service) – Drive-thru, by gender, April 2014
Figure 110: Where consumers eat restaurant food (full-service) – To go or carry-out, by gender, April 2014
Figure 111: Where consumers eat restaurant food (full-service) – Drive-thru, by gender, April 2014
Consumer tables by age
Figure 112: Where consumers eat restaurant food (full-service) – Dine in, by age, April 2014
Figure 113: Where consumers eat restaurant food (full-service) – Drive-thru, by age, April 2014
Consumer tables by household income
Figure 114: Where consumers eat restaurant food (limited service) – Delivery, by household income, April 2014
Figure 115: Where consumers eat restaurant food (full-service) – Delivery, by household income, April 2014
Figure 116: Where consumers eat restaurant food (full-service) – Drive-thru, by household income, April 2014
Consumer tables by household size
Figure 117: Where consumers eat restaurant food (full-service) – Dine in, by household size, April 2014
Figure 118: Where consumers eat restaurant food (full-service) – Drive-thru, by household size, April 2014
Figure 119: Barriers to restaurant usage, by household size, April 2014
Figure 120: Drivers for new restaurant trial, by household size, April 2014
Consumer tables by race/Hispanic origin
Figure 121: Where consumers eat restaurant food (full-service) – Drive-thru, by race/Hispanic origin, April 2014
Figure 122: Important characteristics when choosing a restaurant, by race/Hispanic origin, April 2014
Consumer tables by custom segment
Figure 123: Where consumers eat restaurant food (limited service) – Dine in, by foods/beverages, April 2014
Figure 124: Where consumers eat restaurant food (limited service) – To go or carry-out, by foods/beverages, April 2014
Figure 125: Where consumers eat restaurant food (limited service) – Delivery, by foods/beverages, April 2014
Figure 126: Where consumers eat restaurant food (limited service) – Drive-thru, by foods/beverages, April 2014
Figure 127: Where consumers eat restaurant food (full-service) – Dine in, by foods/beverages, April 2014
Figure 128: Where consumers eat restaurant food (full-service) – To go or carry-out, by foods/beverages, April 2014
Figure 129: Where consumers eat restaurant food (full-service) – Delivery, by foods/beverages, April 2014
Figure 130: Choosing a restaurant based on occasion – Special occasion, by special occasion, April 2014
Figure 131: Choosing a restaurant based on occasion – Everyday, by special occasion, April 2014

Appendix – Trade Associations

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