American Families and Dining Out - US - February 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Mintel Menu Insights
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Tough times for the restaurant category
Insights and opportunities
Hispanics are the key demographic
Addressing the obesity epidemic
The future of the kids’ menu
Parents and kids’ food choices
Restaurant usage: Breakfast
Restaurant usage: Lunch
Restaurant usage: Dinner
INSIGHTS AND OPPORTUNITIES
Hispanic and hungry
Figure 1: Away from home dinner family dining during the week, by restaurant type and race of parent/guardian, November 2009
Healthier choices for kids
Figure 2: What parents would like to see more of on kids’ menus, by household income, November 2009
Catering to families and kids
Catering to the affluent
Figure 3: Parents’ involvement in children’s food choices when dining out, by household income, November 2009
INSPIRE INSIGHTS
 BREAKFAST FOR DINNER
What it’s about
“Hashing” it all out
Implications
 WE’LL TAKE IT TO GO
What it’s about
The most precious commodity: Leisure time
Implications
MARKET SIZE
Key points
Spending on eating out slows
Figure 4: Aggregate yearly expenditures on food away from home, 2003-08
Married couple families continue to spend
Figure 5: Average yearly expenditures on food away from home, by selected consumer units, 2003-08
Growth in consumer units will help category
Figure 6: Number of consumer units in US, 2003-08
COMPETITIVE CONTEXT
Cooking at home or going to the movies instead of eating out
Figure 7: Spending less on eating out, gourmet foods and cookware compared to last year, by class segment October 2009
MARKET DRIVERS
Key points
The recession wreaks havoc
Figure 8: Consumer Sentiment Index, by quarter, 2001-09
Figure 9: Change in disposable personal income, by month, January 2007-December 2009
Trading down and out because of the recession
Figure 10: Restaurant performance, expectations and current situation indices, Jan 09-Dec 09
Figure 11: Impact of recession on family dining out habits on weekends, by race/Hispanic origin, November 2009
Figure 12: Consumer Price Index—all items and key consumer markets, August 2007, 2008 and 2009
Growing Hispanic households suggest brighter future
Figure 13: U.S. Hispanic population, by age, 2005-15
Figure 14: General U.S. population by age, 2005-15
Figure 15: Hispanic households, by size, 2009
Less leisure time drives eating out
Figure 16: Hours available for leisure per week, 1973-2008
The obesity epidemic and potential implications
Celebrating good times by dining out
Figure 17: Occasion-based dining, by household income, November 2009
RESTAURANT INNOVATION AND INNOVATORS: HEALTHY MEALS
Key points
QSRs delivering healthier fare
Figure 18: Incidence of nutritional claims on kids’ menus, Q3 2008-Q4 2009
Fast casual and casual chains offering healthier fare
RESTAURANT INNOVATION AND INNOVATORS: PRICE PROMOTION
Key points
Value doesn’t mean cheap
Figure 19: Average price of kids’ menu entrées, by segment, Q4 2009
Figure 20: Average price of adult menu entrées, by segment, Q4 2009
Price promotions at QSRs
Price promotions at fast casual and casual
Figure 21: Average price of kids’ menu entrées, all restaurants, by quarter, Q3 2008-Q4 2009
Figure 22: Average price of adult menu entrées, by quarter, Q3 2008-Q4 2009
RESTAURANT INNOVATION AND INNOVATORS: VARIETY
Key points
Innovation invades the world of chicken fingers
Figure 23: Incidence of kids’ menu entrées by segment, Q4 2009
Figure 24: Incidence of adult menu entrées by segment, Q4 2009
RESTAURANT INNOVATION AND INNOVATORS: BREAKFAST
Key points
Still going to QSRs, but interested in new items
Breakfast innovation at QSRs
Breakfast innovation at fast casual and casual
BRAND QUALITIES—OLIVE GARDEN
Affordable and enticing menu
Effective branding
Examples of commercials
Figure 25: Olive Garden television ad, 2009
Figure 26: Olive Garden television ad, 2009
Charitable outreach
BRAND QUALITIES—MCDONALD’S
Overview
Figure 27: McDonald’s television ad, 2009
Discounts and product promotions
Sponsorships and marketing tie-ins
Figure 28: U.S. sales of leading burger QSR chains, 2006 and 2008
ADVERTISING AND PROMOTION
Overview
Figure 29: Twenty largest U.S. restaurant chains, by ad spend, 2007-08
Wendy’s
Subway
Other interesting ad initiatives
Analysis of commercials
Figure 30: KFC television ad, 2009
Figure 31: Subway television ad, 2009
RESTAURANT USAGE: BREAKFAST
Key points
25-34s, with children, and eating breakfast out
Figure 32: Away from home breakfast family dining during the week, by restaurant type and age of parent/guardian, November 2009
Youngsters make a difference for breakfast
Figure 33: Away from home breakfast family dining during the week, by restaurant type and age of child/children, November 2009
25-34s eating breakfast out on weekends
Figure 34: Away from home breakfast family dining during the weekend, by restaurant type and age of parent/guardian, November 2009
Affluent and eating breakfast out
Figure 35: Away from home breakfast family dining during the week, by restaurant type and household income, November 2009
RESTAURANT USAGE: LUNCH
Key points
25-34s, with children and eating family weekday lunch out
Figure 36: Away from home lunch family dining during the week, by restaurant type and age of parent/guardian, November 2009
Youngsters make a difference for family weekday lunch
Figure 37: Away from home lunch family dining during the week, by restaurant type and age of child/children, November 2009
25-34 and eating family lunch out on weekends
Figure 38: Away from home lunch family dining during the weekend, by restaurant type and age of parent/guardian, November 2009
Affluent and eating family lunch out during week
Figure 39: Away from home lunch family dining during the week, by restaurant type and household income, November 2009
RESTAURANT USAGE: DINNER
Key points
25-34s and eating family dinner out during week
Figure 40: Away from home dinner family dining during the week, by restaurant type and age of parent/guardian
25-34s dining out on weekend
Figure 41: Away from home dinner family dining during the weekend, by restaurant type and age of parent/guardian, November 2009
THE FUTURE OF THE KIDS’ MENU
Key points
Parents want healthier fare for kids
Figure 42: What parents would like to see more of on kids’ menus, by household income, November 2009
With youngsters and wanting healthier options
Figure 43: What parents would like to see more of on kids’ menus, by age of child/children, November 2009
PARENTS AND KIDS’ FOOD CHOICES
Key points
Affluent and limiting choices
Figure 44: Parents’ involvement in children’s food choices when dining out, by household income, November 2009
With youngsters and setting an example
Figure 45: Parents’ involvement in children’s food choices when dining out, by age of child/children, November 2009
THE FUTURE OF THE ADULT MENU
Key point
More chicken, salad, and seafood, please
Figure 46: What dinner entrées people would like to see more of on regular menus, by household income, November 2009
EATING AT HOME
Key points
Half eating at home
Figure 47: Number of at home family dinners during the week, by age of parent/guardian, November 2009
THE IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Hispanics and eating lunch out
Figure 48: Away from home lunch family dining during the week, by race/Hispanic origin of parent/guardian, November 2009
Hispanic and eating dinner out
Figure 49: Away from home dinner family dining during the week, by race/Hispanic origin of parent/guardian, November 2009
What parents want on kids’ menus
Figure 50: What parents would like to see more of on kids’ menus, by race/Hispanic origin of parent/guardian, November 2009
Hispanics are more involved in ordering
Figure 51: Parents’ involvement in children’s food choices when dining out, by race/Hispanic origin of parent/guardian, November 2009
CLUSTER ANALYSIS
Economizers
Diminishers
Upholders
Cluster characteristics
Figure 52: Family dining clusters, November 2009
Figure 53: Weekday dining habits, by family dining clusters, November 2009
Figure 54: Weekend dining habits, by family dining clusters, November 2009
Figure 55: Parent’s involvement in children’s food choices when dining out, by family dining clusters, November 2009
Cluster demographics
Figure 56: Family dining clusters, by gender, November 2009
Figure 57: Family dining clusters, by age group, November 2009
Figure 58: Family dining clusters, by household income, November 2009
Figure 59: Family dining clusters, by race, November 2009
Figure 60: Family dining clusters, by Hispanic origin, November 2009
Cluster methodology
APPENDIX: ADDITIONAL CONSUMER TABLES
Affluent like dining out
Figure 61: Enjoyment of dining out, by household income, by agree, November 2009
Hispanics eat breakfast at a variety of restaurants
Figure 62: Away from home breakfast family dining during the week, by restaurant type and race/Hispanic origin of parent/guardian, November 2009
Blacks like fast food for breakfast on weekends
Figure 63: Away from home breakfast family dining during the weekend, by race/Hispanic origin of parent/guardian, November 2009
Hispanics dine out for dinner on weekends
Figure 64: Away from home dinner family dining during the weekend, by race/Hispanic origin of parent/guardian, November 2009
Older kids and eating less often at home
Figure 65: At home family dining during the week, by age of child/children, November 2009
Less affluent dine together less
Figure 66: At home family dining during the weekend, by household income, November 2009
What Asians want
Figure 67: What dinner entrées people would like to see more of on regular menus, by race/Hispanic origin, November 2009
APPENDIX: TRADE ASSOCIATIONS