Consumer Tends Presentation Feb 2014

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How Changing Consumer Trends Affect Non-Commercial Foodservice in

2014 and Beyond

Taylor CrownSenior Manager

Sara Lee Foodservice

Or… Why We Are All Butlers, How the Automatic

Dishwasher Makes That a Bad Thing, and How Paying

Attention to Flappy Bird, Seeing the “Invisibly

Healthy”, and Ignoring the Cronut Can Help Us to Be

Relevant Again & Even Thrive...

Things Change…

But there’s good news…

Healthcare foodservice to grow 4.5%...highest rate in Foodservice

LTC projected @ 6.5%...

American College of Healthcare Executives Top Issues

#1 Financial Concerns2011, 2012, 2103

Demographics

Innovations

Consumer Lifestyles &

Interests…Trends

“College dining is the best forecast for future restaurant trends”

-Chef Michial Neal, Lynchburg College

Generational Demographics

Baby Boomers: 1946-1964~80million

Generation X: 1965-1979~46million

Millennials: 1980-2000~76million

Predicted to outpace the spending power of the baby boomers by 2018

*according to Oracle

Wealth- Will we have anything left?

What about Retirement…

$ for Long Term Care?

2012 2013

Average 77300 89300

Boomers 143000 165000

$10,000 $30,000 $50,000 $70,000 $90,000

$110,000 $130,000 $150,000 $170,000

401(k) Savings

1 in 3

Hispanic American Consumers:

17% of Americans

Buying power grows by 50% to $1.5 trillion by 2015

Study: Nursing home residents satisfied with overall care, but not with activities and food

-McKnights Assisted Living & Long Term Care News

August 2013

#gross #hospitalfood

Reservations Only…

Food Court??

“Segments like Senior and Acute care are evolving. Expectations are such that residents and guests will not accept mediocre food or availability of choices…”

-Chuck GoldbergCorporate Director of Sales Development, Non-

CommercialAdvantage Waypoint

Food blog?

Dining App?

At Univeristy of Missouri Hospital, by focusing on food, including that on patient trays, Customer Satisfaction jumped from 72% to 92%

Top 10 Big Trends We Won’t Discuss, but You Should Be Thinking About

1. Online Procurement2. GPO’s3. Ancient Grains4. Consolidation5. Food-related Legislation & Legal Actions6. Corn!7. Food Insecurity8. Climate Change & Drought9. GMO’s10.92% of Eating Establishments to raise prices

The Vocal Minority

1%...20%...

275%

“Long John Silver’s Hoists Jolly Roger in its Sustainable Food Rebranding”

Chipotle becomes first U.S. restaurant chain to try and rid menu of GMO foods

“Chick-fil-A Commits to Stop Sales of Poultry Raised With Antibiotics”

-February 11, 2014

“Suit Accuses Kroger of Deceit on How Poultry Was Raised”

-February 12, 2014

“7% of roughly 400 entrees examined at 14 children’s hospitals in California were deemed healthy.”

-Journal of Academic Pediatrics

BOSTON, Md., April 15 (UPI) -- A group of doctors has called on the administrators of 22 hospitals in the United States to remove McDonald's restaurants from their facilities.

Trends

“Noncommercial foodservice

players are looking to other

segments like fast-casual to

adopt best practices… More

consumers…come to expect

better options and operators

need to deliver it.”

- says Darren Tristano, EVP of Technomic, Inc.

When is a trend a trend and not a fad?

Technomic Survey of Top 10 Food Trends for 2014:

#4…Creamy, Cheesy, High Fat Goodness

Technomic Survey of Top 10 Food Trends for 2014:

#4…Creamy, Cheesy, High Fat Goodness

HUH???

Trends from Restaurant-Hospitality:

#3: “Escape From Deprivation”

Stealth Health

“when consumers are presented with provocative menu descriptions that focus on taste, flavors and ingredients, they will often rate the more healthful items as highly desirable”

-Restaurant-Hospitality.com

Sustainable

Authentic

Socially Responsible

Local

Invisibly Healthy

Fresh

Balance

57% of consumers have bought prepared foods from a C-Store

Evening; 27

Morning; 27

Mid-Day; 25

Snack; 21

Annual Meals as %

“Every daypart is a snack-part”

“Occasions Drive Foodservice Demand”

-Datassential

Daytime=“Good For Me” Food

Nighttime=Indulgence Food

Occasions

• 24 hours• Catering• Retail/Convenience Store• Other

Today’s ConsumerWellness…

“The Personal IS Political”

Educated & Engaged in food

Wealth changes & then changes demand patterns

Occasions

Susceptible to viral trends, accelerated through SM

Connected…so why not connect to them?

So what does all this have to do with Flappy Bird???

Let’s keep in touch…

Twitter: @taylorcrown

Blog: www.taylorcrown.com/blog

To read more on these topics:

www.evernote.com/pub/tcrown/shrspeech

Email: taylor.crown@hillshirebrands.com

Cell: 540.354.9881

Thank you!

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