Competitive Shift: Retail into Foodservice - US - May 2015

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market drivers
Figure 1: Retail sales of foodservice and drinking places versus Grocery stores, January 1992-February 2015
Figure 2: Median household income of families with children, in inflation-adjusted dollars, 2003-13
Competitive context
Figure 3: Consumer attitudes/opinions about food, November 2008-December 2014
The consumer
Figure 4: Restaurant types/daypart of consumer purchases, February 2015
Figure 5: Reasons to purchase at retail, February 2015
Figure 6: Types of food purchased, restaurants versus retail, February 2015
Figure 7: Restaurants/daypart where consumers purchase – Any restaurant purchase, by social media, February 2015
What we think
ISSUES AND INSIGHTS
What can restaurants do to capture more of the snacking business?
The issues
The implications
How to spur purchase of beverages in foodservice?
The issues
The implications
What can foodservice do to be seen as more convenient than retail?
The issues
The implications
TREND APPLICATION
Trend: FSTR HYPR
Trend: Nouveau Poor
Trend: Many Mes
MARKET DRIVERS
Key points
Foodservice sales surpassed grocery store sales in March 2015
Figure 8: Retail sales of foodservice and drinking places versus Grocery stores, January 1992-February 2015
Supermarkets and mass merchandisers are expanding fresh food offerings
Disposable income continues to rise in 2015, though slowly
Figure 9: Real disposable personal income, January 2007-January 2015
The good news is that economics are improving for families with children
Figure 10: Median household income of families with children, in inflation-adjusted dollars, 2003-13
Unemployment dropping slowly; consumers spend with caution
Figure 11: Unemployment rate and underemployment, January 2007-February 2015
Weight continues to be an issue for many Americans
Figure 12: Prevalence of obesity among adults aged 20 and over, 2011-12
Consumers trying to increase their fruit and vegetable intake
Figure 13: Per capita availability of fruits and vegetables (fresh, and total), 1970-2012
COMPETITIVE CONTEXT
Key points
Consumers enjoy cooking at home
Figure 14: Consumer attitudes/opinions about food, November 2008-December 2014
C-stores widen their made-to-order menu options
Figure 15: Made-to-order and fresh food purchases in convenience stores, December 2014
Consumers seek frozen and shelf-stable, restaurant-quality foods at retail
MARKETING STRATEGIES
Key points
Convenience trumps health
Consumers seek restaurant-quality foods in retail food experience
HEB Grocery
Mariano’s Fresh Market
Standard Food Market
Whole Foods Market
Kings Food Markets
Sprouts Farmers Market
Schnuck Markets
CORRESPONDENCE ANALYSIS
Full-service restaurants deliver on variety and indulgence
Figure 16: Correspondence analysis – Descriptors consumers associate with restaurants versus retail, February 2015
Figure 17: Descriptors consumers associate with restaurants versus retail, February 2015
Retail products win on health and diet
CONSUMER DATA – OVERVIEW
Key points
Consumers seek convenience, within their budgets
Figure 18: Reasons to purchase at retail, February 2015
Figure 19: Reasons to purchase at restaurants, February 2015
Consumers prefer using FSRs for dinner; snack at retail more than foodservice
Figure 20: Retail stores/daypart where consumers purchase, February 2015
Figure 21: Restaurant types/daypart of consumer purchases, February 2015
Figure 22: Daypart where consumers purchase, retail versus foodservice, by nets – February 2015
Consumers prefer burgers and pizza at restaurants, and social media users order more
Figure 23: Types of food purchased, restaurants versus retail, February 2015
Figure 24: Types of food purchased, restaurants versus retail, February 2015
Figure 25: Restaurants/daypart where consumers purchase – Any restaurant purchase, by social media, February 2015
Figure 26: Retail stores/daypart where consumers purchase, by social media, February 2015
CONSUMER DATA – BY GENDER AND AGE
Key points
Those 55+ like a unique dining experience, while younger men value convenience
Figure 27: Attitudes toward food purchases, restaurants versus retail, by gender and age, February 2015
Figure 28: Attitudes toward food purchases, restaurants versus retail, by gender and age, February 2015
Figure 29: Attitudes toward food purchases, restaurants versus retail, by gender and age, February 2015
Males aged 18-34 most likely to purchase at both restaurant and retail
Figure 30: Restaurants/daypart where consumers purchase – Any restaurant purchase, by gender and age, February 2015
Figure 31: Daypart where consumers purchase – Any retail purchase, by gender and age, February 2015
Consumers most definitely like restaurant pizza, hamburgers, and chicken
Figure 32: Types of food purchased, restaurants versus retail, by gender and age, February 2015
Figure 33: Types of food purchased, restaurants versus retail, by gender and age, February 2015 (continued)
Figure 34: Types of food purchased, restaurants versus retail, by gender and age, February 2015
Figure 35: Types of food purchased, restaurants versus retail, by gender and age, February 2015 (continued)
Consumers save money with retail beverages, enjoy restaurant seafood
Figure 36: Types of food purchased, restaurants versus retail, by gender and age, February 2015
Figure 37: Types of food purchased, restaurants versus retail, by gender and age, February 2015
Figure 38: Types of food purchased, restaurants versus retail, by gender and age, February 2015 (continued)
Figure 39: Types of food purchased, restaurants versus retail, by gender and age, February 2015
Figure 40: Types of food purchased, restaurants versus retail, by gender and age, February 2015 (continued)
Men choose healthy foods both at retail and restaurants, women seek convenience of restaurant foods
Figure 41: Reasons to purchase at retail, by gender and age, February 2015
Figure 42: Reasons to purchase at restaurants, by gender and age, February 2015
Figure 43: Reasons to purchase at restaurants, by gender and age, February 2015
CONSUMER DATA – BY GENERATION
Key points
Older Millennials seek foods that are socially responsible, and will pay for convenience
Figure 44: Restaurants/daypart where consumers purchase – Any restaurant purchase, by generations, February 2015
Figure 45: Daypart where consumers purchase – Any retail purchase, by generations, February 2015
Figure 46: Reasons to purchase at restaurants, by generations, February 2015
Figure 47: Attitudes toward food purchases, restaurants versus retail, by generations, February 2015
Figure 48: Reasons to purchase at retail, by generations, February 2015
Health drives Baby Boomers, convenience drives older Millennials to retail
Figure 49: Attitudes toward food purchases, restaurants versus retail, by generations, February 2015
Figure 50: Attitudes toward food purchases, restaurants versus retail, by generations, February 2015
CONSUMER DATA – BY INCOME
Key points
Retail offers more healthy snacks for higher incomes
Figure 51: Retail stores/daypart where consumers purchase – Dinner, by household income, February 2015
Figure 52: Restaurants/daypart where consumers purchase – Any restaurant purchase, by household income, February 2015
Figure 53: Retail stores/daypart where consumers purchase, by household income, February 2015
Figure 54: Retail stores/daypart where consumers purchase – Snack, by household income, February 2015
Burgers, sandwiches, and seafood preferred in restaurants; desserts win at retail
Figure 55: Types of food purchased, restaurants versus retail, by household income, February 2015
Figure 56: Types of food purchased, restaurants versus retail, by household income, February 2015 (continued)
Figure 57: Types of food purchased, restaurants versus retail, by household income, February 2015
Figure 58: Types of food purchased, restaurants versus retail, by household income, February 2015 (continued)
Despite higher income, consumers seek to save on beverage costs
Figure 59: Types of food purchased, restaurants versus retail, by household income, February 2015
CONSUMER DATA – BY RACE AND HISPANICS
Key points
Hispanics and Blacks are content to eat foods at retail
Figure 60: Attitudes toward food purchases, restaurants versus retail, by race/Hispanic origin, February 2015
Figure 61: Attitudes toward food purchases, restaurants versus retail, by race/Hispanic origin, February 2015
Figure 62: Attitudes toward food purchases, restaurants versus retail, by race/Hispanic origin, February 2015
Figure 63: Attitudes toward food purchases, restaurants versus retail, by race/Hispanic origin, February 2015
Asians or Pacific Islanders more enthusiastic about retail, during any daypart
Figure 64: Restaurants/daypart where consumers purchase – Any restaurant purchase, by race/Hispanic origin, February 2015
Figure 65: Retail stores/daypart where consumers purchase, by demographics, February 2015
Hispanic focus on natural foods, either at retail or foodservice
Figure 66: Retail stores/daypart where consumers purchase – Snack, by race/Hispanic origin, February 2015
Figure 67: Retail stores/daypart where consumers purchase – Breakfast, by race/Hispanic origin, February 2015
Hispanics prefer to purchase burgers at retail, to save money
Figure 68: Types of food purchased, restaurants versus retail, by race/Hispanic origin, February 2015
Figure 69: Types of food purchased, restaurants versus retail, by race/Hispanic origin, February 2015 (continued)
CONSUMER DATA – BY PARENTS
Key points
Households with younger children are focused on health
Figure 70: Attitudes toward food purchases, restaurants versus retail, by presence of children in household, February 2015
Figure 71: Restaurants/daypart where consumers purchase – Any restaurant purchase, by parental status by gender with children in household, February 2015
Figure 72: Retail stores/daypart where consumers purchase, by demographics, February 2015
Figure 73: Reasons to purchase at restaurants, by parental status by gender with children in household, February 2015
Parents of kids aged 6-11 most likely to purchase retail snacks, and fathers focused on saving
Figure 74: Retail stores/daypart where consumers purchase – Snack, by presence of children in household, February 2015
Figure 75: Retail stores/daypart where consumers purchase – Breakfast, by parental status by gender with children in household, February 2015
Figure 76: Retail stores/daypart where consumers purchase – Breakfast, by presence of children in household, February 2015
Fathers with children most likely to order foods at restaurants
Figure 77: Reasons to purchase at restaurants, by parental status by gender with children in household, February 2015
Figure 78: Attitudes toward food purchases, restaurants versus retail, by presence of children in household, February 2015
Figure 79: Attitudes toward food purchases, restaurants versus retail, by parental status by gender with children in household, February 2015
CONSUMER DATA – BY HOUSEHOLD SIZE
Key points
Larger households rely on retail for convenience, quality, and speed
Figure 80: Restaurants/daypart where consumers purchase – Any restaurant purchase, by household size, February 2015
Figure 81: Retail stores/daypart where consumers purchase, by demographics, February 2015
Figure 82: Reasons to purchase at retail, by household size, February 2015
Figure 83: Attitudes toward food purchases, restaurants versus retail, by household size, February 2015
Figure 84: Attitudes toward food purchases, restaurants versus retail, by household size, February 2015
Larger HHs seek to save money and want natural foods in foodservice
Figure 85: Reasons to purchase at restaurants, by household size, February 2015
Figure 86: Reasons to purchase at restaurants, by household size, February 2015
Figure 87: Attitudes toward food purchases, restaurants versus retail, by household size, February 2015
CONSUMER DATA – BY AREA
Key points
Urbanites are pickier about quality and buy more restaurant meals
Figure 88: Attitudes toward food purchases, restaurants versus retail, by area, February 2015
Figure 89: Attitudes toward food purchases, restaurants versus retail, by area, February 2015
Figure 90: Attitudes toward food purchases, restaurants versus retail, by area, February 2015
Figure 91: Restaurants/daypart where consumers purchase – Any restaurant purchase, by area, February 2015
Figure 92: Retail stores/daypart where consumers purchase, by demographics, February 2015
Urban residents focus on natural foods, both at foodservice and retail
Figure 93: Reasons to purchase at restaurants, by area, February 2015
Figure 94: Reasons to purchase at retail, by area, February 2015
Figure 95: Reasons to purchase at restaurants, by area, February 2015
Figure 96: Reasons to purchase at retail, by area, February 2015
APPENDIX – TRADE ASSOCIATIONS
APPENDIX – METHODOLOGY FOR CORRESPONDENCE ANALYSIS