A new study by Chicago-based Technomic shows that even as consumers are expected to loosen their purse strings in 2011, finding a good value from the casual dining category is still of the utmost importance.
"Consumers have become very adept at getting the maximum value from each dining experience," said Technomic EVP Darren Tristano. "Operators should avoid getting caught in the middle. Your value statement needs to be loud and clear so the customer knows what you are offering and why they should come to you."
The report takes a look at the top chains across the fast casual, casual dining and upscale dining categories, which when combined generated $134 billion in sales in 2010. Leading the growth was the fast casual segment with a 4.5 percent increase in sales in 2009, a 7.1 percent increase over 2008 sales.
Tristano said that as casual dining chains expanded and raised prices enough to impact their value proposition, consumers realized they could get higher-quality menu items at the same price from fast casual restaurants or similar menu items priced a bit higher, but with a better dining experience, by visiting upscale dining restaurants. This also has caused a squeezing out of casual dining chains that now need to get back market share.
The Future of Casual Dining Consumer Trend Report was developed by Technomic to help restaurant operators and suppliers stay abreast of consumer attitudes and trends within the full service and fast casual dining segments. The report was compiled using a survey of 1,500 consumers, as well as data from MenuMonitor, Technomic's exclusive online trend tracking resource. Outlined in the report is concept and menu profiles of 20 fast casual, casual dining and upscale casual restaurants in addition to consumer demographic profiles.
Interesting findings include:
- More than seven out of 10 consumers who have been using coupons as a way to cut down on casual dining expenditures say they will continue to do so even as their finances improve.
- Consumers say upscale casual dining restaurants significantly outpace other casual dining sub-segments for healthy options, likely because of the association consumers make between quality and healthfulness.
- Casual-dining operators are using small plates, snacks, bar menus and combo deals in order to attract value-conscious diners. Smaller portions are another way to satisfy consumer demand for healthier menu items, providing fewer calories along with lower prices.
This report is part of Technomic's larger study, The Future of Casual Dining: Exploring Fast, Upscale and Casual Dining Appeal.
Another study released this week indicates that consumers plan on dining out more this year than in 2010, but the amount they'll likely spend is 5 percent less.
The study, conducted by AlixPartners, indicates consumers will spend an average of $12.90 per visit this year compared to the $13.60 spent throughout 2010.
