The document discusses the transformation of the food industry as consumers demand better quality food at cheaper prices. It notes that foodservice segments are no longer clearly defined as operators across segments move toward an "optimum value platform" offering more upscale culinary options using lower cost ingredients. Two strategies are highlighted - casualization by high-end chefs and upscaling quick service menus. Examples are given of pizza, burgers, sandwiches, pasta and ice cream being platforms used to deliver this new value through creative ingredients and flavors. The key to success is evaluated as relevance, intriguing flavors, affordability and believability.

1. The New Value Platform

2. The Transformation of “Food”
What’s For We’re Open for
Let’s Go Out I need a late night I want the entire I’ll eat “any time”,
Dinner? Breakfast, Lunch &
For Pizza snack menu all day are you ready?
Dinner
Grocery Stores: Growth of Menu Parts Driven Multi-Dayparts Meal Occasions Consumer “Need
Mom & Grandma Foodservice Emerge Driving Demand State” Driven
Cooking Segments
1960’s 2000’s
1980’s
1970’s 1990’s 2010+
On our schedule On their schedule
Be ready when we are Be ready when they are
Customized
Satisfaction

3. A new market has emerged.
• There was a time, not too long ago, when foodservice
segments were clearly defined.
• Then a few things happened.
Consumers want Fast Casual Recession shakes Spending declines, but consumers still
better food, quicker Booms the market want better food quicker and cheaper
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4. An interesting phenomenon.
“Operators in all segments are moving toward an optimum value
platform nested between full-serve and quick-serve spectrums”
- More upscale culinary interpretations
- Using downscale pantries
Two strategies are in place:
- Casualization: Leading high end chefs extending their culinary
talents to a more mainstream audience while delivering
maximum value
- Upscaling the Downscale: Quick service operators upgrading
existing ingredients and menu items to bring a heightened
value perception 4

5. 5

6. Michael Kornick of MK and Rick Tom Colicchio of Bravo’s Top
David Morton of the Morton Bayless Chef series has had great
Family partner to open DMK launched success with his fast casual
Burger Bar and serve a great XOCO with concept, ‘wichcraft. What
$8 burger to lines of guests. a street started as an NYC sandwich
food- shop has become a national
focused chain success.
menu.
Great food
brings
lines of
hungry
patrons to
the door
all day,
6
everyday.

7. And the list goes on.
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8. The cause of the shift.
• The growth of foodservice is evidence that consumers love to
eat out, but the recession slowed that down. When they
returned to spending, their expectation was altered.
• Value was redefined—“fresh ingredients, fresh looking, good-
tasting food at affordable prices” represented this “new
value,” extending beyond a simple dollar amount.
• Consumer satisfaction is driven by the food attributes—food
quality, followed by taste and flavor and then by the visual
appeal of the food.
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9. We’re easily influenced.
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10. “Upscaling the Downscale”
• It starts with better ingredients… what is the best I can get
within my price range?
– Less expensive cuts of meat
– Splurge with items that you need less of like cheese, spices, fresh
vegetables and sauces/condiments
• Menu items like burgers, pasta, pizza, and sandwiches have
become a playing ground for chefs and operators. They start
with an inexpensive base, but leave plenty of room for
building with interesting toppings and flavor blends.
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11. The platform in practice.
Pizza was one of the first platforms that put this proposition into practice , using unexpected combinations,
unique sauces, premium proteins and artisan cheeses.
Ingredients like ricotta, fontina, roasted garlic,
Parmesan, mozzarella, sea salt, olive oil,
parsley or tomato sauce, mozzarella, pepperoni
and oregano
Housemade sodas like the "Don't Forget Your
Ginger Roots Soda" completes the food
experience
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12. The platform in practice.
Pizza was one of the first platforms that put this proposition into practice , using unexpected combinations,
unique sauces, premium proteins and artisan cheeses.
Ingredients like artichoke hearts, roasted eggplant, shiitake and cremini mushrooms, and
cucumbers and cheese choices including Wisconsin low-fat mozzarella, soy, parmesan,
ricotta or feta. Organic tomato sauce and both regular white and winter wheat flour
crusts deliver against their brand promise.
“healthy,
vegetarian-
friendly, real”
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13. The platform in practice.
Burgers have taken the stage in the last few years through better meat grinds, artisan cheese and breads,
premium secondary meats and signature condiments.
Checkers brought this platform to the QSR level,
delivering a better burger to a base of loyal
consumers. Flavor Built Burgers offer a
customizable burger platform that delivers bold,
indulgent flavors through fresh, premium
ingredients found normally only in a full-serve,
casual-dining segment.
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14. The platform in practice.
Burgers have taken the stage in the last few years through better meat grinds, artisan cheese and breads,
premium secondary meats and signature condiments.
14

15. The platform in practice.
Sandwiches are a prime platform for adding value: portable, familiar, craveable.
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16. The platform in practice.
Pasta is simple and inexpensive and offers a blank canvas for creativity. Creative flavor-pairings, artisan
cheeses and added ingredients for an unexpected twist are key.
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17. The platform in practice.
Ice Cream is the number one dessert in the U.S. It’s familiar and comfortable, and with a few twists through
added flavor and interesting ingredients, it becomes extraordinary.
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18. The “new” value.
food environment experience
• Evaluate • Evaluate the • Evaluate the
your menu environment. experience—
and your • How does it make your functionally and
pantry. guests feel? emotionally.
• What can I • What will they
add or remember?
tweak to
“wow” my
guests?
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19. How do we deliver? In 4 ways.
RELEVANCE
INTRIGUING FLAVOR
AFFORDABLE
BELIEVABLE
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20. To learn more about us, visit foodiq.net.