Insights on What America Eats, a Special Report from Nation's Restaurant News (September 2015)

1. Menu
Trends
Menu Trends from the Experts

2. What America Eats
• Nation’s Restaurant News Special Report
• Breakdown of what today’s and future
consumers want from their food sources
• Brands that are changing the sourcing game
• The indulgent vs. healthful menu divide
• The debate of artificial ingredients

3. Modern Eating Characteristics
• How Americans relate to what they eat has undergone a substantial
shift
• Once simply a source of fuel, food is now also a:
– Vehicle for self-expression
– Point of pride
– Political statement
– Declaration of Identity
– And more
• Health is also on consumers’ minds, though the perception of what
is “good” for them varies and often contradicts
• Less indulgent items have more consumer loyalty than showy, high-
calorie items
Sources: Nation’s Restaurant News; NPD Group

4. Food as Self Expression
• Food represents and defines the
individuality of people
• And they aren’t afraid to share their
experiences
– More than 29 million Americans have posted a
picture of food or drink from a restaurant via social
media
• LTO’s and new product introductions are
more cognizant than ever about the “buzz”
they can create
• Diners are willing to try these new items
Sources: Nation’s Restaurant News; Mintel; National Restaurant Association
25-34 18-24
37%
48%
29%
All
Ages
Diners tried a new
ethnic food within
the past year

5. What’s Driving Health-Conscious Food Choices?
67% 65% 65%
58% 58%
0%
20%
40%
60%
80%
Are locally
grown/produced
Contain only
ingredients I recognize
Are minimally
processed
Are free of antibiotics Are free of hormones
%ofConsumerscitingeachreason
Sources: Nation’s Restaurant News; The Hartman Group

6. Power of Perception
• What consumers perceive as good might not have anything at all to
do with the nutritional or health value of what they are eating
• Today’s consumer is associating “fresh” and “natural” with health
Sources: Nation’s Restaurant News; Mintel
“I can argue the facts, but
the facts don’t matter,
because it’s the perception,
the perception is the reality.”
Greg Creed
CEO, Yum Brands

7. 75%
higher sales on
Friday vs. Monday
Giving Control to the Consumer
• Customizability does not just please
consumers because it gives them
options, it has a psychological effect on
the perceived health of what they order
– Allowing a customer to put a little bit less of
an indulgent ingredient makes them feel
better about their meal choice
– This concept is a hallmark of fast casual
restaurants
• Psychological Bargaining
– Consumers tendency to make a “sacrifice” in
one aspect but offset it with a reward
– E.g. drinking a diet soda but having a slice of
pie for dessert
Sources: Nation’s Restaurant News; Mintel
These decisions
affect weekly sales
(case studies)
43%
lower sales on
Friday vs. Monday
CHICKEN WING
CHAIN
SALAD
CHAIN

8. 5 Ways to Attract Consumers
Sources: Nation’s Restaurant News; Mintel
1
BE TRANSPARENT.
Have answers for consumer questions and explanations for decisions
2
BE FUN.
Specialty items help restaurants get noticed
3
BE ENGAGED.
Receive and respond to customer feedback
4
OFFER HEALTHFUL CHOICES.
Can reduce an unhealthy halo associated with a restaurant
(“I went to McDonald’s, but I had a salad”)
5
OFFER CUSTOMIZATION.
Options will make customers feel better about their food choices