ReportsnReports | Latino Foodservice Trends in the U.S.

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ReportsnReports | Latino Foodservice Trends in the U.S. Hispanic consumers are central to restaurant industry growth: Hispanic share of consumer-driven restaurant sales is on the upswing, with growth of 4.7% in 2011, almost double that of the U.S. consumers generally. Latino Foodservice Trends in the U.S. provides industry participants with valuable insights about the impact Hispanics are having on the restaurant industry: How the prevalence of Hispanic youth, children, and choice of language spoken affect restaurant usage, supported by restaurant usage frequency analysis How Hispanic perceptions about consumer confidence affect their frequency of restaurant use and why marketing messages should be tailored accordingly How geography and featured cuisine affect Hispanic guest traffic volume and growth Analysis of “hot” ethnic cuisine trends; Mexican menu items; Caribbean, Mexican, South American menu item penetration; and brand LTO/new menu items. Challenging commonly held beliefs about Hispanics’ views on the importance of the kitchen and at-home family dining—and why full-service restaurant share gains suggest that a significant shift is underway Understanding the greater conflict on the part of Hispanics than on the part of non-Hispanics regarding healthful eating perceptions. Which restaurant segments and brands (by foodservice sales) are growing Hispanic share This report covers Latino foodservice trends in the United States. Scope of analysis is limited largely to the fullservice, limited-service and snack and beverage segments of the restaurant industry, and includes analysis of 4year Hispanic restaurant spending trends by restaurant segment; 5-year Hispanic guest traffic analysis by restaurant segment, sub-segment and brand; menu item analysis (primarily Mexican but also Caribbean and South American, as well as limited-time offer and new item analysis). Trends are framed within the context of the general population as well as that of non-Hispanics. A market size and forecast for restaurant sales to Hispanic consumers (with segment analysis) is included. The report also covers the following topics: Drivers pertinent to the Hispanic share of the restaurant sales, including population and income growth trends; demographic drivers; language and acculturation; Hispanic consumer confidence; and geographic trends and related brand analysis. Hispanic health issues and trends pertinent to the restaurant industry, including obesity trends and related sociological issues; attitudes toward health, diet and food, with a focus on their views on healthy fast food, the nutritional value of food, and the importance of the kitchen to their home. Combined sales and guest traffic trends during 2007-11 among the top 25 restaurant brands by sales, as well as a wider net of top brands according to Hispanic share of use.


Latino Foodservice Trends in the U.S. | Foodservice Trends Market | Market Research Reports Table Chapter 1: Executive Summary Scope and Methodology Scope of coverage Methodology Consumer survey methodology Menu item analysis Methodology Market size and forecast Hispanic restaurant spend trending Definitions Share of Stomach: Latino Foodservice Market Size and Forecast Insight capsule Latino Foodservice: Macrotrends and Drivers Insight capsule Fast Facts Latinos in Context: Cuisine and Menu Trends Insight Capsule Fast Facts Restaurants, Hispanics & Health Insight Capsule Fast Facts Latinos in Context: Food & Restaurant Spending Trends Insight Capsule Fast Facts Latinos in Context: Restaurant Industry Guest Traffic Trends Insight Capsule Latinos in Context: Casual Restaurant Guest Traffic Trends Insight Capsule Latinos in Context: Family Restaurant Guest Traffic Trends Insight Capsule Latinos in Context: Quick-Service Restaurant Guest Traffic Trends Insight Capsule Latinos in Context: Snack & Beverage Concept Guest Traffic Trends Insight Capsule Latinos in Context: Restaurant Brand Analysis Insight Capsule


Chapter 2: Share of Stomach: Latino Foodservice Market Size and Forecast Introduction Restaurant sales to consumers Graph 2-1: Restaurant Sales to Consumers, 2006-11 Limited-service restaurant sales to consumers fare better than full-service sales Graph 2-2: Restaurant Sales to Consumers, by Segment, 2006-11 Hispanic share of restaurant sales ticks upward Graph 2-3: Restaurant Sales to Consumers, Share of Sales to Hispanics, 2006-11 Balancing population growth, unemployment trends and HH income Graph 2-4: Restaurant Sales to Hispanic and Non-Hispanic Consumers, Percent Change, 2007-11 Hispanic momentum in full-service restaurants’ favor Graph 2-5: Full-Service Restaurant Sales to Consumers, Share of Sales to Hispanics, 2006-11 Graph 2-6: Full-Service Restaurant Sales to Hispanic and Non-Hispanic Consumers, Percent Change, 2007-11 Limited-service Hispanic restaurant share plateaus Graph 2-7: Limited-Service Restaurant Sales to Consumers, Share of Sales to Hispanics, 2006-11 Graph 2-8: Limited-Service Restaurant Sales to Hispanic and Non-Hispanic Consumers, Percent Change, 2007-11 Chapter 3: Latino Foodservice: Macrotrends and Drivers Overview Hispanic importance to market will only grow over time Table 3-1: Hispanic Population, Share of Total Population, by Age, 2005-2025 Hispanic HH income and household wealth lags Table 3-2: Income Analysis, by Race/Gender But share of consumer spending and buying power on the upswing Table 3-3: Average Annual Expenditures by Hispanic and Non-Hispanic Consumer Units, 2005-09 Table 3-4: Aggregate Spending by Hispanic and Non-Hispanic Consumer Units, 2005-09 And significant gains in buying power projected Table 3-5: Projected Growth in Hispanic Buying Power, 2010-15 Key restaurant demographic drivers: youth and males Youthful Hispanic population important to all restaurant segments Table 3-6: Population by Selected Age Group, Hispanics vs. Other Population Groups, 2009 Population share + restaurant use and usage frequency = important Table 3-7: Restaurant Segment Use and Usage Frequency Among Hispanics, by Age, 2011 Males the majority Table 3-8: Population by Gender, Hispanics vs. Other Population Groups, 2009 But restaurant usage and usage frequency tilts to Hispanic females Table 3-9: Restaurant Segment Use and Usage Frequency Among Hispanics, by Gender, 2011 Larger, family households with children Latino households much larger than average


Table 3-10: Population by Gender, Hispanics vs. Other Population Groups, 2009 Regional variations Language and acculturation Table 3-11: Percent of Hispanic Population Foreign-Born, 2009 Table 3-12: Percent of Hispanic Population Foreign-Born, by Age Group, 2009 Most Latinos Are English-speakers Table 3-13: English-Language Capabilities of Hispanics 5 Years Old and Over, 2009 Influence of English language grows Table 3-14: English-Language Capabilities of Hispanics 5 Years Old and Over, 2000-09 Marketing correctly to multicultural consumers Taco Bell’s talking Chihuahua The Spanish media angle Olive Garden: Spanish media; mainstream restaurant chain A question of confidence Opportunity: target Hispanics in view of restaurant usage & degree of confidence Table 3-15: Degree of Consumer Confidence, Correlation to Restaurant Usage by Segment, Hispanics vs. Non-Hispanics Know your geography Graph 3-1: Hispanic/Latino Population as Percent of Total Population by County, 2010 Highly concentrated Hispanic areas influence leading restaurants’ Hispanic share Jack in the Box geographic analysis Table 3-16: Jack in the Box Location & Hispanic Population Analysis Denny’s geographic analysis Table 3-17: Denny’s Location & Hispanic Population Analysis But it’s not just about location; it’s also about cuisine type Domino’s delivers to Hispanics Table 3-18: Domino’s Location & Hispanic Population Analysis Chapter 4: Latinos in Context: Cuisine and Menu Trends Overview Top ethnic cuisine and flavor trends What’s hot? Table 4-1: Top Ethnic Cuisine and Flavor Trends, 2011 Mexican on the menu Top sauces and flavors on Mexican menus Table 4-2: Top Sauces and Flavors at Mexican Restaurants, Incidence and Penetration, 2011 Top Mexican sauces and flavors used across restaurant industry Table 4-2: Top Mexican Sauces and Flavors, All Restaurant Menus, Incidence and Penetration, 2011 Top Mexican entrees vary by segment Table 4-3: Top Mexican Entrees, Restaurant Penetration, by Segment, 2011


Regional variation Table 4-4: Top Mexican Entrees, Restaurant Penetration, by Region, 2011 Top Mexican appetizers Table 4-5: Top Mexican Appetizers, Restaurant Penetration, by Segment, 2011 More than just Mexican Shared in common Mexican menu presence dwarfs those of other Latin American regions Table 4-6: Latino/Hispanic Cuisine: Restaurant Industry Menu Incidence & Brand Penetration, by Segment, 2011 Non-Hispanic cuisine chains Pizza chain mixes traditional pizza offerings with Latino-influenced fare Table 4-7: Domino’s Pizza: Latin-Influenced Menu Item Introductions, 2010-11 Breakfast mainstay spices up menu Table 4-8: Denny’s: Latin-Influenced Menu Item Introductions, 2010-11 Casual Bar & Grill player innovates with Hispanic-influenced fare Table 4-9: Chili’s: Latin-Influenced Menu Item Introductions, 2010-11 Burgers with flair Table 4-10: Sonic: Latin-Influenced Menu Item Introductions, 2010-11 Studying high concentration areas Diversity on the menu Studying street food Chapter 5: Restaurants, Hispanics & Health Making health a priority The argument in dollars and cents Obesity rates among Hispanics trending higher Graph 5-1: Age-Adjusted Prevalence of Overweight, Obesity and Extreme Obesity among U.S. Adults, Age 20-74 Years Rates among Hispanic children on the rise Graph 5-2: Obesity Rates, Ages 2-19, All versus Hispanic, 1988-2008 Lower incomes = higher obesity rates Rates among men and women by race and ethnicity differ Graph 5-3: Obese Adults Age 20 and Over, by Poverty Income Ratio and Race/Ethnicity, Percentage of Male and Female Obese Adults: 2005-08 Hispanic culture and practices significantly influence obesity perceptions Burst and bust short-time financial cycle leads to food sharing Feeding children a symbol of nurturing and achievement Obesity not perceived as negative Study ramifications for restaurant industry Hispanic poverty is widespread Hispanic diet, health & food attitudes: a myth exposed & health contradiction? Healthful eating conundrum


Positive breakfast trend; negative ingredient knowledge trend Table 5-1: Hispanic Diet, Health & Food Attitudes: Percentage Use, Index to Non-Hispanics, 2006-11 Healthy fast food? Not so fast! Generational differences compounded by usage-frequency differences Table 5-2: Healthy Fast Food Endorsement: Percentage Use, Hispanic Generation Index to General Population, 2011 But HH income tells a different story Table 5-3: Healthy Fast Food Endorsement: Percentage Use, Hispanic HH Income & Gen Y Gender Index to General Population, 2011 Nutrition Table 5-4: Food Nutrition Importance: Percentage Use, Hispanic Generation & Gen Y Gender Index to General Population, 2011 The importance of the kitchen is relative The kitchen is much more important to some than to others Debunking a myth: importance of kitchen does not deter Hispanic restaurant use? Table 5-5: Kitchen Importance: Percentage Use, Hispanic Generation & Gen Y Gender Index to General Population, 2011 Chapter 6: Latinos in Context: Food & Restaurant Spending Trends Overview Hispanic HH income and household wealth lags Table 6-1: Income Analysis, by Race/Gender But share of consumer spending and buying power on the upswing Table 6-2: Average Annual Expenditures by Hispanic and Non-Hispanic Consumer Units, 2005-09 Table 6-3: Aggregate Spending by Hispanic and Non-Hispanic Consumer Units, 2005-09 Table 6-4: Income Analysis, by Race/Gender Hispanic household spending trends Hispanic food spending trends Graph 6-1: Hispanic Household Food Spending, 2005-09 Gap between narrows between food-away-from-home and food-at-home spending Graph 6-2: Hispanic Household Food Spending, Share of Total Spend, 2005-09 2005-09 Hispanic restaurant spending trends Graph 6-3: Hispanic Household Food-Away-From-Home Spending, by Segment, 2005-09 Full-service restaurant share gains suggest that significant shift is underway Graph 6-4: Hispanic Household Food-Away-From-Home Spending, Share of Total Spend, 2005-09 Hispanic daypart spending trends Graph 6-5: Hispanic Household Restaurant Spend Share, by Daypart, 2005-09 Per household versus per person restaurant spending Graph 6-6: Hispanic Restaurant Spend: Per Household & Per Person, 2005-09 Breakfast spending increases defy recession


Graph 6-7: Hispanic Breakfast Daypart Spend: Per Household & Per Person, 2005-09 Lunch Graph 6-8: Hispanic Lunch Daypart Spend: Per Household & Per Person, 2005-09 Dinner Graph 6-9: Hispanic Breakfast Daypart Spend: Per Household & Per Person, 2005-09 Snack Graph 6-10: Hispanic Snack Daypart Spend: Per Household & Per Person, 2005-09 Chapter 7: Latinos in Context: Restaurant Industry Guest Traffic Trends Overview A growth driver Population growth saves industry Table 7-1: Restaurant Usage by Segment: All Consumers, 2007-11 Hispanic growth is the key Table 7-2: Restaurant Usage Among Latino/Hispanics, by Segment, 2007-11 Hispanic usage share increases in all major restaurant segments Table 7-3: Latino/Hispanic Restaurant Usage Share, by Segment, 2007-11 Standouts: Family breakfast restaurants Standouts: Pizza establishments Table 7-4: Indexed Restaurant Usage by Segment & Sub-Segment: Hispanic/Latinos & Non-Hispanic/Latinos, 2011 Usage, by demographic Gender trends Table 7-5: Restaurant Usage by Segment, All Consumers vs. Hispanic/Latinos, by Gender, 2011 Generation gap Table 7-6: Restaurant Usage by Segment, All Consumers vs. Hispanic/Latinos, by Generation, 2011 Income plays significant role Table 7-7: Restaurant Usage by Segment, All Consumers vs. Hispanic/Latinos, by HH Income, 2011 Full-service restaurant usage trends, by segment Table 7-8: Full-Service Restaurant Usage by Segment: All Consumers, 2007-11 Hispanic share Table 7-9: Full-Service Restaurant Usage Among Latino/Hispanics, by Segment, 2007-11 Table 7-10: Latino/Hispanic Full-Service Restaurant Usage Share, by Segment, 2007-11 Full-service usage frequency Table 7-11: Full-Service Restaurant Visit Frequency in Past Month: Hispanic/Latino Consumers vs. NonHispanic/Latino Consumers Table 7-12: Full-Service Restaurant Usage, by Daypart: Hispanic/Latino Consumers vs. Non-Hispanic/Latino Consumers Spanish-speaking Hispanics skew to snacking and breakfast dayparts Limited-service restaurant usage, by segment Table 7-13: Limited-Service Restaurant Usage by Segment: All Consumers, 2007-11 Table 7-14: Limited-Service Restaurant Usage Among Latino/Hispanics, by Segment, 2007-11 Table 7-15: Latino/Hispanic Limited-Service Restaurant Usage Share, by Segment, 2007-11


Limited-service restaurant usage frequency Table 7-16: Limited-Service Restaurant Usage Frequency: Hispanic/Latino Consumers vs. Non-Hispanic/Latino Consumers Table 7-17: Limited-Service Restaurant Usage, by Daypart: Hispanic/Latino Consumers vs. Non-Hispanic/Latino Consumers Chapter 8: Latinos in Context: Casual Restaurant Guest Traffic Trends Overview Hispanic share of Casual Bar & Grill and Italian higher than Casual Steak Table 8-1: Casual Restaurant Usage Metrics, by Casual Sub-Segment: All Consumers vs. Hispanic/Latino Consumers Hispanic usage lags, and demographic trends mirror general population Table 8-2: Casual Restaurant Usage, All Consumers vs. Hispanic/Latinos, by Gender, Generation & HH Income, 2011 Casual Bar & Grill brand analysis Table 8-3: Casual Bar & Grill Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Olive Garden advertising paying off? Table 8-4: Casual Italian Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Steak’s on! Table 8-5: Casual Steak Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Chapter 9: Latinos in Context: Family Restaurant Guest Traffic Trends Overview: Food health attributes that determine choice of a “quick bite” Family restaurants a Hispanic favorite Table 9-1: Family Restaurant Usage Metrics, by Segment: All Consumers vs. Hispanic/Latino Consumers Demographic snapshot Table 9-2: Full-Service & Limited-Service Family Restaurant Usage, All Consumers vs. Hispanic/Latinos, by Gender, Generation & HH Income, 2011 Limited-service family restaurant brand analysis Table 9-3: Limited-Service Family Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Family breakfast restaurant brand analysis Table 9-4: Family Breakfast Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Family all-day restaurant brand analysis Table 9-5: Family All-Day Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Chapter 10: Latinos in Context: QuickService Restaurant Guest Traffic Trends Overview Enormous quick-service restaurant usage footprint Table 10-1: Quick-Service Restaurant Usage Frequency:


All Consumers vs. Hispanic/Latino Consumers Quick-service restaurant usage, by segment Table 10-2: Quick-Service Restaurant Usage Metrics, by Segment: All Consumers vs. Hispanic/Latino Consumers Hispanic Burger usage in line with average 170 million users; 13.2% Hispanic share Table 10-3: QSR Burger Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Pizza, pizza! A Hispanic draw Table 10-4: QSR Pizza Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Mexican QSRs outperform Taco Bell the exception Table 10-5: QSR Mexican Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Chapter 11: Latinos in Context: Snack & Beverage Concept Guest Traffic Trends Overview Snack and beverage: a demographic overview Table 11-1: Snack & Beverage Restaurant Usage, All Consumers vs. Hispanic/Latinos, by Gender, Generation & HH Income, 2011 Hispanic share lags that of QSR Jamba Juice: usage leader Table 11-2: Snack and Beverage Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers Chapter 12: Latinos in Context: Restaurant Brand Analysis Top 25 restaurant brands: tale of the tape Five-year Hispanic growth triple that of population as a whole Hispanic share gains Thanks to largest overall usage footprint, McDonald’s draws most Hispanics But eight other brands register explosive usage growth McDonald’s versus burger rivals Burger saturation—or are burgers just not hitting the mark? High Hispanic share Low Hispanic share Share gainers Table 12-1: Top 25 Restaurant Brands: System-wide Sales & Hispanic Share of Guest Traffic, 2007-11 Top 25 quick take: Hispanic vs. all consumers restaurant brand usage Graph 12-1: Top 25 Restaurant Brands by Sales, Hispanic/Latino versus General Population Use, 2011 Top 25 quick take: Hispanic vs. all consumers restaurant brand usage likelihood Graph 12-2: Top 25 Restaurant Brands by Sales, Hispanic/Latino Indexed Use, 2011 Throwing a wider net: large and mid-size chains


Table 12-2: Restaurant Brands with High Hispanic Usage Share: Indexed Use, Revenue and Units, 2011 Latest Market Research Reports: Food Market Research Bundle: Fats and Oils The Global Wind Turbine Market, 2nd Edition Pharmaceutical Packaging Industry – 2011 Yearbook Dovitinib (Renal Cell Carcinoma) – Analysis and Forecasts to 2020 Biogas Upgrading: Technologies and Global Markets (Focus on Asia-Pacific)

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