General Trends

Foodservice Shifts Towards Small Portions
(Prepared Foods)

Given today’s economy, everyone is looking for value in their purchases. Restaurant expenditures are no exception - the price/value relationship in foodservice has always been a critical factor in an operation’s success.

Prepared Foods stated value is in the eyes of the beholder and can be very subjective. To many, a large portion represents a second meal, and that makes the menu price a very good value. To others, all of the “hype” about sensible eating and health issues has made them more conscious of their food intake. For years, dietitians have been preaching about asking for a doggie bag for half the meal, before it is served. But consumers have not exactly followed their words of wisdom. They also seek out nutritional information at restaurants of all types.

The Economy of Health Trends
According to the article, when considering the economy and current health trends, a logical conclusion is that smaller portions will translate into smaller prices and make consumers feel good about their eating habits. Various QSRs have found that snack wraps are a popular way to attract consumers. The price is attractive and can often include the purchase of two wraps as a single meal.

Many restaurants have been observing customers ordering appetizers rather than entrées for several years. Small portions are definitely on-trend today.

Dining Dilemmas
Eating out is a way of life in most people’s lives. In leisure times, the entertainment aspects of dining lead to experimentation and sharing. And choices are a necessity. If one person wants steak, another may want crab or shrimp. Someone may want a spicy dish, while someone may want a bland meal; the variations are endless. So what do they do? They share. When diners experiment together, they create lasting memories and a bonding effect. Many people enjoy discussing the last meal they shared together, along with the latest movie. Smaller portions such as tapas, finger foods, snacks - whatever the name - create interest. There is also usually little risk involved.

Portion Proportion
The article states that if a portion size is reduced, then the price can be lowered; this is becoming an attractive alternative for many operators. Many chains and independents are offering smaller portions, often through the afternoon, but not at dinner. Smaller entrée salads are popular, especially with women. And mini-dessert portions are all the rage, due largely to the inexpensive price tags. A small indulgence does not hurt the wallet or the waistline.

Small portions of anything are great for smaller appetites, but they also allow for sharing and experimentation. Just as tapas started a hot trend a few years back, small plates allow patrons to try new things. Often, this can lead to higher check averages, as consumers will try two or three items, because they are comfortable with smaller prices. Particularly with larger parties, sharing and socialization play important roles.

Reasons to Dine Out
Foodservice usually drives food trends, and smaller portions are among the hot trends right now. Overall, the tight economy, customers’ perception of value, their emphasis on health and eagerness to experiment are the drivers of this trend.

According to the Prepared Foods, most economists view the foodservice industry as a “FIFO” (first in, first out) industry. When dollars become tight, people cut back on eating out. When the economy relaxes a bit, consumers will be more willing to spend their disposable income on food-away-from-home.

Healthy Growth
(Supermarket News)

According to Supermarket News, a study found a strong interest among consumers in buying and eating healthy foods offers significant opportunities for the food industry to create new products to meet that demand.

Consumers indicate they are willing to pay a premium for healthy foods. The Nutrition Business Journal consumer research study recommended that the industry market such products as a way for consumers to manage their health conditions: offer more private-label and prepared-food solutions in the healthy foods category, and make more locally grown and natural products available at the supermarket.

More than half of consumers are buying grocery items to address one or more specific health problems or concerns. The following is additional information from the study:

Favored Attributes

Source: Nutrition Business Journal consumer research study

Favored Attributes

Source: Nutrition Business Journal consumer research study

Favored Attributes

*Other includes sodium aluminum phosphate; gelatin, malitol; and bisphenol A in plastics. Source: Nutrition Business Journal consumer research study

Consumers Would Skip Convenience Packaging to Help the Environment
(Progressive Grocer)

Research from The Nielsen Company shows that more than half of U.S. consumers would give up all forms of convenience packaging if it would benefit the environment. This includes packaging designed for easy stacking/storing at home, packaging that can be used for cooking or doubling as a re-sealable container and packaging designed for easy transport.

Nielsen also found that consumers are not as willing to give up packaging designed to keep products clean and untouched by other shoppers, packaging designed to keep products in good condition, and packaging that preserves products to make them last longer and stay fresher. Also on the list of “can’t pass up” is packaging information, including food labeling, cooking and usage instructions.

Additional stats found by Nielsen:

• More than half of U.S. consumers claim to recycle cans, bottles and/or newspapers all the time, with 20 percent recycling most of the time.
• Roughly 40 percent of consumers occasionally look for products with less packaging.
• Nearly 60 percent of consumers make an effort to buy fruits and vegetables at a local farmers’ market.

How Generations View Convenience
(Food Technology)

Convenience, as a consumer value and product benefit, has been on the table for as long as people have been rushing to put dinner there. Food companies and marketers continue to focus on convenience as a consumer need and food technologists have weighed in as well. As a result, terms like “quick,” “instant,” “minute,” and “ready” have become the norm for so many products.
But, the term convenience means different things for different generations – Boomers, Gen Xers, and Millenials. Take a look below at how the age groups differ as far as how they view convenience.

Boomers – Kitchen Competent (born 1946-64)
These individuals have skills in the kitchen and putting a meal on the table is not a problem. They connect to advertising that focuses on the value of time and remember the clever jingles that go along with it.

How they make a lasagna dinner:
Boomers prepare lasagna from scratch, and while it is cooking they make a salad from a head of lettuce, a tomato, and a pouch of dry Italian salad dressing mix. They next pop some garlic bread in the oven made from a loaf of French bread with margarine and garlic salt.

Generation X – Lost in Space (born 1965-77)
To the Gen Xer the term “scratch cooking” is unfamiliar. They were raised when education and careers were emphasized more than domestic skills. They also lack cooking ability and confidence and love the microwave.

How they make a lasagna dinner:
Gen Xers prefer frozen lasagna. They will pick up a loaf of garlic-flavored bread and will open a bag of prepped Caesar salad complete with croutons, grated Parmesan and salad dressing. While the lasagna is in the oven, they will help the kids with homework, pay bills online and surf the internet.

Millennials – The Cooking Curious (born 1978-2007)
This group is showing an interest in cooking. They are discovering the value of learning to cook not out of necessity but purely for the experience of it. Their behavior has a hybrid look to it. Weekend meals mean social scratch cooking, while weekday meals mean the microwave gets a workout.

How they make a lasagna dinner:
For Millennials, the lasagna experience is an authentic one and will most likely be a group effort. They will source tomatoes, garlic and basil for homemade sauce from a farmers’ market.  They also will make their pasta by hand, pick up fresh ricotta cheese and Italian sweet sausage, and prepare rosemary and onion focaccia. In addition, they will pull together an antipasti platter and source the best Chianti to pair with dinner.

Surprising Factors Influence What and How Much We Eat
(Prepared Foods)

Obesity and diet-related illness are rising, even though Americans know the benefits of a balanced diet and exercise. Standard tools of economics only partially explain this and have a limited impact on improving consumers’ food choices. Behavioral economics reveals new possibilities for more healthful food choices.

A 2005 survey by the International Food Information Council (IFIC) found that at least 89% of American adults sampled indicated that they believe diet, exercise, and physical activity influence health. Such beliefs are reflected in the popularity of books, magazines, and weight-loss programs offering dietary and health advice. But recent consumption studies show that many of us are out of sync with dietary guidance. Many Americans eat too much sodium, saturated fat, and added sugar and too few fruits, veggies and whole grains. There is an intent to eat healthy, but many factors influence us to make food choices that could potentially harm our health.

Following the survey, recent studies have found that:

1. Payment options influence our choices.
2. Flat-rate versus pay-per-item is more preferred.
3. The shapes of bowls, plates and glasses can significantly influence how much we consume.
4. The availability of more colors or a color change (such as M&M candies and jelly beans) can prompt us to buy.
5. Alterations in food packaging or presentation can also prompt us to buy.

Consumer Demand and Today’s Shrinking Entrée
The traditional entrée is shrinking, taking the form of small plates and snacks. Entrées that have staying power are convenient, diverse and easily portable.
(Prepared Foods)

According to Technomic’s “Snack Category Report,” as time-deficient consumers look for ways to satisfy their appetites without sitting down to a full-sized meal, snacking has continued to grow.
Among the findings of Technomic’s research are that nearly all adults snack between meals from time to time; snacks are perceived less by their content than by price; supermarkets have become a preferred venue for snacks; and taste and convenience are the primary drivers in choosing a snack.

Of the adults surveyed for the study, 97% said they snack between meals at least occasionally, which comes as no surprise. Perhaps more interesting is how consumers define snacks, where they get snacks and what they eat as a snack.

When asked the most important factor they consider when choosing a snack, consumers overwhelmingly said taste. Although this may not be surprising, it is a very important point for foodservice operators to consider.

Consumers have very specific ideas of what they consider a snack. Each of these expectations—inexpensive, convenient and tasty—can be met by both limited-service and full-service restaurants. Lifestyle trends indicate that the snacking habit will only grow in the future, so it will be more important for restaurateurs to incorporate flavorful snack items on their menus, positioning them as convenient and below the $3 price ceiling.

Re-inventing Entrées to Go
The quality of the traveling entrée is most important. In this competitive environment, building takeout business requires careful attention to both food quality and cost control. The 1,500 consumers surveyed for Technomic’s new “Takeout Category Report” revealed that the taste and integrity of takeout fare are of the utmost importance.

While patrons appreciate convenient features like curbside pickup and dedicated parking, their top priorities center on being able to duplicate “at-the-restaurant” quality in the comfort of their homes.

Home cooking away from home is gaining steam. Meal assembly centers resurrect the dream of home-cooked dinners for busy families who lack the time, skill or desire to prepare meals from scratch and do not want to expend time and energy in grocery shopping, cooking and cleanup.

Other perceived benefits of meal assembly centers include:

• A value-oriented alternative to dining out, with meals averaging $3-$3.50 per serving.
• Homestyle comfort foods with broad appeal such as chicken bakes, lasagna, enchiladas, casseroles and soups.
• Ever-changing menus (most change monthly) and theme menus (such as a Father’s Day celebration, a summer barbecue or a Mediterranean meal).
• Meals that are perceived as better-tasting, fresher choices than traditional retail frozen foods (although freshness usually is not a core positioning—canned soups, sauces and vegetables are used by most centers).
• Healthy, nutritious meals (with some centers offering a special menu of health-oriented dishes).
• Kids have more meal options—dishes with broad family appeal or even a separate children’s menu.
• Alternative party venues (some centers offer private sessions for occasions ranging from baby showers to corporate team-building exercises to singles’ nights).

Menu Inspiration from Retail
Insights from the retail side also demonstrate the trend, as chains such as Whole Foods and others go head to head with the “Food Away From Home” category with prepared takeout foods of their own. Many Whole Foods stores have expanded their prepared food departments to incorporate stations such as a wood-burning pizza oven, a hot dog grill for “all-natural” franks or an exhibition stir-fry station at which customers first select ingredients.

The Challenge is Innovation
Restaurant operators face an uphill battle when it comes to innovation—keeping the consumer engaged is key, and flavors play a central role. Consumers are looking for bolder flavors and unfamiliar foods. A recent Technomic consumer survey found that 64% of consumers would like to try unfamiliar flavors. Some 74% of those looking for unfamiliar foods also are looking for bold, unique flavors, and 72% are looking for new flavors within ethnic cuisines.

The ethnic approach adds newness and provides an innovative experience for the customer. Many operators are meeting this demand by increasing ethnic offerings, as well as by injecting bolder flavors into dishes.

Eight Menu Trends for 2008
(Prepared Foods)

2008 promises to show new twists on already popular items, giving more flavors and options for foods we already love. Restaurants will get more creative with foods and preparation techniques to cater to Americans’ evolving tastes. The following trends are expected to spill over into packaged retail products.

Superspices are the new superfruits
Cumin, ginger, cinnamon and turmeric may boast more antioxidant power and medicinal benefits than their superfruit cousins.

Snack attack
Look for more “mini” favorite foods to keep up with consumer demand for small portions/big flavors/low prices.

Fine fast food
Consumers will be lured by celebrity chefs to fast-casual restaurants that promise high-quality food, fine cooking and bold flavors. Bobby Flay, Rick Bayless and Wolfgang Puck have already invested in fast-casual operations

Grain goodness
Kamut, quinoa, barley and millet pack a worldly punch, along with healthy, essential nutrients. These are ideal for upcoming ethnic flavor and health trends.

Ingredient provenance
Food safety and ecological issues cause Americans to rethink where their food comes from. Restaurants are responding with more local ingredients, more natural and organic menu offerings and more available sourcing information.

Bulking up the bar
Restaurants are enhancing menus with more flavorful cocktails and savory appetizers than ever before. Beverage lists are growing longer than entrée lists, and appetizers occupying more of the menu.

The return of the classic cocktail
This year, expect a rebirth of old favorites such as the Sidecar, Manhattan, Bellini and Tom Collins – all glamorous and classic.

Mocktails rock
Boasting the same premium flavors as the cocktail menu, alcohol-free drinks, or mocktails, are a sophisticated alternative for non-drinkers and drinkers alike.

Latin Cuisine is Mainstream
(Prepared Foods)

An article asked the question, “Latin Cuisine:  No Longer Ethnic?” The answer is a resounding yes! The article notes, “Latin cuisine is no longer considered ethnic by most American consumers.  Restaurants in every geographic area of the U.S. now carry Latin-inspired items as part of their regular ‘American’ menus, and new items are being added by chefs and embraced by diners.” The prevalence of Latin-inspired menu items, such as McDonald’s new Chicken Snackwrap.

The article discusses the origin of many “American” favorites, such as hot dogs and pizza. Of particular note, the article states, “Mayonnaise was a classic French sauce, prepared by master chefs for gourmet diners in fine restaurants.  Today, “mayo” is as American as (Dutch) apple pie.

It is noted that most culinary trends begin on the tables of fine restaurants, which make their way to casual dining, through fast-casual chains and onto quick service restaurant menus. Next stop, we can find such items on “America’s supermarket shelves and in our refrigerators.” 

Consumers Heed Inserts Circulars More Than Other Advertising: Report
(Progressive Grocer)

Almost half of all consumers think inserts and circulars are the advertising that best capture their attention, according to research by Vertis Communications, a provider of print advertising, direct market solutions, and related value-added services to retail and consumer services companies.

The “Vertis Customer Focus 2008: Retail Study,” conducted via telephone, found that:

• 47% of Americans cited inserts and circulars as the most effective form of advertising.
• Inserts and circulars have surpassed TV advertising as the medium most able to draw consumer attention.
• 43% of those surveyed said TV advertising interested them the most.
• 38% of respondents thought newspaper advertising best grabbed their attention.
• 93% of consumers who read inserts and circulars use them for price comparisons, clipping coupons, assistance in making shopping lists, and browsing for new products.
• 45% of respondents also use inserts to discover recipes.

Feeling Good with Fruits & Veggies: Moms Link What They Eat to How They Feel
New Strategies Show Moms it's Easy to Include More
(Produce for Better Health Foundation)

According to a survey conducted by the Produce for Better Health Foundation (PBH), Moms are recognizing the positive emotional impact of eating more fruits and vegetables.

What Moms eat is directly linked to how they feel, according to the survey findings. When they experience positive emotions like happiness or contentment, a full 70 percent of survey respondents say they are most likely to eat healthy foods like fruits or vegetables. And, when they are feeling negative emotions such as sadness or stress, almost half of responding Moms say they are most likely to eat sweets and almost a quarter turn to salty snack foods and heavy foods like cheeseburgers. The same goes for their state of mind after eating. Almost half of responding Moms feel guilty after eating too many sweets (46 percent) or salty snack foods (45 percent), while over half feel good about themselves after consuming a generous portion of fruits and vegetables and almost a third feel happy.

Feeding their kids fruits and vegetables also gives Moms a "feel good" boost. When they give their children fruits and vegetables, 96 percent of Moms said they feel like a "good mother."

So, what prevents Moms from acting on their best intentions? They point to a family of fussy eaters, or varying family preferences (64 percent), as the largest barrier to serving more fruits and
vegetables. Their other concerns include fresh produce spoiling too quickly (57 percent) and the lack of fruit and vegetable varieties in restaurants (51 percent).