Ethnic Restaurants - US - March 2012

SCOPE AND THEMES
What you need to know
Data sources
Mintel Menu Insights
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Overview
Population trends favor ethnic restaurants
Chipotle’s success is bringing others to the ethnic category
Ethnic restaurants are more expensive than American-menu concepts…
…however, quality is more important to diners than is price
“Authenticity” is important but difficult to define
The lure of the “new,” the comfort of the familiar
The price of greater authenticity is deeper unfamiliarity
Word-of-mouth is how diners most often hear about new ethnic cuisines
Foreign travel introduces consumers to new cuisines
INSIGHTS AND OPPORTUNITIES
The window of opportunity is open
Awareness has never been higher
Mainstream restaurants are rapidly incorporating ethnic fare
Ethnic chains need to earn authenticity
More ethnic restaurants should explore joining the food truck craze
Ethnic concepts do a poor job of explaining/selling their authenticity
Ethnic restaurants need to balance menu pricing
Ethnic concepts need to get ahead of healthy foods trends
Social media and digital media are ideal marketing channels
INSPIRE INSIGHTS
Trend: Fauxthenticity
Figure 1: Determining authenticity, December 2011
Trend: A Simple Balance for Health
MARKET DRIVERS
Key points
Slow economic recovery poses a serious challenge
Figure 2: Real disposable personal income, January 2007-December 2011
Figure 3: Unemployment and underemployment rates, January 2007-January 2012
Figure 4: Consumer Sentiment Index, March 2007-February 2012
The restaurant industry turns a corner toward growth
Figure 5: NRA performance indices, January 2009-January 2012
Figure 6: Adjusted foodservice and drinking place sales, January 2008-January 2012
Population trends work in ethnic restaurants’ favor
Figure 7: Projection of U.S. Population by Race, 2010 to 2050
Travel to and from the U.S. is increasing
Figure 8: International travel arrivals to the U.S.
ETHNIC RESTAURANT BRAND ANALYSIS
Key points
Italian
Olive Garden
Maggiano’s Little Italy
Fazoli’s
Piada Italian Street Food
Asian
P.F. Chang’s China Bistro
Pei Wei Asian Diner
Lee’s Sandwiches
ShopHouse Southeast Asian Kitchen
Kogi Korean BBQ-To-Go
Little Sheep
Mexican
Taco Bell
Chipotle Mexican Grill
Chevys Fresh Mex
Lime Fresh Mexican Grill
The Rest of the World
Bombay Bowl
Golden Krust Caribbean Bakery & Grill
Garbanzo Mediterranean Grill
The Kati Roll Company
Multiethnic
True Food Kitchen
Noodles & Company
Coming to America
Bibigo
Jollibee
MARKETING STRATEGIES
 OVERVIEW
Television
Competition from non-ethnic concepts
Figure 9: Applebee’s TV Commercial
Taco Bell asserts its authenticity
Figure 10: Taco Bell TV Commercial
Olive Garden: When you’re here, you’re in Tuscany
Figure 11: Olive Garden TV Commercial
P.F. Chang’s celebrates the unusual
Figure 12: P.F. Chang’s China Bistro TV Commercial
On the Border: All the right moves
Figure 13: On the Border TV Commercial
Digital and social media
P.F. Chang’s new word-of-mouth marketing
Figure 14: P.F. Chang’s China Bistro Promotion
ShopHouse and Panda Express put Facebook to work
Figure 15: ShopHouse Southeast Asian Kitchen Facebook page
Figure 16: Panda Express Facebook page offer
Use the “blogosphere”
Figure 17: Big Bowl blog
Figure 18: Pasta Pomodoro blog
Pei Wei’s way
Figure 19: Pei Wei Asian Diner YouTube channel
Figure 20: Pei Wei website and Facebook pages
Welcome to Moe’s digital marketing
Figure 21: Moe’s Southwest Grill website
Chipotle uses digital media with integrity
Figure 22: Chipotle’s YouTube channel page
Wow Bao explores the next word-of-mouth extension
Figure 23: Wow Bao’s Pinterest page
Chutney’s takes word-of-mouth digital
Figure 24: Chutney’s “Tell a friend” website app
MENU INSIGHTS ANALYSIS: TOP MENU ITEMS
Key points
Ethnic hybrids also continue to emerge
Figure 25: Top 10 cuisine types on restaurant menus, by incidence, Q4 2008-Q4 2011
Ethnic foods cost more than traditional American fare
The challenge for ethnic restaurants: Increase consumer appeal despite higher menu prices
Pricing patterns among ethnic cuisine
Figure 26: Top 10 cuisine types on restaurant menus, by incidence and price, Q4 2008-Q4 2011
MENU INSIGHTS ANALYSIS: TOP FLAVORS AND GEOGRAPHIC CLAIMS
Key points
Figure 27: Top 10 flavors on restaurant menus, by incidence, Q4 2008-Q4 2011
Figure 28: Top 10 ingredient geographic claims, by incidence, Q4 2008-Q4 2011
RESTAURANT USAGE
Key points
Figure 29: Restaurant usage frequency, by gender, December 2011
Figure 30: Restaurant usage frequency, by age, December 2011
Figure 31: Restaurant usage frequency, by household income, December 2011
Figure 32: Restaurant usage frequency, by race/Hispanic origin, December 2011
Figure 33: Restaurant usage incidence, by gender, December 2011
Figure 34: Restaurant usage incidence, by age, December 2011
Figure 35: Restaurant usage incidence, by household income, December 2011
Figure 36: Restaurant usage incidence, by race/Hispanic origin, December 2011
ORDERING ETHNIC CUISINE ITEMS
Key points
Figure 37: Ethnic cuisines purchased, by gender, December 2011
Figure 38: Ethnic cuisines purchased, by age, December 2011
Figure 39: Ethnic cuisines purchased, by household income, December 2011
Figure 40: Ethnic cuisines purchased, by race/Hispanic origin, December 2011
CONSUMER ATTITUDES TOWARD ETHNIC CUISINE
Key points
Figure 41: Attitudes toward ethnic restaurants, by gender, December 2011
Figure 42: Attitudes toward ethnic restaurants, by age, December 2011
Figure 43: Attitudes toward ethnic restaurants, by household income, December 2011
Figure 44: Attitudes toward ethnic restaurants, by race/Hispanic origin, December 2011
ATTRIBUTES OF ETHNIC RESTAURANTS
Key points
Figure 45: Ethnic restaurant attributes, by gender, December 2011
Figure 46: Ethnic restaurant attributes, by age, December 2011
Figure 47: Ethnic restaurant attributes, by household income, December 2011
Figure 48: Ethnic restaurant attributes, by race/Hispanic origin, December 2011
AUTHENTICITY IN ETHNIC CUISINE
Key points
Figure 49: Determining authenticity, by gender, December 2011
Figure 50: Determining authenticity, by age, December 2011
Figure 51: Determining authenticity, by race/Hispanic origin, December 2011
IMPROVEMENT FOR RESTAURANTS
Key points
Figure 52: Improvement for ethnic restaurants, by gender, December 2011
Figure 53: Improvement for ethnic restaurants, by age, December 2011
Figure 54: Improvement for ethnic restaurants, by household income, December 2011
Figure 55: Improvement for ethnic restaurants, by race/Hispanic origin, December 2011
LEARNING ABOUT ETHNIC CUISINES
Key points
Figure 56: Learning about new ethnic cuisines, by gender, December 2011
Figure 57: Learning about new ethnic cuisines, by age, December 2011
Figure 58: Learning about new ethnic cuisines, by household income, December 2011
Figure 59: Learning about new ethnic cuisines, by race/Hispanic origin, December 2011
WORLD TRAVEL AND ETHNIC CUISINE INTEREST
Key points
Figure 60: Travel to foreign countries, by gender, December 2011
Figure 61: Travel to foreign countries, by age, December 2011
Figure 62: Travel to foreign countries, by household income, December 2011
Figure 63: Travel to foreign countries, by race/Hispanic origin, December 2011
CUSTOM GROUPS: LIGHT, MEDIUM, HEAVY
Key points
Figure 64: Restaurant usage incidence, by frequency groups, December 2011
Figure 65: Ethnic cuisines purchased, by frequency groups, December 2011
Figure 66: Ethnic restaurant attributes, by frequency group, December 2011
APPENDIX: TRADE ASSOCIATIONS