Strategic Pizza Infrastructure Goes High-Tech

March 5, 2015

BN-HF942_0304_c_G_20150304135445http://blogs.wsj.com/cio/2015/03/04/strategic-pizza-infrastructure-goes-high-tech/?mod=wsj_ciohome_cioreport

Stuffed crust isn’t the only battle ground for Domino’s Pizza Inc. and Pizza Hut. The chains are promoting smartwatches, connected cars, retinal scanning and other interactive technology for order and delivery – and learning what works and what doesn’t in customer experience.

Ordering pizza is a time-honored proof of concept for new technology. The very first retail purchase on the Web was a Pizza Hut pizza, the company claims. Now it and Domino’s are experimenting with just how much change customers can tolerate as technology remakes the noble task of ordering a pepperoni pie. Domino’s, for example, lets customers order in Ford Fiestas with voice commands and on Pebble smartwatches with a touch interface. Pizza Hut lets gamers order through their Xbox and in the United Kingdom is testing retinal scanning technology that detects where a customer’s eyes rest on a digital menu board and adds toppings accordingly.

“Pizza companies are paving the path for technology in other kinds of restaurants,” says Darren Tristano, an analyst at Technomic Inc., a food industry consulting firm.

And both companies watch the tech moves of one another — and those of other retailers – closely. Domino’s CIO Kevin Vasconi says customers will jump to Pizza Hut or another competitor the moment an ordering system hiccups. “If you’re on Dominos.com and not having the best experience, it’s not hard for you to go to one of our competitors,” Mr. Vasconi says. “We want to not only have best experience in your car, but on your watch and in other venues, too.”

Pizza Hut is building an in-car ordering and payment system with Accenture and Visa Inc., which announced the project Monday at the Mobile World Congress in Barcelona. Testing is expected to start this spring. The system’s beacon technology can alert restaurant staff when the customer pulls into the parking lot, says Carol Clements, U.S. CIO for Pizza Hut, which accounted for $1.1 billion of the $13.3 billion in sales reported last year by parent company Yum Brands Inc.

Anticipating customer behavior influences where Pizza Hut invests, Ms. Clements says. Aside from drivers, IT is the fastest growing part of the business. Pizza Hut wants to add 100 people, including contractors, to its 160-member technology and digital staff, focusing on analytics talent and mobile developers to build out tablet and self-service kiosk apps. But not every new technology is ripe, she says, including wearable devices. “When you’re ordering a pizza, there’s a lot of information we need. Whether we can do that on a little, 2-inch by 2-inch watch in a way not frustrating for customers, we’ll continue to evaluate.”

At Domino’s, tech investments must pay off in sales, conversion rates or new-customer acquisition, Mr. Vasconi says. About half of its $2 billion in 2014 sales came from digital platforms and half of that was from mobile devices, he says. At 200 people, IT is one-third of the company’s corporate staff and they want to hire 50 or 60 more this year. Domino’s measures itself against Pizza Hut and other competitors, looking at website load time, number of steps to order and user-interface design. But Mr. Vasconi also studies innovators outside the pizza business, including Zappos.com and Uber. (He promises no surge pricing on pizza.)

A partnership with Ford Motor Co. to use the Sync AppLink connectivity system lets drivers in Fiestas, Mustangs and other cars order Domino’s with voice commands. But it’s not a high-traffic ordering vehicle, Mr. Vasconi says. ”Customers say it’s a great idea but they’re not going to use it every day.”

Still, it’s one more avenue for orders, and being everywhere can increase customer loyalty, Mr. Tristano says. “People want the ultimate convenience of being able to get what they want when they want it.”


Starbucks Sells 37 Million Gifts Cards During the Holidays

January 13, 2015

pictureStarbucks Corp. (SBUX) sold about 16 percent more gift cards in the U.S. during the 2014 holiday season as shoppers increasingly defaulted to the fail-safe option of treating their loved ones to lattes and Frappuccinos.

About 37 million gift cards were sold during the holiday season this year, up from about 32 million last year, the Seattle-based company said in an e-mail. More than $1.1 billion was loaded onto Starbucks gift cards between Nov. 3 and Dec. 25 in the U.S. and Canada, where a combined 40 million cards were sold, Starbucks said.

The world’s largest coffee-shop chain, with almost 12,000 cafes in the U.S., is an easy choice for consumers seeking the convenience of gift cards, said Darren Tristano, executive vice president at Chicago-based research firm Technomic Inc. Its stores are everywhere, and many customers visit almost daily.

“It becomes a safe bet,” he said. “We don’t want to give gift cards to people that we’re not sure they’re going to use.”

In 2013, Starbucks customers across the globe loaded $1.4 billion onto gift cards, including $1.3 billion in the U.S. and Canada, between October and December. Starbucks hasn’t yet released numbers for the corresponding period in 2014.

Starbucks said almost 2.5 million gift cards were activated on Christmas Eve this year, up from nearly 2 million sold that day last year. More than $20 billion has been loaded onto Starbucks gift cards since the program originated 13 years ago, the company said in a press release before Christmas.

The gift-card program reached new heights this year when the coffee chain sold a $200 Starbucks Card keychain that’s made with sterling silver and comes loaded with $50. The item sold out online and was available only in limited quantities at certain stores nationwide. Starbucks also offers monogrammed cards for $5.

Gift cards increase the amount of money customers spend when they’re in a Starbucks store, and the company should see a boost in sales in the first part of the year as coffee drinkers start to redeem the cards, Tristano said.

“It’s a significant part of what they do,” he said.


Here Are the Only 6 Food Trends You Need to Know for 2015

January 12, 2015

pictureExperts forecast that we’ll be eating more fat and insects, and predict the next sriracha

With all due respect to sports geeks, music freaks, stock jocks, and teenage girls, there is no group more obsessed with The Next Big Thing conversation than food people.
The “restaurant trends for 2015″ predictions aren’t just coming now; they’ve been coming, steadily, since before Halloween. Press releases, slideshows, listicles in trades and foodie zines all aimed at telling us what’s the next kale, sriracha, or quinoa.

Interesting reading, often hunger inducing, but with so many predictions — from so many chefs, flavor-makers, food companies, bloggers— it’s hard to make sense of it all.
So this year, to cut through the tsunami of food punditry, I submit a highly abridged list.

I asked only six experts — all industry people who live and breathe food trends. And I asked these carefully chosen experts to make some carefully chosen decisions. Instead of a top ten list — or even a five-item slideshow — just give me that one big food prediction for 2015.

1. The Rise of Fat
For most health-conscious people, fat ranks right up there on the no-no list with nicotine and smog. But Kara Nielsen, culinary director of the Boulder, CO-based Sterling-Rice Group, believes 2015 could be known as the year that more and more Americans get over their fat phobia.

Nielsen isn’t talking about just any fat — not the trans fats found in highly processed foods. She’s talking about natural, animal-derived fats. Real butter sales are at a 40-year high; cultured butter is surging in popularity; high-end burger joints, like Shake Shack, celebrate fat as an essential part of a better burger. And the trend seems to be broadening: There’s a San Francisco restaurant selling a wildly popular chicken fat rice dish; there’s a rapidly growing Boulder company that only features full-fat yogurt. Nielsen expects more high-fat dairy products, more fat-celebrating meat purveyors, and more higher fat Asian foods to hit restaurant menus and grocery store shelves in 2015. “Americans are recognizing that the fear of fat that we’ve lived under for so long is erroneous,” said Nielsen. And it’s not just because of a foodie quest for flavor. Says Nielsen: “It’s also because of books like The Big Fat Surprise that are making the argument that natural fat is an essential part of a healthy diet.”

2. Local Meat
There’s near unanimity among food trend trackers that the local foods movement will continue to grow in 2015. Darren Tristano is no exception. Tristano, who tracks the restaurant industry for market research giant Technomic, expects more local produce, more local beer, more local grains. But Tristano believes the big local story of next year will be local meat. Californians will see more menus boasting of grass-fed beef from Niman Ranch; Chicagoans will likely see more free-range bacon from Slagel Farm. Diners in DC will see more chicken sandwiches from Polyface Farms. In short, get ready for more restaurants to celebrate the local origins of their chicken, beef, or pork just as zealously as their local Brandywine tomatoes or radicchio.

3. Insect-Powered Foods
Restaurants serving grasshopper tacos and ant guacamole, entrepreneurs peddling cricket-powered powerbars —there’s been tons of media coverage of insect-eating in 2014. Yet most people regard it as a curiosity, more Fear Factor-fad than food trend.

Not Suzy Badaracco. The president of food trend consultancy Culinary Tides believes insects will rise as a foodstuff in the U.S. far sooner than many expect. In picking insects as her “Food of 2015,” Badaracco said that insects draw on not one but three food trends: the growing interest in foraging, the invasivore movement (i.e., don’t kill them, eat them), and, the granddaddy of current trends, the desire for more protein. (Insects are protein powerhouses; grasshoppers, for instance, have about the same protein content as a chicken breast). Full-bodied insects won’t appear in your Safeway this year; get ready for them to arrive in processed form, especially protein-packed power bars, like Chapul and Exo. Badaracco expects insects, processed as flour, to soon become a popular protein sources for bakery and cereal products. Full-bodied insects — tentacles and all? Further off, but coming. Badaracco sent a list of more than a dozen American restaurants that feature insect options, such as the “Grass Whopper” —a burger made from cricket meat.

4. The Next Sriracha is Harissa
A few years ago, it was the unpronounceable hot sauce that you might find in Chinatown. Now, you can get a Subway chicken sriracha melt with a side of sriracha potato chips.

Maeve Webster, a restaurant analyst for market researcher Datamonitor, believes the next sauce to experience a sriracha-like rise is harissa, a spread of dried chiles, garlic, tomatoes, caraway, paprika, coriander, and olive oil that’s as common as ketchup in Tunisia. It’s still largely unknown to Americans, but Webster says all the elements are in place for harissa. “U.S. consumers can’t get enough of spicy foods. Harissa has a flavor profile that is both spicy and familiar,” Webster says. Like sriracha, harissa is also versatile and can work in a wide variety of applications. Last year, Datamonitor found that less than 3% of American restaurants included a harisssa item, but Webster noted that’s a more than 180% leap over three years. If Webster is right, get ready for the chicken harissa melt — maybe not this year, but soon.

5. The Next Quinoa is Millet
Melissa Abbot, director of culinary insights at The Hartman Group, concedes that her pick for “Food of 2015″ is not very sexy. Millet is, after all, best known as the main ingredient in birdseed. But Abbot believes that this avian staple could quite possibly become the next quinoa. Ever since quinoa exploded on the scene, the food industry has been in hot pursuit of the Next Great Grain, and there are plenty of healthful, gluten-free candidates. So why millet, and why not amaranth, sorghum, teff, or fonio? It’s gluten-free, protein-rich, high fiber, and, Abbot says, has a superfood quality all of its own. “It retains its alkaline properties after being cooked, which helps in reducing inflammation ideal for those with wheat allergies and sensitive digestion.” Another plus for millet: it’s local. The Great Plains, especially Colorado, is one of the world’s major millet growing regions.

6. Peas
This pick for “Food of 2015″ will not necessarily be found on restaurant menus or on grocery store shelves. You may even need glasses to notice it.

Barb Stuckey, who is a vice president at Mattson, one of the world’s largest food product developers, describes Americans as being in a “torrid love affair” with protein. While it’s debatable whether Americans should be seeking out more protein, the reality is food companies are responding to our love affair with protein by giving us more protein.

Soy is one of the best, most widely available, efficient ways of fortifying foods with protein, Stuckey says. But whether deserved or not, soy is falling out of favor. Food makers are searching for non-GMO plant-based sources of protein and, Stuckey says, “the newest, hottest kid on the block is pea.” Peas are high in protein and, as people gain more experience processing it, the flavor is improving. “Look for pea protein to show up the ingredient list of bars, cereals, beverages, you name it.”


What Obesity Problem Burger King’s Low-Calorie Satisfries Are a Total Flop

August 29, 2014

pictureThe fast-food chain plans to discontinue the healthier fried chunks of potato in most of its U.S. restaurants.

By Liz Dwyer

Americans may seriously tip the obesity scales, but when it comes to chowing down on fried wedges of potato, apparently we want full fat or nothing at all. At least, that’s what the demise of Burger King’s line of Satisfries seems to reveal. The fast-food giant announced on Wednesday that because of a lack of customer demand, it is discontinuing the relatively healthier french fry product.

“Earlier this week, franchisees in North America were given the option to continue offering Satisfries in markets where this game-changing product continues to perform well,” the company announced in a statement, according to Bloomberg Businessweek. Two-thirds of restaurants chose to ditch the product.

The fries were first made available last September as part of Burger King’s effort to appeal to folks who might be on the hunt for healthier menu options. Satisfries were marketed as “great tasting crinkle-cut french fries with 40 percent less fat and 40 percent fewer calories” than McDonald’s french fries.

Consumers might have been a bit confused by the product. At $1.89 for a small container, Satisfries were more expensive than their full-fat, full-calorie counterpart, which are $1.59. A small box of Satisfries racked up 270 calories, 11 grams of fat, and 300 milligrams of sodium—not much less than the 340 calories, 15 grams of fat, and 480 milligrams of sodium found in the same-size traditional fries.

There’s also the tiny detail that when customers walk into a Burger King, they’re not usually on the hunt for a healthier food choice. “They go to fast food restaurants like Burger King for indulgence,” Darren Tristano, executive vice president of food industry consultant Technomic Inc., told NBC News.

So what do Americans want instead? This week Burger King also announced that because of grassroots demand on Twitter and Facebook, its previously discontinued Chicken Fries are back. As one fan enthused on Facebook about the fat-, sodium-, and calorie-packed product, “When you guys got rid of these I stopped going there my one to two times a week and only went a couple times a year after that. So time to kick back into gear and get my chicken fries on!”


Restaurant Loyalty Varies by Generation, Finds Technomic

July 14, 2014

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Copyright © 2014, Dow Jones & Company, Inc.

Repeat patronage is critical to most foodservice operators’ success. However, guests’ intent to return and their reasons for doing so vary considerably by generation, as revealed in a recent white paper using data from Technomic’s Consumer Brand Metrics (CBM) program.

The white paper, titled Keep ‘Em Coming Back: Customer Loyalty and What Drives a Generation to Return reveals that more consumers report they will return in the near future to Papa Murphy’s Pizza and In-N-Out Burger than any other restaurant tracked. Papa Murphy’s scores are driven by Generation X and Baby Boomers, while more Millennials than members of other generations say they’ll soon return to In-N-Out Burger.

“Millennials are looking for restaurants that not only satisfy their hunger, but that they can feel good about,” says Darren Tristano, executive vice president at Technomic. “Older consumers, on the other hand, place a higher priority on atmosphere and service.”

Highlights from the white paper include:

-In-N-Out Burger and Papa Murphy’s Pizza garner the strongest intent to return. More consumers strongly agree that “I will return to this restaurant in the near future” for Papa Murphy’s Pizza (54 percent) and In-N-Out Burger (52 percent) than for any other restaurant tracked in the program. While limited-service chains, which are visited more frequently overall, generally outperform full-service concepts on this attribute, both Cracker Barrel (46 percent) and Texas Roadhouse (44 percent) rank in the top fifteen restaurants overall.

– Among Millennials, In-N-Out Burger is the chain most likely to be revisited. Millennials place greater emphasis on the concept’s brand image, agreeing more strongly than other generations that In-N-Out Burger supports local community activities, offers new and exciting products and is an innovative brand.

– Gen Xers and Boomers are especially likely to say they’ll revisit Papa Murphy’s soon. Their motivations for returning differ, as Generation X rates the brand most favorably on cleanliness, convenient location and beverage quality, while Boomers score the chain most highly on service attributes, such as staff friendliness and payment handling.

These findings were derived from Technomic’s Consumer Brand Metrics (CBM) program, which offers consumer insights based on ongoing tracking of consumers’ perceptions of their recent experiences across 128 leading U.S. restaurant brands. Clients can analyze results across 62 experience attributes by time period, demographic group, dynamics of the occasion or designated market area. Data is updated on the Consumer Brand Metrics website quarterly.

Technomic provides numerous online services to the foodservice industry. To learn more, please visit Technomic.com or contact one of the individuals listed below. For Technomic updates, please follow us on Twitter, LinkedIn and our blog.


Dining Between Dayparts: The Evolution of Snacking

May 29, 2014

Snack consumption has been increasing in the U.S., leading to new definitions of snacks and new opportunities for foodservice operators.

Snack consumption is high and has been increasing. Just over half of U.S. consumers say they snack at least twice a day, up slightly from 48% in 2012. And, according to Technomic’s 2014 Snacking Occasion Consumer Trend Report, about one in five consumers say they snack at least three times daily. Over the past two years, consumers have broadened their definition of “snack” to include more foodservice items. Therefore, it is vital for to stay on top of snack trends.

What Makes a Snack?

Firstly, what differentiates a “snack” from other types of food? According to consumers, a snack is defined primarily by the type of food or beverage and by time of day it is eaten. Portion size also plays a large role, as more than two-fifths of consumers polled report that they define a snack by the size of the item. The ideal snack size differs by occasion, because some consumers snack as a meal replacement while others may snack on something small to hold them over between meals.

Fewer consumers polled today than in 2012 (58%) define a snack by the time of day it is eaten. This aligns with the general trend of consumers eating at more frequent intervals throughout the day rather than eating three meals per day.

Base: 1,500 consumers aged 18+ Source: 2014 Snacking Occasion Consumer Trend Report, Technomic, Inc.

Base: 1,500 consumers aged 18+
Source: 2014 Snacking Occasion Consumer Trend Report, Technomic, Inc.

The majority of consumers report that their definition of a snack has not changed in the past two years, but about one-third say their definition has changed. A quarter of consumers say they now include more types of food in their “snack” mindset. About a tenth of consumers say their definition of “snack” has changed to include other parameters such as more types of beverages, more foodservice items and more overlap with meals.

Slightly more men than women say their definition of “snack” hasn’t changed, while more women than men now include more types of food within the scope of what they consider to be a snack.

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Base: 1,500 consumers aged 18+ Source: 2014 Snacking Occasion Consumer Trend Report, Technomic, Inc.

Because a substantial proportion of consumers have broadened their idea of what constitutes a snack, and fewer consumers today than in 2012 consider time of day as a factor in the definition of “snack,” customers may be open to restaurants’ suggestions to add a certain food to their “snack” mindset, even food that is not traditionally served as a snack or food that is typically eaten at another time of day. For instance, operators could list sides, appetizers or small plates on a special “snack” menu, rather than just listing them on the main menu.

Snacking Frequency

Based on their own personal perception of what a snack is, consumers were asked how often they snack. Overall, consumers snack about as often today as they did two years ago, with just a slight increase in snacking frequency. Half of today’s consumers (51%) report consuming multiple snacks on a typical day, and 21% do so at least three times per day. In comparison, just 48% of consumers polled in 2012 say they snack at least twice a day.

Base: 1,522 (2012) and 1,750 (2014) consumers aged 18+; includes terminate data Source: 2014 Snacking Occasion Consumer Trend Report, Technomic, Inc.

Base: 1,522 (2012) and 1,750 (2014) consumers aged 18+; includes terminate data
Source: 2014 Snacking Occasion Consumer Trend Report, Technomic, Inc.

Limited-Service Opportunities

Increased snacking is strongly driven by younger consumers, so operators and manufacturers may want to focus on these consumers when developing and marketing snacks. Online and social-media marketing efforts, for instance, may pay off far better than traditional television advertising. In particular, younger consumers will respond to marketing that conveys the importance of snacks as part of social occasions with their friends. And images of younger consumers snacking at work or en route to a destination may convey the convenience of snacking and its role as an intrinsic part of today’s busy lifestyle.

Many restaurant operators are recognizing that snacks can be a traffic driver, appealing on a number of levels—from low price to craveability to on-the-go lifestyle integration.

Value menus are reflecting trends toward a proliferation of snacks and catering to off-peak dining occasions. The new Snack ’n Save Menu at Arby’s exemplifies this trend. Currently being tested in 13 markets, the Snack ’n Save Menu is designed to boost customer traffic and fuel multi-item purchases at each visit. Each of the 15 items on the menu is well suited for takeout and is sized for snacking. Ranging in prices from $1 to $2.99, the menu selection hits the main points relating to how consumers would define a snack. Some highlights are as follows:

  • Junior-size roast-beef sandwich
  • A two-sandwich pack of roast-turkey or roast-beef Mighty Minis
  • Mozzarella sticks
  • Jalapeño bites
Source: Arbys.com

Source: Arbys.com

Look for a value message to be increasingly delivered with snacks as the cornerstone of the menu lineup. This approach will likely lead to more value-oriented menus being dubbed simply as “snack” menus—with consumers picking up on the cue that snacks provide the overall value they seek.

Chains are also developing innovative portable packaging for their snack items. McDonald’s lists Chicken McBites, featuring bite-sized breaded and fried chicken breast pieces available in three sizes—including Snack, Regular and Shareable size varieties. The “deliciously poppable” McBites are served with the customer’s choice of Honey Mustard, Hot Mustard, Barbecue, Chipotle BBQ, Sweet n’ Sour, Buffalo, Ranch or Sweet Chili dipping sauce. The sauce can be inserted into a space in the lid when the lid is opened, which allows for easy on-the-go consumption.

The popularity of Chicken McBites has led to the introduction of Fish McBites, which are positioned in the same way. These items also reflect a burgeoning trend that centers on snacks as the core of the value menu.

Sources: Facebook.com; Chron.com

Sources: Facebook.com; Chron.com

This fall, KFC rolled out the limited-time KFC Go Cups in five varieties for $2.49 each. The selection includes a Chicken Little sandwich, four Original Recipe Bites, three Hot Wings, one piece of Original Recipe Boneless or two Extra Crispy Tenders, along with crispy seasoned potato wedges. The patented KFC Go Cup container was designed specifically to fit in a vehicle cup holder and is marketed as an on-the-go snack.

Key Takeaways

Understanding how snacking fits in with consumers’ typical dining behavior has implications for menu and product development. For instance, since younger consumers typically snack in addition to eating three meals per day, they may prefer a small portion or light snack. On the other hand, older consumers who are more likely than younger consumers to replace meals with snacks may be in need of a more substantial snack. Operators and suppliers should consider how snacking fits into the lives of their customer base when developing and marketing items to sell as snacks.

Clearly there is still ample room for restaurants to boost snack sales. However, restaurant operators should examine the feasibility of expanding into the snack category, keeping their customer base, and concept and menu positioning in mind.


Eating Ethnic: Traffic Drivers & Attitudes

June 26, 2013

For ethnic fare, U.K. consumers seek restaurants and menus that offer both an authentic taste and authentic ambiance.

It’s no surprise that consumer interest in and demand for ethnic foods at restaurants and other foodservice locations is on the rise. One quarter of all U.K. consumers (26%), and two-fifths of consumers aged 25–34 (40%), polled for Technomic’s 2012 U.K. Flavour Consumer Trend Report are more interested in trying ethnic cuisines and flavours than they were a year ago. Further, consumers call for more ethnic fare at restaurants. Fully 22% of consumers agree and another 30% agree somewhat that they would like to see more ethnic options at restaurants. This data signals greater opportunities for operators to differentiate their menus through globally influenced offerings and gain an increased share of consumers’ foodservice spending.

This piece will examine what is important to those seeking ethnic items as well as their willingness to try new cuisines.

Authenticity Is Key

A majority of U.K. consumers—71%—cite authentic taste as one of the most important factors in their decisions regarding ethnic foods. And it seems to be more important to older than younger consumers. Three-quarters of consumers aged 55+ (74%), compared to 60% of consumers aged 18–24, choose a restaurant for ethnic foods based on the authentic taste of the food.

Two-fifths of consumers feel it is very important that ethnic food be prepared by someone from that country or region. Again, older guests feel more strongly: 50% of consumers aged 55 or older place high importance on the food being prepared by someone from the country or region, compared to only 32% of consumers aged 18–24. Ethnic restaurants are limited in their ability to hire and retain staff from other countries, so operators of restaurants that base their appeal on authenticity of the fare may want to consider establishing apprenticeships allowing their chefs to train other cooks in order to maintain the authenticity of menu offerings.

Servers who are from the same country or region as the restaurant’s cuisine may also drive ethnic purchases at restaurants. Patrons may consider these servers to be more knowledgeable about the menu. Nearly half of consumers choose an ethnic restaurant based upon the staff’s knowledge about the menu. These consumers may be seeking menu suggestions or thorough answers to their questions about an unfamiliar ethnic ingredients or preparations.

Ambiance also plays a key role in creating an authentic experience. Almost three out of 10 consumers decide which restaurant or foodservice establishment to visit for ethnic foods based at least in part upon the authenticity of its ambiance or décor.

Interestingly, while more men (45%) than women (36%) feel that it is important that their ethnic food be prepared by someone from that country or region, more women than men place high importance on authentic ambiance (30% of women vs. 25% of men).

Some consumers also choose an ethnic restaurant based on general restaurant amenities. Three out of 10 consumers choose a restaurant to visit for ethnic fare based on the availability of takeaway, and 28% place importance on customisation at ethnic restaurants.

Base: 1,000 consumers aged 18+Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Base: 1,000 consumers aged 18+
Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Menu Attributes Can Drive Purchases

Consumers may not be familiar with some ethnic dishes available at restaurants, and in fact, many consumers choose ethnic foods to discover new flavours. Various menu features could aid consumers in choosing an enjoyable meal.

More than half of consumers (53%) feel it is important that the menu include descriptions of ethnic dishes. As we have seen, consumers place high importance on authenticity when choosing an ethnic restaurant, suggesting that these restaurants may use traditional ethnic names for menu items that may be unfamiliar to many consumers. So it’s no surprise that 37% of consumers prefer that menus at restaurants that offer ethnic items present their fare both in English and in the language corresponding to the cuisine.

Similarly, consumers place a high importance on a menu that includes ingredient listings and photos of ethnic dishes. More than a third of consumers feel it is important that a menu provides a list of ingredients in ethnic dishes, and a quarter would like to see photos of ethnic dishes.

More women than men report that descriptions and lists of ingredient for ethnic dishes are among their top five factors in deciding where to eat ethnic foods. This could be related to the fact that more women than men say they eat ethnic foods to discover new flavours and to try something new, suggesting that these women may be less familiar with the ethnic foods they are considering.

Consumers want to explore and discover new flavours through ethnic foods. However, some may not have much knowledge about ethnic dishes, particularly less familiar options. Operators may find that highlighting their popular dishes, ingredients or flavours can help consumers choose an appropriate dish. Additionally, operators can train their staff not only to be knowledgeable about the menu in order to answer patrons’ questions, but also to ask customers if they have questions. Without enough knowledge to make informed choices, consumers may skip over items they would enjoy.

Base: 1,000 consumers aged 18+ Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Base: 1,000 consumers aged 18+
Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Importance of Ethnic Beverages

Offering ethnic beverages native to the particular cuisine served at a restaurant can add to consumers’ perception of authenticity. Forty percent of all consumers polled agree that restaurants should provide ethnic beverages that are associated with the cuisine offered.

While about equal proportions of men (40%) and women (41%) agree that restaurants that offer ethnic foods should also offer ethnic beverages, differences emerge by age. Consumers aged 18–44 are more likely than those 45+ say that restaurants should offer ethnic beverages along with ethnic foods. Further, consumers aged 25–34 are the most likely to agree with this proposition, with half saying that restaurants that offer ethnic foods should also offer ethnic beverages native to the particular cuisine.

Base: 1,000 consumers aged 18+ Consumers responded using a 1–6 scale where 1 = disagree completely and 6 = agree completely Percentages may not equal cumulative percentage due to rounding Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Base: 1,000 consumers aged 18+
Consumers responded using a 1–6 scale where 1 = disagree completely and 6 = agree completely
Percentages may not equal cumulative percentage due to rounding
Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

To Try or Not To Try?

Consumers’ attitudes toward trying ethnic foods largely fall somewhere between adventurous and conservative.

Technomic asked consumers about their attitudes toward trying mainstream and unique ethnic foods and flavours. Generally, consumers are neither particularly adventurous nor especially conservative about ethnic foods. More than two-fifths of consumers say they try both mainstream and unique ethnic foods from time to time.

On one end of the spectrum, 5% of consumers report that they prefer traditional foods and rarely try ethnic fare. These consumers are likely less adventurous eaters in general. Beyond these highly conservative eaters, more than a quarter of consumers (28%) enjoy ethnic foods and flavours but tend to try only those that are mainstream, such as Chinese, Indian and Thai.

On the other hand, some consumers are more enthusiastic about trying new ethnic foods and flavours. Seven percent of consumers say they actively seek out mainstream ethnic foods, and another 4% actively seek out unique ethnic foods.

Base: 1,000 consumers aged 18+ Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Base: 1,000 consumers aged 18+
Source: The U.K. Ethnic Food & Beverage Consumer Trend Report, Technomic Inc. 2012

Key Takeaway

Consumers want to try new ethnic flavours and appreciate authenticity in the global cuisines and influences that they grew up eating. Restaurants and other foodservice operators can help build traffic and loyalty by offering authentic dishes and experiences while educating consumers about the cuisines’ flavours, ingredients and preparations.


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