2014 penton industry overview 3 17-14 (march update)
Post on 18-Nov-2014
154 Views
Preview:
DESCRIPTION
Transcript
2014Foodservice
Industry Overview
March 2014 Updates
Polar Vortex Update• Weather affecting businesses across most of the U.S.
• Retail down 0.4% in Jan 2014 (projected to be flat)
• Flight cancellations – hurts restaurant travel/tourism spending
• Online shopping increased (foodservice delivery, however, did not increase as a result)
• FSR hit hardest along with B&I and K-12 (office and school closings)
• Across all segments, Technomic forecasted growth for 2014 is expected to decrease by a full percentage point
Source: Technomic, Inc.
Foodservice doesn’t have the benefit of a “catch up”(purchases not deferred
to a later time)
Fast Casual Quadrupled in a Decade• Food offerings competitive• Environments are pleasing and many facilities are new• No tipping at FC leads to increased overall value to customers• FC also has more control over experience (no servers)
• Customers also in control consumption and customization
The top 150 fast-casual concepts posted aggregate sales of nearly $26 billion in 2012, up 13.1% from 2011, and is expected to have maintained momentum through 2013.
Sources: Bellwether Food Group, Inc.; Technomic, Inc.
QSR
69.5%
FCR8.1%
CDR
17.6%
MSR4.8%
QSR
72.6%
FCR2.7%
CDR
17.8%
MSR6.9%
2012 TotalTop 100 Sales: $211 B
2002 TotalTop 100 Sales: $135 B 5.4%
FCRs
3.1%QSR
2.1%MSR
0.2%CDR
TechnologyTrends
Growth in Smartphone Usage
Source: Go-Globe.com
… with continuing growth in smartphone ownership worldwide.
Most of the world is already on mobile…
2O2OVISION
How Consumers Interact with Restaurants Today
Sources: National Restaurant Association, 2014 Restaurant Industry Forecast
All Adults
Children under 18 in household
Look up locations or directions 67% 80%
Order takeout or delivery 52% 67%
Use rewards or special deals 50% 65%
Make a reservation 46% 56%
Look up nutrition information 42% 54%
Pay for your meal 24% 32%
Consumers who say they would be likely to use a smartphone or tablet or restaurant-related activities
Smartphone Activities in Restaurant
All Adults
Children under 18 in household
Electronic payment system at the table 47% 55%
Electronic ordering system at the table 40% 52%
Menus on iPad/tablets 37% 48%
Self-service, touch-screen kiosk for ordering 43% 54%
Consumers who say they would be likely to use the following technology options in restaurants
Using Restaurant Technology
Investing in the Technology
21%
24%
9%
27%
18%
13%
23%
16%
22% 21%
4%
20122014
Source: NRN Restaurant Operator Survey (December 2013)
In 2014, my business plans to put more money behind:
Operators Willing to Invest in Technologies
Sources: National Restaurant Association, 2014 Restaurant Industry Forecast
Family Dining
Casual Dining
FineDining
Quick Service
FastCasual
ALL RESTAURANTSOnline ordering 57% 63% 48% 77% 89%Ordering via smartphone app 45% 49% 30% 73% 88%Wi-fi for customers 85% 93% 87% 87% 77%Mobile/wireless payment options 43% 58% 54% 75% 77%Nutrition information online or via smartphone/tablet app 46% 57% 48% 80% 80%FULL SERVICE RESTAURANTSElectronic ordering at the table 28% 48% 30%Electronic payment at the table 48% 65% 59%Menu of iPad/tablet at the table 36% 54% 50%Wine/beer/cocktail list on iPad/tablet at the table 31% 53% 56%LIMITED-SERVICE RESTAURANTSSelf-service, touch-screen ordering terminals 47% 57%Video menu boards 78% 68%
Restaurant operators who believe these technology options will become popular within their segments in the future
More Technology Options on the Horizon
At the Table• Guest self-ordering• Suggestive selling• Interactive feedback from
guests to the restaurant• Wireless networking• Some touch-screen devices
that make up the entire tabletop
2O2OVISION
At the Counter (F.O.H.)• Mobile point-of-sale• Digital wallets• Facial-recognition software
Immediate recognition of customers and their preferences
• Digital menu and marketing boards
2O2OVISION
Technology vs. Adoption• Technology is coming,
question is around adoption• Which chains will convert
first?• Will independents be able to
implement or afford?
Technology will certainly make operators’ jobs easier…
but it must also enhance the customer experience to drive value
REAL GROWTH (2014):
0.5%
PURCHASES (2013):
$10.0 billion
SALES (2013):
$18.2 billion
K-12 Schools
Sources: Technomic, Inc.; Food Management
What’s Trending?• Final requirements from Healthy Hunger-Free Kids Act
being implemented
• July 1 requirement that a full cup of fruit is served at breakfast comes into effect
• New regulations decreasing lunch program participation
• 1.8 million kids lost from program in 3 years
• Supper programs replacing after-school snack programs
• Unpaid meal charges remain an issue
• 2017 looms large because of sodium restrictions
Summary• Big Stable Market• Sluggish Growth Continues• Labor, Healthcare, Food Costs Remain a
Problem• Market Share Theft Plus Operational Efficiency• Big Winners Amongst the Flatness• Technology Adoption Soaring• Fast Casual Continues to Drive the Market
top related