Table of Contents
Executive Summary
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- The issues
- Specialty snack shops have lower appeal among non-Millennials
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- Figure 1: LSR specialty snack shop usage, by generation, March 2015
- Specialty snack shops need to increase appeal among women
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- Figure 2: LSR specialty snack shop usage, by gender, March 2015
- Higher-income consumers reduce snack shop visits
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- Figure 3: LSR Specialty snack shops – Type of shops visited, by income, March 2015
- The opportunities
- Positioning specialty snacks as healthful meal replacements for older demographics
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- Figure 4: LSR specialty snack shops – Changes in behavior – More, by age, March 2015
- Appeal to women through smaller portion sizes and more healthful traits
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- Figure 5: LSR specialty snack shop usage, by gender and age, March 2015
- Specialty snacks that are more healthful and premium are next opportunity
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- Figure 6: Attitudes toward LSR specialty snack concepts, by type of LSR specialty snacks visited, March 2015
- What it means
The Market – What You Need to Know
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- Millennials continue to drive snacking popularity
- American snack companies are expanding internationally
- In an uneven recovery, many consumers still reluctant to spend
- Families seek a budget-friendly dining-out experience
Market Size and Forecast
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- Sales of “other” limited service restaurants
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- Figure 7: Total US sales and forecast of “other” limited service restaurants, at current prices, 2009-19
- Figure 8: Total US sales and fan chart forecast of “other”* limited service restaurants, at current prices, 2009-19
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- Figure 9: Total US market share of restaurants and other eating places, by segment, at current prices, 2014
Market Factors
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- Millennials like restaurants, but are frugal
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- Figure 10: LSR specialty snack shops – Type of shop usage, by generation, March 2015
- Figure 11: Median household income in US dollars, by age of householder, 2013
- Brands expand both domestically and internationally
- For most, wages have not risen since 2007
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- Figure 12: US median household income, in inflation-adjusted dollars, 2003-13
- Despite wage stagnation, family wages are higher
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- Figure 13: Median household income of US families with children, in inflation-adjusted dollars, 2003-13
Key Players – What You Need to Know
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- New menu items are an important marketing strategy
- Consumers are questioning the naturalness of their foods
- Consumers seeking help with their diets
What’s Working?
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- New menu items, sports partnerships and apps help with exposure
What’s Next?
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- All-natural properties and health gaining focus
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- Figure 14: LSR specialty snack shops – Attitudes – Any agree, March 2015
The Consumer – What You Need to Know
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- Men and fathers are spending more
- Hispanics show technological acumen
- BOGOs mostly appeal to adults
- Middle-income households turn to specialty snacks for affordable indulgences
Specialty Snack Shops are Not a Destination
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- Most purchases are eaten at home
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- Figure 15: LSR specialty snack shops – Place of consumption, by area, March 2015
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- Figure 16: LSR specialty snack shops – Place of consumption, by generation – March 2015
- Figure 17: LSR specialty snack shops – Place of consumption, by income – March 2015
Most To-go Orders are Placed In-store
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- Convenience and portability are most important traits
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- Figure 18: LSR specialty snack shops – Ordering methods, by parents, March 2015
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- Figure 19: LSR specialty snack shops – Ordering methods, by generation, March 2015
Consumers are Visiting Tea Shops More
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- Health drives interest in tea, and local and sustainable foods
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- Figure 20: LSR specialty snack shops – Changes in behavior – More, by type of LSR specialty snack shop visited – March 2015
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- Figure 21: LSR specialty snack shops – Changes in behavior – More, by generation – March 2015
Indulgence for Those with Middle Incomes
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- But there’s room for healthful products for higher-income guests
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- Figure 22: LSR Specialty snack shops - Type of shop usage, by income, March 2015
Men and Fathers Spend More
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- Disposable income is hard for many women to find
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- Figure 23: LSR specialty snack shops – Changes in behavior – More, by gender, March 2015
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- Figure 24: LSR specialty snack shops – Changes in behavior – More, by parents, March 2015
Women Drive Snacking Occasions
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- Men like specialty snacks for lunch, while Millennials like breakfast
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- Figure 25: LSR specialty snack shops – Any snacking, by gender, March 2015
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- Figure 26: LSR specialty snack shops – Breakfast, by age, March 2015
- Figure 27: LSR specialty snack shops – Lunch, by gender, March 2015
Specialty Snacks Resonate with Younger Demographics
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- Snacking at specialty shops is driven by habit rather than discounts
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- Figure 28: Key drivers of visiting Specialty Limited Service Restaurants more, compared to a year ago, March 2015
Hispanics Using Technology More
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- Hispanics like mobile technology more than non-Hispanics
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- Figure 29: LSR specialty snack shops – Ordering methods, by race/Hispanic origin, March 2015
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- Figure 30: LSR specialty snack shops – Discounts and promotions, by race/Hispanic origin, March 2015
- Figure 31: LSR specialty snack shops – Changes in behavior – More, by race/Hispanic origin, March 2015
Hispanics Value Health
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- They see value in paying for quality foods, but struggle with weight
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- Figure 32: LSR Specialty snack shops – Type of shop usage, by race/Hispanic origin, March 2015
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- Figure 33: LSR specialty snack shops – Important attributes, by race/Hispanic origin, march 2015
- Figure 34: LSR specialty snack shops – Attitudes toward concepts – Any agree, by race/Hispanic origin, March 2015
BOGOs Best Serve Adults
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- Those aged 25-34 are most interested in loyalty programs
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- Figure 35: LSR specialty snack shops – Discounts and promotions, by number of children in household, March 2015
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- Figure 36: LSR specialty snack shops – Discounts and promotions, by age, March 2015
Parents Focused on Freshness
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- Children’s schedules detract from family time starting at age 12
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- Figure 37: LSR specialty snack shops – Attitudes toward concepts - Any agree, by parents, March 2015
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- Figure 38: LSR specialty snack shops – Type of shop usage, by age of children in household, March 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and Terms
- Abbreviations
- Terms
Appendix – Key Driver Analysis – Methodology
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- Methodology
- Interpretation of results
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- Figure 39: Key drivers of visiting Specialty Limited Service Restaurants more, compared to a year ago – Key driver output, March 2015
Appendix – Market
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- Figure 40: Total US sales and forecast of other limited service restaurants, at current prices, 2009-19
- Figure 41: US median household income, in inflation-adjusted dollars, 2003-13
- Figure 42: Median household income of families with children, in inflation-adjusted dollars, 2003-13
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- Figure 43: Median household income, by age of householder, 2013
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