1. Mintel & Oxygen Overview
Consumers & Eating Out
How is the current economic environment affecting consumer behaviour?
How have consumers adapted their eating out habits?
How is the market reacting to these changing needs?
What are the emerging trends in the eating out market?
Innovation within the market place?
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7. How is the current economic environment affecting consumer behaviour?

8. Trading Down from Eating Out
Trading down from eating out to premium in-home foods, January 2009-October 2011
Toluna/Mintel
internet users aged 16+

9. - Frequency of Eating Out
“Thinking about eating out at restaurants (excluding fast food outlets, cafes/coffee shops, and takeaways/home deliveries), which of the following best describes how often you have eaten out in the last three months?”
GMI/Mintel
2,000 internet users aged 16+

10. - Eating Out Behaviour
“We’d now like you think about how, if at all, your eating out habits (including takeaways/home deliveries) have changed from a year ago?”
GMI/Mintel
1,853 internet users aged 16+ who have eaten out in the last three months

11. Demographic Differences
The most frequent out of home diners are ABs, those aged and those who live in London.
Similar demographic composition increasing number of visits to restaurants or spend per visit in the last three months (eg 16-24s and those that live in London and/or South East/East Anglia.)
Lapsed users (have eaten out but not in the last three months) tend to be aged 55-64, live in South West/Wales, C2DEs and those from one-person households.
Those in the family lifestage are most likely to have reduced their expenditure on/number of visits to restaurants, increasing the pressure on mid-market restaurants.

12. How have consumers adapted their eating out habits?

13. Diners are prioritising value - not lowest cost
Base: 1,745 internet users aged 16+ who have eaten out in the last three months

14. Reliance on the Discount Culture

15. Dangers of discounting
27% wait for a voucher
38% of 24-34s
Families
Eroding Loyalty

16. 25-34s looking for more sophisticated discount options
Uncomfortable with vouchers
Often subscribe to restaurant mailing lists
Often use online restaurant booking websites
Discreet Promotion Mechanisms

17. Alternatives to Overt Discounting
Restaurants looking to target these (often older) consumers should look to strategies such as price bundling or added extras/added-value promotions
Restaurants can hope to develop these diners’ bargain-hunting habits into a ‘treasure hunt’ mentality, providing a different route for them to move away from costly blanket promotions towards more targeted and financially more viable, tailored promotions.
More likely to resonate strongly with consumers due to their exclusive nature.

18. Summary
Diners are prioritising value for money, not lowest cost, reflected in the finding that more than half believe that you get what you pay for in restaurants.
More than four in ten diners often use money-off vouchers, although nearly a third think that there’s usually a catch with them, highlighting that as such promotions have gained mainstream appeal, diners have also become more ‘savvy’ about them.
Those aged are looking for less crass forms of price promotion than is offered by paper voucher print-outs
Younger diners ‘programmed’ to look for deals/discounts

19. How is the market reacting to these changing needs?

20. Market Reactions Actively chasing footfall Lifestyle brands
Operators in the eating out market are actively trying to chase footfall with some established full-service brands extended into the fast casual area
Due to the fact that so many brands now sell themselves on the principle of ‘value’, operators are turning to other markets such as music and cultural events, in order to promote themselves as ‘lifestyle brands’ to engage with consumers on other levels

21. Market Reactions Store redesigns Snack ranges
Store redesigns are increasingly common in the eating out industry as operators look to add points of interest, add to the sense of ‘experience’ for consumers when dining out as well as to further establish a sense of brand personality
In an attempt to improve the flexibility of their menus, some operators are introducing snack ranges to appeal to varying meal occasions as well as differing budgets

22. What are the emerging trends and innovations in the eating out market?

23. New menu/product launches/trends
Increasing familiarity with ethnic food
Steakhouse trends
Vietnamese soup is now popular in big cities, having filtered down from specialists such as Pho to more mainstream operators
There has been a rising number of steakhouses, rib shacks and American style BBQ venues entering the market in recent years

24. Ethnic Cuisine: Trends & Opportunities
Interest in global street food, May 2011
Mexican has made its mark Vietnamese increasingly popular Youngsters yearn for Caribbean Growth potential for North African
Source: GMI/Mintel – Fast Casual Restaurants – UK, August 2011

25. New menu/product launches/trends
Trend for hot wraps continues
Low-calorie menus rolled out
McDonald’s launched a new range of wraps to its UK restaurant menus in June The launch is described as the “biggest new food launch in four years” as it joins the permanent menu, under the Deli Choices section.
37% of consumers claim low-calorie or low-fat is important when choosing a dish in a restaurant
In summer 2011 Pizza Hut announced the launch of the Pizzetta pizzas, marketed as under 500 calories

26. New menu/product launches/trends
Superfood trend trickles down into the mass market
All-day dining
JD Wetherspoon’s summer 2011 menu included dishes such as three variants of superfood salad.
Brands are tapping into the all-day dining market and consumers' continuing demand for convenience
Proactive way to provide additional reasons to visit, by blurring the boundaries with other eating out market sectors
Venues are diversifying into more specific meal occasions outside their traditional core offering (such as breakfast) in order to create additional revenue streams.

27. Your Challenge
Flexible
Products to enable customers to offer tier pricing or bundled options?
Multi-use products and advice?
All Day
Options for different meal occasions beyond standard?
Providing ‘real’ snacking & trading down solutions?
Targeted
Options to target key demographics differently?
Customisation solutions and advice?
Healthy or ‘natural’ offer?
Menu
How addressing interest in ethnic flavours?
Strong US style BBQ or Steak house offer?
Superfoods?

28. Oxygen Sources Pizza and Pasta Restaurants - UK - March 2012
Eating Out: The Decision Making Process - UK - December 2011
Fast Casual Restaurants - UK - August 2011
Eating Out Review - UK - July 2011

29. Next Steps htttp://portal.mintel.com Set up alerts and searches
Webinars
Consumers and the Economic Outlook - March
Upcoming Reports
Pub Catering – May
Menu Flavours – June
Eating Out Review – July
Attitudes towards Family Dining – August
Talk to our analysts and your Account Director...

30. Stephen Walker UK Account Director
Mob