Blog #3: Consumer Trends in the Restaurant Industry

            One of the most major consumer trends in the restaurant industry is the break out type of restaurant called “fast casual”. These are restaurants that offer customers fresh food that is high quality with slightly higher prices than quick service restaurants (like McDonalds) but with the same behind the counter convenience. With quality of food and health concerns being challenges for the industry, especially among quick service restaurants, fast casual restaurants are the just want the consumers seem to want. According to an industry report by First Research the fast casual industry is projected have 8% growth through 2016. This is compared to the 3-4% growth projected for the quick service industry ("Fast food and," 2012). As further proof of the success of this new trend is the growth of the two major leaders of this new trend-Panera Bread and Chipotle Mexican Grill. Panera Bread has not reported a decline in profit since the beginning of 2008. (Rubin, 2012) This speaks volumes considering this is when the recession of US began.

Quick service restaurants are beginning to catch on to the trend. Taco Bell recently opened up a new “Cantina Bell” line. This line offers customers burrito and salad bowls very similar to that of Chipotle. In addition they implemented fresh avocadoes and cilandro dressing from Chief Lorena Garcia. As a result, Taco Bell’s same store profit increased by 13%, which was increased the Yum Brand as a whole same store profit by 6%. (Jorgon , 2012)

Another trend that has just begun is the snacking trend. “Not only are Americans snacking between meals more than ever before, but — in a boon to fast feeders — their definition of "snack" has broadened to include a range of treats, including sandwiches, burgers, chicken strips and drinks according to researchers” –Lisa Jennings of National Restaurants News. According to a report on the Technomic Snacking Occasion Report, 48% of consumers snack at least twice a day, this number has increased 25% from 2010 (Technomic, 2012). Restaurants have seen this and are getting on board. McDonald’s led the way with their “Snack Wrap” line. They also implemented the snack sized “Fruit-and Yogurt parfait” and the “Apple Dippers”.  Sonic began a “Snack Trio” option on the menu with onion rings, mozzarella sticks, and tatter tots. This could be the next big thing for the restaurant industry. (Jennings, 2010)

Sources:

First Research (2012). Fast food and quick service restaurant.  Retrived from http://mergent.firstresearch-learn.com/industry.aspx?chapter=0&pid=433

Jennings, L. (2012, July 12). Small bites, big opportunities. National's Restaurant News, pp. 1; 16-20.

 

Jargon , J. (2012, October 11). Fast food aspires to move up to the food chain. Wall St, p. B11.

 

Rubin, B. (2012, October 23). Panera bread 3rd quarter net up 27% on stronger same store sales. Wall Street Journal. Retrieved from  http://online.wsj.com/article/BT-CO-20121023-714934.html?mod=WSJ_qtnews_wsjlatest

 

Technomic. (2012). The snacking occasion consumer trend report. Retrieved from http://www.technomic.com/_files/products/2012_Snacking_CTR_brochure.pdf