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Non-alcoholic Beverages at Restaurants - US - April 2011

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
Consumer frugality impacts non-alcoholic beverage use at restaurants
Connection between obesity and sugary beverages
Trends on the beverage menu
Differences in non-alcoholic beverages by restaurant segment
Opportunity to leverage the health value of tea
Innovation lacking in coffee beverage menu items
Frozen beverages allow consumers choice of indulgence or health
Beverages often bought at restaurants without buying a meal
Non-alcoholic beverages drunk by kids
INSIGHTS AND OPPORTUNITIES
The “healthy” beverage predicament
Insights
Figure 1: Incidence of watching diet, 2008-10
Figure 2: Types of food bought when watching diet, 2008-10
Figure 3: Incidence of non-alcoholic beverage use, by healthy attitudes, July 2009-September 2010
Opportunities
INSPIRE INSIGHTS
Trend: Snack Society
MARKET FACTORS
Restaurant industry outlook is positive
Figure 4: NRA performance indices, January 2009-January 2011
Restaurant sales continue to climb
Figure 5: Adjusted foodservice and drinking places sales, January 2008-January 2011
Unemployment and underemployment still high
Figure 6: Unemployment and underemployment rates, January 2007-February 2011
Consumers have more cash and confidence
Figure 7: Real personal disposable income, January 2007-December 2010
Figure 8: Consumer Sentiment Index, March 2007-February 2011
Obesity rates steady, but still high
Figure 9: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2008
Children following in parents’ footsteps
Figure 10: Prevalence of obesity among children aged 2-19, 1988-2008
Health trends shape consumer restaurant beverage choices
Shift away from soda
The focus on sugar in beverages
BEVERAGE TRENDS: TYPES OF NON-ALCOHOLIC DRINK
Key points
Beverage menu trends
More milk and tea available on restaurant beverage menus
Figure 11: Incidence of leading types of non-alcoholic beverage on the menu, Q4 2008-Q4 2010
Tea and water prices increase the most; milk and soda are least expensive
Figure 12: Average price of leading types of non-alcoholic beverage on the menu, Q4 2008-Q4 2010
Trend forward
BEVERAGE TRENDS: RESTAURANT SEGMENTS
Key points
QSRs offer the largest number of beverage menu items
Figure 13: Incidence of non-alcoholic beverage items on the menu, by restaurant segment, Q4 2008-Q4 2010
Figure 14: Number of distinct restaurants**, by restaurant segment, Q4 2008-Q4 2010
Fine dining segment implements greatest price increase
Figure 15: Average price of non-alcoholic beverage items on the menu, by restaurant segment, Q4 2008-Q4 2010
Fine dining commands highest prices in each beverage segment
Figure 16: Average price of non-alcoholic beverage items on the menu, by restaurant segment, Q4 2010
Casual restaurants provide most satisfaction
Figure 17: Level of satisfaction with restaurant beverage options, by restaurant segment, December 2010
MENU ANALYSIS: TEA
Key points
Solid growth in number of tea beverages on menu
Figure 18: Incidence of leading types of tea beverage on the menu, Q4 2008-Q4 2010
Specialty teas command higher prices
Figure 19: Average price of leading types of tea beverage on the menu, Q4 2008-Q4 2010
Figure 20: McDonald’s television ad, sweet tea, March 2011
Gourmet, artisan tea is gaining momentum
Figure 21: Incidence of leading marketing and nutritional claims of tea beverages on the menu, Q4 2008-Q4 2010
MENU ANALYSIS: COFFEE
Key points
Number of coffee items on the menu remains stagnant
Figure 22: Incidence of leading types of coffee beverage on the menu, Q4 2008-Q4 2010
Figure 23: McDonald’s television ad, McCafé Frappé, October 2011
Solid price increases in coffee menu items
Figure 24: Average price of leading types of coffee beverage on the menu, Q4 2008-Q4 2010
Nonfat, sugar-free coffees post strongest growth
Figure 25: Incidence of leading marketing and nutritional claims of coffee beverages on the menu, Q4 2008-Q4 2010
Spice-infused coffees gaining popularity
Figure 26: Incidence of leading flavors of coffee beverages on the menu, Q4 2008-Q42010
MENU ANALYSIS: FROZEN BEVERAGES
Key points
Smoothies continue to emerge on restaurant menus
Figure 27: Incidence of leading types of frozen beverages on the menu, Q4 2008-Q42010
Figure 28: McDonald’s television ad, Shamrock Shake, February 2011
Prices of frozen beverages rise slowly
Figure 29: Average price of leading types of frozen beverage on the menu, Q4 2008-Q4 2010
Frozen beverages going organic
Figure 30: Incidence of leading marketing and nutritional claims of frozen beverages on the menu, Q4 2008-Q4 2010
Strawberry tops frozen beverage flavor list
Figure 31: Incidence of leading flavors of frozen beverages on the menu, Q4 2008-Q42010
MARKETING STRATEGIES
Overview
Figure 32: Select restaurant advertisers*, by segment, 2008 and 2009
Marketing the beverage menu
Sonic: A fast food player with strong beverage platform
Figure 33: Sonic’s television ad, Sundae Shakes, January 2011
Figure 34: Sonicdrivein.com monthly visits, February 2010-January 2011
Figure 35: Demographic index* for sonicdrivein.com, by age, April 2010
McDonald’s: Marketing a new beverage concept
Figure 36: McDonald’s television ad, McCafé Iced Coffee, March 2011
Figure 37: McDonald’s television ad, McCafé Real Fruit Smoothies, August 2010
Figure 38: McDonalds.com monthly visits, February 2010-January 2011
Figure 39: Demographic index* for mcdonalds.com, by gender, April 2010
Jamba Juice engages with social media
Figure 40: Jambajuice.com monthly visits, February 2010-January 2011
USAGE OF NON-ALCOHOLIC BEVERAGES AT RESTAURANTS
Key points
Regular soda and coffee most popular non-alcoholic beverages
Figure 41: Types of non-alcoholic beverage ordered from a restaurant, by gender, December 2010
Under-25s more likely to order all types of non-alcoholic beverage
Figure 42: Types of non-alcoholic beverage ordered from a restaurant, by age, December 2010
Less affluent drink regular soda while high incomes order diet
Figure 43: Types of non-alcoholic beverage ordered from a restaurant, by household income, December 2010
On-premise consumption of non-alcoholic beverages stronger than takeout
Figure 44: Types of non-alcoholic beverage ordered at restaurants, on-premise vs. takeout, December 2010
BEVERAGE-ONLY PURCHASES
Key points
Incidence of beverage-only purchases
Figure 45: Frequency of beverage-only purchases, by type, December 2010
Under-25s most frequent beverage-only purchasers
Figure 46: Frequency of beverage-only purchases, by age, December 2010
SHIFTS IN CONSUMPTION PATTERNS
Key points
Regular soda and shakes drunk less often
Figure 47: Shifts in consumption of non-alcoholic beverages at restaurants, by type, December 2010
Reasons for drinking fewer non-alcoholic beverages
Figure 48: Reasons for drinking fewer non-alcoholic beverages at restaurants, by gender, December 2010
Older consumers drinking more tap water as an economical and healthy drink alternative
Figure 49: Reasons for drinking fewer non-alcoholic beverages at restaurants, by age, December 2010
Budgetary reasons aren’t necessarily why lower incomes drink fewer beverages
Figure 50: Reasons for drinking fewer non-alcoholic beverages at restaurants, by household income, December 2010
ATTITUDES AND BEHAVIORS OF NON-ALCOHOLIC BEVERAGE DRINKERS
Key points
Health perceptions
Figure 51: Health perceptions of non-alcoholic beverages, by gender, December 2010
Older consumers less interested in nutritional transparency
Figure 52: Health perceptions of non-alcoholic beverages, by age, December 2010
Ordering behavior
Figure 53: Non-alcoholic beverage ordering behavior, by gender, December 2010
Under-35s more willing to try new flavors in non-alcoholic beverages
Figure 54: Non-alcoholic beverage ordering behavior, by age, December 2010
Decision influencers
Figure 55: Decision influencers and important factors regarding drink and restaurant choice, by gender, December 2010
Under-35s more influenced by brand and beverage variety
Figure 56: Decision influencers and important factors regarding drink and restaurant choice, by age, December 2010
NON-ALCOHOLIC BEVERAGE CHOICES FOR KIDS
Key points
Majority of kids drink restaurant beverages—juice and milk most popular
Figure 57: Types of non-alcoholic beverage consumed by kids at restaurants, dads vs. moms, December 2010
Beverage choice varies by age of child
Figure 58: Types of non-alcoholic beverage consumed by kids at restaurants, by age of child, December 2010
Kids’ preferences drive restaurant beverage choice
Figure 59: Decision influencers on child’s beverage choice, dads vs. moms, December 2010
IMPACT OF RACE/HISPANIC ORIGIN
Key points
Asians order a variety of non-alcoholic beverages at restaurants
Figure 60: Types of non-alcoholic beverage ordered from a restaurant, by race/Hispanic origin, December 2010
Asians have high frequency for beverage-only purchases
Figure 61: Frequency of beverage-only purchases, by race/Hispanic origin, December 2010
Asians have strong health perceptions regarding non-alcoholic drinks
Figure 62: Health perceptions of non-alcoholic beverages, by race/Hispanic origin, December 2010
Asians and Hispanics plan to order healthier non-alcoholic beverages
Figure 63: Non-alcoholic beverage ordering behavior, by race/Hispanic origin, December 2010
Variety and combo meals influence Asians’ restaurant choice
Figure 64: Decision influencers and important factors regarding drink and restaurant choice, by race/Hispanic origin, December 2010
CLUSTER ANALYSIS
Unchanging Drinkers
Demographics
Characteristics
Opportunities
Rarely Non-alcoholics
Demographics
Characteristics
Opportunities
Satisfied, Frequent Guzzlers
Demographics
Characteristics
Opportunities
Characteristic tables
Figure 65: Non-alcoholic beverage clusters, December 2010
Figure 66: Frequency of beverage-only purchases by type, by non-alcoholic beverage clusters, December 2010
Figure 67: Shifts in consumption of non-alcoholic soda beverages at restaurants, by non-alcoholic beverage clusters, December 2010
Figure 68: Shifts in consumption of non-alcoholic tea and coffee beverages at restaurants, by non-alcoholic beverage clusters, December 2010
Figure 69: Shifts in consumption of non-alcoholic frozen beverages at restaurants, by non-alcoholic beverage clusters, December 2010
Figure 70: Shifts in consumption of other non-alcoholic beverages at restaurants, by non-alcoholic beverage clusters, December 2010
Figure 71: Level of satisfaction with restaurant beverage options, by non-alcoholic beverage clusters, December 2010
Figure 72: Health perceptions of non-alcoholic beverages, by non-alcoholic beverage clusters, December 2010
Figure 73: Non-alcoholic beverage ordering behavior, by non-alcoholic beverage clusters, December 2010
Figure 74: Decision influencers and important factors regarding drink and restaurant choice, by non-alcoholic beverage clusters, December 2010
Demographic tables
Figure 75: Non-alcoholic beverage clusters, by gender, December 2010
Figure 76: Non-alcoholic beverage clusters, by age, December 2010
Figure 77: Non-alcoholic beverage clusters, by household income, December 2010
Figure 78: Non-alcoholic beverage clusters, by race, December 2010
Figure 79: Non-alcoholic beverage clusters, by Hispanic origin, December 2010
Cluster methodology
CUSTOM GROUPS: LIGHT, MEDIUM, AND HEAVY USERS
Types of non-alcoholic beverage ordered from restaurants
Heavy users significantly more likely to order all types of beverage at restaurants
Figure 80: Types of non-alcoholic beverage ordered from a restaurant, by usage frequency groups, December 2010
Medium users most likely to not order non-alcoholic beverages at restaurants
Figure 81: Types of non-alcoholic beverage ordered for on-premise consumption, by usage frequency groups, December 2010
Heavy users have high incidence for ordering beverages for takeout
Figure 82: Types of non-alcoholic beverage ordered for takeout, by usage frequency groups, December 2010
Attitudes and behaviors in non-alcoholic beverage consumption
Heavy users show greater interest in healthy non-alcoholic beverages
Figure 83: Health perceptions of non-alcoholic beverages, by usage frequency groups, December 2010
Medium users interested in new flavors and plan to drink healthier beverages
Figure 84: Non-alcoholic beverage ordering behavior, by usage frequency groups, December 2010
The beverage menu plays more heavily into restaurant choice of heavy users
Figure 85: Decision influencers and important factors regarding drink and restaurant choice, by usage frequency groups, December 2010
APPENDIX: TRADE ASSOCIATIONS

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