do food cravings drive restaurant visits? · 10.0 10.2 10.2 7.1 3.7 2.7 18.9 14.8 9.7 9.7 9.6 5.8...
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Copyright 2015. The NPD Group, Inc. All Rights Reserved.
This presentation is proprietary and confidential and may not be
disclosed in any manner, in whole or in part, to any third party
without the express written consent of NPD.
Do Food Cravings Drive Restaurant Visits?
January, 2016
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� Data Sources – Brief Overview
– CREST data
– Custom NFI Study
� Seafood Entrée trends in Commercial restaurants
– Restaurant performance that is important to Seafood consumption
� Understanding Crave-ability
– Foundation for Craving
– What Consumers Crave
� Opportunities for Seafood
My Agenda
2
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That is what we’re doing everyday…
Talking with consumers
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What they ate and drank
Where they ate and drank
When they ate and drank
With whom they ate and drank
How much they paid
CREST measures yesterday’s consumer behavior at restaurants
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The CREST® survey- example
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And then, an extensive food/beverage list is given
for each food/beverage group checked
CREST® Survey example:
What Types of Food Were Purchased?
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NPD’s definition of Seafood Entrees
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TOTAL SEAFOOD ENTREES
Fish-Broiled/Baked/Grilled/Raw
Salmon
All Other Fin Fish
Sushi
Fried Fish
Shellfish-Total
Shrimp
Crab
Clams
Lobster
Scallops
All Other Shellfish
All Other Seafood
Calamari
Other
Note: Definition excludes Seafood Sandwiches
Source: CREST®
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QSR
Midscale
Casual Dining
How is the industry segmented?How NPD segments the restaurant industry
Midscale + Casual Dining + Fine Dining = Full Service
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Restaurant Trends
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208 208 208
201
197 195 194
193 191 190
$6.09
$7.22
YE
Sep'06
YE
Sep'07
YE
Sep'08
YE
Sep'09
YE
Sep'10
YE
Sep'11
YE
Sep'12
YE
Sep'13
YE
Sep'14
YE
Sep'15
Restaurant Visits per Capita Average Eater Check
Source: CREST®
U.S. consumers visit restaurants 18 fewer times per year compared to before the Recession. Checks increased steadily
10
Visits per Capita
Great Recession
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76% 79%
24% 21%
YE Sep'08 YE Sep'15
QSR FSR
Full-service struggled more since recession, bad news for products like seafood that rely on the segment
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Quick-Service vs Full-Service
Loss of over 2
billion visits
Gain of over
750M visits
Distribution of Restaurant Traffic
20%
80%
Distribution of Seafood
Servings
QSR
FSR
Source: CREST®
Year End Sept’15
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Seafood servings declined this year despite traffic growth; only gain occurred at Fine Dining
-1%
1%
-4%
1%
-1%-2%
-1% -1%
6%
0%
Seafood Traffic
Total Restaurants
QSR
Midscale
Casual Dining
Fine Dining
Percent Change vs. Year Ago
Trends by Restaurant Segment
Source: CREST®
Year End Sept’15
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317
27
34
70
49
Seafood Traffic
Dinner
Lunch
Other
Dinner is most important for Seafood, outpacing traffic; room for improvement at Lunch
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Daypart Comparison - FSR
Distribution of Servings/Traffic at Full-Service and PCYA
-2%
-1%
-2%
+1%
Source: CREST®
Year End Sept’15
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2,392
1,872
1,595
1,230
1,229
1,218
1,024
997
730
573
420
309
136
Seafood
Chicken/Turkey
Sandwiches
Pasta
Beef Entrees
Mexican Fare
Chinese/Asian/Indian
Burgers
Main Dish Salads
Pizza
Ham/Pork
BBQ Ribs
Vegetarian Main Dish
FSREntrée Servings (Millions)
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Seafood tops second-ranked poultry by over 500 million more
servings!
Entrées at FSR
Source: CREST®
Year End Sept’15
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Several entrées declined, including Seafood; Burgers were only type that increased
19.8
15.7
10.0 10.2 10.2
7.1
3.72.7
18.9
14.8
9.7 9.7 9.6
5.8
3.32.4
Seafood Chicken/Turkey Pasta Beef Entrees Mexican Fare Main Dish Salads Ham/Pork BBQ Ribs
2010 2015
15
Menu Importance
Percent of Time Ordered - FSR
Source: CREST® / Years ending Sept.
12.8
8.2 7.4
4.4
1.1
12.6
8.1 7.9
4.5
1.1
Sandwiches Chinese/Asian/Indian Burgers Pizza Vegetarian Main Dish
2010 2015
Declining
Flat/Growing
Entrées at FSR – Long-term Trends
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Crave-ability
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Today’s Consumer
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• More often than not, the decision to go out to eat is driven by a CRAVING, which in turn drives establishment choice.
• The idea of going and spending your hard earned money at a restaurant can be a tough decision– getting a meal you know you will LOVE eases this unknown.
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Cravings are a major driver when choosing a restaurant.
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18%
14%
11%
10%
7%
5%
Convenient Location
Taste, Craving/Specific Menu Item
I Like It There
Other's Choice/I Didn't Decide
Always/Regularly Go There
Good Price
Reason For Visiting – Share of Visits
18
Understanding consumers’ cravings is important because crave-ability is the number two reason for visiting a restaurant, second only to location
Total Restaurants
Source: CREST®
Year End Sept’15
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Reason For Visiting by Age – Crave-ability
12%13%
14% 15% 15% 14%13%
15%
Teens 18-24 25-34 35-49 50-64 65+ Males Females
Crave-ability does not discriminate; aside from teens,
it does not vary by age or gender
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% Reason for Visit = Had Special Taste/Craving or Went for Specific Menu Item
Total Restaurants
Source: CREST®
Year End Sept’15
The NPD Group, Inc. | Proprietary and confidential
18%
14%
11%
10%
7%
Convenient Location
Taste, Craving/Specific
Menu Item
I Like It There
Other's Choice/I Didn't
Decide
Always/Regularly Go
There
Reason For Visiting – Share of Visits
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Crave-ability is top reason for visiting at Seafood restaurants!
20%
19%
10%
8%
7%
Taste, Craving/Specific
Menu Item
Other's Choice/I Didn't
Decide
I Like It There
Convenient Location
Had a Coupon
Total Restaurants Seafood Restaurants*
*QSR+FSR
Source: CREST®
Year End Sept’15
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…So, we know cravings are important for Seafood…
What can we learn about consumer cravings?
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Study Methodology
INTERACTIVE ONLINE FOCUS GROUP
DEC 15-18, 2015
CR
ITE
RIA
23 RESPONDENTS
Has ordered seafood
at a restaurant in the
past 12 months
Visits Casual Dining
restaurants every 3
months or more
Ages 18-64
50%
Female
50%
Male
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Foundation of CravingsCravings are built upon the ability to recall and repeat a sensory experience.
RECALLBASED ON
FAMILIARITY
23
IMPLICATIONS FOR SEAFOOD
IMPLICATIONS FOR SEAFOOD
REPEATABLEBASED ON
CONSISTENCY
FOUNDATION
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Key Findings: How To Improve Crave-ability
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Be Predictable
25
Offering a consistent experience is critical to creating cravings. One of the biggest barriers to craving seafood is that consumers don’t always know what experience they’re going to get.
Inconsistency can make Seafood too risky to be a real craving – the chance of being disappointed is too high.
BECOME MORE PREDICTABLE & CONSISTENTPREDICTABILITY
CONSISTENCY
&
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FRESHNESS
26
By combining other highly cravable characteristics with the innate freshness of Seafood, a uniquely cravable experience may be created.
One of Seafood’s greatest challenges is also one of it’s greatest strengths: freshness.
Seafood is one of the only proteins that can be, without other ingredients, described as “fresh.” Many consumers crave a fresh food experience.
FRESH + MEATYSPICYSALTY
FRESH
MEATY
SPICY
SALTY
+
Leverage Fresh
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This might be done by combining both known and unknown in one dish (fried and spicy) or by offering a few different preparations (trusted as well as adventurous) on a single plate.
CREATE CRAVABLE TWISTS ON TRADITIONAL SEAFOOD BY COMBINING:
BUTTERY
FRIED
FRESH
MEATY
SPICY
+
FRESH
MEATY
SPICY
BUTTERY
FRIED
COMBINE THE KNOWN WITH THE UNKNOWN TO LEVERAGE CRAVINGS AND REDUCE THE RISK OF DISAPPOINTMENT.
Cravable Twists on Traditional Seafood
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Many crave Sushi as it’s very tasty and unique yet difficult/inconvenient to prepare at home
Sushi blends many flavors, temperatures, and textures while meeting one’s craving for freshness. Other Seafood meals that can do this may see similar cravability
The only real downside to Sushi is the cost – creating more affordable ways to satisfy the same cravings may be an opportunity
Steal From the Strength of Sushi
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How We Came To These Conclusions
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Favorite and cravable foods tend to be rich, fatty/fried, and protein-heavy.
FAVORITEFOODS
FATTY/FRIED
MEATYSTEAK
LOBSTER
PIZZA
PASTA
ITALIAN
CRAB LEGS
SHRIMP
FRESH
CRISPY
SPICY RICH
COMFORTING SALTY
CRAVINGSCOMMON
UN
AID
ED
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MY DIET SUGGESTS I AVOID THIS FOOD, BUT I CHOOSE TO SATISFY MY CRAVING
ANYWAY.
CRAVINGS AREN’T LOGICAL – THEY ARE ALMOST NEVER HEALTHY AND AREN’T OFTEN SCHEDULED AROUND DINING WITH OTHERS.
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Cravings themselves are free from the influence of reason and logic.
I’VE BEEN THINKING ABOUT THIS DISH ALL DAY LONG, SO I CHOOSE TO DINE OUT TO
SATISFY MY CRAVING.
Q: Here is a list of other reasons you might choose/not choose to satisfy a craving when dining out. How often does each of the following statements apply to you? [Frequently, occasionally, rarely, never]
I WANT TO REWARD MYSELF, SO I CHOOSE TO SATISFY MY CRAVING.
I KNOW THIS DISH IS NOT THE HEALTHIEST OPTION, BUT I CHOOSE TO DINE OUT TO
SATISFY MY CRAVING ANYWAY.
I DON’T KNOW HOW TO REPLICATE THIS DISH AT HOME, SO I CHOOSE TO DINE OUT
TO SATISFY MY CRAVING INSTEAD.
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CRAVINGS ARE STRONGLY DICTATED BY EXPERIENCE – THE MORE SOMETHING CAN CREATE THE SENSATIONS OF ACTUALLY EATING THE FOOD, THE MORE LIKELY IT IS TO INSPIRE A CRAVING.
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Cravings are dictated by the sensory experience.
RE
AS
ON
ST
OC
RA
VE LOVED IT BEFORE AND CAME BACK FOR MORE
FRIEND/FAMILY INFLUENCED ME
FOOD PHOTOGRAPHY (PINTEREST/BLOGGERS)
READ THE MENU ONLINE BEFORE I WENT
SMELLED SOMETHING GOOD WHEN I WAS WALKING BY
HEARD ABOUT/SAW A FLAVOR/PREPARATION I HAD NEVER TRIED BEFORE
ADVERTISING
ONLINE REVIEWS (YELP!, GOOGLE, URBANSPOON, ETC.)
TO
PB
OT
TO
MM
ID
Q: Take a look at the following reasons you might crave a restaurant food. Please drag and drop these into order from the most likely reason for you to crave a food (at the top) to the least likely reason for you to crave a food (at the bottom).
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Cravings have a number of forms, from flavors to feelings they invoke
TASTES
SWEET
SPICY
SALTY
TEMPERATURE
HOT
WARM
COLD
INGREDIENTS
COMFORTING
HEALTHY
TEXTURES
CRUNCHY
GREASY
PREPARATIONS
FRIED
GRILLED
EFFECT
CHEESY
MEATY
CARB-Y
SALAD
UNAIDED
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When aided, “meaty” and “fresh” are the most frequently craved categories.
RARELY/NEVER SOMETIMES ALWAYS/OFTEN
FREQUENCY OF CRAVING WHEN DINING OUT (TOP BOX)
MEATY
SPICY
RICH/CREAMY
CRISP
CRUNCHY
SALTY
CHEESY
BUTTERY
FRIED
FRESH
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Protein is the most craved food group, followed distantly by carbohydrates.
FOOD GROUP MOST OFTEN CRAVED
PROTEIN
CARBS
VE
GG
IES
73%
BREAD
PASTA
BEEF
FISH
CHICKEN
23%
5%
OTHER
50%
50%
47%
23%
20%
7%
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Cuisines can also be craved, though they are less top-of-mind than other categories.
01
02
03
04
MEXICAN
05
SUSHI
CHINESEITALIAN
THAI
JAPANESEETHIOPIAN
TIE
RT
IER
TIE
RT
IER
TIE
R
CU
ISIN
ES
CR
AV
ED
(A
IDE
D –
TO
P 2
BO
X)
AMERICAN
CHINESE
MEXICAN
ITALIAN
BBQ
JAPANESE
47%
31%
27%
22%
22%
13%
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For those who do crave Seafood, the type craved varies widely.
OYSTERS, MUSSELS, CLAMS
CRAB LEGS, CRAB CAKES
MAHI, TROUT
CALAMARI, SHRIMP, CLAMS, FISH FRY
ALFREDO, PRIMAVERA, SCAMPI
RESPONDENT PROVIDED
IMAGES
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When aided, each Seafood fits within the four factors as follows:
• Flounder
• Mussels
• Orange Roughy
• Bass
• Grouper
• Mahi mahi
• Tuna
• Tilapia
CRAVABILITY
FIT
WIT
H S
EA
FO
OD
• Lobster
• Crab
• Shrimp
• Clams
• Catfish
• Oysters
• Tilapia
• Orange Roughy
• Sushi
• Oysters
• Mussels
• Salmon
• Catfish
• Flounder
• Bass
• Swordfish
• Orange Roughy
• Snapper
• Grouper
• Mahi mahi
• Tilapia
• Tuna
STEAMED SHELLFISH
FRIED OR BRINY
RAW
OR SIMPLY PREPARED
SAUCE & RICH FISH
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Seafood is cravable, though a number of variable factors increase consumer feeling “risk.”
WHILE SEAFOOD IS CRAVE-ABLE, IT HAS BARRIERS.
SEAFOOD PRESENTS A GREATER RISK LEVEL DUE TO SEVERAL FACTORS:
Some will not even
consider seafood if they
aren’t near the coast.
GEOGRAPHY & FRESHNESS
Excellent preparation is key
to enjoying Seafood, yet is
more difficult to guarantee.
For example, consumers
perceive that one is more
likely to get a good Burger
than a good Lobster Tail.
CONSISTENCY
Those with a lower risk
tolerance often eliminate
Seafood due to the high
cost coupled with the
high risk of a poor or
mediocre meal.
COST
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Seafood cravability is highly driven by familiarity and perceived “risk.”
LOW FAMILIARITY HIGH FAMILIARITY
• Offer a consistent taste (less “fishy”)
and have a great texture (not slimy, more
chewy/meaty)
• Preparations vary highly (from raw
to simple to complex) making it so there is
something for everyone
FAMILIAR SHELLFISH ARE HIGHLY CRAVABLE, (E.G., SUSHI)
• Those who enjoy them do so with gusto, but fish is polarizing overall.
Salmon seems to be the exception, though it’s less cravable than shellfish
• Many think of fish as “boring” or “plain.” Even a great sauce or
preparation doesn’t seem to justify craving these foods.
MODERATELY FAMILIAR FISH ARE ONLY MODERATELY CRAVABLE
• These seem as though they are not worth the risk.
There is a high likelihood that they
won’t like the dish (especially those that
don’t crave even familiar fish).
LESS FAMILIAR FISH ARE RARELY CRAVED
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� Be Predictable
– Seafood needs to offer a more consistent experience – from quality to preparation
� Leverage Fresh
– Huge opportunity given the inherent nature of Seafood if executed correctly
� Crave-able Twists on Traditional Seafood
– Leverage trends with Fried Fish to build on the familiar with unique flavor combinations
� Steal from the Strength of Sushi
– Sushi is the most crave-able of Seafoods. Work to increase sushi availability
The Bottom Line: Building Seafood Crave-ability
41
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THANK YOU!
QUESTIONS?
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