Social Media and Technology in the U.S. Foodservice Industry: Trends and Opportunities for an Emerging Market


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Social Media and Technology in the U.S. Foodservice Industry: Trends and Opportunities for an Emerging Market

  1. 1. Get more info on this report!Social Media and Technology in the U.S. Foodservice Industry:Trends and Opportunities for an Emerging MarketMarch 1, 2011The convergence of social media, mobile devices and consumer lifestyles is ushering ina new era of restaurant-consumer interaction, opening new doors for restaurantoperators to build customer relationships and sales opportunities, according toPackaged Facts’ Social Media and Technology in the U.S. Foodservice Industry:Trends and Opportunities for an Emerging Market.Tethered by the Internet, restaurant operators are increasingly interacting withrestaurant consumers in real-time—at work, at home or in mid stride. This providessignificant opportunity to shape consumer food choices not only as they are beingmade, but also in proximity to a restaurant seeking that consumer’s business.This Packaged Facts report provides the insight and analysis foodservice marketparticipants need to understand and leverage social media and technology platforms toenhance their bottom lines. The analysis includes the following: Social Networking Platforms Consumer Review Platforms Food Blogs And Food Photography Technologic Dining In Action Smartphones And Applications Online Ordering Platforms Anatomy Of The Mobile Restaurant Ordering User Anatomy Of The Urban Diner Using Social Media To Effect: Restaurant Case StudiesTable of ContentsChapter 1: Executive SummaryScope and Methodology Scope
  2. 2. Methodology Consumer survey methodology Definitions Restaurant Segmentation OverviewFoundation & Growth FactorsInsight capsuleFast factsSocial Networking Services & FoodserviceInsight capsuleFast factsTechnological Dining & Location-Based MediaInsight capsuleOnline Ordering & Review Platforms and Food Blogs & PhotographyContent synopsisAnatomy of the Mobile Restaurant User & the Urban DinerKey findingsUsing Social Media to Effect: Case StudiesChipotle Mexican Grill Insight CapsuleStarbucks Insight CapsuleChapter 2: Foundation & Growth FactorsIntroductionRestaurant landscape to shift quicklyDrivers of changeBroadband adoption and useWhy it mattersPenetration trend tapers Quick adoption
  3. 3. Adoption slows Racial/ethnic gap closing Income and education divide haves from have-notsGraph 2-1: Broadband and Dial-up Adoption, 2000-2010A multi-access online worldMobile consumers; mobile technologyWhy it matters A plethora of consumer-facing potential Jumping the racial/ethnic divideCell phone/smart phone penetration Cell phone services Smart phone share Notable demographics Race/ethnicity differencesSocial Media Why it mattersApps galore Why it matters Apple leads the wayGraph 2-2: Apps per Mobile Device, 2010Social networking and dining apps among most popularLocation-based services gaining a foothold Why it mattersNascent usage Traction among men, Hispanics, and Gen YTable 2-1: Location-Based Services: Demographic Analysis Social networking connection
  4. 4. Leading to swift evolution in context-aware advertising Why it matters Benefit: local, highly targeted, highly relevant traffic incentive DrawbacksMobile paymentsWhy it matters A new era of speed and convenience Usage is nascent, but consumer interest is thereNFC payments set for launch and quick uptake Apple and Google in the wingsStarbucks takes the barcode route Benefits Stored value card foundationTabbedOut is the wave of the future Bottom lineChapter 3: Social Networking Services & FoodserviceOverviewSocial Media: Enormous reach and usageTime tells the storySocial Networking ServicesOverviewBusiness use of social networking servicesA plethora of platforms; a range of brand extensionsBenefits to engaging social media usersChallengesConsumer engagementSocial media quickly passes majority status
  5. 5. Interacting with companies commonUsing social media to learn about restaurants on the riseFacebookOverviewTable 3-1: Facebook, Selected MetricsNavigating friendship and exposureFoodservice on Facebook, from McDonalds to Charlie Trotter’s McDonald’s Olive Garden Charlie Trotter’s Bottom lineFacebook Places& Facebook Deals Incentives to leverage restaurant brand usage Finding the deal: how it works I told two friends, and they told two friends, and so on, and so on, and so on Learning opportunity Counterweight: privacy issues A usage deterrentFacebook degree of engagement, by demographic For many, part of a lifestyle or routine Pavlov’s dog incarnate The bottom line: connection first, leverage second Key demographics Bottom line for restaurantsTable 3-2: Engaged & Hyper-Engaged Facebook Users, Selected DemographicsFacebook mobility Opportunity knocks
  6. 6. Table 3-3: Engaged & Hyper-Engaged Facebook Users, Mobile Lifestyle SegmentationConnecting to the opportunityTable 3-4: Engaged &Hyper-Engaged Facebook Users, Family Restaurant &Steakhouse Chains Facebook likes StarbucksTable 3-5: Engaged &Hyper-Engaged Facebook Users, Fast Food & Drive-Ins Correlation or cause?Table 3-6: Selected Restaurant Chains: Facebook Friends Per Restaurant FoodserviceSales and UnitsTwitterOverviewTable 3-7: Twitter, Selected MetricsWho do you want to follow? Promoting businesses Starbucks leads restaurant chains into Twitter territory Minimal advertising space crimps its potential Photo and video enhancements may provide counterweightFoodservice on Twitter Short content burstsThe Counter hamburger chain: prove you follow us!The Mermaid Inn goes viral Tweeting vacancies What’s the password? Tumblr and Flickr promote visual, sensory appealFood Trucks on Twitter Food trucks and Twitter work hand-in-hand Application: Meatyballs MobileTwitter degree of engagement, by demographic
  7. 7. Short, more intermittent bursts Key demographics Bottom line for restaurants: a multi-cultural, urban touchpointTable 3-8: Engaged & Hyper-Engaged Twitter Users, Selected DemographicsTwitter mobility Significant location-based marketing opportunityTable 3-9: Engaged & Hyper-Engaged Twitter Users, Mobile Lifestyle SegmentationConnecting to the opportunityTable 3-10: Engaged &Hyper-Engaged Twitter Users, Fast Food & Drive-Ins Twitter likes Starbucks, too!Table 3-11: Selected Restaurant Chains: Twitter Followers Per Restaurant Sales andUnitsCalculating ROIFirehouse Subs Tweet, tweet Facebook for feedback and spreading the messageEinstein Bros. Bagels Instant print couponingChapter 4: Technological Dining & Location-Based MediaTechnologic DiningHandheld devicesChili’s Pay-at-the-TableWhy not a touch screen table?Google reaches into location-based bagTable 4-1: Google, Selected Metrics Google Maps Google PlacesTechnology in University Dining
  8. 8. CalDining and Ohio University on Twitter Duke Merchants on Points DeliveryNext Chicago and prepaymentThe iPadTable 4-2: iPad, Selected Metrics Restaurant applicationsSmartphones, Applications, and Location-Based ServicesFoursquare Business opportunity Challenges: cheating Bravo Network partnership links television shows to real locations Pepsi experiments with repeat customers Zagat badge Tasti D-Lite links Foursquare to loyalty programTable 4-3: Foursquare, Selected MetricsLayarTabbedOut Benefits to consumers Benefits to restaurants DrawbacksAloqaGowallaTable 4-4: Gowalla, Selected MetricsGyPSiiTagwhatUrbanspoon
  9. 9. Chapter 5: Online Ordering & Review Platforms and Food Blogs & PhotographyOverviewOnline ordering shifting quickly to multi-concept platformsDelivery and takeout future appears rosyOnline Ordering PlatformsDiningInGrub HubFoodlerOpenTable, DinnerBroker and Restaurant.comRestaurant.comDinner BrokerGrouponTable 5-1: Groupon, Selected MetricsGoMobo Five Guys Papa John’s goes mobileNetWaiter pairs with FacebookOnline Consumer Review PlatformsYelpTable 5-2: Yelp, Selected Metrics How it works Benefits Mobile applicationThe Ethics and Effects of Yelp Steakgate Lawsuit pending Business response ammunition
  10. 10. Authenticity factorCitysearchZagat Going mobile Facebook Places partnership Bottom line MenupagesFood Blogs and Food PhotographySerious EatsThe Restaurant Project by Stephen HamiltonTasteSpottingChapter 6: Anatomy of the Mobile Restaurant User & the Urban DinerAnatomy of the Mobile Restaurant UserNote on reading chartsRestaurant lifestyle engagement informs technology useTable 6-1: Mobility & Technology Attitudes & BehaviorsTable 6-2: Mobility & Technology Attitudes & Behaviors, Restaurant Lifestyle Group Higher-frequency restaurant users technology connectionTable 6-3: Mobility & Technology Attitudes & Behaviors, High-Frequency RestaurantSegment Users, Selected Restaurant SegmentsA youth driven phenomenonGraph 6-1: Mobility & Technology Index, by Age, 2010Usage marked by racial/ethnic diversityGraph 6-2: Mobility & Technology Index, by Race/Ethnicity, 2010Income and technology correlationGraph 6-3: Mobility & Technology Index, by HH Income, 2010More of an urban phenomenonGraph 6-4: Mobility & Technology Index, by Location, 2010
  11. 11. Significant technology cross-usageTable 6-4: Mobile and Computer Restaurant Ordering, Cross-Usage, 2010Mobility/technology analysis, by restaurant segment use Fine Dining Snack & Beverage, Fast Casual, Family, and Casual versus Fast FoodGraph 6-5: Mobile and Computer Restaurant Ordering Index, Restaurant SegmentUsage, 2010Mobility/technology analysis, by restaurant segment mean monthly useGraph 6-6: Mobile and Computer Restaurant Ordering Index,Restaurant Segment Mean Usage, 2010Anatomy of the Urban DinerNote on trending featureThe urban dweller: in briefTable 6-5: Key Demographics, by DMA SizeInternet access location: DMA analysisTable 6-6: Internet Usage Location, Use Most and Use Also, 2010Internet access method: DMA analysisTable 6-7: Internet Home Usage, Access Method & Device, by DMA SizeCell phone service trends: DMA analysisTable 6-8: Cell Phone Services Used in Past 30 Days, by DMA SizeRestaurant usage trends: DMA analysisTable 6-9: Fast Food and Drive-In Restaurants, Top 25 DMA Concentration, 10 HighestChapter 7: Using Social Media to Effect: Chipotle Mexican Grill Case StudyChipotle Mexican Grill, Inc.Competitive positioning: Customization; Food with Integrity Marketing that backs Food with IntegrityFraming the message: demographic analysis A quickly growing consumer universe
  12. 12. Strong income and gender skewTable 7-1: Chipotle Mexican Grill Users: Selected DemographicsChipotle Mexican Grill users: gourmets, meet practicalityTable 7-2: Chipotle Mexican Grill Users: Food, Health and Diet AttitudesChipotle Mexican Grill: connecting to the social media opportunityTable 7-3: Chipotle Mexican Grill, Social Media Engagement AnalysisChipotle Mexican Grill: quantifying social mediaTable 7-4: Chipotle Mexican GrillFacebook & Twitter Restaurant Sales and Unit Analysis Facebook use correlates with Chipotle useTable 7-5: Chipotle Mexican Grill, Facebook and Restaurant Visit Frequency AnalysisChipotle Mexican Grill & Social ConnectorsFind me on my cell phone, then reap the rewardsTable 7-6: Social Connectors Lifestyle Group,Chipotle Mexican Grill Visit Frequency AnalysisChipotle Mexican Grill website traffic analysisChipotle Mexican Grill: Social Media and Technology Innovations Loyalty program to target “evangelical, super-passionate regular customers” Facebook as marketing platform Facebook Deals promotional incentiveChipotle Mexican Grill by the numbersTable 7-7: Chipotle Mexican Grill, Selected Metrics, 2007-10 2010 sales trendsTable 7-8: Chipotle Mexican Grill, Quarterly Sales Metrics, 2009-10 2011 guidance
  13. 13. Chapter 8: Using Social Media to Effect: Starbucks Case StudyStarbucks CorporationRevenue mix shows food trending upwardTable 8-1: Starbucks, Revenue Mix by Product Type, 2009 Recession response Menu pricing strategies and customer incentivesStarbucks users, Starbucks snackers?Table 8-2: Starbucks Users: Restaurant Usage by Daypart and Restaurant TypeStarbucks core usersTable 8-3: Starbucks Users: Selected DemographicsStarbucks guests: food adventurousness and fast food practicalityTable 8-4: Starbucks Users: Food, Health and Diet AttitudesStarbucks: connecting to the social media opportunityTable 8-5: Starbucks, Social Media Engagement AnalysisStarbucks: quantifying Facebook and Twitter audienceTable 8-6: Starbucks Facebook & Twitter Restaurant Sales and Unit Analysis Facebook use correlates with Starbucks useTable 8-7: Starbucks, Facebook and Restaurant Visit Frequency AnalysisTable 8-8: Starbucks, Twitter and Restaurant Visit Frequency AnalysisStarbucks & Social ConnectorsConnecting to Social ConnectorsTable 8-9: Social Connectors Lifestyle Group,Starbucks Visit Frequency AnalysisStarbucks website analysisTable 8-10: Starbucks, Downstream Site VisitsStarbucks: Social Media and Technology InnovationsA holistic approach firing on all cylinders
  14. 14. Driving toward a strong, unified emotional connection Food and drink customization online Brand managers mingling with the people: what a concept! Leveraging loyalty: My Starbucks Rewards continues to gain traction Connecting with Wi-Fi iPhone apps e-gifting & the Starbucks Card Facebook App Mobile payments: Starbucks takes the barcode route Stored value card foundation Promoted tweetsA same-store sales turnaround worthy of celebrationTable 8-11: Starbucks, Selected Metrics, 2007-092010 brings good newsTable 8-12: Starbucks, Selected Quarterly Metrics, 2009 and 2010Available immediately for Online Download at 800.298.5699UK + +1.240.747.3093Fax: 240.747.3004