Quarterly LTO Review Q2 2020 - KAGOME USA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Quarterly LTO Review Q2 2020
Watch the Webinar
312-876-0004 | foodinfo@technomic.com | technomic.com
This quarterly webinar will
review LTOs from the past
COMMON LTO QUESTIONS
quarter. This report
includes information and
data collected in April, May
and June using the
1 What are you hearing?
following sources:
● Technomic Ignite Menu
Concept Development 2 What are you seeing?
● Technomic Foodservice
Impact Monitor
● Restaurant industry
news, including
3 What’s trending?
Restaurant Business
● Restaurant websites
4 What should I be doing?
© 2020 Technomic, Inc.
What are you hearing? © 2020 Technomic, Inc.
49%
of consumers are still ordering
foods and beverages from
restaurants
Image: Shutterstock
30% Image: Shutterstock
of consumers are tired of
eating the same meals at
Source: Technomic Foodservice Impact Monitor 12th
Edition—Week Ending June 5, 2020
home
© 2020 Technomic, Inc.
Craving more comfort foods 47%
Only feel safe ordering from restaurants that
market food preparation cleanliness and 47%
staff hygiene
Consumers Seeking value items 46%
seek
comfort, Seeking meals that will provide leftovers 41%
cleanliness
Seeking meals that can feed a family 38%
and value
Seeking delivery-friendly meals that travel
36%
well
Craving more healthful foods 32%
Source: Technomic Foodservice Impact Monitor 12th
Edition—Week Ending June 5, 2020
© 2020 Technomic, Inc.
ARE YOU PLANNING TO WHICH MENU CATEGORIES DO YOU
INTRODUCE ANY NEW LTOS PLAN TO OFFER LTOS?
OVER THE NEXT FEW
MONTHS?
Grab-and-go 40%
Entrees 37%
Operators Desserts 33%
not aligned No
Appetizers 19%
39% Healthy items 12%
with Comfort items 12%
consumers Yes
Family meals 12%
61% Breakfast fare 11%
Value-focused combos 8%
Handhelds 5%
Nonalcohol beverages 2%
Source: Technomic Foodservice Impact Monitor 12th Edition—Week Ending June 5, 2020
© 2020 Technomic, Inc.
ONCE THE STAY-AT-HOME ORDER IS LIFTED, HOW LIKELY ARE YOU TO
DO THE FOLLOWING WHEN ORDERING FOOD FROM A RESTAURANT?
Consumers (% VERY LIKELY OR LIKELY)
still more
likely to
order off-
Drive-Thru Takeout Delivery Dine-In
premise
56% 50% 43% 40%
Source: Technomic Foodservice Impact Monitor 12th
Edition—Week Ending June 5, 2020
© 2020 Technomic, Inc.
What are you seeing? © 2020 Technomic, Inc.
Comfort is king…
Sonic Drive-In brought Checkers Drive-In
back its Yellow Cake Restaurants/Rally’s Crazy
Batter Classic Shake and Good Food launched
introduced a Brownie several craveable
Batter Master Shake sandwiches, including a
double version of its Fry
Cracker Barrel Old Country Burger and crispy Mother
Store is offering an All-Day Cruncher chicken
Pancake Breakfast Family sandwiches
Meal Basket To-Go
Checkers’ Mother Cruncher
Chicken Sandwich
Image: facebook.com/checkersrally
© 2020 Technomic, Inc.…but better-for-you
fare is ramping up
Dunkin’ introduced under- Plant-based foods are
200-calorie Dunkin’ returning:
Refreshers made with ● Starbucks added the
green tea, fruit Impossible Breakfast
concentrate and B Sandwich
vitamins
● Dairy Queen debuted a
non-dairy DILLY Bar
made with coconut
cream
Starbucks’ Impossible
Breakfast Sandwich
Image: starbucks.com
© 2020 Technomic, Inc.At-home experiences
Tijuana Flats’ Cinco Party with playlists and Zoom
Packs (part of its Cinco backgrounds
de Quarantine-o
promotion) included DIY Shake Shack is offering a
tacos/burritos, alcohol and Shack Camp six-week
nonalcohol beverages and activity box
kids coloring pack
Red Lobster is promoting
various Date Night Deals
Red Lobster’s
Date Night Deals
Image: prnewswire.com/news/red-lobster-
seafood-co./
© 2020 Technomic, Inc.What’s trending? By Metric Best in Class Spotlight: By Generation © 2020 Technomic, Inc.
METHODOLOGY
Monthly LTO survey
featuring nationally
Purchase Intent representative sample of
500 foodservice users for
purchase intent (other
metrics vary)
Indicates level of appeal among foodservice consumers
Approximately 330 LTOs
from the Top 500 chains
tested in April, May and
June
Indicates _____ among potential purchasers Consumer ratings based
only on item name and
description
Uniqueness Draw Craveability Indexed to average
mealpart score in LTO
database:
Ability to differentiate Ability to drive traffic Ability to drive sales
• Above average
• Average
• Below average
© 2020 Technomic, Inc.New York-Style BBQ Bacon Wild Strawberry
Cheesecake Burger Freeze
LUNCH/DINNER LUNCH/DINNER LUNCH/DINNER
DESSERT ENTREE NONALCOHOL BEVERAGE
Purchase
Intent Menu example from Menu example from Menu example from
Quaker Steak & Lube: Whataburger: Taco Bell:
Topped with your choice of Two pure beef patties, three It's frozen. It tastes like real
fresh strawberries and whipped slices of bacon, smoked wild strawberries. However,
cream or Oreo cookie pieces cheddar cheese, Monterey what's a freeze without a little
and fudge. Jack cheese, pickles, diced personality? Just a Strawberry
onions, and a smoky tangy Freeze. The wild makes it
Score: 28% Index: 196
BBQ sauce on a bun. worth your while. Find out if
you can face the fierce flavor
Percentage=very likely to purchase (base: 500 Score: 23% Index: 167
consumers) for yourself at participating
Images (left to right):
facebook.com/pg/councilbluffslube; locations.
stories.whataburger.com’; tacobell.com
Score: 19% Index: 159
© 2020 Technomic, Inc.VALUE OFFERS - PURCHASE INTENT
% Very Likely Additional
Chain Offer Description
to Purchase Purchases
Wendy’s Get a Free 4PC Nug Available in spicy or crispy. 23% 66%
Served with your choice of soup or salad: Garden
Fresh Salad, Chicken and Gnocchi, Pasta e
$12.99 Chicken Fagioli, Minestrone, or Zuppa Toscana;
Olive Garden Parmigiana Buy One, breadsticks; and your choice of a 2nd entree 21% 36%
freshly prepared, packaged and chilled: Spaghetti
Take One To Go with Meat Sauce, Fettuccine Alfredo, Cheese
Ravioli, or Five Cheese Ziti al Forno.
$1 8-Piece Chicken
Burger King 20% 67%
Nuggets
Value Offer Average 11% 47%
Base: 500 consumers (purchase intent); potential purchasers (additional purchases)
© 2020 Technomic, Inc.Cinnamon Toast Bagelrito Tempura
Crunch BREAKFAST ENTREE Jalapeno
Pancakes Charburger
BREAKFAST ENTREE LUNCH/DINNER ENTREE
Uniqueness
Menu example from Menu example from Menu example from
IHOP: Einstein Bros. Bagels: The Habit Burger Grill:
Two buttermilk pancakes Bagel? Burrito? All of the Melted cheese, zesty jalapeno
topped with cinnamon spread, above. The Bagelrito is packed mustard ranch sauce, jalapeno
Cinnamon Toast Crunch with eggs, bacon, turkey- lightly fried in a Japanese-style
cereal, cream cheese icing, a sausage, cheese, hash tempura batter, topped with a
crown of whipped topping and browns, salsa and green chiles sweet and spicy jalapeno jam.
cinnamon sugar. in a flour tortilla wrapped in an
Score: 37% Index: 180
Asiago Bagel.
Score: 32% Index: 195
Score: 32% Index: 195
Percentage=very unique
Images (left to right): ihop.com;
facebook.com/einsteinbros; restaurantnews.com
© 2020 Technomic, Inc.Smoked Salmon Colossal Lobster Budino di
Pizza Roll Ricotta
LUNCH/DINNER ENTREE LUNCH/DINNER ENTREE LUNCH/DINNER DESSERT
Draw Menu example from Menu example from
Menu example from
Il Fornaio:
Biaggi’s Ristorante Italiano: Ninety Nine Restaurants:
Sweet ricotta pudding studded
Cold-Smoked Atlantic Salmon, Our signature Colossal Lobster
with chocolate, raisins and
Dill Creme Fraiche, Salmon Roll is back. 100% North
citrus zest.
Caviar, Capers, Everything Atlantic sweet and tender
Seasoning. lobster meat blended with just Score: 36% Index: 152
the right amount of mayo and
Score: 38% Index: 171
celery, piled high on a grilled
brioche roll and served with
french fries and coleslaw.
Score: 35% Index: 158
Percentage=much more likely to visit for
Images (left to right): facebook.com/Biaggis;
99restaurants.com; facebook.com/IlFornaioRoseville
© 2020 Technomic, Inc.VALUE OFFERS - DRAW
% Much More
Chain Offer Description
Likely to Visit
Three half slabs slow cooked with a unique blend of
$39.99 Family Value seasonings and our signature BBQ sauce. Served
Texas Roadhouse 38%
Ribs with a family sized salad, four individual sides, and
fresh baked bread.
$53.29 Chicken And Seasoned chicken and fresh broccoli over penne
Ruby Tuesday Broccoli Pasta Family pasta in Parmesan cream. Served with a side Garden 36%
Bundle Meal Salad.
Wood-grilled salmon topped with diced tomatoes,
chopped basil and our lemon butter. Served with a
Carrabba's Italian $49.99 Vazzano
choice of Garlic Mashed Potatoes, Penne Pomodoro 35%
Grill Salmon Family Bundle
or Sauteed Broccoli. Includes your choice of salad
and bread. Feeds up to 5.
Value Offer Average 24%
Base: potential purchasers (varies by concept)
© 2020 Technomic, Inc.Chocolate Cafe Veracruz Cajun Lobster
LUNCH/DINNER ADULT
Frostyccino BEVERAGE
Sub
BREAKFAST NONALCOHOL LUNCH/DINNER ENTREE
BEVERAGE
Craveability
Menu example from Menu example from Menu example from
Wendy’s: Rosa Mexicano Restaurants: Quiznos:
Smooth, cold-brewed coffee Hot Mexican coffee with Cajun seasoned lobster and
swirled with our legendary Kahlua; barrel-aged Corazon seafood salad with shredded
chocolate Frosty mix and blanco tequila, Fidencio mezcal lettuce, tomatoes and Cajun
served over ice. and Cointreau; Casa D’Aristi aioli made with Cholula hot
XTA, and cajeta whipped sauce served on butter-toasted
Score: 34% Index: 154 cream. bread.
Score: 34% Index: 152 Score: 31% Index: 148
Percentage=very craveable
Images (left to right): wendys.com; shutterstock.com;
quiznos.com
© 2020 Technomic, Inc.FIVE TYPES OF LTOS
Capable of generating incremental traffic and/or sales among a
1 Best in Class
broad audience
Items with high purchase intent that tend to feature mainstream flavors
2 Broad Appeal
and formats; may present cannibalization risk
Capable of generating incremental traffic and/or sales among a niche
3 Flavor-Centric Niche Item
audience interested in emerging or nontraditional flavors
Capable of generating incremental traffic and/or sales among a niche
4 Diet-Centric Niche Item
audience seeking to fulfill dietary needs
5 Novelty Item Highly unique items with potential to generate buzz
© 2020 Technomic, Inc.Image: facebook.com/
DunkinUS
Chicken, Bacon And
Cheese Croissant Stuffer
BREAKFAST ENTREE
Description: A buttery croissant stuffed with savory chicken, bacon,
and Colby Jack cheese, and topped with everything seasoning.
Purchase Intent Uniqueness Draw Craveability
Index: 147 Index: 142 Index: 106 Index: 141
20% very likely to purchase 24% of potential 24% of potential 30% of potential
purchasers consider very purchasers much more purchasers consider very
unique likely to visit for craveable
© 2020 Technomic, Inc.Image: Wienerschnitzel.com
Reese’s Candy Shake
LUNCH/DINNER DESSERT
Description: Made with Reese's Milk Chocolate Peanut Butter Cups
Purchase Intent Uniqueness Draw Craveability
Index: 126 Index: 74 Index: 120 Index: 136
18% very likely to purchase 19% of potential 28% of potential 33% of potential
purchasers consider very purchasers much more purchasers consider very
unique likely to visit for craveable
© 2020 Technomic, Inc.Spotlight Most appealing lunch/dinner entree by generation © 2020 Technomic, Inc.
BBQ Chicken Salad
GENERATION Z
Description: Baby spinach, romaine, sweet corn, wood-
grilled red peppers, pumpkin seeds, Gorgonzola, cumin-
lime vinaigrette
Purchase Intent
Index
Generation Z: 190
All Other Generations: 113
Percentage very likely to purchase
Generation Z: 29%
All Other Generations: 15%
Image: dinehomedelivery.com
© 2020 Technomic, Inc.Steak Enchiladas
MILLENNIAL
Description: USDA Choice Steak Enchiladas smothered in
Verde enchilada sauce topped with a white sauce drizzle
and salsa fresca served with black beans and Mexican rice.
Purchase Intent
Index
Millennials: 147
All Other Generations: 120
Percentage very likely to purchase
Millennials: 27%
All Other Generations: 14%
Image: facebook.com/rubios
© 2020 Technomic, Inc.BBQ Bacon Burger
GENERATION X
Description: Two pure beef patties, three slices of bacon,
smoked cheddar cheese, Monterey Jack cheese, pickles,
diced onions, and a smoky tangy BBQ sauce on a bun
Purchase Intent
Index
Generation X: 200
All Other Generations: 157
Percentage very likely to purchase
Generation X: 32%
All Other Generations: 21%
Image: stories.whataburger.com
© 2020 Technomic, Inc.Beer-Battered Fish And
Chips
BABY BOOMER
Description: Kolsch-battered cod, fries, apple coleslaw and
housemade Cajun remoulade.
Purchase Intent
Index
Baby Boomers: 251
All Other Generations: 96
Percentage very likely to purchase
Baby Boomers: 22%
All Other Generations: 15%
Image:
facebook.com/RockBottomRestaurant
© 2020 Technomic, Inc.What do I need to know?
Half of consumers getting bored of special occasion-themed
meals to interactive social
are still using eating at home.
media videos—because
foodservice, and They’re willing to increase
visits to restaurants consumers are
they’re looking for comfort
foods, value and an offering premium, indulgent primarily going to
emphasis on clean and foods that they normally be eating off-
hygienic practices. don’t prepare themselves,
premise via drive-thru,
like seafood and ribs. Also
takeout and delivery orders
When developing items, consider tapping into ways
even once lockdowns are
remember that to recreate the restaurant
lifted.
consumers are experience at home—from
© 2020 Technomic, Inc.EXPERT RESOURCES
Lizzy Freier
Ignite Menu Platinum Sr. Research Manager, Menu
lfreier@technomic.com
Technomic’s Ignite Menu Platinum program supports menu innovation
through trend analysis, concept screening and sales mix optimization
Concept Screening Menu Optimization Ignite Menu
Our on-demand concept Our proprietary menu simulator Discover how menu trends Lauren Hallow
screeners allow you to can forecast sales mix for your have evolved, what new items Sr. Manager, Research & Insights
economically build test cases menu simplifications as well as are hitting the market, lhallow@technomic.com
for your value offers and cannibalization risks from LTO and which flavors and
product ideas to justify further additions ingredients are gaining or
investment in their losing popularity
development
…and more! Questions on our menu capabilities? Reach out to your
Jaime Etsch
Technomic team today. Manager, Research & Insights
jetsch@technomic.com
© 2020 Technomic, Inc.You can also read
