Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- Overview
- The issues
- FSR segment experiences slowed growth
-
- Figure 1: Total US revenues and forecast of restaurants and eating places*, by segment, at current prices, 2018 and 2023
- Cooking at home is restaurants’ biggest competition
-
- Figure 2: Planned dining out behavior for 2019, October 2018
- The opportunities
- Americans love dining out
-
- Figure 3: Restaurant attitudes, October 2018
- Diners want restaurants to serve the greater good
-
- Figure 4: Areas of concentration for restaurants – Net any rank, October 2018
- What it means
The Market – What You Need to Know
-
- Restaurant revenues expected to grow, fueled by rising costs
- FSR segment experiences slowed growth
- Grocery delivery offers new competition for prepared meals
Market Size and Forecast
-
- Restaurant revenues expected to grow in 2019
-
- Figure 5: Total US revenues and fan chart forecast of restaurants and eating places*, at current prices, 2013-23
- Figure 6: Total US revenues and forecast of restaurants and eating places*, at current prices, 2013-23
Market Breakdown
-
- LSR segment growth will outperform FSR segment
-
- Figure 7: Total US revenues and fan chart forecast of full-service restaurants, at current prices, 2013-23
- Figure 8: Total US revenues and forecast of full-service restaurants, at current prices, 2013-23
- Figure 9: Total US revenues and fan chart forecast of limited-service eating places*, at current prices, 2013-23
-
- Figure 10: Total US revenues and forecast of limited-service eating places*, at current prices, 2013-23
-
- Figure 11: Total US revenues and forecast of restaurants and eating places*, by segment, at current prices, 2018 and 2023
Market Perspective
-
- More meal kit options become available
- Online grocery retailers deliver prepared meals
-
- Figure 12: Total us online sales of groceries*, at current prices, 2013-18
Market Factors
-
- At-home sales continue to grow
-
- Figure 13: BEA food and non-alcoholic beverage sales at home and away from home, January 2010-September 2018
- Positive economic conditions ahead
-
- Figure 14: Consumer sentiment index, January 2007- August 2018
- Consumers have more discretionary funds
-
- Figure 15: Disposable Personal Income change from previous period, January 2007-July 2018
Key Trends– What You Need to Know
-
- Restaurants become lifestyle brands
- Not all consumers are interested in more ordering options
- Restaurants do more for employees and the Earth
What’s Working?
-
- Off-premise dining helps casual dining restaurants boost sales
- More than half of consumers plan on using mobile-to-go order and pickup
- Customers define their relationship with restaurants
-
- Figure 16: Brand posts engagement across all social channels
What’s Struggling?
-
- Labor market is tightening
-
- Figure 17: Unemployment and underemployment, January 2007-January 2018
- Kiosk ordering is not appealing to all customers
What’s Next?
-
- Restaurants focus on sustaining good environmental practices
The Consumer – What You Need to Know
-
- Dining out is a favorite activity
- Consumer interest in FSRs differs from LSRs
- Doing good is important to diners
Restaurant Visitation
-
- Fast food restaurants are most visited
-
- Figure 18: Restaurant visitation in the past three months, October 2018
-
- Figure 19: Restaurant segment visitation in the past three months, October 2018
- Generational differences play a key role in restaurant visitation
-
- Figure 20: Restaurant visitation in the past three months, by generation, October 2018
- Higher household income customers more interested in premium dining options
-
- Figure 21: Restaurant visitation in the past three months, by household income, October 2018
- Parents are top restaurant-goers
-
- Figure 22: Restaurant visitation in the past three months, by parental status by gender, October 2018
-
- Figure 23: Breakfast/brunch beverages of interest – Coffee, April 2018
- Black customers are top fast food restaurant visitors
-
- Figure 24: Restaurant visitation in the past three months, by Race and Hispanic origin, October 2018
-
- Figure 25: Adventurous eater segmentation by race, July 2018
- Regional differences are a factor in restaurant visitation
-
- Figure 26: Restaurant visitation in the past three months, by region, October 2018
Restaurant Segment Preferences
-
- Customer expectations differ across restaurant segments
-
- Figure 27: Restaurant segment preferences, October 2018
- Asian consumers are interested in shareable plates
-
- Figure 28: Restaurant segment preferences – LSRs, by race/Hispanic origin, October 2018
- Younger consumers desire greater ingredient transparency from LSRs
-
- Figure 29: Restaurant segment preferences – LSRs, by gender/age, October 2018
- Younger consumers are interested in greater drink selection and specials at FSRs
-
- Figure 30: Restaurant segment preferences – FSRs, by gender and age, October 2018
- iGens are interested in posting about dining experiences on social media
-
- Figure 31: Restaurant Segment preferences – coffee/tea shops, by generation, October 2018
-
- Figure 32: Consumer sentiment by mentions of Instagram-worthy décor and restaurants
Restaurant Behaviors
-
- Restaurants must be inclusive of all customer needs
-
- Figure 33: Restaurant behaviors, October 2018
-
- Figure 34: Restaurant behaviors by restaurant segment visitation, October 2018
- Price drives restaurant selection for younger consumers
-
- Figure 35: Restaurant Behaviors, by generation, October 2018
- Menu nutrition information factors into restaurant selection
-
- Figure 36: Restaurant behaviors, by generation, October 2018
- Lower-income households desire convenience and more cash payment options
-
- Figure 37: Restaurant Behaviors, by household income, October 2018
- Appeal to Black and Hispanic consumers with prepared snack options
-
- Figure 38: Restaurant Behaviors, by race & Hispanic origin, October 2018
Restaurant Attitudes
-
- Dining out is a favorite activity for consumers
-
- Figure 39: Restaurant Attitudes, October 2018
- Urban consumers view restaurant spending differently
-
- Figure 40: Restaurant Attitudes, by area, October 2018
- Younger generations have a personal connection to restaurants
-
- Figure 41: Restaurant Attitudes, by generation, October 2018
- Asian and Hispanic consumers prefer to spend money on dining out
-
- Figure 42: Restaurant Attitudes, by race & Hispanic origin, October 2018
Planned Dining Out Behavior for 2019
-
- Dining out remains a top social occasion for consumers
-
- Figure 43: Planned dining out behavior for 2019, October 2018
- Almost one fourth of iGens plan to visit LSRs less often in 2019
-
- Figure 44: Planned dining out behavior for 2019- Visit limited service restaurants, by generation, October 2018
-
- Figure 45: Planned dining out behavior for 2019 – visit full service restaurants, by generation, October 2018
- Parents plan to dine out more often in 2019
-
- Figure 46: Planned dining out behavior for 2019 – dine out with friends and family, by parental status and gender, October 2018
- Ordering technology is mostly used by younger consumers
-
- Figure 47: Planned dining out behavior for 2019 – mobile ordering and pickup, by generation, October 2018
-
- Figure 48: Planned dining out behavior for 2019-third-party delivery company usage, by generation, October 2018
Areas of Concentration for Restaurants
-
- Consumers want restaurants to do good
-
- Figure 49: Areas of Concentration for Restaurants, October 2018
- Delivery important to younger consumers
-
- Figure 50: Areas of Concentration for Restaurants- More Delivery options, by generation, October 2018
-
- Figure 51: Restaurant delivery & carry out net usage in the past three months, by generation, September 2018
- Sustainable packaging of special interest to older generations
-
- Figure 52: Areas of Concentration for Restaurants – less packaging waste, by generation, October 2018
- Social media is more important to younger generations
-
- Figure 53: Areas of Concentration for Restaurants – social media engagement with customers, by generation, October 2018
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Back to top