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Restaurant Industry at a Glance 2012
July 7, 2012
Global Business Consulting
Research Outline

Restaurant Industry Sales Forecast

Decoding the Consumers

Economic Outlook

Food and Menu Trends
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Marketing Trends
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Employment Outlook
Restaurant Industry Is Projected To Expand
The restaurant industry is projected to increase 3.5%, with
total food service sales expected to reach a record high of
around $632 billion in 2012.
The continued national economic recovery and consumers'
pent-up demand for food, service, and social outlet that
restaurants provide are driving forces to this steady growth.
“As our nation slowly recovers from the economic
downturn, restaurants continue to be a vital part of
American lifestyles and our nation’s economy," said
Dawn Sweeney, president and CEO of the National
Restaurant Association.
Steady Growth in Sales Since 2010....
Growth in the restaurant industry varies
significantly by region of the country, and is most
heavily influenced by gains in employment,
disposable income, and population.
Projected Increase in Sales by State
Decoding The Consumers
In today's challenging economic environment, it is important
for restaurant operators to know their customers and how to
appeal to them.
Consumers' mindset, motivations, and spending patterns
should be taken into consideration when creating a business
plan to effectively compete for consumers' limited dollars.
Decoding The Consumers
In today's challenging economic environment, it is important
for restaurant operators to know their customers and how to
appeal to them.
Consumers' mindset, motivations, and spending patterns
should be taken into consideration when creating a business
plan to effectively compete for consumers' limited dollars.
A Closer Look at Today's Consumers
Consumer Segmentation


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Optimistic – confident in
their financial situation
Cautious – have a waitand-see approach to
spending
Hunkered-down – very
concerned about economy
Good News to Restaurant Operators
Restaurant Industry and US Economy
The vast majority of U.S. consumers still have a bleak
assessment of the nation's economy:

around 9 out of 10 adults gave a rating of “poor”
(65%) or “fair” (27%)

7% percent of adults described it as “good”

only 1% gave it an excellent rating
Considerable Risks Moving Forward
The road ahead of economic recovery is still shaky, here
are some factors affecting growth:

Europe's fiscal crisis

Negative short-term impact if the payroll tax holiday
and emergency unemployment benefits are not
extended

Stabilization of the housing market

Energy prices are expected to remain elevated
For Better or Worse in 2012
Looking forward to 2012,
restaurant operators'
outlook for the economy is
mixed. Overall, roughly 1
out of 4 operators said
economy will get better in
2012 while 1 out of 5
expect it to worsen.
On top of economic challenges, access to
capital is still a significant issue...
What Can Boost Restaurant Sales?

Travel and Tourism
Tourism is an important
driver of business across all
of the major restaurant
segments.
International tourism to the
US is expected to grow and
travelers are seen to spend
well over $100 billion on
tourism related goods and
services

Frequent Diner Programs
This is one way to satisfy
customers' growing
appetite for value while
encouraging loyalty.
Around 57% of adults said
they would be more likely
to patronize an
establishment that offers a
customer loyalty and
reward program.

Diversify in Retail
Some restaurant operators are
now offering packaged
food items for retail sale to
help their business stand
out from the competition.
In addition to food items,
some restaurant operators
also offer merchandise for
retail sales.
What You Should Cook Up This Year?
When it comes to food, the top menu trends are all about
local sourcing and nutrition, especially kids’ nutrition.
Healthier choices, gluten-free alternatives, locally sourced &
organic produce, new taste thrills & culinary invention,
sustainable seafood & non-traditional fish, food trucks &
street food, and ethnic cuisine are some popular consumer
choices
The Top 10 Menu Trends for 2012
Locally sourced meats and
seafood
Gluten-free/ food allergyconscious items

Locally grown produce

Healthful kids' meals
Locally produced wine and
beer

Hyper-local items

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Sustainability as a culinary
theme
Children's nutrition as a
culinary theme
Sustainable seafood
Whole-grain items in kids'
meals
Consumers Lean Toward Healthful Foods


A solid majority of
consumers said they are
leaning toward healthier
items.
A majority of restaurant
operators across all
segments concur that
customers are paying more
attention to the nutritional
content of their food than
they did 2 years ago.
Make Room at the Table for Mother Nature


People are more interested
in what's on their plate and
favor food that was grown
or raised in an organic or
environmentally friendly
way.
In eating out, there's a
heightened interest in what
consumers actually ingest.
Food Trucks and Street Foods
Meals on wheels have been around for quite some time, but
more and more chefs are now recognizing opening a food
truck as a good way to expand their business or break into
the industry.
6 in 10 consumers say they would visit a food truck offered by
their favorite restaurant, proving that mobile restaurant
options aren’t a flash-in-the-pan concept.
Taking It To The Streets
Korean Hits The Charts!
Thanks largely to food trucks, Korean food has entered the
American lexicon.
Say hello to bulgogi, kimchee, kalbi, bibimbap and more of
“modernist” Korean cuisine.
Since Koreans operate most of the country's sushi bars, you
can expect lots of fusion recipes as they open restaurants
beyond the bounds of Korea towns.
Ethnic Cuisines And Diverse Flavors Are
Hot Items

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Consumers’ increasingly global palates are looking for
excitement and more flavors.
This is what's emerging: A multi-ethnic, multi-sensory
dining experience where flavors clash on purpose.
This year, the survey identified Peruvian, Southeast Asian,
and very specific regional flavors—think, Szechuan or
Cantonese, for example—as hot items.
Locally Produced Wine and Beer in
Beverage Menus

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Locally produced alcohol is gaining traction and
restaurants that serve local wine and beer will feel the
boost.
More than 7 out of 10 chefs said the hottest alcoholic
beverage trend is locally produced wine and beer.
Top 10 Alcoholic Beverages
Top 5 Non-Alcoholic
Beverages
Top Food Trends By Category
Top Food Trends By Category
Top Food Trends By Category
Top Food Trends By Category
Marketing And Promotional Trends
The six most important restaurant marketing tactics restaurants
will employ for 2012:

Data capture and in depth analysis of online reviews

Identifying and activating influencers

Signature items

Gamification of restaurant loyalty programs
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One-to-one accessinility

Coupon personalization
Some Interesting Stats..
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28% of adults said they are likely to choose a restaurant
they haven't been to before based on information on social
media such as Facebook or Twitter
36% of adults said they have used the Internet to search for
nutritional information about restaurant food
38% of adults said they would be likely to utilize a
smartphone application if it was offered by a quick service
restaurant
Power Of Social Media
Consumers increasingly trust friends and peers more than
professional marketers. They’re taking control of social
media to share their restaurant experiences and opinions
with the public (via review sites such as OpenTable), or
with their own circles, such as Twitter, Facebook and
Foursquare (and now Google+ ). This helps some
restaurants rocket to popularity and leaves others quiet.
Employment Outlook
After 2 consecutive years of
job losses, the restaurant
industry rebounded with a
solid employment gain in
2011.
You only have to look at the
recent history to see that
the industry is an engine of
job growth for the US
economy.
Recipes for Success
Hospitality careers are hot! From intensive professional
training programs to specialty programs for continuing
education and amateur classes for hobbyists, everyone is
getting in on the action. According to the National
Restaurant Association by 2014, the culinary industry will
add 1.4 million jobs... The industry has never been hotter.
Hot jobs, cool economy.