New York, May 3, 2010 — As a market already marred by recession-related discretionary spending cutbacks, the U.S.
foodservice industry should look to the “millennials” (also known as Gen Y) as a bright spot to lead restaurants out of the
economic doldrums, according to The U.S. Foodservice Landscape 2010: Restaurant Industry and Consumer Trends,
Momentum and Migration, a first-of-its-kind examination of recent and future consumer habits and attitudes surrounding dining
out, by market research publisher Packaged Facts.
Restaurant users aged 18-34 are an industry sweet spot, with strong usage and usage frequency patterns across restaurant
segments, according to Packaged Facts’ proprietary Consumer Restaurant Tracker. Within the cohort, restaurant users aged
25-34 spend the most money at restaurants on a per meal basis, and also have the largest party sizes resulting in a total spend
per visit that is 25% above the average. Likewise, healthy eaters and technology-savvy diners who utilize ordering technology
spend more than average per visit and have higher party sizes.
Consumers have become significantly more value-conscious, the report found. About 50% of respondent adult (18+) restaurant
goers say they are more likely to eat dinner at home—and almost one-third doing so “a lot more”—compared to three months
ago. Besides eating more at home, the proprietary data reveals that an increasing number of consumers are inclined to spend
more money on groceries or to “pack a lunch, breakfast or snack” in the next three months rather than splurge on takeout or
delivery.
“Our data indicates that grocery store sales rose 4% between February 2009 and February 2010, underscoring the trend toward
food at home, which continues to exhibit momentum,” says Don Montuori, publisher of Packaged Facts. “This shift toward food
at home at the expense of food away has produced a triple threat to the restaurant industry: declining guest traffic, declining
average check, and declining sales.”
Packaged Facts estimates that sales at eating and drinking establishments will fall 2% in 2010, then increase by 2% in 2011.
Full-service restaurants, segment sales of which are forecast to fall 4% in 2010, will lead the drop before increasing 1% in 2011.
Meanwhile, limited-service restaurant sales are forecast to drop 1% in 2010 and then rise by 2% in 2011.
Restaurant usage and usage frequency also strongly correlate to household income, with the exception of the fast food/QSR
(quick service restaurant) segment, which enjoys universal usage across income groups. In the past three months, consumers
with household incomes of at least $100K were more likely to use restaurant delivery/takeout/pickup, but only slightly more likely
to spend money on meals at restaurants. Meanwhile, their counterparts from less affluent households were more likely to spend
money on food for home.
As part of Packaged Facts’ Foodservice Market Insights series, The U.S. Foodservice Landscape 2010: Restaurant Industry
and Consumer Trends, Momentum and Migration draws from proprietary consumer surveys and analysis, providing uniquely
consultative insight on consumers’ evolving relationships with the foodservice industry. As part of this analysis, the report
presents three key features: Packaged Facts’ quarterly Consumer Restaurant Tracker, offering directional analysis on consumer
usage and usage frequency of restaurants by segment; its quarterly Consumer Spend Tracker, providing directional analysis on
consumer spending behaviors and attitudes related to restaurant use; and Demographic Drill-Downs, which utilizes a
consultative approach to consumer survey analysis to present highly customized consumer insight via custom consumer lifestyle
and attitude groupings, psychographic groups, and other narrowly tailored “cross-tabbed” analysis—leveraging maximum
insight.
Source: Packaged Facts