Black Consumers and Dining Out - US - May 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Spending in restaurants
Figure 1: Average annual expenditures on food away from home, Black and Non-Black households, 2008 and 2011
Fast food is popular
Figure 2: Types of restaurants visited in last 30 days, all Black respondents, October 2012
Blacks seek restaurants with unhurried and upbeat ambiance
Figure 3: Factors that are important to consumers when it comes to dining out, by race/ethnicity, November 2012
Importance of factors in restaurant choice
Figure 4: Factors that influence restaurant choice, by type of restaurant, all Black consumers, October 2012
Dining out spending outlook
Spend More segment
Spend The Same segment
Spend Less segment
What we think
ISSUES IN THE MARKET
Rising beef prices could negatively impact fast food restaurant sales
Government push toward healthy eating will drive menu options
INSIGHTS AND OPPORTUNITIES
TREND APPLICATIONS
Trend: Make It Mine
Trend: Carnivore, Herbivore…. Locavore
Figure 5: Level of influence sustainability has on where Black consumers eat, by race/ethnicity, October 2012
Figure 6: Level of influence technology has on where Black consumers eat, by race/ethnicity, October 2012
PROFILE OF THE BLACK DINING OUT CONSUMER
Key points
Blacks’ spending on food away from home remains stable
Figure 7: Average annual expenditures, by category, Black and other race households, 2008 and 2011
Fast food restaurants remain the most popular dining out choices
Figure 8: Incidence of eating or getting ready-to-eat prepared food from restaurants among Blacks, by gender and age, October 2012
Income and proximity of restaurants drive where Blacks eat
Figure 9: Incidence of eating-in or taking out ready-to-eat prepared food from restaurants among Blacks, by household income, October 2012
Larger households are more likely to eat out
Figure 10: Incidence of eating or getting ready-to-eat prepared food from restaurants among Blacks, by household size, October 2012
Busy lifestyle determines whether Black consumers dine in or dine out
Figure 11: How restaurant food was ordered and where it was eaten, by race/ethnicity, October 2012
Cravings are far more likely to drive what Black consumers order
Figure 12: Factors influencing where Black consumers eat, by race/ethnicity, October 2012
ATTITUDES OF THE DINING OUT CONSUMER
Key points
Dining out ranks #2 on pastimes of Black consumers
Figure 13: Top 5 leisure activities, by race/ethnicity, October 2011-November 2012
Black consumers aren’t willing to sacrifice taste for healthier dishes
Blacks prefer dining out over entertaining friends and family at home
Figure 14: Attitudes, interests and opinions, by race/ethnicity, October 2011-November 2012
Black consumers are more likely to order take-out
Figure 15: How restaurant food was ordered and where it was eaten, by race/ethnicity, October 2012
Cost is important, but cravings drive Black consumers into a restaurant
Figure 16: Attitudes toward restaurants, by gender and income, October 2012
Blacks seek restaurants with unhurried and upbeat ambiance
Figure 17: Factors that are important to Black consumers when dining out, November 2012
FACTORS INFLUENCING DINING OUT CHOICES
Key points
Ambiance and friendly staff are key to an enjoyable experience
Figure 18: Characteristics that are important in restaurant atmosphere, November 2012
Cleanliness and how food is prepared is more important to Blacks
Figure 19: Factors that deter Black consumers on return visits, November 2012
Black consumers prefer value meal deals over coupons
Figure 20: Usage of deals and promotions at restaurants, November 2012
Figure 21: Factors that influence restaurant choices, by gender and age, October 2012
Black consumers have lower expectations for fast food restaurants
Figure 22: Factors that influence restaurant choices, by type of fast food restaurant, all Black consumers, October 2012
Black people take more into consideration when they’re planning to eat at fine dining establishments
Figure 23: Factors that influence restaurant choices, by casual, family and fine dining restaurants, all Black consumers, October 2012
Black consumers are more likely to embrace innovative approaches
Figure 24: Types of restaurant technology Black consumers prefer, November 2012
THE FAST FOOD RESTAURANT CONSUMER
Key points
Blacks exhibit the highest incidence of visiting fast food restaurants
Figure 25: Incidence and frequency of eating at a fast food and/or drive-in restaurant, October 2011-November 2012
Restaurants with pizza or chicken dishes are more popular
Figure 26: Fast food and/or drive-in restaurants visited, by race/ethnicity, October 2011-November 2012
Figure 27: Fast food and/or drive-in restaurants visited, by race/ethnicity, October 2011-November 2012 (continued)
Income has little bearing on how frequently people visit fast food establishments
Figure 28: Incidence of visiting Fast food and drive-in restaurants, by household income, October 2011-November 2012
Figure 29: Fast food and drive restaurants visited, by household income, October 2011-November 2012
Half of Black moms said they eat at fast food restaurants nearly every day
Figure 30: Incidence and frequency of moms visiting fast food and drive-in restaurants, by race/ethnicity, October 2011-November 2012
Black moms are significantly less likely to eat at McDonald’s
Figure 31: Types of fast food and/or drive-in restaurants visited by Moms, by race/ethnicity, October 2011-November 2012
Figure 32: Types of fast food and/or drive-in restaurants visited by Moms, by race/ethnicity, October 2011-November 2012 (continued)
McDonald’s leads the pack for kids 6-11 years
Figure 33: Favourite fast food or drive-in restaurant, by race/ethnicity, October 2011-November 2012
Figure 34: Reason for favourite fast food or drive-in restaurant, by race/ethnicity, October 2011-November 2012
The majority of Black teens do not see fast food as “junk food”
Figure 35: Number of visits to fast food and drive-in restaurants in last thirty days by teens, by race/ethnicity, October 2011-November 2012
Figure 36: Types of fast food and/or drive-in restaurants visited by teens, by race/ethnicity, October 2011-November 2012
Figure 37: Types of fast food and/or drive-in restaurants visited by teens, by race/ethnicity, October 2011-November 2012 (continued)
Household income has little influence on frequency of visits
Figure 38: Fast food and drive-in restaurant visit frequency, by household income, October 2011-November 2012
THE FAMILY RESTAURANT AND STEAKHOUSE CONSUMER
Key points
Black consumers dine at family-style restaurants at least once a week on average
Figure 39: Incidence of visits to family restaurants and steak houses in last 30 days, by race/ethnicity, October 2011-November 2012
Figure 40: Family restaurants and/or steakhouses visited in last 3 months, by race/ethnicity, October 2011-November 2012
Black consumers dine out at family restaurants more frequently regardless of income
Figure 41: Incidence of visits to family restaurants and steak houses, by household income, October 2011-November 2012
Figure 42: Incidence of visits to family restaurants and steak houses, by household income, October 2011-November2012
Men 35-54 years of age are more likely to dine out than anyone else
Figure 43: Incidence of visits to family restaurants and steak houses, by gender and age, October 2011-November 2012
Single women and empty-nesters are key segments driving frequency
Figure 44: Incidence of visits to family restaurants and steak houses, by gender and age, August 2011-August 2012
Life stage is a huge driver as to where Blacks dine
Figure 45: Family restaurants and/or steakhouses visited in last 3 months, by gender and age, October 2011-November 2012
Lower-income Blacks less likely to dine out, but those who do dine more frequently
Figure 46: Frequency of visits to family restaurants and steak houses in last 30 days, by household income, frequency of usage, October 2011-November 2012
Larger families weigh cooking at home vs. dining out…. dining out wins!
Figure 47: Frequency of visits to family restaurants and steak houses in last 30 days, by household size, October 2011-November 2012
Black Moms dine at family restaurants/steakhouses at least once a week
Figure 48: Frequency of visits to family restaurants and steak houses by Moms in the last 30 days, by race/ethnicity, October 2011-November 2012
Black Moms especially enjoy steakhouses and family restaurants
Figure 49: Family restaurants and/or steakhouses visited, moms by race/ethnicity, October 2011-November 2012
Chuck E. Cheese tops the list of kid’s favorite sit-down restaurant
Figure 50: Percentage of kids who have visited family-style/sit down restaurants, by race/ethnicity, October 2011-November 2012
Figure 51: Favourite family style/sit-down restaurants for kids, by race/ethnicity, October 2011-November 2012
Black teens represent a viable opportunity - they are dining out substantially more often than other teens
Figure 52: Frequency of visits to family restaurants and steak houses by teens, by race/ethnicity, October 2011-November 2012
Black teens could be strong brand evangelists.
Figure 53: Family restaurants and/or steakhouses visited by teens, by race/ethnicity, October 2011-November 2012
SPENDING ON DINING OUT – OUTLOOK
Key points
Black consumers expect to spend the same on dining out as last year
Figure 54: Expectations for increase/decrease in dining out expenditures, by type of restaurant, all black consumers, October 2012
Higher-income families will drive spending growth across the board
Figure 55: Expectations for increase/decrease in dining out expenditures, by type of restaurant, Black consumers by household income, October 2012
Distinct differences observed in how Blacks plan to spend
Spend More segment
Spend The Same segment
Spend Less segment
REGIONAL DIFFERENCES
Key points
Midwesterners dine at fast food restaurants most frequently
Figure 56: Incidence of visits to fast food and drive-in restaurants in last 30 days, Black consumers by region, October 2011-November 2012
Figure 57: Incidence of visits to family restaurants and steak houses in last 30 days, Black consumers, by region, October 2011-November 2012
Figure 58: Top 10 fast food and/or drive-in restaurants visited, by region, October 2011-November 2012
Figure 59: Fast food and/or drive-in restaurants visited in last three months, Northeast region, October 2011-November 2012
Figure 60: Fast food and/or drive-in restaurants visited in last three months, Midwest region, October 2011-November 2012
Figure 61: Fast food and/or drive-in restaurants visited in last three months, Southern region, October 2011-November 2012
Figure 62: Fast food and/or drive-in restaurants visited in last three months, Western region, October 2011-November 2012
Figure 63: Top ten family restaurants and/or steakhouse restaurants visited in last three months, all regions, October 2011-November 2012
Figure 64: Top ten family restaurants and/or steakhouse restaurants visited in last three months, Northeast region, October 2011-November 2012
Figure 65: Top ten family restaurants and/or steakhouse restaurants visited in last three months, Midwest region, October 2011-November 2012
Figure 66: Family restaurants and/or steakhouse restaurants visited in last three months, Southern region, October 2011-November 2012
Figure 67: Family restaurants and/or steakhouse restaurants visited in last three months, Western region, October 2011-November 2012
RESTAURANT DAYPARTS
Key points
Black consumers are more likely to dine out for breakfast and snacks
Figure 68: Time of day when people dine out – fast food restaurants and family restaurants and/or steakhouses, by race/ethnicity, October 2011-November 2012
Black consumers are more likely to eat at fast food restaurants
Figure 69: Time of day when people dine out – fast food restaurants and family restaurants and/or steakhouses visited, by gender, October 2011-November 2012
It doesn’t matter what time of day it is, Black consumers more likely to eat at McDonald’s
Black consumers eat at non-breakfast restaurants for breakfast
Figure 70: Fast food restaurants family restaurants and/or steakhouses visited for breakfast, Black respondents by gender, October 2011-November 2012
Black males and females dine at same restaurants for lunch but two chains stand out – Golden Corral and Chick-Fil-A
Figure 71: Fast food restaurants family restaurants and/or steakhouses visited for lunch, black respondents by gender, October 2011-November 2012
Black consumers eat at fast food restaurants for dinner because they’re more cost effective and efficient
Figure 72: Fast food restaurants and family restaurants and/or steakhouses visited for dinner, black respondents by gender, October 2011-November 2012
Dollar menus and appetizer specials driving Black consumers into restaurants during snack time
Figure 73: Fast food restaurants and family restaurants and/or steakhouses visited for snacks, Black respondents by gender, October 2011-November 2012
BEVERAGE PURCHASE BEHAVIORS
Key points
The popularity of frozen drinks may be driving sales independent of meals
Figure 74: Types of beverage purchased in last month at a restaurant, all black respondents, October 2012
Figure 75: Types of beverage purchased in last month at a restaurant, by gender and age, October 2012
Most Black consumers are not ordering alcoholic beverages
Figure 76: Types of alcoholic beverage purchased in last month at a restaurant, by gender and age, October 2012
CLUSTER ANALYSIS
Frugalist Fast Foodies
Demographics
Characteristics
Opportunity
Noble Techies
Demographics
Characteristics
Opportunity
Health Seekers
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 77: Target clusters, October 2012
Figure 78: Dining out choices among black consumers, by target clusters, October 2012
Figure 79: Factors that influence restaurant choices, by target clusters, October 2012
Figure 80: Agreement with attitudes toward restaurant spending, by target clusters, October 2012
Figure 81: Attitudes toward restaurant traits, by target clusters, October 2012
Cluster demographic tables
Figure 82: Target clusters, by household income, October 2012
Figure 83: Target clusters, by household size, October 2012
Figure 77: Target clusters, by gender and age, October 2012
Figure 84: Target clusters - education October 2012
Cluster methodology
MARKETING STRATEGIES
Overview of the restaurant industry landscape
Industry spotlight: McDonald’s
McDonald’s recipe for success is being deeply rooted
Figure 85: McDonalds “stay focused” television advertisement, 2013
U.S. BLACK POPULATION
Key points
U.S. population by race/ethnicity
Figure 86: Population numbers and percentages, by race/ethnicity, 2008-18
Figure 87: Population numbers, by race/ethnicity, 2008-2018
Figure 88: Asian, Black, and Hispanic population numbers and percent change, 1970-2020
Black population by age
Figure 89: U.S. Black population, by age, 2008-18
Figure 90: U.S. Population, by age, 2008-18
U.S. Black geographic concentration
Figure 91: Black geographic concentration, by region, 2007
Black population by state
Figure 92: States with largest Black population, 2011
Figure 85: States with largest Black population, 2008
Population by geographic concentration
Figure 93: States (including District of Columbia) ranked, by highest share of total population that are Black, 2011
Black metros
Figure 94: Metropolitan status of Black households, 2006 and 2011
Figure 95: Top 10 metropolitan areas with the largest number of Black residents, 2010
Black purchasing power
Black income
Figure 96: Median household income, by race/ethnicity of householder, 2011
Figure 97: Household income distribution for all households and Black households, 2011
Purchasing power by race/ethnicity
Figure 98: Purchasing power, by race/ethnicity, 1990-2017
Figure 99: Purchasing power, by race/ethnicity, 1990-2017
Figure 100: Top 10 states/regions with the largest share of black buying power, 2012
Affluent Blacks
Black women are the key dining out consumer
Figure 101: Household, by type and tenure of householder, by Ethnicity/race of householder, 2012
Half of all black children live with moms
Figure 102: Children by presence and type of parents, by all races vs. Blacks, 2012
Figure 103: Average household size, by race/ethnicity of householder, 2001, 2008, and 2012
APPENDIX – CONSUMER TABLES
Regional differences
Figure 104: Fast food and/or drive-in restaurants visited in last three months, by region, October 2011-November 2012
Figure 105: Fast food and/or drive-in restaurants visited in last three months, by region, October 2011-November 2012 (continued)
Figure 106: Family restaurants and/or steakhouses visited in last three months, by region, October 2011-November 2012
Figure 107: Family restaurants and/or steakhouses visited in last three months, by region, October 2011-November 2012
APPENDIX – TRADE ASSOCIATIONS