Attitudes Towards Dining Out - US - January 2009

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
A challenging recessionary environment
On the positive side
Short term strategy
Spinning value on the menu
Fast food operators should pay close attention to their value menu mix
Taking a second look at incentives
Short and long term strategy: be on trend!
Big trends that are getting bigger
Emerging trends poised for takeoff
The dining out consumer
Restaurant usage, by segment
Dining out rationales
Important restaurant qualities
Food qualities at favorite restaurant
INSIGHTS AND OPPORTUNITIES
 TAKING THE LONG VIEW: IT’S ABOUT THE LIFESTYLE BENEFIT
I don’t care how bad the economy is. I want it, and I want it now.
Healthfulness is here to stay. The government says so.
Figure 1: Incidence of trying to eat healthier foods, 2003-08
Why is this important?
INSPIRE INSIGHTS
Goodbye to the American portion?
Broad strokes
The dining out dichotomy
Another helping?
Free will is a gift that can be taken away!
MARKET DRIVERS
Key points
 ECONOMIC OVERVIEW: NOT A PLEASANT PICTURE
Hop on the CPI rollercoaster!
Figure 2: Consumer Price Index, indices of key consumer items, January 2006-November 2008
Consumer debt: the chicken that has come home to roost
Figure 3: Consumer credit outstanding, dollar change, 2007-08
Figure 4: Consumer credit outstanding, percentage change, 2007-08
Home and equity value declines: a one-two household wealth punch
Real estate woes bring down the house
Figure 5: Case Shiller Home Price Index, January 2004-October 2008
Taking little stock in the stock market
A gloomy travel picture
 BOTTOM LINE: RESTAURANTS FEEL THE PAIN
Industry recession passes one year mark
Figure 6: Restaurant Performance Index, current situation, and expectations, November 2007-August 2008
Commodity prices on a tear—no, that was last month
Figure 7: Producer Price Index, key farm products, January 2004-November 2008
COMPETITIVE CONTEXT
Meals eaten away from home enhance their price competitiveness
Traffic bleeding from restaurants to the kitchen table
Figure 8: Ways consumers have cut down on restaurant spending, November 2009
Ready-to-eat meals
Convenience, price, and customization provide allure
Fighting the convenience trend: if you can’t beat ‘em, join ‘em
INNOVATION AND INNOVATORS: SPINNING VALUE
Key points
Spinning value on the menu
It is more than dollars and cents
Nothing spells affordability better than $1
Increased importance of the Dollar Menu
Finding the right equation: if not $1, how about $5?
Pushing to the max: how much do I get for the price?
Pushing “mini”: value in sharing and lots of small bites
Value in variety
MENU ANALYSIS: THE VALUE MENU
Key points
The ideal dollar menu
McDonald’s: a Dollar Menu leader
The signature sandwich: balancing consumer value with operating margins
INNOVATION AND INNOVATORS: INCENTIVES TO DINE
Key points
Promotions now the rule, not the exception
Figure 9: Incentives to dine at restaurants, by gender, November 2009
Figure 10: Incentives to dine at restaurants, by age, November 2009
Addendum: consumer question explanation
INNOVATION AND INNOVATORS: BIG TRENDS GETTING BIGGER
Key points
Fresh grows up, branches out
Fresh appeal
Fresh from the farm
Locavore trend grows, adds dimension
Comfort food reinvented
The power of suggestion
Delivery/pickup/curbside
INNOVATION AND INNOVATORS: EMERGING TRENDS
Key points
Bring on the booze
Creative synergy
In the spotlight: San Francisco
Speakeasies: an illicit touch and pricey drinks may beat recession blues
But it’s not just a San Francisco thing
Other beverage notes
Tap water, please
Enter Obama
Mediterranean, anyone?
Restaurant Focus:  Roti
RESTAURANT USAGE: AN OVERVIEW
Figure 11: Restaurant usage in past week, selected demographics, November 2008
Figure 12: Average amount spent on last visit, by restaurant segment, by household income, April 2007
TYPES OF RESTAURANTS USED
Key points
Restaurant usage, by segment: an overview
Figure 13: Types of restaurants visited in the past month, 2008 versus 2009
Figure 14: Types of restaurants visited in the past month, by age, November 2008
Figure 15: Types of restaurants visited in the past month, by household income, November 2008
Figure 16: Types of restaurants visited in the past month, by race/ethnicity, November 2008
Acculturated versus non-acculturated Hispanics
Figure 17: Types of restaurants visited among Hispanics, by language spoken in home, 2008
Addendum: consumer question explanation
RESTAURANT SPENDING
Key points
Spending at restaurants
Figure 18: Spending at restaurants compared to last year, by age, November 2008
Figure 19: Spending at restaurants compared to last year, by household income, November 2008
Ways consumers have cut down on restaurant spending
Figure 20: Ways consumers have cut down on restaurant spending, by household income, November 2008
DINING OUT RATIONALES
Key points
Experiential/aspirational/social reasons for eating at a restaurant
Figure 21: Experiential/aspirational/social reasons for eating at a restaurant, January 2008 versus November 2008
Figure 22: Experiential/aspirational/social reasons for eating at a restaurant, by gender, November 2008
Figure 23: Experiential/aspirational/social reasons for eating at a restaurant, by age, November 2008
Specific occasions as reasons for eating at a restaurant
Figure 24: Specific occasions for eating at a restaurant, by gender, January 2008 versus November 2008
Figure 25: Specific occasions for eating at a restaurant, by age, November 2008
Figure 26: Specific occasions for eating at a restaurant, by household income, November 2008
Reasons for dining out rather than dining in
Figure 27: Reasons for dining out rather than dining in, January 2008 versus November 2008
Figure 28: Reasons for dining out rather than dining in, by gender, November 2008
Figure 29: Reasons for dining out rather than dining in, by age, November 2008
Figure 30: Reasons for dining out rather than dining in, by household income, November 2008
IMPORTANT RESTAURANT QUALITIES
Key points
Cost, location and atmosphere
Figure 31: Restaurants: importance of cost, location and atmosphere, by age, November 2008
Figure 32: Restaurants: importance of cost, location and atmosphere, by HH income, November 2008
Restaurant staff attributes
Figure 33: Restaurants: importance of staff attributes, by gender, November 2008
Figure 34: Restaurants: importance of staff attributes, by age, November 2008
Food and menu attributes
Figure 35: Restaurants: importance of food and menu attributes, by gender, November 2008
Figure 36: Restaurants: importance of food and menu attributes, by age, November 2008
Figure 37: Restaurants: importance of food and menu attributes, by HH income, November 2008
FOOD QUALITIES AT FAVORITE RESTAURANT
Key points
Figure 38: Food qualities at favorite restaurant, by gender, November 2008
Figure 39: Food qualities at favorite restaurant, by age, November 2008
Figure 40: Food qualities at favorite restaurant, by household income, November 2008
CUSTOM CONSUMER GROUPS
Segment overlap analysis: who’s eating elsewhere?
Figure 41: Restaurant segment usage, by restaurant segment, November 2008
Consumer spending trends, by restaurant segment
Figure 42: Restaurant spending trends, by restaurant segment, November 2008
Food qualities at favorite restaurant, by restaurant segment
Figure 43: Food qualities at favorite restaurant, by restaurant segment, November 2008
Addendum: consumer question explanation
CLUSTER ANALYSIS
The economizers
Who they are
Opportunity
The enthusiasts
Who they are
Opportunity
Disinterested and Unimpressed
Who they are
Opportunity
Cluster characteristics
Figure 44: Restaurant user clusters, November 2008
Figure 45: Personal attributes, by restaurant user clusters, November 2008
Figure 46: Types of restaurants visited in the past month, by restaurant user clusters, November 2008
Figure 47: Spending at restaurants compared to last year, by restaurant user clusters, November 2008
Figure 48: Incentives to dine at restaurants, by restaurant user clusters, November 2008
Figure 49: Dining out rationales, by restaurant user clusters, November 2008
Figure 50: Food qualities at favorite restaurant, by restaurant user clusters, November 2008
Figure 51: Important restaurant qualities, by restaurant user clusters, November 2008
Cluster demographics
Figure 52: Restaurant user clusters, by gender, November 2008
Figure 53: Restaurant user clusters, by age group, November 2008
Figure 54: Restaurant user clusters, by HH income group, November 2008
Figure 55: Restaurant user clusters, by race, November 2008
Figure 56: Restaurant user clusters, by Hispanic origin, November 2008
APPENDIX – ADDITIONAL CONSUMER TABLES
Innovation and Innovators: Incentives to Dine
Figure 57: Incentives to dine at restaurants, by HH income, November 2009
Important Restaurant Qualities
Cost, location and atmosphere
Figure 58: Restaurants: importance of  cost, location and atmosphere, by gender, November 2008
Restaurant staff attributes
Figure 59: Restaurants: importance of  staff attributes, by HH income, November 2008
Consumer Restaurant Spending
Ways consumers have cut down on restaurant spending
Figure 60: Ways consumers have cut down on restaurant spending, by gender, November 2009
Figure 61: Ways consumers have cut down on restaurant spending, by age, November 2009
Dining Out Rationales
Experiential/aspirational/social reasons for eating at a restaurant
Figure 62: Experiential/aspirational/social reasons for eating at a restaurant, by household income, November 2008
Custom Consumer Groups
Figure 63: Ways consumers have cut down on restaurant spending, by restaurant segment, November 2008
APPENDIX – TRADE ASSOCIATIONS