Abstract

American families' perceptions and habits towards full-service and limited-service restaurants have been changing in the wake of the recession. As a result, new opportunities have emerged from this tumultuous period.

The objective of this report is to explore the environment that shapes how families eat at restaurants: not only the restaurant segments they go to and how often they go, but also what shapes their decisions to order food items and the impact of the recent recession on their dining out habits. Additionally, this report gives operators insight into what parents would like to see more often on kids' menus. Context is provided in the form of specific restaurant concepts and menu innovation related to meeting kids' restaurant needs.

This report explores this new landscape; some of the topics covered include:

• Usage of different types of restaurants (QSRs, fast casual and full service) by different demographics for breakfast, lunch and dinner
• Types of menu items respondents would like to see on kids' menus
• Which restaurants are innovating and succeeding and why
• Promising new items on kids' menus that can be used as points of differentiation and drivers of sales
• The importance of Hispanics, and strategies for reaching this key demographic
• How restaurants can attract families with healthier menu offerings
• The degree to which parents limit their children' s food choices and their reasons for doing so
• How restaurants can proactively address the obesity epidemic and the call for menu transparency
• Innovative ways fast food and full-service restaurants can use entertainment to attract kids and families

Research Methodology

Consumer Research

In-depth consumer research examines how social, economic, cultural and psychological influences affect attitudes and purchasing decisions. Mintel combines exclusive primary research with syndicated data to provide an accurate and unique analysis. Consumer research is stored in a database supervised by Mintel' s data analysts and statisticians.

Primary Data Analysis

For each report Mintel develops custom primary research questions and uses specialty research firms for data collection.

Table of Contents

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

MARKET SIZE

• Key points
• Spending on eating out slows
  • Figure 1: Aggregate yearly expenditures on food away from home, 2003-08
• Married couple families continue to spend
  • Figure 2: Average yearly expenditures on food away from home, by selected consumer units, 2003-08
• Growth in consumer units will help category
  • Figure 3: Number of consumer units in US, 2003-08

COMPETITIVE CONTEXT

• Cooking at home or going to the movies instead of eating out
  • Figure 4: 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 5: Consumer Sentiment Index, by quarter, 2001-09
  • Figure 6: Change in disposable personal income, by month, January 2007-December 2009
• Trading down and out because of the recession
  • Figure 7: Restaurant performance, expectations and current situation indices, Jan 09-Dec 09
  • Figure 8: Impact of recession on family dining out habits on weekends, by race/Hispanic origin, November 2009
  • Figure 9: Consumer Price Index - all items and key consumer markets, August 2007, 2008 and 2009
• Growing Hispanic households suggest brighter future
  • Figure 10: U.S. Hispanic population, by age, 2005-15
  • Figure 11: General U.S. population by age, 2005-15
  • Figure 12: Hispanic households, by size, 2009
• Less leisure time drives eating out
  • Figure 13: Hours available for leisure per week, 1973-2008
• The obesity epidemic and potential implications
• Celebrating good times by dining out
  • Figure 14: Occasion-based dining, by household income, November 2009

RESTAURANT INNOVATION AND INNOVATORS: HEALTHY MEALS

• Key points
• QSRs delivering healthier fare
  • Figure 15: 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 16: Average price of kids' menu entrees, by segment, Q4 2009
  • Figure 17: Average price of adult menu entrees, by segment, Q4 2009
• Price promotions at QSRs
• Price promotions at fast casual and casual
  • Figure 18: Average price of kids' menu entrees, all restaurants, by quarter, Q3 2008-Q4 2009
  • Figure 19: Average price of adult menu entrees, by quarter, Q3 2008-Q4 2009

RESTAURANT INNOVATION AND INNOVATORS: VARIETY

• Key points
• Innovation invades the world of chicken fingers
  • Figure 20: Incidence of kids' menu entrees by segment, Q4 2009
  • Figure 21: Incidence of adult menu entrees 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 22: Olive Garden television ad, 2009
  • Figure 23: Olive Garden television ad, 2009
• Charitable outreach

BRAND QUALITIES - MCDONALD' S

• Overview
  • Figure 24: McDonald' s television ad, 2009
• Discounts and product promotions
• Sponsorships and marketing tie-ins
  • Figure 25: U.S. sales of leading burger QSR chains, 2006 and 2008

ADVERTISING AND PROMOTION

• Overview
  • Figure 26: Twenty largest U.S. restaurant chains, by ad spend, 2007-08
• Wendy' s
• Subway
• Other interesting ad initiatives
• Analysis of commercials
  • Figure 27: KFC television ad, 2009
  • Figure 28: Subway television ad, 2009

RESTAURANT USAGE: BREAKFAST

• Key points
• 25-34s, with children, and eating breakfast out
  • Figure 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: Away from home dinner family dining during the week, by restaurant type and age of parent/guardian
• 25-34s dining out on weekend
  • Figure 38: 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 39: What parents would like to see more of on kids' menus, by household income, November 2009
• With youngsters and wanting healthier options
  • Figure 40: 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 41: Parents' involvement in children' s food choices when dining out, by household income, November 2009
• With youngsters and setting an example
  • Figure 42: 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 43: What dinner entrees 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 44: 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 45: Away from home lunch family dining during the week, by race/Hispanic origin of parent/guardian, November 2009
• Hispanic and eating dinner out
  • Figure 46: 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 47: 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 48: Parents' involvement in children' s food choices when dining out, by race/Hispanic origin of parent/guardian, November 2009

APPENDIX: ADDITIONAL CONSUMER TABLES

• Affluent like dining out
  • Figure 49: Enjoyment of dining out, by household income, by agree, November 2009
• Hispanics eat breakfast at a variety of restaurants
  • Figure 50: 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 51: 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 52: 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 53: At home family dining during the week, by age of child/children, November 2009
• Less affluent dine together less
  • Figure 54: At home family dining during the weekend, by household income, November 2009
• What Asians want
  • Figure 55: What dinner entrees people would like to see more of on regular menus, by race/Hispanic origin, November 2009

APPENDIX: TRADE ASSOCIATIONS