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2015 Workplace Food Insights

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The studies we conduct each year include concept and product testing, test markets, consumer satisfaction, mystery shopping, diary panels, focus groups, purchase structure, pricing studies, and ethnographic research among others.
In the following pages we present a little of what we’ve learned across our research in the area of workplace food insights. The Sodexo insights strategy means our proposals and retail solutions deliver incremental sales and enhanced consumer satisfaction.

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2015 Workplace Food Insights

  1. 1. WORKPLACE FOOD INSIGHTS 2015
  2. 2. 1BREAKFAST pg. 3 4MENU PRICING pg. 33 7CORPORATE SOCIAL RESPONSIBILITY pg. 57 2HOT BEVERAGES pg. 11 5HEALTH & WELLNESS pg. 39 8PROMOTION & BRAND INSIGHTS pg. 63 3LUNCH pg. 19 6SNACKING pg. 49 9MEETING MANAGEMENT pg. 69 Contents Copyright © 2015 by Sodexo I All rights reserved. No part of this publication may be used or reproduced in any manner whatsoever without written permission.
  3. 3. WORKPLACE FOOD INSIGHTS 2© Sodexo 2015 At Sodexo, our focus is providing you with innovative foodservice solutions that meet your organization’s needs by resonating with consumers. Delivering on-trend café experiences, engaging people in healthier behaviors or providing them with the ultimate in convenience and product ranging are just a few examples of what we do based on consumer understanding. To deliver the best, we’re doing things differently than anyone else. We developed Personix, our exclusive behavioral psychology tool, more than 20 years ago and continue to expand its application. In 2012, we embarked on a new phase of our consumer insights development with the formation of an internal team of professionals experienced in leading organizations across a wide range of industries. Our insights team is constantly engaged in new research with consumers. The studies we conduct each year include concept and product testing, test markets, consumer satisfaction, mystery shopping, diary panels, focus groups, purchase structure, pricing studies, and ethnographic research among others. In the following pages we present a little of what we’ve learned across our research in the area of workplace food insights. The Sodexo insights strategy means our proposals and retail solutions deliver incremental sales and enhanced consumer satisfaction. Rick Ortman Sr. Director, Consumer Insights Sodexo
  4. 4. Known by many as the “most important meal of the day”, breakfast fills a variety of need states for consumers. While some consumers look forward to a traditional sit-down breakfast at home, others are faced with a variety of tasks that must be completed before they begin their workday, and thus forego breakfast until they are at their workplace. In order to better understand the adults at work breakfast need state, Sodexo has conducted research to gain insights into the breakfast workplace market structure as well as identify consumer favored breakfast limited time offers. WORKPLACE FOOD INSIGHTS Breakfast 1
  5. 5. In August 2013, Sodexo conducted a study to identify workplace café market structures among adults at work. The ultimate purpose of this study was to better understand this segment’s choice patterns in order to optimize Sodexo’s offerings and identify areas for growth. Methodology During the course of the study, respondents created simulated breakfast meals based on 17 of Sodexo’s most popular breakfast items. From these simulated meals, a breakfast market structure emerged that provided Sodexo with a graphical representation of the dynamics that are at play when consumers make their breakfast selections. Breakfast Market Structure
  6. 6. WORKPLACE FOOD INSIGHTS 6© Sodexo 2015 1BREAKFAST
  7. 7. 16 oz. Drip Coffee Starbucks® INDULGENT 16 oz. Drip Coffee 16 oz. Cappuccino Starbucks® COFFEE Breakfast Sandwich Bagel & Cream Cheese MAINS Sweet Pastry Juice Premium SWEETS Menu Item Substitutions In addition to identifying consumer breakfast categories, the market structure also provided Sodexo greater insight into menu item substitution. For example, if a consumer was looking to purchase a breakfast sandwich, but one was not available, their most likely item for substitution would be a bagel and cream cheese. However, if neither of these items were available, they would most likely choose an item that falls closest to the “Breakfast Mains” category on the market structure (such as a sweet pastry or a cappuccino), than choose an item that falls further away (such as fresh fruit or yogurt). Market Structure Across channels, consumers view breakfast options in a similar manner with the first order of differentiation driven by preference for “Indulgent” versus “Light” options. Within the “Indulgent” branch of the market structure, consumers created three distinct groups of items they select from: COFFEE Drip coffee and espresso based drinks BREAKFAST MAINS Breakfast sandwiches and bagels & cream cheese SWEETS Pastries and juices Knowledge of this differentiation allows foodservice providers to ensure that they have the correct mix of breakfast offerings to satisfy a majority of consumer needs. ! ! !
  8. 8. WORKPLACE FOOD INSIGHTS 8© Sodexo 2015 LIGHT Iced Tea Premium None NON-STANDARD BREAKFAST BEVERAGES Bottled Carbonated Beverage Fountain Beverage Dannon® / Yoplait® Light Yogurt Fresh Fruit Chobani® Greek Yogurt FRUIT & YOGURT GRAINS & WATER Water Oatmeal / Cold Cereal Kellogg’s® Special K™ Cereal Bar Enhanced Water Within the “Light” branch of the structure, differentiation is made between: GRAB AND GO • Grains and Water - Regular and enhanced water, oatmeal, cold cereal and cereal bars • Fruit and Yogurt - Fresh fruit, yogurt and Greek yogurt ---------------------------------- NON-STANDARD BREAKFAST BEVERAGES • Iced teas and soft drinks GRAB & GO ! ! ! ! ! ! !
  9. 9. Inclusive of all segments, the top two breakfast items chosen by consumers fell into the “Indulgent” branch of the market structure: breakfast sandwiches and bagels & cream cheese. Filling out the top five breakfast items: • Corporate employees chose coffee, fresh fruit and espresso based beverages • Healthcare employees opted for juice, fresh fruit, and sweet pastries • Government employees selected juice, fresh fruit and sweet pastries While consumers may alter their breakfast selections from day to day, it is interesting to note that the top five items chosen across segments are all items that can be consumed on the go. This suggests that workplace employees routinely need breakfast offerings that allow them to continue with their daily tasks while satisfying their morning hunger. Consumer Favored Breakfast Items Limited Time Offers - Breakfast Further evidence to support these findings was also realized through research regarding Sodexo promotional menu items. Upon analysis of the data, limited time offers that fell on the “Indulgent” branch of the market structure resulted in higher purchase likelihood scores. • “New York Deli Breakfast Sandwich” - 76% purchase likelihood • “Strawberry Pancake Rollup” - 74% purchase likelihood • “Sausage and Eggs in a Blanket” - 68% purchase likelihood • “West Coast Breakfast Wrap” - 64% purchase likelihood Menu items that did not resonate as well among consumers included items with non-traditional breakfast ingredients including a “Pulled Pork and Potato Breakfast Bowl” and “Strawberry Rhubarb Whole Wheat Pancakes.” BREAKFAST SPECIFIC SEGMENTS CORPORATE Breakfast Sandwich Bagel & Cream Cheese 16 oz. Drip Coffee Starbucks™ Fresh Fruit 16 oz. Cappuccino Starbucks™ HEALTHCARE Breakfast Sandwich Bagel & Cream Cheese Juice Premium 16 oz. Cappuccino Starbucks™ Sweet Pastry GOVERNMENT Breakfast Sandwich Bagel & Cream Cheese Juice Premium Fresh Fruit Sweet Pastry
  10. 10. WORKPLACE FOOD INSIGHTS 10© Sodexo 2015 1BREAKFAST
  11. 11. A steaming cup of quality coffee is so much more than simply a beverage or even a jolt of caffeine. Its rich scent, warmth, and deep, full flavor have the power to make or break both human emotions and the workday experience. Many coffee drinkers view their morning cups as small but meaningful escapes from reality that serve contrasting, yet equally important, needs: to wake up and calm down. Sometimes consumed with food, but typically enjoyed on its own, coffee invigorates the body and recalibrates the mind. Prior to drinking that craved cup, most people feel fatigued and stressed. As they begin to sip their coffees, these negative emotions tend to melt away, replaced by feelings of relaxation, tranquility, and indulgence. When the last drop has been downed and the day has officially begun, coffee drinkers are satisfied, energized, and ready to tackle their responsibilities. The act of drinking coffee, therefore, is a ritual – even a meditation – that catalyzes confidence, clarity, and productivity. Recognizing the significance of coffee in daily life gives employers a unique opportunity to cater to employee well-being with premium and consistent products. Coffee shops are popular choices and formidable competitors. However, leveraging proven statistics and listening to the voice of the consumer is the perfect way to put the café back in cafeteria. 2 WORKPLACE FOOD INSIGHTS Hot Beverages
  12. 12. Sodexo’s comprehensive research studies show that, at the present time, the typical workplace does not provide coffee experiences on par with consumer expectations. Just over one in three sees the cafeteria as the ideal place to purchase coffee and approximately one in five actually buys coffee from their workplace. As frequent guests of fine coffee houses, consumers are accustomed to a variety of beverage options, exceptional customer service, and convenience. In addition to traditional coffee, they expect to find high-quality espressos, a choice selection of teas, and other hot and iced specialty beverages. Every cup must be made with care, as a single disappointing coffee experience can derail the day and stop them from ever returning. Delve Deeper to Understand Your Employees A Well-Crafted Drink A well-crafted drink menu is just the beginning of what is desired. The magic is in the details, as everything from quality cups/mugs, drive-thrus, the availability of gift cards, tasty snacks, and attentive baristas keeps them coming back. Coffee houses give their customers more for their money, as well as the highly coveted personal touch that almost everyone appreciates. COFFEE SHOP 62% WHERE IS COFFEE PURCHASED? *FSR = Food Service Restaurant CAFETERIA 19% SOMEWHERE ELSE 6% FSR* 13% Coffee Habit Habit is another substantial factor behind loyalty to certain shops. Once they have discovered a place that offers first-rate hot beverages and is conveniently located on their way to work, coffee drinkers grow comfortable and unmotivated to search elsewhere. Workplace Coffee The workplace, however, has one clear advantage over coffee shops: location. Despite this, coffee is purchased from the latter much more often. The reasons many people snub workplace options include inconsistent or poor quality of coffee, as well as prices they deem unreasonable. They also take issue with the less-than-appetizing food items found in many cafeterias. Even though only one in five people purchase food with their coffee, simply knowing wholesome and delicious snacks are available impacts their perception of an establishment.
  13. 13. WORKPLACE FOOD INSIGHTS 14© Sodexo 2015 2HOTBEVERAGES I want my experience to be: Pampering, comforting, relaxing, satisfying, luxurious, clean, professional and comfortable. I am looking for smooth, luxurious, tasty beverages and maybe some unique options.
  14. 14. Dissatisfaction with cafeterias creates a prime opportunity for companies to revise their approach to this service, as well as to fill in coffee shop gaps. Overhauling the menu, emphasizing atmosphere, and minding the details are the keys to attracting satisfied and loyal employees. The first step employers must take is to amplify the quality of their beverages and snacks while maintaining competitive prices. Coffee and all other products should be fresh, delectable, and consistently available. Paper cups should be chosen over those made of Styrofoam, as they make a better impression. A coffee prep station stocked with napkins, stirrers, and premium condiments also steps it up. This should include a variety of powdered flavoring (vanilla, nutmeg, cinnamon, and cocoa), sweeteners (honey, sugar, raw sugar, and artificial sweeteners), and milk products (cream, skim milk, half and half, and flavored creamer). Deliver What Consumers Want
  15. 15. WORKPLACE FOOD INSIGHTS 16© Sodexo 2015 More than Just Beverages A small number of people actually purchase food with their beverages, but, nonetheless, the importance of food remains. Provide healthy choices with access to nutritional information, as well as smaller, snack-sized items. Inspire spontaneous purchases with suggestions of mouthwatering food and beverage pairings. Offer daily or weekly “combo” specials with a coffee drink and snack at a reduced price. Hello, How are You Today? The occasion to impress does not end there, as delivery is just as important as taste and selection. Ensure that friendly and engaging baristas make drinks by hand and that lines are short and move quickly and efficiently. This is an integral component of the “escape” that coffee drinkers crave. Employers must enhance the daily coffee ritual with supreme service in order to be seen as an invaluable resource. It’s the Little Things Offering perks like loyalty programs, gift cards, and merchandise for sale is a big draw. People appreciate being treated to free drinks and / or food items every once in a while as thanks for their business. Workplaces can even save their employers an extra trip by offering gift cards and gift items (mugs, thermoses, hot chocolate mixes) as great go-to presents for family and friends. Ethical Coffee A small, but increasingly vocal, group is passionate about purchasing ethical coffee. This is a niche market found mostly in upscale cities and facilities of higher education. Coffee categorized as ethical tends to be expensive, and most people are more concerned with taste and price. If serving such a product is not an option, satiate the consumer need to be socially responsible by allowing small-scale donations to be made through purchases. Technology High-tech handling of payments also goes a long way. Guarantee that your guests can use credit cards, smartphones, and prepaid cards when making their purchases. This simple but impactful amenity lends to the sophisticated feel of an establishment, as well as to an atmosphere of convenience. Environment Ambience is another means to outshine competitors. Set the stage for employees to congregate by creating an environment that is beautiful, relaxed, spacious, and uncluttered. Fill it with tangible niceties like earth-tone colors, plush seating, hardwood or tile flooring, and interesting reading materials. Focus on the intangible as well, with unobstructed views of food, soothing background music, free Wi-Fi, and natural lighting.
  16. 16. Mornings are the veritable coffee rush hour. Most hurriedly swing by their coffee shops, pick up their drinks (most often a regular coffee, either black or with cream and / or sugar), and immediately leave. In fact, 79% spend less than ten minutes at their place of purchase. Buying coffee at the office instead of during a commute saves precious time. Just over half of consumers purchase a cup on their way to work. For those who don’t make a pit stop while en route to the office, mornings are still prime time, since nearly one in five buys coffee during the early hours. Time It Right
  17. 17. WORKPLACE FOOD INSIGHTS 18© Sodexo 2015 Make It Happen The journey to crafting the ultimate coffee experience is multifaceted. Its layers are comprised of an in-depth comprehension of consumer needs, statistically proven methods for meeting those needs, and doing so at the most strategic times. Leverage this knowledge to infuse both your workplace cafeteria and employees’ day-to-day routines with energy. Be the choice location for a daily coffee getaway. Utilize the ritual to elevate your business. 2HOTBEVERAGES As mornings are the chief “rev me up” coffee occasions, cafeterias with early hours will entice more employees to stop by and maybe even sit down, unwind, and read a newspaper. Most will choose to enjoy their coffee in solitude to de-stress and prepare for the day. Some, however, will use the extra time the cafeteria provides to catch up with friends. These are luxuries they cannot afford when frequenting outside coffee shops and ones that transform cafeterias from blasé to booming. Midday and evening are less popular times to purchase coffee with only one in four purchasing after lunch. These afternoon and evening buyers often view coffee as a way to reward themselves with a revitalizing treat while coping with the stresses of the workday. Though small in numbers, these guests should still be catered to through later cafeteria hours. WHEN IS COFFEE PURCHASED? ON THE WAY TO WORK 56% DURING THE MORNING 19% IN THE AFTERNOON 15% AT LUNCH 4% ON THE WAY HOME 6%
  18. 18. While lunch does not garner the distinction of the “most important meal of the day”, insights have shown this daypart is one where consumers crave a wide variety of choices, from sit-down indulgent menu items, to on-the-go functional consumption. The workplace café has the unique ability to not only provide a lunchtime meal to satisfy hunger, but also to assist consumers in getting a quick bite to relax and recharge during the workday, and be a familiar place to try new flavors and ingredients. To gain understanding of the consumer needs during lunch, Sodexo has conducted studies exploring the workplace lunch market structure, promotional menu items and customer satisfaction drivers. 3 WORKPLACE FOOD INSIGHTS Lunch
  19. 19. Top Level Market Structure In the highest level of the market structure, a consumer’s first order of differentiation is between “packaged snack goods” and all other items. Thereafter, “healthy meal options” distinguish a second level of differentiation as consumers perceive these items as a distinct category of options. Lunch Market Structure Methodology In August 2013, Sodexo conducted research to identify the lunchtime market structure for the workplace café. During the study, each participant was presented with high resolution images, an item description, and an item price for lunch menu items. Participants were then asked to create a lunchtime meal (from ten on-screen menu items) that they would purchase. This exercise was repeated 16 times for each participant, with a different combination of items for each round. The product selection shown to consumers consisted of presently offered menu items from the following categories: Grill, Pizza, Salad Bar, Snacks, Packaged Goods, Cold Beverage, Hot Beverage, Soup, Take Away, Action, Entrée, and Deli. Market Structure Value The choices that a consumer makes through the market structure tree can change on a daily basis due to internal and external factors; however, the assembly of the market structure will remain constant regardless of the consumer’s daily decision. Therefore, the lunch market structure provides a strategic blueprint for consumer choices in the cafeteria by identifying the categories that compete with one another, as well as menu items that are highly substitutable or interchangeable. LUNCH ! MEAL OPTIONS PACKAGED HEALTHY / LIGHTER INDULGENT
  20. 20. WORKPLACE FOOD INSIGHTS 22© Sodexo 2015 3LUNCH
  21. 21. PACKAGED SNACKS BRANCH Consumers make a choice between a salty or sweet snack including mainstream and specialty bagged salty snacks. Sweet snacks include pastries, cereal bars, cookies and candy. Analysis of the lower branches of the market structure reveals the following findings: Secondary Market Structure PACKAGED SNACKS Specialty Bagged Salty Snack Main Stream Bagged Salty Snack SALTY SNACKS ! ! ! ! ! Impulse Chocolate Bar / Chewy Candy Oreo™ Pack of 6 / Chips Ahoy™ CookieKellogg’s® Special K™ Cereal Bar Sweet Pastry SWEET SNACKS
  22. 22. WORKPLACE FOOD INSIGHTS 24© Sodexo 2015 HEALTHY BRANCH Differentiation between “Grab and Go” options and “Sit Down” alternatives exist within this structure. “Grab and Go” includes premade salads and sandwiches, while within the “Sit Down” branch of the tree consumers make a further distinction between cold and primarily vegetable menu items or hot menu items that include protein. HEALTHY / LIGHTER BRANCH GRAB & GO ! Grilled Chicken Sandwich Premade Wrap Premade Salad ! ! ! ! Healthy Entrée Soup Fish Entrée Made-To -Order Salad Fruit Pot Salad Bar SIT DOWN COLD / VEGGIE HOT WITH MEAT ! 3LUNCH
  23. 23. ! !! !! Substitutions Upon further analysis of the menu items within the lunch market structure, areas can also be observed where foodservice operators may consider items to be substitutable, but consumers do not, indicating a more refined consumer need state. • While consumers feel that a pizza slice and a personal pan pizza are substitutable items, a pizza slice and a flatbread pizza are not items that a consumer sees as highly substitutable. • Likewise, consumers see specialty sandwiches as substitutable with hot grill items such as a premium cheeseburger. However, other items at the deli station, such as a signature or core sandwich, are not seen as highly substitutable. INDULGENT Traditional Light Yogurt Greek Yogurt QUICK REFUEL HEARTY COMFORT Personal Pan Pizza Specialty Sandwich Chicken Tenders Angus Premium Burger Pizza SliceCheeseburger ! Analysis of the lower branches of the market structure reveals the following findings: Secondary Market Structure INDULGENT BRANCH The largest of all of the branches in the adults at work lunch market structure tree is the “Indulgent Branch.” Within this branch, we observe how consumers differentiate their lunch options into “Quick Refuel”, “Hearty Comfort”, and “Traditional Staples.”
  24. 24. WORKPLACE FOOD INSIGHTS 26© Sodexo 2015 ! ! ! ! ! ! ! SandwichFrench Fries Signature Sandwich Core Sandwich Flatbread Pizza Cheese Quesadilla Dessert Pot Pasta Entrée Meatloaf Entrée ! The “Quick Refuel” branch identified that consumers felt that yogurt is a viable menu offering for a quick lunch or a fulfilling side selection. Within “Hearty Comfort”, we see that the menu items in this category consist of hot offerings. “Traditional Staples” contains a mixture of menu items from today’s grill, deli, pizza, and action stations. TRADITIONAL STAPLES 3LUNCH
  25. 25. Beverages Branch In addition to food offerings, common lunch beverage options were also tested. The first level of distinction a consumer makes when choosing a lunch beverage is the choice between a hot or cold beverage. • In the “Hot Beverage” category, consumers choose from two Starbucks™ branded beverage options as well as a generic drip coffee. • In the “Cold Beverage” branch of the beverage tree, consumers make a differentiation between “Carbonated” and “Non-Carbonated” beverage choices. While consumers willingly substitute bottle and fountain carbonated beverages, it is interesting to note that within “Non-Carbonated” beverages consumers are more apt to substitute a premium juice product, such as a Snapple™ beverage, for an enhanced water option than they are to substitute a basic bottled water if an enhanced water option is not available to them. BEVERAGE TREE STRUCTURE ! 16 oz. Cappuccino Starbucks® 16 oz. Drip Starbucks® 16 oz. Drip Coffee ! ! HOT BEVERAGE Bottled Carbonated Beverage Fountain Beverage ! ! ! ! Enhanced / Flavored Water Premium Juice Water Premium Iced Tea COLD BEVERAGE CARBONATED NON- CARBONATED
  26. 26. WORKPLACE FOOD INSIGHTS 28© Sodexo 2015 Promotions and Limited Time Offers In a July 2013 survey of adults at work regarding workplace menu item barriers, 63% of consumers stated they are willing to try new menu items in the workplace cafeteria due to it being a familiar and low-cost option to explore new tastes and ingredients. In addition, various Sodexo studies have found that consumers have increased purchase likelihood for menu items that follow today’s food trends including ethnic, spicy, and elevated comfort foods. To encourage consumers to try a new menu item, operators should do as much as possible to lower the risk of trial including offering an introductory low price or providing samples. In addition, operators can display point-of-sale advertising focused on the new menu items as well as pairing menu items with a familiar side. Above all else, in order to entice consumers, the menu item must be appealing to all senses in advertising and presentation. LUNCH 1 2 3 4 5 CORPORATE Personal Pan Pizza Grilled Chicken Sandwich Salad Bar Wrap Salad HEALTHCARE Salad Bar Grilled Chicken Sandwich Fountain Beverage Fruit Cup Bottled Carbonated Beverage GOVERNMENT Pizza Slice Personal Pizza Wrap 16 oz. Drip Starbucks™ 16 oz. Drip Coffee 57% 61%59% Consumer Top Menu Choices Within Corporate, Health Care, and Government divisions, consumers show different preferences for their top menu items. Corporate and Health Care employees mostly chose a variety of items from the “Healthy” branch of the market structure, including the salad bar, a grilled chicken sandwich, and a fruit pot; while Government employees see lunch as a more functional need state with four of the top five menu items consisting of pizza and coffee. Notably, a majority of top menu choices can be consumed “on the go” indicating a greater need for quick options, including quick energy choices. For the Fall 2013 promotional series, “Close to Home,” menu items such as a “Grilled Chipotle Chicken Fajita Wrap,” “Four Cheese Creamy Mac and Cheese” and a “Spicy Chicken Po Boy” received high consumer purchase likelihood ratings prior to deployment as well as above average sales once available for purchase.
  27. 27. During 2014, Sodexo collected responses from 142,101 adults at work consumers across Corporate, Health Care, Government and Education. Predictive analysis was performed to identify key attributes consumers place importance on when determining their satisfaction and, if changed, which variables would have the largest predicted impact on an outcome of interest, and how much change it would produce. Consumer Satisfaction DRIVERS: Adult Food 0.00 0.05 0.10 0.015 0.20 0.25 0.30 0.35 0.10 0.11 0.13 0.14 0.14 0.14 0.14 0.15 0.16 0.16 0.19 0.21 0.23 0.23 0.25 0.25 0.34 0.34 Breakfast Deli Portions Salad Bar Pizza-Italian Soup To-Go Temperature Grill Healthy Options Food Promotions Balanced Meal Value Quality of Ingredients Appearance Quality of Hot Entrées Daily Variety Taste Food Satisfaction Upon examination of the drivers of food satisfaction, it was found that improvement of “Food Taste” and “Daily Variety” would provide the most positive impact for overall food satisfaction scores. Experience Satisfaction While the taste and variety of food is of high importance, consumers are also are looking for a quality environment and experience when visiting their workplace café. In order to increase experience satisfaction, improvement within the areas of “Means to Report Feedback” and “Special Events Menus” would provide the most positive impact.
  28. 28. WORKPLACE FOOD INSIGHTS 30© Sodexo 2015 QUALITY OF HOT ENTREES QUALITY OF INGREDIENTS PORTIONS BREAK- FAST TO - GO SOUP SALAD BAR GRILL DELI VALUE TASTE TEMPERATURE OVERALL SATISFACTION DAILY VARIETY BALANCED MEAL HEALTHY OPTIONS FOOD PROMOTIONS PIZZA - ITALIAN APPEARANCE Relationship Map From review of the Bayes Net Structural Relationships Map, we can easily view conditional dependencies and relationships of various satisfaction attributes. Food Relationships • In order to achieve high scores on “Food Taste”, the attributes of “Quality of Hot Entrées”, “Quality of Ingredients” and “Appearance” all must be rated high as well. • Likewise, “Daily Variety” is impacted by consumer satisfaction with “Food Promotions”, “Healthy Options” and “Balanced Meal.”
  29. 29. DRIVERS: Adult Experience Means to Report Feedback 0.35 0.400.00 0.05 0.10 0.015 0.20 0.25 0.30 0.35 0.32 0.27 0.25 0.24 0.22 0.21 0.19 0.19 0.18 0.18 0.16 0.15 Special Event Menus Atmosphere Speed of Service Availability of Information Clear Signage Knowledge of Staff Environmental Initiatives Friendliness of Service Cleanliness Hours Speed of Checkout Friendliness of Staff
  30. 30. WORKPLACE FOOD INSIGHTS 32© Sodexo 2015 HOURS FRIENDLINESS OF STAFF FRIENDLINESS OF SERVICE KNOWLEDGE OF STAFF SPEED OF SERVICE SPEED OF CHECKOUT CLEANLINESS ENVIRONMENTAL INITIATIVES MEANS TO REPORT FEEDBACK AVAILABILITY OF INFORMATION CLEAR SIGNAGE ATMOSPHERE SPECIAL EVENT MENUS OVERALL SATISFACTION Relationship Map (continued) Experience Relationships • “Means to Report Feedback” is impacted by the attributes “Availability of Information” and “Environmental Initiatives”, and shares a direct relationship with “Special Events Menus”. • Special Events Menus”, is driven by the attributes “Atmosphere” and “Availability of Information”.
  31. 31. Through analysis of Sodexo’s annual customer satisfaction survey, Sodexo has affirmed that overall satisfaction within the workplace cafeteria is driven by a multitude of attributes for adults at work consumers, one of which being value. With value top of mind, Sodexo instituted an internal team to assess pricing throughout Sodexo units in order to execute a consumer driven systematic approach to price adjustments. As part of this assessment process, Sodexo conducted a variety of focused pricing studies to gain a better understanding of consumer price sensitivity including a discrete choice study and multiple Van Westerndorp pricing studies. 4 WORKPLACE FOOD INSIGHTS Menu Pricing
  32. 32. Methodology In August 2013, Sodexo partnered with an industry leading marketing technology company to conduct primary pricing research regarding price sensitivity of adults at work in a workplace café. • The research sample consisted of 1,138 adults at work who had access to a full-service workplace cafeteria and worked outside of the home three or more days a week within a corporate, healthcare, or government building. • During the course of the study, respondents were presented with six to ten various on-screen menu items and asked to select what they would purchase to make up a single meal if these options were available to them in their café. • Menu items included 17 of Sodexo’s most popular breakfast items and 44 lunch items including main dishes, beverages, sides, and snack offerings. In order to simulate real-world market realities, healthcare employees saw different price points for menu items included in the choice sets than corporate and government employees were exposed to. Discrete Choice Pricing Research Key Findings The result of this study yielded that demand at both lunch and breakfast is relatively inelastic to consumers indicating that Sodexo could potentially increase current prices with minimal impact on volume and positive impact on revenue. In addition to this overall finding, the pricing studies also allowed for the creation of a simulation tool that allows Sodexo to input possible price adjustments and determine the overall impact. Using this simulation tool, Sodexo was able to derive the following findings: • With the exception of grill item pricing increases, raising prices on individual items and overall key categories (e.g., beverages, snacks) did not decrease café visits. In the grill category, price increases of cheeseburger, grilled chicken and french fries represent the greatest loss of relative volume share. • Relatively low pricing sensitivity exists among corporate employees. In simulation, price increases did result in unit volume decreases; however, these changes in volume were offset by increased revenue. • Increasing prices on take away items had little impact on total café sales or revenue. • Harmonizing the price points of key center plate has a minimal impact on overall main units sold. • Raising the price of all cold beverages has the potential to substantially increase beverage revenue in total with lower price increases only resulting in slight tamping of drinks sold.
  33. 33. WORKPLACE FOOD INSIGHTS 36© Sodexo 2015 4MENUPRICING With Sodexo’s commitment to identifying the correct menu item pricing to both satisfy consumers and foodservice operators, Van Westerndorp pricing studies have been performed for promotional menu items as well as Sodexo signature brand limited time menu offerings. These studies were conducted through Sodexo’s proprietary online consumer panel of adults at work to determine a range of price points which consumers in a workplace café would find acceptable. Van Westerndorp Pricing Research Methodology During the administration of the Van Westerndorp pricing studies, survey participants were presented with a number of menu items and were asked four key questions regarding each item individually to derive an optimal price point that would garner the greatest number of purchasers as well as a range of acceptable prices. $8.09 $6.43 $7.00 $2.91 $5.00 $4.83 $4.00 RANGE OF ACCEPTABLE PRICES $4 - $7 Signature Brands Findings from the Van Westerndorp pricing study for Sodexo’s signature brands limited time offers indicated that consumers find a range of $3.07 to $7.93 acceptable for items within snacks, sandwiches, salads, grill items, and entrées, with optimal prices ranging from $4.26 to $5.54. Basic offerings such as “Queso and Chips” from Salsa Rico or a “Chef Salad” from Simply To Go commanded the lowest prices overall. However, menu items that aligned with consumer food trends or seasonality commanded the highest optimal prices including “Steak Tacos with an Avocado Corn Salsa” from Salsa Rico, and “Buffalo Chicken Personal Pizza” from Pandini’s. Further analysis of the results also found that, psychologically, it is difficult for consumers to separate like offerings in a marketplace, and will often price these similar items according to pricing they have been exposed to. The greatest example of this was found when consumers were asked to price 12-inch sub sandwiches from SubConnection® . All subs priced in a range of $4 to $7 with an optimal price of $5, reminiscent of the Subway™ Corporations sandwich pricing which has been heavily marketed to consumers over the past decade. Key Findings Basic Results of the Van Westerndorp pricing study for promotional items found that consumers find a range from $2.25 to $6.99 acceptable for basic offerings including grill, sandwiches, salads and entrees, with optimal prices ranging from $2.99 to $5.03. As expected, consumers are willing to pay the most for entrée items followed by grill, salad, and then wraps and sandwiches. Premium When testing premium offerings, consumers gave an acceptable range that was a bit higher than basic offerings in the same categories, from $2.52 to $7.00, with optimal prices ranging from $3.01 to $5.04. Like basic offerings, entrée items commanded the highest optimal price, followed by salads and sandwiches. Healthy Interestingly, when polled regarding healthy items, consumers’ top price point was lower than that of premium offerings falling from $2.68 to $6.19 with optimal prices ranging from $3.25 to a low $4.19, indicating that while consumers state they are looking to eat healthier, they may not be willing to pay a premium for healthy offerings. As in other categories, entrées priced the highest, followed by salads, grill and sandwiches. $ TOO CHEAP At what price would you consider this menu item to be so inexpensive that you would doubt its quality? $$ GOOD VALUE At what price would you consider this menu item to be a good value for the money? $$$ EXPENSIVE At what price would you consider this menu item to be getting expensive but you would still consider purchasing it? $$$$ TOO EXPENSIVE At what price would you consider this menu item to be so expensive you would not consider buying it? $$$$ TOO EXPENSIVE $ TOO CHEAP $$ GOOD VALUE $$$ EXPENSIVE OPTIMAL PRICE Bavarian Pretzel Melt - 12” ham, Swiss cheese, mustard and pickles on a Pretzel Sub Roll
  34. 34. The insights that have been gained through these various pricing studies have been implemented within Sodexo North America through a pricing calculator that is available to Sodexo general and unit managers. This calculator identifies the optimal pricing for each identified offering needing a price adjustment, taking into consideration the particular details of the location (including current pricing). This strategy ensures any updates are reflective of the present levels, and Sodexo continues to offer value to our consumers. Some of the insights implemented within the pricing calculator include: Deployment of Pricing Studies
  35. 35. WORKPLACE FOOD INSIGHTS 38© Sodexo 2015 4MENUPRICING • PRICE LADDERING - With the new product lines, we offer premium products at a higher price point, while still providing value-oriented options. This approach provides a true choice to Sodexo consumers. • PRICE HARMONIZATION - Where sensible, we have harmonized price points within the same category to offer a limited number of different price points. This is proven to make it easier for consumers to make purchasing decisions. • PRICE ROUNDING - Following pricing best practices, we are rounding all retail prices to the 9’s. This also supports simplification for the consumer as prices are more easily comparable.
  36. 36. Health and wellness continues to be important for consumers as they make mindful decisions about how to eat, drink and live. During April and May 2014, Sodexo conducted a study with over 100 consumers who are regular users of a workplace cafeteria to ascertain the importance of healthy eating, what consumers perceive to be healthy eating, and how labelling, menu items and other messaging communicates “healthy.” 5 WORKPLACE FOOD INSIGHTS Health & Wellness
  37. 37. Health is important to consumers; with nearly 80% stating that eating healthy is “extremely” or “very important” to them. Most consumers want to eat healthy because it’s simply the right thing to do for one’s body to live a longer, higher quality of life. Younger consumers (18-35) tend to rate the importance higher indicating a mindset shift that is likely only the beginning of a long trend toward healthier eating. Top health concerns that adults at work would like to address with healthy eating options during the workday include: • Energy for increased alertness and performance during the day to maximize effectiveness • Proactive health support for overall health and longer lifespan • Options to avoid toxins, pesticides and allergens that negatively impact overall feelings of wellness • Weight management for physical and mental wellness • Mental acuity for sharpness and thoughtful contributions at work Healthy Eating in the Workplace
  38. 38. WORKPLACE FOOD INSIGHTS 42© Sodexo 2015 5Health&Wellness Healthy Eating Cues Health Claims Label claims, packaging design, taglines, menu boards and other product cues all help to communicate the overall healthful position of a food or beverage, and often are communicated to represent a solution for a specific health problem or disease state. Most consumers understand what benefits the claims will provide: fiber is good for digestion, vitamins help support immune health and protein is an energy source. However, the health benefits of some ingredients or claims are not as clear. These claims (all natural, organic, free-range eggs, etc.) tend to be accepted by consumers as healthy without full appreciation for the impact on the body. Simplicity Consumers respond most strongly to the simple nutrition of whole foods, specifically recognizing vegetables and fruits as being most pertinent to a healthy diet. The uncomplicated truth of the benefits provided by vegetables and fruits can serve as a backdrop to the kind of transparency of benefits and information consumers are looking for in a healthy workplace menu. Also, consumers want to know what is included in the food through nutrition labels and ingredient lists including any claims such as no chemicals or pesticides, whole foods (100% juice, whole grain), natural or all natural offerings, lean meats and contains no trans-fat.
  39. 39. A factor analysis was conducted regarding healthy eating cues to identify how they are mathematically related. This analysis revealed five categories shown in conjunction with the top priority cues below. By leveraging these elements through education, messaging, menu items and packaging, Sodexo could increase purchase likelihood from consumers looking for a meal to satisfy health and wellness needs. 1 2 3 4 5 PROACTIVE HEALTH MANAGEMENT FOOD AND LABEL CONTENT HEART / WEIGHT HEALTH GENERAL PRINCIPLES RESPONSIBLE EATING Contains vegetables and fruits 100% Juice Vitamins / minerals Antioxidants Omega-3 Nutrition label / ingredient information No chemicals or pesticides Natural / all natural No artificial ingredients No additives No trans-fat Whole grain Heart health High fiber Lean meats Low fat Protein Low calorie Part of a healthy diet Balanced diet Niche Impact Cues Free range eggs Vegan / vegetarian
  40. 40. WORKPLACE FOOD INSIGHTS 44© Sodexo 2015 Ease of Healthy Eating Eating healthy is not always easy for consumers to do during the work day, with a little over half (51%) finding it only “somewhat” to “not at all” easy. Most attempt to eat healthy, and find they gravitate toward healthy options, but encounter challenges along the way. In the Workplace Consumers identified the workplace cafeteria as a good source of healthy options, second only to brown-bagging. Therefore, consumers look for a wide variety of good tasting and affordable options in their cafés, which should be clearly defined as healthy via menu boards, packaging and claims. Offering samples and tasting opportunities with the introduction of new menu items can help overcome concerns about the taste of healthy offerings. In addition, to generate confidence and trust, information throughout the workplace cafeteria should be transparent about ingredients and food preparation, and enhanced with educational messaging around the specific benefits of foods. Through the Day 45% of consumers indicate breakfast is the meal where they most often make healthy food choices, compared to 22% for lunch and 25% for dinner, making morning the time when consumers are most consistent with eating healthy. • Offering healthy breakfast options starts the day off right for consumers, and cafeteria diners are often consciously looking for lighter options at this time of day to help satiate and fuel without weighing them down. • Consumers are less mindful of healthy choices later in the day. They believe that high-fat, fried, processed or artificial foods are not healthy options, but some still see these foods as comforting and good tasting. • Dinner and evening snacks are the occasions when consumers are most likely to indulge. After a long day, consumers feel they have earned a flavorful and satisfying meal and evening treats are often a reward. Some are Cyclists Backslide the rest of the day and continue to indulge and eat less healthy as a part of a more emotional cycle of guilt and reward. Many C’est La Vie Do their best but allow themselves small, indulgent rewards and don’t view them as negative. Predominant Reactions Toward Indulgent Eating Most Balance Out the Indulgence and Get Back on Track Overcompensates through the rest of the day by eating less, better, or exercising. 5Health&Wellness Lack of planning and a stronger urge to indulge are frequent struggles as the day progresses, which creates an opportunity for Sodexo to offer meals to-go for dinnertime and evening treats to help consumers stay on track with healthful eating after hours.
  41. 41. Work-Life Balance In addition to eating healthy, other components such as work-life balance contributes to overall wellness. In a September 2013 Sodexo survey regarding consumer work life balance, a majority of consumers (76%) responded that they have “some” or a “good” amount of control over their work-life balance, although many would like to find more time for themselves and more non-work activities. • 41% of consumers feel that their work and life is balanced currently • 29% spend more time on work and their non-work life is suffering • 20% feel they are self-sacrificing to meet all of their work and non-work obligations When probed regarding goals to achieve a better work-life balance, not surprisingly, more consumers cited personal goals as opposed to work related activities. • 60% would like to find more time for themselves • 46% look towards devoting more time to non-work activities Many consumers try to leave work at a specific time and / or work a flexible schedule in order to achieve a work-life balance. However, one in three still battle obstacles such as excessive workloads, being overcommitted at home / work, feeling responsible to do the work themselves, and long work hours. Support Systems In order to overcome these hurdles, consumers feel they need a support system to assist them. However, when asked about their current support system, only 38% of consumers stated that they have some type of support system in place, and 48% responded they do not have one, but desire to. While some consumers are looking for support regarding work commitments, other helpful services aimed at reducing their personal duties (such as dry cleaning, auto maintenance, homework assistance and meal preparation) are also of interest, as these services will allow consumers to make better use of their personal time and aid in achieving a more desirable work-life balance. Wellness
  42. 42. WORKPLACE FOOD INSIGHTS 46© Sodexo 2015 “I would like to have more time to spend alone. Just more time to do nothing but relax and unwind. The only way I get more me time is if I leave work early or take a sick day.” “I feel OK, but I feel that it can be improved. I want to spend less time at work and more time outside of work…I don’t want work to be my life, but that’s what it feels like right now.” 5Health&Wellness
  43. 43. “My work schedule gets in the way; it is just too busy to get to the gym sometimes.” “Time is the big thing that is getting in my way. I work long hours so it is hard to do anything to get to goals like I would like to.”
  44. 44. WORKPLACE FOOD INSIGHTS 48© Sodexo 2015 Goals In addition to work-life balance, fitness and exercise are key components to a consumer’s overall health and wellness. In a 2013 survey regarding fitness, the following goals were identified by consumers: • 74% have a general fitness goal of “getting into better shape” • 57% are looking to improve their health • 55% are looking to lose weight • 52% want to tone muscles In order to achieve these goals, 4 out of 5 are trying to eat a healthier diet and 50% “passively” work out (parking their car further away or taking the stairs). However, while 64% of consumers actively work out, 3 out of 4 only devote 4 hours or less of their week to fitness and exercise. Struggles and Solutions Much like struggles with work-life balance, consumers feel as if they don’t have the time or are too tired after completing their work duties to devote time to fitness. Because of this struggle between wanting to get in better shape and not feeling as if they have the time or the energy to do so, over half of consumers would welcome a fitness and exercise support system to help keep them on track and encourage them to work toward their fitness goals. In addition to a support system, consumers also showed interest in employer-sponsored fitness activities during work hours which would allow them to complete their fitness needs for the day before feeling too fatigued to do so. Fitness and Exercise 5Health&Wellness
  45. 45. Workplace snacking occasions have been increasing over time. IRI research has shown that the percentage of consumers snacking three to four times a day increased from 24% in 2009 to 43% in 2012. According to the NPD Group, two out of three peak snacking times occur during the workday: • Peak morning snacking occurs around 9am • Peak mid-afternoon snacking occurs around 2pm. However, while a majority of snacking occurs during working hours, sourcing snacks from non-workplace locations continues to rise. When probed, many consumers respond that their workplace cafeteria is not satisfying their snacking need. 6 WORKPLACE FOOD INSIGHTS Snacking
  46. 46. Through exploratory research, it was found that daytime snacking is performed by consumers to satisfy one of three possible need states: • RE-ENERGIZE – By the mid-afternoon, many adults indicated that they feel tired and consume a snack to re-energize, often times selecting a healthy snack such as fresh fruit or vegetables. • TAKE A BREAK – Consumers often need to step away from their workplace environment and use a snack to achieve the needed break. Many prefer to go outside for “fresh air.” When returning to their work, they feel refreshed and ready to return to their next task. • REDUCE STRESS – During stressful times in the workplace, employees may rely on a snack to help relieve stress and decrease tension. Often times, employees will consume more indulgent type snacks such as chips or cookies. Snacking Need States DAILY SNACK FREQUENCY - 2009 v 2012 SNACKING 2009 SEVEN + 0% THREE - FOUR 24% ONE - TWO 69% NONE 3% FIVE - SIX 3% SNACKING 2012 THREE - FOUR 43% ONE - TWO 49% SEVEN+ 2%FIVE - SIX 6% NONE 0%
  47. 47. WORKPLACE FOOD INSIGHTS 52© Sodexo 2015 Sometimes I just need to get out of the workplace for 15 minutes and get some fresh air. 6SNACKING
  48. 48. While the workplace cafeteria provides the most convenient location to source midday snacks, consumers are more likely to bring snacks from home or leave the workplace to purchase their desired snack. Snack Sourcing From Home Snacking Pros In a study regarding from home snack sourcing, it was found that consumers “brown bag” snacks for two main reasons: 1. Consumers that are health conscious or have dietary restrictions will bring a snack that fits their requirements and; therefore, eliminate the risk of not finding an appropriate snack within their café. 2. At home sourcing is the most efficient option in regard to time and cost. At home sourcing allows consumers to take advantage of bulk purchasing which not only reduces snacking costs, but also allows consumers to plan several days of snacks at once. In addition, consumers gain efficiencies by having their snack accessible within their workspace. Cons While snacking from home has numerous benefits, consumers also noted some downfalls. Consumers that snack from home often consume their snack at their desk, and while this may provide them the extra energy needed to make it through their daily tasks, it does not provide a true break. In addition, pre-planned snacks can become inflexible for the consumer if they crave a different item not prepare for. Other challenges include storage and / or preparation at the workplace as well as the need to transport the snack from home. “It is less expensive to bring snacks to work and it is good to know that they are healthier snacks and drinks.” “It costs less than buying at work which saves me money & I get exactly the type of foods I want.”
  49. 49. WORKPLACE FOOD INSIGHTS 54© Sodexo 2015 Non-Workplace Snacking A survey of consumers that leave the workplace to purchase afternoon snacks at least semi- weekly found that the motivation to leave the workplace to snack is less about the snack itself, and more about the chance to take a break. During workday stresses, many consumers need a change of scenery and “a dose of fresh air.” Exiting the workplace to source a snack provides the employee a change of pace and the ability to mentally re-energize. However, a dichotomy exists when consumers explore leaving work to purchase a snack: while the employee desires a temporary exodus from the workplace, they are also faced with restrictions including time, costs and snacking options. Sourcing snacks outside of the workplace often requires the employee to go off-site, losing valuable working time. In addition, going off-site introduces external factors that need to be overcome including traffic and the weather. When faced with these challenges, many consumers may find that they do not have the time available, or the desire to go off-site, leaving them with the option of sourcing their snack from the workplace or foregoing their snacking occasion. 6SNACKING Typically in the afternoon I will go to purchase an afternoon snack, as this is more relaxing. You will see less tension and a more relaxed person. This is good for clearing my head from the business of the work place.
  50. 50. While sourcing snacks from the workplace provides employees with the most convenient option, there are a number of barriers that need to be overcome before the workplace will be their desired snacking source. Barriers to At Work Snacking Purchases
  51. 51. WORKPLACE FOOD INSIGHTS 56© Sodexo 2015 Variety The largest barrier to workplace snack purchasing is lack of variety. Consumers feel their workplace café does not offer the items they desired including healthy snacks and a variety of beverages. Consumers today are looking for more than the traditional vending machine offerings of unhealthy snacks with little to no nutritional value. When polled about their desired snacking choices, a majority of consumers listed healthy items (including fresh fruits, protein bars, nuts, cheese, and yogurt) as well as a full-service coffee bar and wide beverage selection. Quality When snack items are available for purchase in the workplace café, many consumers feel that the options available are a lower quality product for a higher price. Whole fruits and vegetables available for purchase are often perceived to be less fresh than when purchased from an outside vendor, and other prepared snacks appeared to consumers to be stale, over processed, or near spoilage. Even when the product is in peak condition, consumers sometimes see portion sizes provided in relation to the cost not reasonable. Availability One of the more difficult barriers to overcome, from a foodservice provider’s standpoint, is the lack of available snacks due to the workplace café’s operating hours. While operators may not be able to extend their hours, they can often overcome this challenge in unique ways, including offering snack items during regular business hours and utilizing POS materials to encourage consumers to purchase for upcoming snacking occasions. In addition, operators can work with vending suppliers to ensure that vending machines are available to purchase from at all times, and optimize snacking options to satisfy on-site employee snacking preferences. Escape The final barrier that consumers identified was that on-site purchasing and consumption did not provide the escape that many crave during their workday. Workplace cafés can be uninviting locations, providing uncomfortable seating areas and leaving employees to battle crowds and noise. To attract consumers who may be seeking a break from the workplace, operators should consider creating an atmosphere that allows employees to feel like they have exited the workplace, such as creating a comfortable seating area away from the crowds and noise of daily workplace activities, ideally including an outdoor seating option for employees to enjoy their purchases. 6SNACKING BARRIERS TO PURCHASE A SNACK IN AN ON-SITE CAFETERIA 1. Higher Prices for Lower Value 2. Lack of Healthy Options 3. Limited Accessibility 4. Poor Quality 5. Lack of Variety & Poor Selection 6. Lack of “Escape” & Relaxing Ambience
  52. 52. Today’s consumers show a growing interest in understanding how the companies they do business with positively influence their community. They also have ever increasing access to corporate information, and a greater awareness of issues being faced locally and globally. In a December 2014 survey of 146 adults at work, 69% indicated that it is “very” or “extremely” important that a workplace cafeteria have a strong sense of corporate social responsibility. When asked to define CSR, responses included: • COMPANIES CONDUCTING THEIR BUSINESS ETHICALLY • GIVING BACK TO THE LOCAL COMMUNITY • BEING ENVIRONMENTALLY CONSCIOUS THROUGH RECYCLING AND OTHER “GREEN” ACTIVITIES • TAKING CARE OF OTHERS THAT THE BUSINESS WORKS WITH DIRECTLY INCLUDING EMPLOYEES AND CUSTOMERS 7 WORKPLACE FOOD INSIGHTS Corporate Social Responsibility
  53. 53. Corporate Social Responsibility Be Honest It is important that corporations are socially responsible in a genuine manner. When a company states they actively engage in corporate social responsibility, but do not provide any evidence of such activities, consumer perception can be negatively impacted. This can be seen in negative social media and can directly impact sales. TAKING CARE OF THOSE THE BUSINESS WORKS WITH DIRECTLY - EMPLOYEES & CUSTOMERS “Genuine care for the employees and patrons.” GIVING BACK TO THE COMMUNITY “To give back to the community, by donating time, money or both. And sometimes building something for the community, like a playground or a swimming pool.” CONDUCTING BUSINESS ETHICALLY “Doing what is right and taking actions for your mistakes.” BEING ENVIRONMENTALLY CONSCIOUS THROUGH RECYCLING AND OTHER “GREEN” ACTIVITIES “Enthusiastic about the cause of environmental protection.”
  54. 54. WORKPLACE FOOD INSIGHTS 60© Sodexo 2015 7CORPORATESOCIAL RESPONSIBILITY In a 2014 Sodexo survey, 23% of consumers expect their workplace café to participate in some sort of community involvement. In addition, one in five states this involvement has the power to drive their purchases. • 51% of consumers, who feel corporate social responsibility is “especially important”, cited volunteering as the most impactful community activity. • Other impactful community activities include monetary contribution to various causes, making a commitment to a particular cause, and sponsoring a local event. Community Involvement To Be Expected While a majority of consumers identify positively with large corporate social programs, such as Target’s 5% local community giveback program, consumers expect companies of all sizes to participate in CSR. In community giveback research conducted by Sodexo in July 2013, consumers stated that they expect local, regional, and national companies to all be involved in the community, as each level can bring something unique (local companies can be more “hands on” whereas regional and national companies can provide more funding / give larger monetary donations). How would you like to see a local business involved in your community? Total CSR Very / Extremely Important (n = 101) Employees volunteering (e.g., soup kitchens) 43% 51% Contributing to many different causes 40% 47% Ongoing commitment to a particular cause 38% 46% Sponsoring a local event (e.g., a race) 38% 45% Giving non-cash gifts (e.g., playground equipment) 38% 42% Sponsoring a local building / park / etc. which has the business name attached to it 33% 36% Giving cash (e.g., to charities, schools) 29% 34% Anonymous donations / sponsorships 25% 31% Other 0% 0% None of the above 2% 0% Consumers expect companies of all sizes to participate in CSR.
  55. 55. One way that foodservice providers can show corporate social responsibility is through their sourcing of products. In particular, consumers show a keen interest in sourcing of local and sustainable products. Foodservice & Corporate Social Responsibility Local Products In a September 2013 consumer survey regarding local and sustainable products, 71% felt they had a good understanding of what “local” meant, with 65% indicating they had purchased local in the recent past. While most consumers defined “local” as products that are grown, raised or produced in close proximity, the proximity that qualifies as “local” varies. What Proximity Qualifies as Local? 27% - REGIONAL 32% - STATE-WIDE 41% - COMMUNITY This ambiguity makes incorporating local products as part of a foodservice providers’ CSR program complicated with a product meeting the qualifications as “local” for one consumer, but not another. Purchasing Factors While 78% of consumers see local as an important factor to consider when making a purchasing decision (and one in three consumers believes that purchasing local is better for the environment, economy, local community, and the consumer’s health), selection, price and quality remain top of mind. Consumers expect to pay a premium for local products, and are willing to accept this premium when the quality of the item is superior or the purchase benefits the local community. However, consumers still feel that local items need to remain competitive against like products within the marketplace, and will often purchase non-local when they feel the price is not reasonable or the quality does not justify the premium.
  56. 56. WORKPLACE FOOD INSIGHTS 62© Sodexo 2015 7CORPORATESOCIAL RESPONSIBILITY BELIEVE TO BE TRUE ABOUT PURCHASING SUSTAINABLE PRODUCTS Better for the environment 50% Better for my health 39% Reduced footprint 36% Benefits local community’s health 28% Items are fresher 28% It is sometimes difficult to know if items are sustainable 26% Benefits the local economy 26% Better quality for the price 26% Requires paying a premium 23% Better value 18% Sustainable Products Sustainable products are most often defined by consumers as: • Having minimal impact on the environment • Not depleting natural resources • Being reusable, recyclable or long lasting • Being “natural” In the weeks preceding a September 2013 survey regarding local and sustainable products, 61% of consumers indicated they had purchased a sustainable item including household goods, paper products, cleaning supplies and food. Almost identical to “local” items, 75% felt the sustainability of a product is very or somewhat important when making a purchasing decision. However, they are least likely to compromise on quality or price when buying a product or service relative to other considerations. Consumers are most willing to purchase sustainable products when: • The price is reasonable • Quality is high • The purchase of the product has environmental benefits • The product positively impacts the consumers’ health Education While consumers are favorable to sustainable products, they are often confused about what qualifies as sustainable. Because of this confusion, educating the consumer regarding a product’s sustainable status, as well as the benefits the product offers, can positively impact the consumer perception. This positive impact was seen through a study, conducted in May 2014, regarding the use of white non-sustainable napkins vs. brown sustainable napkins in a workplace café. Prior to educating the consumer regarding the sustainability of the product, 50% felt the brown napkin was more sustainable and only 27% had a more positive perception of the café for the use of brown napkins. However, after educating the consumer regarding the benefits, 75% felt the brown napkins were the more sustainable product and 57% had a more positive perception of their workplace café.
  57. 57. While there are a number of branding guidelines publically available to marketers and foodservice operators, many of these publications focus on commercial establishments which consumers do not visit on a daily basis, unlike their workplace café. From March 2013 to September 2014, Sodexo conducted numerous research activities regarding workplace cafeteria promotions as well as point-of-sale marketing and branding materials. Through these activities a general theme evolved among adults at work in regards to what appeals to them, and drives their purchase likelihood, within a workplace café environment. 8 WORKPLACE FOOD INSIGHTS Promotion & Brand Insights
  58. 58. Promotions Sodexo produces three promotional cycles a year for deployment in Campus, Health Care, and Corporate accounts. Each of the promotional series is developed through analysis of consumer trends and includes a promotion name, theme and imagery. An average of three promotional ideas per series is tested among adults at work consumers to determine what resonates best among Sodexo’s potential customer base. Consumer Preferred Consumers consistently rate workplace café promotional themes that represent the season and food trends positively. For the September – December 2013 promotion cycle, the top two themes, rated at 77% and 75% appeal, incorporated food trends (ethnic menu items and hybrid bakery) as well as traditional seasonal activities (holiday celebrations). Research activities regarding various point-of-sale materials routinely show that consumers prefer artwork incorporating large images of food as well as clear, easy- to-read text. For the Summer 2014 promotional cycle, three different sample point-of-sale posters were tested among members of Sodexo’s adults at work consumer panel. Consumers rated option “C” highest in appeal (75%), appropriateness (81%) and purchase influence (69%). When asked for further details, consumers stated they chose option “C” because of the clear, easy-to-read text and large images of food. This preference was resonated throughout other imagery research including the Spring 2013 “Taste Of” promotion with the winning artwork prominently showcasing a selected menu item, and the Fall 2014 “Enjoy” artwork featuring large, bold food imagery and fonts. Promotional Themes and Point of Sale Imagery C A B
  59. 59. WORKPLACE FOOD INSIGHTS 66© Sodexo 2015 8PROMOTION& BRANDINSIGHTS “The Close to Home theme feels familiar and warm. It symbolizes caring” “It would be nice to have hot home-cooked food at work that I wouldn’t have to make and bring with me”
  60. 60. Brand Names and Logos Creation of a brand includes the need to make decisions regarding naming, positioning, partnerships and social media presence. Brand Names When a brand is to be deployed in a workplace café, Sodexo research has found that consumers prefer the brand’s name to be outwardly representative of the position and offerings. One example of this consumer sentiment was shown through the results of a study regarding the renaming of a brand that offered sandwiches and salads in a bistro-like setting. Over the course of three surveys, ten different names were tested against the brand’s position. The names that scored highest incorporated the word “bistro” including “The Corner Bistro” at 76% and “Savory Bistro” at 49% appeal. Names that scored lowest were non-descriptive regarding the brand’s position including neologisms. Consumers expressed confusion in non-descriptive names as observed by the low ratings for tested names: • “Naschen”- 6% appeal • “Zistro” - 16% appeal • “Züm” - 26% appeal Brand Logos Consumers show preference for subtle incorporation of the brand’s position within a logo. Even unprompted, consumers make a distinct connection between a brand’s position and logo options, and rate logos that align with the position higher. In Sodexo’s testing of logos for a healthy vending machine, 69% of consumers favored the logo that incorporated an apple into the letter “O” (found within the brand name, “Opt Healthy”), representing the healthy position of the brand. Likewise, in selecting a logo for Sodexo’s new micromarket, “Lounge 12”, 67% of consumers preferred the logo that incorporated a clock design, making the connection that consumers could purchase items “around the clock.” Brand Endorsements To increase excitement about a brand, many companies will form advertising partnerships with celebrities or athletes. In addition, some brands have ventured into creating brand role models from average citizens that have gained success through the use of their product. While this has proven to be successful for many national brands, Sodexo has found that adults at work feel celebrity chefs are a much better fit to endorse non-commercial food stations and / or signature brand offerings over athletes or other celebrities. Consumers feel that celebrity chefs are knowledgeable and trustworthy about food offerings above and beyond other celebrities. Branding 89% 58% 52% 31% 22% 12% 9%other Social Media Presence Social media has become a force that is ever present in the lives of today’s consumers, and should be an area of focus to gain and maintain a loyal customer base for an executed brand. In May 2014, Sodexo performed a study regarding social media participation and activity among adults at work. Study results showed that 89% have a social media presence on Facebook, followed by 58% on Twitter, and 52% on LinkedIn (Pinterest and Instagram have fewer participants at 31% and 22% respectively).
  61. 61. WORKPLACE FOOD INSIGHTS 68© Sodexo 2015 8 Trust in Media While a large number of consumers have an account on one or more social media platforms, many consumers also have inherent trust issues with social media. In order to overcome these trust issues, brands should become thought leaders within their marketspace, and communicate this leadership through posting reputable information, including research- based articles and fact-driven postings. Channel Utilization Facebook • Sharing images • Links to articles • Longer posts • Recipes • Posts that inspire conversation and discussion Twitter • Sharing quick tips • Funny / witty tweets • Links to articles (more infrequently than Facebook) • Images (also more infrequently than Facebook) Pinterest • Sharing recipes • Sharing tips / routines (wellness) • Inspirational quotes / images Utilization Brands should also be selective with the information they communicate based on the social media platform. While posts that inspire conversation and discussion are appropriate for Facebook, platforms such as Twitter or Pinterest do not lend themselves to these types of posts and can confuse or frustrate readers. Consumers feel that Facebook is the most versatile platform allowing a brand to conduct a majority of their social media activities including sharing images, linking to articles, longer posts, recipes, and posts that inspire conversation and discussion. PROMOTION& BRANDINSIGHTS
  62. 62. Workplace catering services have traditionally focused on providing functional menu items to accommodate a variety of meeting types. This emphasis on functional food has often resulted in satisfying basic hunger needs, but leaving attendees overall dissatisfied. In an August 2014 study of adults at work that frequently have catering served to them at their place of work, over 30% indicated low satisfaction with cold and / or hot catering selections. Likewise, there is increasing evidence that workplace catering services do not meet consumer needs in providing healthy, seasonal, allergen-free, or vegetarian meals. In addition, many consumers cite their on-site catering poorly executes distribution, set-up, and maintenance of food items, leading decision makers to use outside catering vendors when desiring a quality experience. Against the backdrop of these comments, we will explore on-site catering options that meet the demands of today’s workforce. 9 WORKPLACE FOOD INSIGHTS Meeting Management
  63. 63. Sodexo research found that 53% of employees attend more than one catered meeting a month. Of these catered events, executive and client meetings have the highest rates of catering, and when the meeting runs over lunch, 75% of catering decision makers rated catering to be “very” or “extremely” important. Executive and client meetings are more often catered to impress external clients and provide meal service to highly ranked employees. However, catering satisfaction rates run at a modest 64% by meeting attendees, indicating improvements are needed for hot and cold menu items, snacks and beverages. • Hot menu items have a 61% satisfaction rating due to limited offering range, high costs and inadequate delivery service. • Cold menu items are rated at a higher 69% satisfaction, but encounter the same limitations with options and quality verses price. Premium Catering Offerings
  64. 64. WORKPLACE FOOD INSIGHTS 72© Sodexo 2015 Type Of Event Catering Is: Extremely / Very Important Catering Provided DECISION MAKER ATTENDEE ALL / MOST OF THE TIME Client / Executive All-Day Meeting 75% 85% 70% Client / Executive Lunch 75% 76% 54% Client / Executive Meeting (not over lunch) 59% 40% 33% Vendor / Supplier Meeting 48% 42% 38% Internal Holiday Party 65% 77% 68% Event Celebration 57% 57% 40% All-Day Training Event 72% 79% 58% Internal Meeting Over Lunch 65% 63% 41% Monthly / Quarterly Internal Communication Meeting 57% 34% 32% Longer, Internal Meeting (not over lunch) 55% 35% 29% Any Quick Internal Meeting 47% 20% 16% Catering Decision Maker, n = 99 - 124 Meeting Attendee, n = 59 - 119 Premium Offering When an executive or client meeting falls over a traditional mealtime, a variety of premium hot and cold menu items should be provided. Premium menu offerings should showcase the foodservice provider’s range of abilities including made-to-order and customizable options to meet the needs of attendees with dietary preferences and restrictions. Within the product range, operators should take consideration to include menu items that allow meeting attendees to continue their flow of conversation during consumption. Delivery and Set Up In addition to providing a more premium menu assortment, operators must also ensure that the delivery service is exceptional to meet consumer needs. Delivery service must be conducted with minimal disruption to the meeting in progress and distribute items at the peak of freshness. Hot and cold menu items should be delivered at optimal temperate, and remain so during the duration of the meal. To complete the premium experience, the delivery service should also provide the option of dinnerware, silverware, and cloth napkins to attendees. Snacks and Beverages When client or executive meetings do not occur over a mealtime, blue ribbon snacks and beverages can assist in keeping attendees engaged as well as provide the premium overtone. Snacks that will provide the greatest impact include a variety of in-season fresh fruit, freshly baked pastries and desserts, gourmet cheeses and yogurt or parfaits. Beverage services should include the traditional offerings of sodas and bottled water, but also provide the options of fresh juices and high-end coffee offerings including made-to-order espresso beverages. 9MEETING MANAGEMENT
  65. 65. 48% of mid-sized internal meetings conducted over mealtimes are provided with catering services. In addition, 40% of mid-sized internal meetings conducted outside of lunch are routinely catered. While catering services for employee meetings do not require the supremacy of offerings that a client or executive meeting craves, satisfaction ratings remain lackluster. • 56% of consumers are satisfied with beverage and snack services • 64% of consumers satisfied with lunch menu items Due to company budget constraints, many consumers cited not being provided with complimentary food or beverage services during meetings; however, internal meetings that run over mealtimes should include catering services out of courtesy and respect. Basic Catering Offerings
  66. 66. WORKPLACE FOOD INSIGHTS 74© Sodexo 2015 When longer internal meetings are conducted, but do not fall during a mealtime, basic snacks and beverages should be provided to keep attendees alert and engaged. Basic snacks should include healthy options such as nuts, fresh fruits, and granola bars. Basic beverages including bottled waters, juices and carbonated soft drinks should also be made available. Healthy Meals & Services Healthy meals that provide energy are the most sought after by consumers, with overindulgent meals leaving attendees feeling overfull and fatigued. Offering menu items that allow mobility of attendees provides the additional benefit of continued collaboration during the meal increasing meeting productivity. Much like premium catering services, delivery service should ensure minimal disruption while still providing optimal meal freshness and temperature. Basic offerings need not include the option of dinnerware / silverware to attendees. 9MEETING MANAGEMENT
  67. 67. Event celebration catering rated at 62% satisfaction with research finding that a majority of special events are likely to be outsourced due to limited offerings from workplace catering. In order to meet expectations, premium catering options should include the following: • Ability to provide services incorporating the season, holiday, or theme of the celebration (i.e. Hawaiian foods for luau themed retirement party). • Provide on-site baking of dessert items including the ability to create custom designed personalize cakes. • Option to serve alcoholic beverages for celebrations. Special Event Catering Additional Catering Services In addition to traditional catering services, consumers show interest in a variety of possible add-on services. Services that were rated as most desirable were ones that would help speed up and simplify the ordering process and / or provide easy access or customization. A PRE-ORDER SYSTEM OF BULK OPTIONS, SUCH AS DELI TRAYS OR LARGE SALADS Decision Makers - 69%; Consumers - 59% A PROGRAM THAT STORES YOUR PREVIOUS ORDERS / PREFERENCES FOR FUTURE ORDERING Decision Makers - 67%; Consumers - 41% AN AUTOMATED COFFEE MACHINE WITH CUSTOMIZABLE OPTIONS IN THE MEETING ROOM Decision Makers - 68%; Consumers - 56% A MINI BEVERAGE COOLER IN THE MEETING ROOM Decision Makers - 64%; Consumers - 53% Catering Menu The ideal catering menu should consist of: • Organized and easy-to-read text. • Clear professionally photographed food images that are true to the final product, as consumers use food images to get an idea of what the offering looks like. • Menu offerings grouped according to their daypart as well as their offering type (beverage, snack, entrée, etc.). • A legend with symbols to designate certain menu item features and display these symbols at the menu item level for offerings that meet the criteria. If a specific category of dietary specific offerings is plentiful enough, a separate menu showcasing all of the offerings could be created, such as a healthy menu or a gluten-free menu. Vending Machines The option of vending machines in the meeting room to dispense single or bulk snack items was rated low by both decision makers and attendees, indicating this should not be considered as a catering option. ABILITY FOR ATTENDEES TO PRE-ORDER THEIR MEAL WITH CUSTOMIZATIONS WHILE THE COMPANY PAID FOR THE CATERING PROVIDED Decision Makers - 71%; Consumers - 72%
  68. 68. WORKPLACE FOOD INSIGHTS 76© Sodexo 2015 Type Of Event Interest in Premium Catering Options Extremely / Very Important DECISION MAKER ATTENDEE Pre-order, select your meal when the company is paying (customizable meals such as ordering from Jimmy John’s® or Panera Bread® ) 72% 71% Pre-order System (bulk options such as deli trays, large salads, etc. that you order ahead of time) 69% 59% Automated coffee machine with customizable options in the meeting room 68% 56% A program that stores your previous orders/preferences for future ordering (e.g., any allergies, your favorite sandwich) 67% 41% Mini beverage cooler in the meeting room 64% 53% Pre-order, select your meal, with small groups where individuals pay (customizable meals such as ordering from Jimmy John’s® or Panera Bread® ) 58% 57% Vending machine in the meeting room that dispenses single packaged items 38% 24% Vending machine in the meeting room that dispenses bulk snack options 36% 21% Catering Decision Maker, n = 129 Meeting Attendee, n = 133 9MEETING MANAGEMENT
  69. 69. Studies Cited in this Publication: BREAKFAST • Adults at Work Discrete Choice, Sodexo, September 2014 • Promotional Menu Items - Quantitative Study, Sodexo, December 2014 HOT BEVERAGES • Coffee Diary - Qualitative Study, Sodexo, June 2013 • Ethical / Socially Conscious Coffee - Quantitative Study, Sodexo, June 2013 • Ideal Coffee Experience - Quantitative Study, Sodexo, June 2013 • Signature Brand Usage Evaluation - Qualitative Study, Sodexo, June 2013 • Premium Coffee Experience - Quantitative Study, Sodexo, June 2013 • Understanding Workplace Coffee Occasions - Quantitative Study, Sodexo, July 2013 • Hot Beverage Ideation - Qualitative Study, Sodexo, March 2014 • Exploring Premium Coffee Experience - Qualitative Study, Sodexo, September 2013 LUNCH • Adults at Work Discrete Choice, Sodexo, September 2014 • Promotional Menu Items - Quantitative Study, Sodexo, December 2014 • Barriers to Trying New Menu Items - Quantitative Study, Sodexo, July 2013 • Signature vs National Brands - Quantitative Study, Sodexo, May 2013 • Celebrity Chef Report - Quantitative Study, Sodexo, September 2014 • Limited Time Offers Insight - Quantitative Study, Sodexo, February 2014 MENU PRICING • Adults at Work Discrete Choice - Quantitative Study, Sodexo, September 2014 • Pricing Overview, Sodexo, November 2014 • Fall Menu Items Van Westendorp, Sodexo, July 2013 • Signature Menu Items Van Westendorp, Sodexo, June 2014 HEALTH & WELLNESS • Health and Wellness Quarterly Exploration - Quantitative Study, Sodexo, June 2014 • Mindful Point-Of-Sale - Quantitative Study, Sodexo, September 2014 • Mindful Exploration - Quantitative Study, Sodexo, September 2013 • Health and Wellness Consumer Preference - Quantitative Study, Sodexo, March 2014
  70. 70. SNACKING • At Work Snacking Report - Quantitative Study, Sodexo, April 2013 CORPORATE SOCIAL RESPONSIBILITY • Sustainability and Local Products - Quantitative Study, Sodexo, September 2013 • Workplace Sustainable Napkins - Quantitative Study, Sodexo, May 2014 • Understanding Community - Quantitative Study, Sodexo, July 2013 PROMOTION & BRAND INSIGHTS • Zebi Naming - Quantitative Study, Sodexo, July 2013 • Understanding Community - Quantitative Study, Sodexo, July 2013 • Social Media Report - Quantitative Study, Sodexo, May 2014 • Micromarket Logo - Quantitative Study, Sodexo, January 2014 • Fall Promotional Themes - Quantitative Study, Sodexo, April 2013 • Close to Home Artwork - Quantitative Study, Sodexo, February 2014 • Americana Artwork - Quantitative Study, Sodexo, August 2013 • Taste Of Artwork - Quantitative Study, Sodexo, August 2013 • Corner Bistro Rename - Quantitative Study, Sodexo, February 2014 MEETING MANAGEMENT • Catering in the Corporate Environment - Quantitative Study, Sodexo, August 2014

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