foodservice operator a&u · • online quantitative study • n=500 foodservice operators...

Foodservice Operator A&UWith Technomic

October 2017

2MENU TRACKER | 2017

Contents • Objectives & Methodology• Summary & Implications• Topline Foodservice Market Performance• Report Deep Dive

-Sweetener Attributes & Preferences-Honey Formats-Sweetener Usage & Perceptions-Honey Usage

• Appendix


Objectives & Methodology


• Examine general attitudes, usage, preference, and barriers to using honey (relative to other key competing sweeteners).

• This will be used as a benchmark for future studies to track the change of these attitudes and usage of honey by operators over time.

Objectives


Methodology• Online quantitative study• N=500 foodservice operators (commercial and non-commercial)

38%

38%

9%

14%

Operation Type

LSRs

FSRs

Catering

Hotel/Lodging/Casino

55%

45%

Type of LSR

Fast food

Fast casual

53%36%

11%

Type of FSR

Casual dining establishment

Polished/upscale casual dining establishment

Fine dining establishment


About Technomic: • For over 50 years, Technomic has been assisting clients with interests in the global food and

beverage industries to obtain a better understanding of the marketplace and potential opportunities.

• Technomic is considered to be the leading research and consulting firm specializing in the foodservice industry

• As part of Winsight, Technomic is positioned as a leader in multiple facets of the global foodservice industry. Winsight provides customers and audiences access to the most credible source of industry market intelligence with top industry print and digital media assets, world class events, and Technomic’s channel-relevant strategic research and insights.

• Beyond Technomic, Winsight provides global reach and insights through its media (including Restaurant Business, CSP, Foodservice Director and others) and Events (including the Global Restaurant Leadership Conference, FARE, Outlook Leadership, FSTEC and others).


Summary


Sugar leads in all keys measures, including preference, usage, effectiveness and versatility. Honey is a strong second across these measures, with agave syrup coming in at a distant third. Sugar is seen as delivering best on versatility, and interestingly, the second highest attribute for sugar is wholesome and all natural.

Sugar Leads all Sweeteners


Honey is most attributed to being natural/unprocessed, having an appealing flavor, and being a nutritious sweetener option. In fact, honey’s all-natural attribute resonates strongest with operators as being the most relevant message about honey.

Honey Wins on All-Natural


Price (47%) and consumer demand (42%) are the top reasons operators avoid using honey. Although, among operators reporting increasing usage, consumer demand is the top reason for doing so. LSRs over index on reasons pertaining to lack of knowledge on how to use and source honey.

Price is the Main Barrier


Bulk honey usage is being driven by FSR using honey as a cooking ingredient (75%), baking ingredient (59%), sauces (47%) and dressings (45%).

Honey Usage


Metrics Dashboard

Key Tracking Metrics YOY

2017 2018

Honey Preference and Delivery

Average Ranking of Honey as Favorite Sweetener 2.0

Effectiveness/Preference (top 3 box: rated 7, 8, or 9) 81%

Versatility (top 3 box: rated 7, 8, or 9) 85%

Front of House Preference (Consumer Demand) 83%

Honey Usage

% Using More Honey vs. YA (Net Positive) 20%

% Anticipating Using More Honey Over Next Year (net positive) 14%

% Currently Using Honey as a Sugar Substitute 77%

Honey Barriers

Consumer Demand 42%


Foodservice Market Performance

© 2017 Technomic Inc.

Nominal

Fastest-growing segments

7.5%

6.5%

4.0%

3.0%

6.4%

6.7%

4.2%

3.0%

Fast casual—LSR

Senior living*

Supermarket foodservice

Hospitals*

10.1%

8.1%

6.5%

4.5%

9.1%

8.3%

6.8%

4.6%

2017 (F) 2018 (F)

Real

14

Inflation assumption: 2.4% for 2017; 2.5% for 2018.*Special inflation rate applied: 1.5% for 2017 & 2018.


Nominal

Above average growth segments

2.6%

2.5%

2.1%

2.1%

2.3%

2.4%

2.2%

1.9%

Lodging

Caterers

Fine dining—FSR

College/university*

5.1%

5.0%

4.6%

3.6%

4.9%

5.0%

4.8%

3.4%

2017 (F) 2018 (F)

Real

15



Nominal

Average growth segments

1.8%

1.8%

1.6%

1.3%

1.8%

1.6%

1.6%

1.3%

Recreation

Transportation*

Long-term care*

C-store foodservice

4.2%

3.3%

3.2%

3.7%

4.3%

3.1%

3.2%

3.8%

2017 (F) 2018 (F)

Real

16



Nominal

Below average growth segments

1.0%

0.9%

0.8%

0.5%

0.5%

1.0%

B&I*

Other retailers

Fast food—LSR

2.5%

3.3%

3.2%

2.0%

3.0%

3.5%

2017 (F) 2018 (F)

Real

17



Nominal

Lagging segments

0.2%

0.1%

0.1%

-0.5%

-2.0%

0.4%

0.2%

0.2%

-0.3%

-2.0%

K-12

Casual dining—FSR

Bars/taverns

Midscale - FSR

Corrections*

1.7%

2.5%

2.5%

1.9%

-0.5%

1.9%

2.7%

2.7%

2.2%

-0.5%

2017 (F) 2018 (F)

Real

18



Sweetener Attributes & Preferences

© 2017 Technomic Inc. 20

All operator segments are largely consistent when it came to ranking Sugar and Honey first and second in terms of sweetener preference.

Top Sweeteners Among Honey Users

Base: Base variesQ:We’d like to know more about the sweeteners you use in your operation and which are your favorite. Please rank from the following list, your first, second, and third favorite sweetener.

2.5

2.5

2.4

2.3

2.2

2.0

1.4

Non-calorie …

Molasses

Corn syrup

Maple syrup

Agave nectar

Honey

Sugar

Average RankSugar the top choice among operators, followed by honey

Respondent’s Rank of Honey

Honey Rank Overall LSRs FSRs Catering


1st 28% 28% 26% 23% 33%

2nd 47% 47% 44% 55% 47%

3rd 26% 24% 29% 23% 21%

Among operators ranking honey in their top three, hotel/lodging/casinos is the most likely group to rank honey first, with a third of respondents in that category doing so.


Distribution of Rankings

Base: 535 (All respondents); 443 (Sugar); 497 (Honey); 286 (Non-calorie); 156 (Maple syrup); 84 (Agave nectar); 67 (Corn syrup); 43 (Molasses)Q:We’d like to know more about the sweeteners you use in your operation and which are your favorite. Please rank from the following list, your first, second, and third favorite sweetener.

68%

28%

13%

13%

23%

19%

19%

23%

47%

29%

44%

37%

19%

16%

9%

26%

58%

44%

40%

61%

65%

Sugar

Honey

Non-calorie sweeteners

Maple syrup

Agave nectar

Corn syrup

Molasses

1st 2nd 3rd

Sugar and honey consistently rank first and second respectively in terms of preference.


Notably, honey did not perform strongly in regards to value, familiarity, and convenience. This may hint that operators are deterred by higher prices and lack proper knowledge on how to use honey effectively.

Top Honey Attributes

Base:535Q:Which of the following attributes do you most associate with honey? (please select up to three)

10%

10%

19%

24%

35%

35%

36%

50%

59%

Convenient

Familiar

A good value

Something new

Premium

Versatile

Nutritious sweetener option

Appealing flavor

Natural/unprocessedHoney valued for its lack of processing and appealing flavor.


LSRs more strongly associate sugar with all-natural than other groups, with 66% of respondents stating that they associate the sweetener with “wholesome and all-natural.”

Top Sugar Attributes

Base:444 (Respondents ranking sugar in top 3)Q:Which of the following attributes do you most associate with the following sweeteners? Select up to three per column

0%

0%

14%

40%

44%

45%

58%

60%

Other


Something new

A good value

Premium

Appealing flavor

Wholesome, all natural

VersatileSugar prized for its versatility and all-natural properties.


Top Agave Nectar Attributes

Base:85 (Respondents ranking agave nectar in top 3)Q:Which of the following attributes do you most associate with the following sweeteners? Select up to three per column

1%

0%

31%

45%

48%

52%

53%

54%

Other


A good value

Versatile

Appealing flavor


Something new

Premium

Agave nectar strongly associated with premium and new.


Top Maple Syrup Attributes

Base:157 (Respondents ranking maple syrup in top 3)Q:Which of the following attributes do you most associate with the following sweeteners? Select up to three per column

0%

0%

35%

39%

39%

43%

45%

63%

Other


Versatile

Something new

A good value

Premium


Appealing flavorMaple syrup usage driven by its appealing flavor.


Top Corn Syrup Attributes

Base:68 (Respondents ranking corn syrup in top 3)Q:Which of the following attributes do you most associate with the following sweeteners? Select up to three per column

1%

0%

25%

40%

43%

46%

53%

54%

Other



Something new

Premium

Appealing flavor

Versatile

A good value

Corn syrup is prized for its value and versatility


Top Molasses Attributes

Base:44 (Respondents ranking molasses in top 3)Q:Which of the following attributes do you most associate with the following sweeteners? Select up to three per column

0%

0%

34%

36%

39%

39%

52%

55%

Other



Premium

Versatile

Something new

A good value

Appealing flavorFlavor and value are key attributes among molasses’ acceptors


Top Non-Calorie Sweetener Attributes

Base:287 (Respondents ranking non-calorie sweeteners in top 3)Q:Which of the following attributes do you most associate with the following sweeteners? Select up to three per column

2%

0%

18%

25%

32%

54%

55%

55%

Other



Premium

Versatile

Something new

Appealing flavor

A good valueValue, flavor and newness are key attributes for non-calorie acceptors


Sweetener ComparisonThis summary of all sweeteners highlights strengths of various sweetener options.

Honey Agave Nectar Maple Syrup Sugar Corn Syrup Molasses Non-Calorie

Sweetener Average

Natural, unprocessed 59% 52% 45% 58% 25% 34% 18% 42%

Appealing flavor 50% 48% 63% 45% 46% 55% 55% 52%

Nutritious sweetener option 36% 0% 0% 0% 0% 0% 0% 5%

Premium 35% 54% 43% 44% 43% 36% 25% 40%

Versatile 35% 45% 35% 60% 53% 39% 32% 43%

Something new 24% 53% 39% 14% 40% 39% 54% 38%

A good value 19% 31% 39% 40% 54% 52% 55% 41%


Honey Formats


Although popular in both segments tabletop is more likely to be the format of choice among LSR operators in comparison to FSRs. Conversely, FSRs are more likely to favor honey in a bulk format. Single-serve honey sees a fair amount of usage across all operations, but is most popular among catering and hotel/lodging/casinos. This is likely due to the wider variety of venue styles that these operations must accommodate.

Formats of Honey Purchased

Base: 535 (All respondents); 205 (LSRs); 205 (FSRs); 50 Catering; 75 (Hotel/lodging/casino)Q:You indicated that you purchase honey. What types of honey do you purchase for your operation?

62%

49%

76%

64%

61%

63%

62%

59%

78%

68%

47%

38%

48%

58%

61%

11%

4%

18%

12%

9%

Overall

LSRs

FSRs

Catering


Gallons/bulk honey Tabletop honeySingle serve/portion control honey Dehydrated/powder honey

Bulk and individual bottles are the most frequent purchases


With use as an ingredient in general cooking, baking, sauces and dressings, bulk honey appears to be used mostly in more complex dishes that require some level of preparation.

Top Ten Bulk Uses

Base: 333 (Bulk honey users)Q:In what applications do you use each honey type in your operation? Please select all that apply.

75%

59%

47%

45%

44%

44%

42%

42%

34%

29%

Cooking ingredient

Baking ingredient

Barbecue or wing sauce

Salad dressing

Drizzle topping ingredient

Ingredient for sauces, spreads or glazes

Marinade/brine

Meat or seafood glaze

Ingredient in bakery items

Compound butter / honey butter

Bulk honey widely used in back-of-house applications


This is likely driven by the ease-of-use of this format, and its suitability towards being used as a self-serve sweetener for beverages.

Top Ten Tabletop Uses

Base: 339 (Tabletop honey users)Q:In what applications do you use each honey type in your operation? Please select all that apply.

50%

32%

31%

30%

25%

24%

24%

23%

22%

22%

Beverage sweeter for non-alcoholic beverages


Beverage sweetener for alcoholic beverages

Baking ingredient

Cooking ingredient


Salad dressing

Single ingredient dipping sauce/spread



Tabletop honey primarily used as beverage sweetener or a topping


As with the tabletop honey, this preference is possibly being driven by this formats ability to be used as a self-serve sweetener in the front-of-house.

Top Ten Single Serve Uses

Base: 250 (Single-serve honey users)Q:In what applications do you use each honey type in your operation? Please select all that apply.

62%

36%

36%

27%

18%

16%

15%

15%

15%

14%





Dessert

Appetizer


Salad dressing

Ingredient in bakery items


Single serve primarily used for non-alcoholic beverages


Among operators using powdered honey, no single application dominates in terms of usage.

Top Ten Powder Uses

Base: 59 (Dehydrated/powder honey users)Q:In what applications do you use each honey type in your operation? Please select all that apply.

32%

31%

31%

29%

29%

29%

25%

25%

24%

22%


Baking ingredient


Cooking ingredient




Ingredient in pizza dough or flatbreads

Baked good


Powder used in a wide variety of settings


Sweetener Usage & Perceptions


91%

85%

60%

47%

41%

35%

33%

Sugar

Honey

Non-calorie sweetener

Maple syrup

Agave nectar

Corn syrup

Molasses

Versatility(Top Three Box)

92%

81%

60%

46%

39%

35%

35%

Sugar

Honey


Maple syrup

Agave nectar

Corn syrup

Molasses

Effectiveness/Preference(Top Three Box)

37

Effectivenessand Versatility

Base: 535 (All respondents)Q:On a scale of 1 (not preferred) to 9 (highly preferred), how do you rate the following sweeteners in terms of effectiveness as a sweetener in recipes? Q:On a scale of 1 (not versatile) to 9 (highly versatile), how do you rate the following sweeteners in terms of versatility for use in recipes?

Sugar and honey highly rated in both attributes


Suited for Front-of-House Usage

Base: 535 (All respondents)Q:Thinking about your customers, on a scale of 1 (not preferred) to 9 (highly preferred), how do you rate the following sweeteners in terms of sweeteners used front of house by your patrons?

92%

83%

78%

47%

36%

32%

28%

Sugar

Honey


Maple syrup

Agave nectar

Molasses

Corn syrup

Usefulness in the Front of House(Top Three Box)

Sugar and honey are the top choices for FOH sweeteners


Notably LSRs over indexed on reasons pertaining related to a lack of knowledge on honey and how to source it. For example, 35% of LSRs felt that honey is difficult to source, and 35% of LSRs stated they didn’t know how to use honey as an ingredient.

Top Reasons for Honey Rejection

Base:535 (All respondents)Q:Which of the following reasons might you avoid using honey? (please select up to three)

47%

42%

29%

28%

28%

26%

26%

9%

2%

Cost relative to other sweeteners

My patrons don’t demand it

Unsure which products to buy

Difficulty sourcing

Honey is inconvenient to use

Inconsistent flavor

I don’t know how to use honey as an ingredient for baking or cooking

It doesn't occur to me to use honey

Other

Price and consumer demand the top reasons to avoid honey


Many operators agree that has a presence in both front-of-house and back-of-house.

Most Relevant Sentiment

Base:535 (All respondents)Q:Please select the most relevant message about honey as it relates to your usage…

35%

16%

13%

13%

8%

5%

4%

2%

1%

1%

1%

An all natural option

A good alternative to sweeteners back-of-house

A good alternative to sweeteners front-of-house

Can be used in a variety of menu applications

Customers increasingly prefer it over other sweeteners

Can be used as a binder and thickener for sauces, dressings, marinades and …

Slightly sweeter than sugar, so less can be used to achieve the same sweetness

Keeps baked goods moist and extends shelf life

There are more than 300 unique varietals in the United States

Comes in a variety of forms including comb, liquid, crystallized, and whipped

Easily dissolvable in beverages

Honey’s all-natural attributes resonate strongest with operators


Honey Usage


Current Usage Vs. Last Year

Base: 535 (All respondents); 205 (LSRs); 205 (FSRs); 50 Catering; 75 (Hotel/lodging/casino)Q:How does your honey volume usage this year compare with last year? Are you using more, about the same, or less than you were a year ago? Note:

24%

17%

34%

18%

24%

4%

4%

2%

12%

5%

71%

79%

64%

70%

71%

Overall

LSRs

FSRs

Catering


More Less Same

42

Majority of operators using the same amount of honey as last yearFSRs are the most likely to have used an increase amount of honey over the past year. Conversely, catering operations are the most likely to have decreased their total usage.Among respondents who increased their usage of honey over the past year, the most common reason is an increase in consumer demand. Following that, increasing the number of dishes that use honey and consumers perceptions about the health benefits are top cited reasons for an increase.Although few respondents reported a decrease in their honey consumption, price is by far the most cited reason for a decrease.In addition to price, other reasons for decreased usage include the availability of substitutes, particularly when using back of house.


Anticipated Use Over Next Year

Base: 535 (All respondents); 205 (LSRs); 205 (FSRs); 50 Catering; 75 (Hotel/lodging/casino)Q:In the next 12 months, do you expect your usage of honey will… Note:

16%

14%

20%

10%

13%

2%

1%

2%

6%

4%

82%

85%

78%

84%

83%

Overall

LSRs

FSRs

Catering


More Less Same

43

Operators expect to be consistent in honey usage over the next year

FSRs are the most likely to believe they will increase their usage, and catering the most likely to expect a decrease.• Top reasons cited for increased usage

include: using honey as a substitute for other sweeteners, to add variety, menu item innovation/expansion • Top reasons cited for decreased usage

include: other sweeteners as an alternative, discontinued menu items or shift in purchasing


Current Usage as a Sweetener Substitute

Base: 535 (All respondents); 205 (LSRs); 205 (FSRs); 50 Catering; 75 (Hotel/lodging/casino)Q:Do you currently use honey as a substitute for other sweeteners in your recipes? Note:

77%

81%

72%

78%

80%

23%

19%

28%

22%

20%

Overall

LSRs

FSRs

Catering


Yes No

Although all segments are likely to be using honey as a substitute for other sweeteners, FSRs is least likely to be doing so and LSRs the most likely.

44

Honey sees widespread usage as a sweetener substitute in all segments


Appendix


Operation Type

Base:Q:Note:

38%

38%

9%

14%

LSRs FSRs Catering Hotel/Lodging/Casino


Type of LSR

Base: 205 (LSRs)Q:Which of the following best describes your store? Note:

55%

45%

Fast food/traditional QSR

Fast casual/upscale quick service restaurant


LSR Menu Type

Base: 205 (LSRs)Q: Which menu type best describes your restaurant? Note:

14%

14%

12%

11% 9%

8%

8%

7%

6%

5% 4% 1%

Family Steak Other SandwichHamburger ChickenCafeteria/Buffet Coffee & Other BeveragePizza Frozen DessertsMexican AsianDonut Other


Type of FSR

Base: 205 (FSRs)Q:Which of the following best describes your restaurant? Note:

53% 36%

11%

Casual dining establishment

Polished/upscale casual dining establishment

Fine dining establishment


FSR Menu Type

Base: 205 (LSRs)Q:Which menu type best describes your restaurant?

59%

9%

9%

8%

8%

5% 2% 1%

Varied menu Seafood Steak ItalianMexican Other ethnic Asian Other


426

595

During Week

During Weekend

Average Number of Guests Served in Day

26%

74%

Chain vs. Independent

Chain Independent

70%

95%

92%

40%

Breakfast

Lunch

Dinner

Late night

Dayparts Open

20% 18%

36% 13%

6% 7%

1-3 4-10

11-100 101-250

251-500 500+

Number of Units in Chain

Number of Units

51

Operator Characteristics

Base:535 (All respondents); 141 (Chains)Q:About how many people do you serve at this location on a typical day?Q:For which dayparts is your operation open? Select all that apply.


Under $50k

$50k - $99k

$100k - $249k

$250k - $499k

$500k - $749k

$750 - $1M

$1M - $2M

$2M - $4M

$4M+

Annual Spend on Food and Non-Alcoholic Beverages

42%

42%

16%

Level of Purchasing Influence

Has sole responsibility for purchasing decisions

Has significant input into the decision

Shares responsibility equally with others

36%

19% 19%

11%

7% 6% 3%

Primary Role

General ManagerOwnerFood and Beverage DirectorFoodservice DirectorPurchasing DirectorChefNutrition Director/Dietician

52

Base:535 (All respondents)Q:Approximately how much do you spend each year on food and non-alcoholic beverages? Q:What is your primary role? Q:What is your level of influence over the food, beverages, disposables and supplies you purchase for your foodservice operation? Select one.

Operator Characteristics

foodservice operator a&u · • online quantitative study • n=500 foodservice operators...

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