Industry Insights A roundup of noteworthy foodservice findings for the week of Oct. 26, 2020
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Industry Insights A roundup of noteworthy foodservice findings for the week of Oct. 26, 2020
E C O N O M I C I M PAC T N AV I G ATO R
Restaurant Visits
AVERAGE NUMBER OF RESTAURANT VISITS
IN THE PAST WEEK
Trending Flat Sep 28
2.99
Apr 6
2.38
Over August and September, visits per cautious approach to returning to
week have been fairly consistent, foodservice.
hovering just below three visits a week.
Presently, the average number of visits
Weather will likely have an impact on May 25
per week is down about 13% from the
visits over late fall and winter, once 2.54
2020 peak of 3.44 visits per week.
outdoor dine-in service becomes more
difficult to manage in many parts of the Visit behavior is consistent with other
country. economic signs like unemployment,
which suggest a stalled recovery after
COVID-19 case totals have surged
major gains in June and July.
since September. It’s unlikely we will
see visit frequency rise to pre-COVID-
19 levels until the virus itself is
contained. Around a third of consumers
still have not visited restaurants for
dine-in service since it has become
available, indicating that there is a
subset of consumers who are taking a
May 11
May 25
Jul 6
Jul 20
Aug 3
Aug 17
Aug 31
Sep 14
Sep 28
Apr 13
Apr 27
Mar 2
Mar 16
Mar 30
Jun 8
Jun 22
Note: Consumer surveys fielded weekly with a national representative sample of 500 consumers
Base: Among consumers who ordered food and beverage from foodservice locations in the past week
Q: Please indicate how many visits you made to each in the past week (or last seven days) for each daypart
Source: Technomic Economic Impact Navigator Program Week Beginning
© 2020 Technomic, Inc. 2I G N I TE C O M PAN Y
CHIPOTLE MEXICAN GRILL
Digital Sales Surge
DIGITAL SALES SHARE BY QUARTER (%)
for Chipotle 60.7%
48.8%
Digital sales at Chipotle Mexican Grill Same-store sales performance
hit $776.4 million for Q3 2020, improved significantly for Chipotle in the
accounting for nearly 49% of the third quarter, increasing by 8.3% after
company’s total quarterly sales. During registering a decline of 9.8% during the
the same quarter of 2019, digital sales prior quarter. 26.3%
comprised just over 18% of sales.
Approximately half of Chipotle’s digital 18.2% 18.3% 19.6%
sales for the quarter came via delivery 15.7%
orders with the remainder resulting from
order-ahead transactions placed on the
company’s app and website.
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Sources: Technomic Ignite company data; Chipotle Investor Relations
© 2020 Technomic, Inc. 3C O N V E N I E N C E - S TO R E M E M B E R S H I P NEW OPTIONS Heat and Eat Express
Daypart Innovations
Meals
Kitchen Cravings Take Six new dinner entrees for heat and
Home Meals serve, including new burgers,
A line of 10 classic homestyle pastas and braised meats. (Wawa)
Address Lifestyle
entrees packaged to heat and
serve. (Kwik Trip)
Dinner Plates
Shifts
New items include grilled chicken
tenders, smoked pork ribs and
more. (Kwik Chek)
This year ushered in seismic lifestyle at dinner. Current daypart innovations
shifts for c-store customers. Shelter-in- for dinner call for a plethora of heat-
place orders and widespread work- and-serve dinners that are packaged for
from-home policies sparked a grab-and-go and delivery. These
slowdown in traffic in the convenience options are more substantial, higher in
channel. protein and hearty in order to be
suitable for the evening meal. Kids
Having long owned the morning with
meals are also part of the new
dispensed coffee programs, c-stores
equation, meeting the needs of family
experienced a slump in breakfast
dining parties.
daypart sales. Lunch occasions also
took a dip as guests who would
normally fuel up midday spent more of
those hours at home.
While c-stores reposition themselves for
a recovery in 2021, part of their latest
strategy is to uncover new opportunities
Source: Technomic 2020 Reviving C-Store Foodservice webinar
Image Source: Wawa Facebook
© 2020 Technomic, Inc. 4I G N I TE C O N S U M E R
Digital Orders at FSR:
ATTRIBUTE CATEGORY ROLLUPS (TOP BOX RATINGS)
AMONG CONSUMERS WHO ORDERED ONLINE FOR DELIVERY
DURING THEIR MOST RECENT FULL-SERVICE CHAIN BRAND VISIT
Elevated Ratings for Overall Rating
46%
58%
Restaurant-Direct Service &
Hospitality
59%
58%
For recent delivery orders placed Nevertheless, aspects of brand loyalty 57%
online, full-service chains see are not stronger among either guest Food & Beverage
significant gaps in brand performance group. Operators looking to grow their 47%
ratings between diners placing orders restaurant-direct orders must think
directly on the restaurant website or about leveraging this unfiltered Convenience & 66% Restaurant
app and those who used a third-party customer interaction to better build Takeout website/app
57%
aggregator. guest loyalty.
Third party
Guest perceptions of food quality and 53%
taste, convenience and value are higher Value
among restaurant-direct consumers, 43%
and the gap in overall visit satisfaction
scores is significant. 52%
Technology
46%
32%
Brand Fit & Loyalty
32%
Base: 2,047 recent delivery consumers, including 1,113 who placed delivery order via restaurant brand website/app
and 934 who placed delivery order via third party
Source: Technomic Ignite consumer brand metrics data, Q1 2020-Q2 2020
© 2020 Technomic, Inc. 5G L O B AL F O O D S E RV I C E N AV I G ATO R
Where the Biggest TOP THREE GROWTH MARKETS FOR TOP FIVE GLOBAL CHAINS
Global Chains Are Chain Name
Burger King
Market Name
India
Annual Change %
66.7%
Growing Fastest
Burger King Chile 23.9%
Burger King France 21.0%
KFC Argentina 90.0%
The world’s biggest restaurant players opened its 200th location there just last KFC Brazil 47.4%
continued their expansion efforts across week (on Oct. 22).
the globe last year. Looking at the top KFC Spain 26.1%
China is the top growth market for
five players by unit count—Subway, McDonald's China 12.7%
McDonald’s and third-leading growth
McDonald’s, Starbucks, KFC and
market for Starbucks—a signal of the
Burger King—gives us an interesting McDonald's Indonesia 10.7%
incredible amount of potential for unit
glimpse into which countries are seeing
development for chains. McDonald’s McDonald's South Africa 9.5%
the most growth.
grew nearly 13% to 3,383 units, and
Starbucks India 25.8%
KFC’s top two growth markets are Starbucks grew 17% to reach 4,125
Brazil and Argentina. While not highly locations. Neither show signs of slowing Starbucks Saudi Arabia 21.1%
penetrated yet, Latin America likely still down.
presents a growth opportunity for KFC Starbucks China 17.1%
Asia is showing promise for Subway.
and potentially other chicken players as Subway Thailand 13.4%
Two of the chain’s top three growth
well.
markets globally are Thailand and Subway Saudi Arabia 11.7%
India is the country with the most South Korea.
growth for both Starbucks and Burger Subway South Korea 9.6%
King. The Seattle-based coffee chain
Source: Technomic Global Foodservice Navigator Program
© 2020 Technomic, Inc. 6C O N S U M E R V I S I T T R AC K E R AD AWARENESS
AUGUST 2020 YTD
While limited-service Limited Service Full Service
restaurants tend to have Olive Garden 51%
Subway 50%
higher ad awareness
(including TV, radio, McDonald's 48% Applebee's 39%
internet or other digital
Red Lobster 35%
channels), it’s a full- KFC 45%
service restaurant Taco Bell 42% Buffalo Wild Wings 32%
(Olive Garden) that
topped the overall list Wendy's 41% IHOP 30%
Subway and McDonald’s have
Pizza Hut 40% Chili's Grill & Bar 30%
the highest ad awareness
among limited-service
Burger King 40% TGI Fridays 28%
restaurants.
Among full-service restaurants, Domino's 38% Denny's 28%
ad awareness is highest for
Olive Garden—leading other Little Caesars 38% Outback Steakhouse 28%
brands, such as Applebee’s
and Red Lobster, by a Papa John's 37% Dave & Buster's 27%
significant margin.
Source: Technomic Consumer Visit Tracker
© 2020 Technomic, Inc. 7COVID-19 DISRUPTION INDEX
COVID-19 Disruption Index is requirements, population densities
powered by Shortest Track, utilizing and mobility, group size limitations
AI, machine learning and disparate and lifestyle risk factors contributing
COVID-19 PERCENT PERCENT
sets of data resources to quantify to spread. More information is TOP 5 MOST DISRUPTED MARKETS
DISRUPTION INDEX CHANGE CHANGE
BY INDEX POINT CHANGE
the potential risks that U.S. available HERE. (VERSUS PREVIOUS WEEK)
(MAX: 1.00, HIGH VERSUS VERSUS
businesses face from the spread of DISRUPTION) LAST WEEK LAST MONTH
the COVID-19 virus at the market Change Versus Previous Week
level. and Month
Change versus previous 1 Providence-Warwick, R.I. 0.705 1.40% 3.58%
The highest index possible is 1.00, week/month allows users to see if
which is not good and reflects the market is becoming more or less
2 Bismarck, N.D. 0.443 1.46% 13.12%
markets that are extremely disrupted over time. Changes that
disrupted. The index is updated on a are positive (+) show a move toward Norwich-New London,
weekly basis. becoming increasingly more 3 0.630 0.92% 2.44%
Conn.
impacted by COVID-19 (not good).
The COVID-19 Disruption Risk Changes that are negative (-) show 4 Jefferson City, Mo. 0.556 0.90% 6.00%
Index shares weekly updates a trend toward being less impacted
through a business lens, rather than by COVID-19 (good).
5 Pocatello, Idaho 0.499 0.96% 6.94%
a health lens, and incorporates more
than 20 different data signals to Ignite Subscribers: Download full
measure disruption and predict market report
future impact. These signals include
infection rates, deaths, state-level
restrictions and social distancing
Notes: Data updated Oct. 19, 2020
Source: Shortest Track
© 2020 Technomic, Inc. 8WAN T M O R E I N S I G H T S ?
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