Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
Executive Summary
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- Recession reduces discretionary spending but consumers still need convenience
- Restaurants focus on convenience to appeal to more frequent patrons
- Prepared food at supermarkets offers fresh meals at low price points
- Convenience stores draw less health-conscious consumers with low price points
- Television ads target consumers on the go
- Smartphones offer next level of convenience in vendor selection and ordering
- Convenience factors more important to under-45s and respondents with children
- Delivery/takeout market driven by under-35s and larger households
- More frequent delivery/takeout users value accuracy of service and more options/customization
- More frequent use of delivery/takeout is work-driven
Insights and Opportunities
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- Connecting foodservice with other convenience services
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- Figure 1: Usage of convenience services, by change in spending on takeout/delivery compared to last year, October 2009
- Appealing to the under-35 demographic can boost delivery/takeout business
- Hispanic population is prime target for delivery/takeout
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- Figure 2: Population, by race and Hispanic origin, 2004-14
Inspire Insights
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- Simplicity and Convenience
- What's it about?
- A Simple Balance for Health
- What's it about?
Competitive Context
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- Recession drives consumers to spend more on food at home
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- Figure 3: Share of at-home and away-from-home food spending, 2004-08
- Sales of pre-prepared meals stable but suffer from negative perception
Restaurant Channel
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- Restaurant industry sales still contracting as economy stabilizes
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- Figure 4: Restaurant Performance Index, current situation, and expectations, May 2007-September 2009
- Consumers trade down to lower-priced concepts
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- Figure 5: Change in spending at various types of foodservice vendors, October 2009
- Increasing convenience combats consumer reluctance to spend
- Mobile ordering
- Faster service
- Packaging
- Targeting families
- Extended hours
Supermarket Channel
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- Prepared food departments offer strong convenience value
- Price points are critical to sales growth
- Packaged promotions increase interest in existing offerings
- Wide selection of offerings cater to a desire for customization
- Despite choices, customers find solace in comfort food
- Enhanced presentation places emphasis on freshness
- Drive-up windows increase convenience to compete with QSRs
Convenience Store Channel
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- Higher-margin foodservice revenues show impressive growth
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- Figure 6: Total same-store sales of foodservice at convenience stores, at current prices, 2004-08
- Prepared foods aimed at less health-conscious consumers generate largest part of sales
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- Figure 7: Breakdown of total sales of foodservice at convenience stores, 2008
- Convenient, inexpensive coffee draws customers and leads to additional purchases
- Improvement through technology
- Convenience stores’ price positioning may incite price wars
Market Drivers
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- Consumer confidence undermines willingness to spend at restaurants
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- Figure 8: Consumer Sentiment Index, by quarter, 2001-09
- Recession favors convenience-minded segment as driver of sales growth
- Active lifestyles of under-35s are most demanding of convenience
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- Figure 9: Reasons consumers eat out at casual restaurants, by age, July 2009
- Corporate cost cutting drives longer hours at work
- Children in the household increase need for convenience
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- Figure 10: Population, by age, 2005-15
Television Advertising
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- Known to be convenient, quick-service restaurants focus on value
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- Figure 11: McDonald’s—Drink Offer, March 2009
- Family and casual restaurants promote faster takeout and customization
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- Figure 12: Applebee’s—Carside To Go, May 2009
- Figure 13: Denny’s—Build Your Own, November 2009
- 7-Eleven places emphasis on the beverage
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- Figure 14: 7-Eleven—Coffee and Taquitos, January 2009
Innovations and Innovators
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- Smartphones and social networking open new realms of possibility for convenience and marketing
- Smartphone applications
- Pizza chains pioneer ways to order
- Enhancements to mobile ordering
- Other ordering methods
Convenience Factors in Restaurant Selection
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- Under-45s more likely to cite convenience factors as important
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- Figure 15: Casual restaurant decision influencers, by age, October 2009
- Children in the household makes convenience factors more important
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- Figure 16: Casual restaurant decision influencers, by presence of children in the household, October 2009
Delivery and Takeout Usage
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- Under-35s drive growth in delivery/takeout market
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- Figure 17: Change in spending on delivery or takeout, by age, October 2009
- Higher spending by $100K+ group suggests segment is also driven by dual-income households
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- Figure 18: Change in spending on delivery or takeout, by HH income, July 2009
- Larger households spending more on delivery/takeout
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- Figure 19: Change in spending on delivery or takeout, by household size, July 2009
- Takeout/delivery segment substantial for sit-down restaurants, not just QSR
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- Figure 20: Ways to purchase food from casual restaurants, by age, July 2009
Attitudes of Consumers Spending More on Convenience
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- Accuracy of service more important among frequent takeout/delivery users
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- Figure 21: Considerations when in a rush, by change in spending on takeout/delivery compared to last year, October 2009
- More meat options and bigger portions important for takeout/delivery
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- Figure 22: Preferred food options, by change in spending on takeout/delivery compared to last year, October 2009
- Takeout/delivery segment values customization, breadth of offerings, and convenience to the workplace
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- Figure 23: Factors in selecting a restaurant for dinner, by change in spending on takeout/delivery compared to last year, October 2009
- Health-conscious brands may warrant premium prices for takeout/delivery segment
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- Figure 24: Attitudes toward food and nutrition, by change in spending on takeout/delivery compared to last year, October 2009
Cluster Analysis
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- Customizers
- Websters
- Qualifiers
- Cluster characteristics
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- Figure 25: Foodservice and convenience clusters, October 2009
- Figure 26: Casual restaurant decision influencers, by foodservice and convenience clusters, October 2009
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- Figure 27: Change in spending at various types of foodservice vendors, by foodservice and convenience clusters, October 2009
- Figure 28: Reasons consumers eat out at casual restaurants, by foodservice and convenience clusters, October 2009
- Cluster demographics
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- Figure 29: Foodservice and convenience clusters, by gender, October 2009
- Figure 30: Foodservice and convenience clusters, by age, October 2009
- Figure 31: Foodservice and convenience clusters, by HH income, October 2009
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- Figure 32: Foodservice and convenience clusters, by race, October 2009
- Figure 33: Foodservice and convenience clusters, by Hispanic origin, October 2009
- Cluster methodology
Appendix: Additional Consumer Tables
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- Figure 34: Casual restaurant decision influencers, by gender, October 2009
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- Figure 35: Casual restaurant decision influencers, by HH income, October 2009
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- Figure 36: Change in spending at various types of foodservice vendors, by gender, October 2009
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- Figure 37: Reasons consumers eat out at casual restaurants, by gender, October 2009
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- Figure 38: Reasons consumers eat out at casual restaurants, by age, October 2009
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- Figure 39: Reasons consumers eat out at casual restaurants, by HH income, October 2009
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Appendix: Trade Associations
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