Industry Insights A roundup of noteworthy foodservice findings for the week of June 14, 2021
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I G N I TE C O M PAN Y Starbucks, Domino’s TOP CHAINS BY TOTAL U.S. NET UNIT OPENINGS Lead Top 500 Chains Chain Name 2020 U.S. Units 2020 U.S. Net New Openings Annual Growth % in 2020 Openings Starbucks 15,337 288 1.9% Domino's 6,355 229 3.7% In a year that saw unprecedented chain achieved the highest number of new Jersey Mike's Subs 1,854 189 11.4% restaurant closures, many brands still unit openings, netting out 269 total new managed to open new stores. Out of restaurant locations across the Top the Top 500 chains, 164 grew their 500. Led by high-growth chains like Chick-fil-A 2,659 166 6.7% location footprint in 2020 despite the Chick-fil-A, Popeyes Louisiana Kitchen COVID-19 pandemic. and Wingstop, chicken restaurants Chipotle Mexican Grill 2,724 144 5.6% grew their cumulative location footprint Starbucks led the charge, opening 288 by 1.7% from the year prior. Popeyes Louisiana Kitchen 2,608 132 5.3% units in 2020, registering a 1.9% uptick in locations from the year prior. Domino’s was close behind, ending Wingstop 1,359 128 10.4% with 229 net openings in 2020. Kung Fu Tea netted 74 store openings in 2020, Tropical Smoothie Cafe 914 80 9.6% bringing its total to 292 in the U.S. Overall, the chicken menu category Kung Fu Tea 292 74 33.9% Panda Express 2,263 54 2.4% Sources: Technomic Ignite Company © 2021 Technomic, Inc. 3
I G N I TE M E N U U.S. Operators Turn to Poutine for Breakfast Poutine is a Canadian menu staple, these items in breakfast poutine to with 29% of Canadian operators appeal to consumers looking for menuing the potato, gravy and cheese traditional morning ingredients in less- curds combination. In the U.S., common presentations.* however, poutine is evidently less Honey Salt Food and Drink in Las popular (menued by just 1.3% of Vegas, for example, offers Breakfast operators), so the opportunity for Poutine, featuring herb-roasted innovation remains open. Enter potatoes, bacon gravy, cheese curds breakfast poutine. and sunny-side Desert Bloom Farm Operators are taking the base egg, while Bacon in Boise, Idaho, components of poutine and adding in serves Bacon & Eggs Poutine with fries, American-loved breakfast staples. cheese curds and southern gravy. Some of consumers’ preferred Traditional poutine shares commonalities breakfast items are bacon (61% of with the popular U.S. dish loaded fries consumers purchase bacon away from (menued by 5.0% of operators), so a home for breakfast on the weekends), breakfast poutine that’s “loaded” with eggs (53%) and hash browns/potatoes a.m. favorites could be a new iteration (50%), so operators are combining that wins consumers’ hearts. Source: Technomic Ignite Menu, Q1 2020 to Q1 2021 Poutine topped with poached eggs and *Base: 604 consumers ages 18+ (per weekpart) who purchase breakfast away from home hollandaise sauce *Source: Technomic 2019 Breakfast Consumer Trend Report Image Source: Shutterstock © 2021 Technomic, Inc. 4
I G N I TE C O N S U M E R SINCE THE RECENT PANDEMIC OCCURRED, HOW OFTEN DO YOU ORDER FOOD FROM ANY TYPE OF RESTAURANT AND EITHER EAT IT AT Restaurant THE RESTAURANT, HAVE IT DELIVERED OR PICK IT UP AT THE RESTAURANT TO EAT IT ELSEWHERE? Frequency Improves As the pandemic took hold early on in consumers report a steady decrease in 59% 55% 57% 60% 2020, Technomic’s Ignite Consumer the number who have stayed away from program survey layered in additional restaurants over the past four quarters. questions specific to consumer changes Once a week+ A rebound in overall frequency will be resulting from COVID-19 and its impact 1-3 times per month an essential ingredient for achieving on foodservice usage. Through polling best-case restaurant growth consumers on their overall restaurant Less than once per month projections, and Technomic will order and visit frequency, Technomic continue to closely monitor consumers’ Never was able to gauge the pandemic’s return to restaurants in the coming impact on usage across the country. quarters. Since the peak of lockdowns and dining 27% 33% 31% 31% room closures, there has been a gradual increase in the number of diners who patronize restaurants once a week or more frequently. Additionally, 7% 9% 9% 9% 8% 3% 2% 2% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Base: 27,300 consumers ages 18+ per quarter Source: Technomic Ignite Consumer brand ratings data © 2021 Technomic, Inc. 5
G L O B AL F O O D S E RV I C E N AV I G ATO R # OF NEW MENU ITEMS ADDED PER CHAIN DURING 2020 LTO Battle: Asia Edition Asia Average 18.7 Thailand 27.9 South Korea 22.6 Menu development is crucial for chains on the average number of new products Thailand and South Korea come in at to drive traffic and brand excitement in launched by leading chains throughout third and fourth, respectively, both Singapore 11.7 nearly every country globally—and no 2020 based on monthly LTO tracking easily outpacing the regional average. more so than in Asia. among key sets of restaurants. It’s key for operators to understand the Philippines 7.2 LTOs that express emerging trends, To set the baseline, in Asia overall, key importance of product development in- dishes and drinks that showcase chains each rolled out about 18.5 new market as it indicates how competitive seasonal ingredients, and innovative Items during 2020 on average. the local landscape is and how Malaysia 9.4 items that restaurants develop in house important it is to stay on top of emerging Japan, to anyone familiar with the all play into attracting both new and trends. Suppliers can leverage this Japan 38.8 market, is easily the champ in the Asia existing guests. understanding to keep their pipeline LTO battle with nearly double the appropriately filled for the markets they But the quantity of new products can region’s average. Indonesia operate in. 15.1 vary widely by country—even when China comes in second, with chains on looking at the same brand’s menu Technomic tracks LTO activity across the mainland launching about 32 new across different markets. 25 markets globally and publishes data India 6.5 items apiece over the course of the in its annual country reports. Check out who wins the battle for LTO pandemic-stricken year. supremacy in Asia. Findings are based China 32.3 Note: 320 chain menus tracked monthly in Asia across China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea and Thailand from January 2020 to January 2021 Source: Technomic Global Foodservice Navigator Program © 2020 Technomic, Inc. 6
COVID-19 DISRUPTION INDEX COVID-19 PERCENT PERCENT COVID-19 Disruption Index is Change Versus Previous Week and TOP 5 MOST DISRUPTED MARKETS DISRUPTION CHANGE CHANGE powered by Shortest Track, utilizing AI, Month BY INDEX POINT CHANGE INDEX VERSUS VERSUS (VERSUS PREVIOUS WEEK) (MAX: 1.00, HIGH machine learning and disparate sets of Change versus previous week/month DISRUPTION) LAST WEEK LAST MONTH data resources to quantify the potential allows users to see if the market is risks that U.S. businesses face from the becoming more or less disrupted over spread of the COVID-19 virus at the time. Changes that are positive (+) market level. show a move toward becoming 1 Lexington-Fayette, Ky. .090 12.51% -7.53% increasingly more impacted by COVID- The highest index possible is 1.00, 19 (not good). Changes that are 2 Reading, Pa. 0.360 2.81% -17.11% which is not good and reflects markets negative (-) show a trend toward being that are extremely disrupted. The index less impacted by COVID-19 (good). is updated on a weekly basis. 3 Springfield, Mo. 0.371 1.98% -22.71% Ignite Subscribers: Download full The COVID-19 Disruption Risk Index market report 4 Lebanon, Pa. 0.438 1.59% -19.12% shares weekly updates through a business lens, rather than a health lens, and incorporates more than 20 different 5 Harrisburg-Carlisle, Pa. 0.452 1.46% -19.42% data signals to measure disruption and predict future impact. These signals include infection rates, deaths, state- level restrictions and social distancing requirements, population densities and mobility, group size limitations and lifestyle risk factors contributing to spread. More information is available HERE. Notes: Data updated June 8, 2021 Source: Shortest Track © 2021 Technomic, Inc. 7
WAN T M O R E I N S I G H T S ? Since 1966, we have You can get this Ignite Company Ignite Menu produced in-depth See where restaurant chains Pinpoint the latest menu trends report delivered to are, how many units they have and see what’s on the horizon. research focused on the you bi-weekly! and how well they’re doing. Explore>> Explore>> foodservice industry. Sign up here>> We provide insights into consumer, industry and menu trends in the U.S., Canada and 23 countries around the world. Our team of experts helps leaders Ignite Consumer Global Foodservice in the industry make complex Get to know your customers’ Navigator business decisions, set strategy customers through 60+ attributes Understand the global industry, and stay ahead of the curve. and visit occasion metrics. from menu trends to consumers, Explore>> in 25 countries. Explore>> Have questions about this report? Reach out to us today. 312-876-0004 info@technomic.com technomic.com © 2021 Technomic, Inc.
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